Google grows profit but sees sales go flat

Chief executive sees three per cent revenue increase as no mean feat given the downturn

Google UK is worth 13 per cent of total sales

Google has reported a modest three per cent rise in second-quarter revenue, but an 18 per cent year-on-year increase in profit.

The search giant’s sales for the three months to 30 June were $5.52bn (£3.38bn), while net income of $1.48bn (£907m) was up from $1.25bn (£766m) in the same period last year.

Chief executive Eric Schmidt hailed the revenue increase, given the state of the global economy.

“Google had a very good quarter, especially given the continued macro-economic downturn. While most of the world's largest economies shrank, Google's year-over-year revenues were up three per cent,” he said.

“These results highlight the enduring strength of our business model and our responsible efforts to manage expenses in a way that puts us in a good position for the economic upturn, when it occurs. We remain focused on investing in technical innovation to drive growth in our core and new businesses."

UK revenue of $715m (£438m) represented 13 per cent of total sales. Non-US sales accounted for 53 per cent of the quarter’s revenue.