Posts filed under ‘finance’
In a rather extraordinary example of begging for money, Florence Devouard, Chairwoman of the Wikimedia foundation has told an audience at the Lift07 conference that Wikipedia has the financial resources to run its servers for another 3-4 months, and that without further funding Wikipedia “might disappear”.Could Wikipedia shut it’s doors? Tthe site alone would be worth at least $xxx million, if not a billion, after all, there’s literally no better property out there when it comes to traffic and authority than Wikipedia. And whoever bought it would not only have an amazing marketing tool, they could even control the truth, at least as most of us know it. Indeed, the likes of Microsoft wouldn’t need to hire people to edit entries, they could simply pay the new owner. Text Link sales alone across the site would more than pay for the servers the site uses, tens of thousands of times over. I smell a begging bluff on this one, but Devouard did make the claim.
By Elinor Mills
Google‘s fourth-quarter revenue rose 67 percent and profit nearly tripled on continued strength in its cash cow paid searc business.
Handily beating analysts estimates, net earnings for the quarter ended December 31 were $1.03 billion, or $3.29 a share, including one-time items such as stock-based compensation, compared with $372 million, or $1.22 a share, during the same quarter in 2005. Excluding those items, earnings were $997 million, or $3.18 a share. Total revenue for the quarter rose 67 percent to $3.2 billion, compared to $1.92 billion a year ago. Excluding traffic acquisition costs, or commission paid to content partners, revenue was $2.23 billion.
Analysts polled by Thomson Financial were expecting Google to post earnings per share of $2.92 excluding items, and revenue of $2.19 billion, excluding traffic acquisition costs. Paid search represents nearly all of Google’s revenue. The company is expanding its advertising platform beyond the Web into radio and print.
“We paid over $3 billion in 2006 to our partners and this is a figure that we expect is going to increase as we ramp up our video, radio and print programs,” founder Sergey Brin said in a conference call with analysts. Asked about whether the company plans to help companies advertise on television, Chief Executive Eric Schmidt said: “We have already said that we are experimenting with traditional television advertising…There are many reasons to believe that the targeting technology we have invented can apply well, that advertisers will pay much higher rates for ads that are targeted.”
As for YouTube, Google suspects content creators will take advantage of the direct link to fans that the video-sharing site provides, said Schmidt. “We can connect the copyright owner with the user,” he said. “We’re pushing for a model where the people who produce the content get some revenue back.” In addition, Google is working on audio and video fingerprinting technologies to protect copyright holders, he said.
When it comes to search, paid clicks on ads on Google’s network and its publisher partners’ Web sites grew more than 60 percent in the aggregate, according to Chief Financial Officer George Reyes. While things look rosy for Google, its largest search rival posted more modest fourth quarter results. Last week, Yahoo’s earnings were down more than 60 percent from a year ago.
Web traffic to Google grew 24 percent in the fourth quarter from the same period a year earlier and Google accounts for more than half of all Web searches, according to Nielsen/NetRatings. The company is expected to capture two-thirds of the search advertising revenue this year, according to eMarketer.
Google shares, which closed at $501.50, dropped as much as 2 percent in after-hours trading after the company failed to make so-called “whisper numbers” on the street that were slightly higher than the estimates that they beat. The stock has risen nearly 18 percent over the past year, about the same amount that Yahoo’s has fallen.
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Google‘s fourth-quarter revenue rose 67 percent on continued strength in its cash-cow paid search business, beating analyst estimates.
Net earnings for the quarter ended December 31 were $1.03 billion, or $3.29 a share, including one-time items such as stock-based compensation, compared with $372 million, or $1.22 a share, in the same quarter a year earlier. Excluding those items, earnings were $997 million, or $3.18 a share.
Total revenue for the third quarter rose 67 percent to $3.2 billion, compared with $1.92 billion a year ago. Excluding traffic acquisition costs, or commission paid to content partners, revenue was $2.23 billion, slightly higher than estimates. Analysts polled by Thomson Financial were expecting Google to post earnings per share of $2.92 excluding items, and revenue of $2.19 billion, excluding traffic acquisition costs.
Posted by Elinor Mills