Google earnings show profit increase, growth slows down in advertising

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Google has reported its earnings today, saying that it has earned US$5.51 billion for the first quarter of 2009, representing an increase of six percent, if compared to year by year; but also represents a decrease of three percent if compared to the fourth quarter of 2008.

This revenue growth was thanks in part to its international activities, representing 52 percent of its total revenue, compared to 50 percent in Q4 2008, and 51 percent in Q1 2008. However, the slip in its revenue between quarters is a first for the company.

“Google had a good quarter given the depth of the recession–while revenues were down quarter over quarter, they grew 6% year over year, thanks to continued strong query growth. These results underline both the resilience of our business model and the ongoing potential of the web as users and advertisers shift online,” CEO Eric Schmidt said in a statement.

“Going forward, our priority remains investing for the long term to drive future growth in our core and emerging businesses.”

The company, however, also announced that YouTube will be bringing more content from Hollywood studios, and also announced a change in its senior executives, with Omid Kordestani, a 10-year veteran at the company who is senior vice president of global sales, will be replaced by Nikesh Arora, the president of international operations. Kordestani will still be part of the company, but now as an advisor to the chief executive and founders.

And while advertising has been slowing down, paid clicks to advertising served on Google and AdSense partners actually increased 17 percent compared to last year, and 3 percent to the fourth quarter of 2008. It’s employee count, also down, was currently at 20,164 full time employees, down from 20,222 from December of last year.