Google has reported a 68 per cent fall in net profit to 382 million dollars for the fourth quarter even as the most popular internet search giant saw higher revenues from its sites.
Moreover,in an effort to retain workers,the company has unveiled a voluntary stock option scheme for its employees. The firm’s net profit tumbled 68 per cent to 382 million dollars for the fourth quarter ended December 31,2008. It had a net profit of 1.20 billion dollars in the year-ago period,Google said in a statement.
The search giant’s total revenues rose to 5.7 billion dollars in the quarter under review from 4.82 billion dollars in the corresponding year ago period.
“Google-owned sites generated revenues of 3.81 billion dollars,or 67 per cent of total revenues,in the fourth quarter of 2008. This represents a four per cent increase over third quarter 2008 revenues of 3.67 billion dollars,” the statement noted.
Meanwhile,the search major has come up with a voluntary employee stock option exchange programme. Going by the latest plan,the firm would offer employees the choice to exchange their stock options for ones with lower exercise price the price employees would pay to convert to an option into stock.
“The company said that the plan was intended to retain workers as the value of Google’s stocks plummeted near 60 per cent since its November 2007 peak,” the statement said.
According to the statement,revenues from outside the US touched 2.86 billion dollars in the fourth quarter.
“Google performed well in the fourth quarter despite an increasingly difficult economic environment. Search query growth was strong,revenues were up in most verticals and we successfully contained costs,” Google’s Chief Executive Eric Schmidt said.
Schmidt added,”It’s unclear how long the global downturn will last,but our focus remains on the long term,and we’ll continue to invest in Google’s core search and ads business as well as in strategic growth areas,such as display,mobile and enterprise.”