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Click, Click: Ads Boost Google, Moto Drags

By Oonagh Reidy | Friday | 18/10/2013

"We are closing in", says Chief Page as sales soar to almost $15 bn, $3bn profits

"Google had another strong quarter with $14.9 billion in revenue and great product progress," said Larry Page, CEO, as the tech king announces a glittering set of financials, with Motorola being the only cog in the wheel.  

"We are closing in on our goal of a beautiful, simple, and intuitive experience regardless of your device."

Google revenues rose 12% to $14.89 billion for the third quarter to September 30. 

Ad revenues made up the majority of Google sales soaring to $13.7bn  - up more than $2m on Q3 12, as Android OS and sites like Search, get into every mobile device running Android, which now account for over 60% of the world's handsets. 

The third quarter also saw the tech giant amass profits of $2.97 billion, up considerably from the $2.18bn, recorded a year ago. 

Google shares soared over 8% on the Nasdaq overnight, as the results delivered above analyst expectations. 

GAAP operating income was $3.44 billion to $959, or 23% of revenues.

Google-owned sites generated almost 70% of revenues or $9.39 billion - up 22%. Services like Paid Clicks, which relate to ads served on its sites, rose 26%. The cost of paid clicks fell 8%. 

However, news wasn't so good for Motorola, the US handset maker it acquired in 2011. 

Motorola Mobile sales fell 5% to $1.18 billion, accounting for 8% of Google's total revenues in Q3, compared to $1.78b in Q3 2012. 

The mobility company reported an operating loss of $248 million - up almost $60 million in same time a year ago. 

The Mountain View-based techie spent over $2bn on R&D, its latest financials show.

Page, who has been riddled with problems with his voice, also told investors at an earnings call held earlier today said he will no longer attend every earnings call going forward.  

On Google's rosy quarter, apart from Moto losses, analyst Carolina Milanesi tweeted: "Motorola lost close to 1b, can you remind us of the synergy? Answer maybe not as enlightening: it's early days".

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