Google's Profit Slump Revealed In Early Third-Quarter Results

Google Profits Slump

A premature release of Google's third-quarter results revealed a shocking 20% drop in profits, year-on-year.

The company's costs snowballed by 71%, while the amount of money the internet giants received from adverts significantly lowered.

Additionally Google's core business seemed to be suffering with acquired manufacturing business Motorola Mobility, accounting for 18% of its revenue.

"The core business seems to have slowed down pretty significantly, which is shocking. I don't think anybody saw this," Sameet Sinha at B Riley told the Telegraph.

Trading in Google's shares was suspended after stock prices plummeted by 9% amid fears of a crash. The company's share price has now been overtaken by Microsoft.

In a statement, Google said: "Earlier this morning RR Donnelley, the financial printer, informed us that they had filed our draft 8K earnings statement without authorisation.

"We have ceased trading on Nasdaq while we work to finalise the document. Once it's finalised we will release our earnings, resume trading on Nasdaq and hold our earnings call as normal at 1:30 PST."

The results had been expected after the closing bell. Beneath the title of the release filed with the Securities and Exchange Commission, it read "PENDING LARRY QUOTE" with an gap for Google's CEO Larry Page to comment on the shock fall.

Although net revenue rose to $11.3bn from $7.5bn, this was half a billion short of the expected $11.8bn it was expected to pull in.

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