April 17, 2009 by James Oliver
It seems even the undisputed ruler of the Internet is not immune from a little credit-crunch related turmoil, first quarter results, published yesterday have led to the company’s first ever decline on the previous quarter, overall revenue from advertising has slipped an unprecedented three percent from the last quarter of 2008.
Up until now it had been thought that Google were the closest thing to a recession proof major company there was, as their revenue continued to climb despite a serious decline in the overall advertising industry – it is expected by most to drop by at least 5 percent this year.
It would however, be premature to start dumping Google stock just yet – the performance of the company is still little short of miraculous when compared with the rest of the industry, plus, despite the decline, the company has managed to exceed profit expectations by enacting a structured cost-cutting regime that has proved very effective, even whilst avoiding widespread redundancies.
It’s unlikely that Google are panicking too much, it has long been known that the company couldn’t escape the effects of the economic slowdown forever and the fact that the effects have been comparatively slight shows that the company is in fact performing well.
Related posts:
