Google records first ever revenue drop

 

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By Dave Stevenson

Posted on 17 Apr 2009 at 11:51

Google has recorded its first ever decline in revenue, dropping from £3.8 billion in the fourth quarter of 2008 to £3.7 billion this quarter - a drop of 3%

Its revenue increased compared to the same quarter last year, however, by 6%. Its year-on-year profit is up 8%, to £0.96 billion.

In a conference call, Google CEO Eric Schmidt said the recession meant the company was in "uncharted territory", calling the economic climate "tough." He said that "no company is recession-proof," and that "Google is absolutely feeling the impact."

However, he insisted that Google's long-term future was secure. "Our advertising model is working," he said. "Google is now well-placed for the recovery when it occurs."

Media Week is reporting that Google's UK operations are among those worst affected, with a year-on-year drop of two per cent in terms of revenue contributed to Google's overall performance.

Last month, it was reported that Google intended to lay off nearly 200 sales and marketing staff, and that it was cutting back recruitment staff.

It also terminated under-performing projects, such as its initiative to sell advertising on the radio and in print media. However, Schmidt insists Google will "continue to invest for the long term, as we should."