Google's 2Q earnings rise 11 pct, ad prices fall

Friday, July 20, 2012, Vol. 36, No. 29
The Associated Press

Google's second-quarter earnings rose 11 percent despite a deepening decline in the prices paid for its Internet search advertising.

The results announced Thursday included Google's $12.5 billion acquisition of cellphone maker Motorola Mobility Holdings Inc. for the first time. Google Inc. owned Motorola for the final 39 days of the quarter ending in June.

Google Inc. earned $2.8 billion, or $8.42 per share, during the three months ending in June. That compared with net income of $2.5 billion, or $7.68 per share, last year.

The earnings would have been $10.12 per share, if not for Google's accounting costs for employee stock compensation and the Motorola deal.

Revenue climbed 35 percent from last year to $12.2 billion. If not for Motorola, revenue would have increased by 21 percent.