Google results beat analysts’ projections

Google gave investors reasons to cheer last night, with news of earnings exceeding expectations with the search company reporting signs of stability in its advertising rates.

According to the internet company, the average that advertisers paid every time users clicked their ads was down by 6 per cent in the fourth quarter of last year – a marked improvement from the 15 per cent decline seen in the previous quarter. Rates have fallen for five consecutive quarters, with advertisers showing an unwillingness to pay up for promoting their business on mobile devices such as smartphones.

The improvement was however welcomed by investors, who pushed Google shares higher in extended trading hours last night. Earnings per share, meanwhile, rose to $10.65, excluding certain items higher than analysts' projections.

Google co-founder and chief executive, Larry Page, said the company ended 2012 with a strong quarter. He added revenues were up 36 per cent year-on-year, and 8 per cent quarter-on-quarter. He said the company hit $50 billion in revenues for the first time last year, which was not a bad achievement in just a decade and a half.

Excluding traffic acquisition costs, or the portion of revenues Google shared with partners, net revenues stood at $9.83 billion, better than expected and higher than the $8.13 billion seen a year earlier.

The largest internet search company came out with new product listings during the fourth quarter - typically its strongest and also gained from business growth in international markets, according to analysts.