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Google increases its costs

By Amir Efrati

The new CEO of Google Inc., Larry Page , has said he wants the company more agile. That is proving to be expensive.

The Internet search giant on Thursday announced a 18% increase in earnings and a 27% increase in revenue, thanks to the money kept flowing into online advertising. But what caught the eye were the rising costs of the company based in Mountain View, California , that seeks to maintain its lead in an increasingly competitive landscape and rapidly changing.

• Google's operating expenses, what you spend on salaries, marketing and research, increased 54% from a year earlier and accounted for one third of its quarterly revenue, its highest since at least 2007 .

• The sales and marketing costs soared 69% to over U.S. $ 1,000 million, because Google has invested in building their local advertising market and promote your web browser Chrome. The Internet company has been investing heavily in hiring and wages, as well as new products . The research and development costs rose to U.S. $ 1,230 million in the quarter, well above the $ 818 million a year earlier.

• The company granted a general wage increase of 10%, which is increasing costs este año. Además, la compañía ha estado gastando mucho para tratar de evitar que algunos importantes gerentes de producto abandonen el barco para unirse a empresas nuevas de rápido crecimiento como Facebook Inc. y Twitter Inc. G oogle contrató 1.916 empleados nuevos desde enero, con lo que su fuerza laboral total es de 26.316 personas.

• En una conferencia telefónica, el director financiero Patrick Pichette, defendió el alza de los costos y afirmó que Google estaba "construyendo negocios de miles de millones de dólares" además de avisos para búsquedas en la red, y sostuvo que "este es el momento de invertir".

• Google shares fell 5.4% after the close of the day at $ 547 after completing the formal trading day to U.S. $ 578.51 on Nasdaq.

• Rising costs are recorded at a time when Google is undergoing a change in leadership. The co-founder Larry Page took the reins this month as chief executive of the hands of Eric Schmidt, who played such a task for a long time.

• Page, 38, was put in charge of Google at a time when the company is working to diversify its revenue streams advertising beyond the Internet browser and when faced with increasing competition from companies like Apple Inc. and Facebook Inc.

• Page, who spoke briefly on Thursday, said it is "very optimistic" about the future of the company and that "there are tremendous improvements that can be achieved" in the main products and Google's core business.

• The new CEO has said he wants Google to act more quickly in some respects. To that end, and made changes at the top levels of management, among other decisions.

• In recent months, Google has embarked on a series of new initiatives to develop new services and enhance existing web. Has boosted its mobile software Android and has renewed its YouTube video site.