Search engine Google last night reported an 82% surge in profits for the final three months of 2005, but its shares fell in after-hours trading because the figure was below Wall Street expectations. Google's earnings were hurt by a higher than expected tax rate.
The company said it earned net income of $372m, or $1.22 a share, in the fourth quarter. Excluding the cost of stock options and other charges, Google's earnings came to $1.54 a share, much less than the figure of $1.76 expected by analysts.
Google had a 41.8% effective tax rate, far higher than its forecast for an annual rate of 30%. The company also invested more money in infrastructure and research and development than some analysts had expected.
Sales rose 86% to $1.92 billion as Google gained market share from search rivals such as Yahoo and Microsoft's MSN division.
Over 2005, the Silicon Valley firm's net income rocketed 267% to $1.47 billion on revenues of $6.14 billion, which was nearly double the 2004 figure.
Google, which has its European base in Dublin, recently launched an online video marketplace where people can search for, watch and buy television shows, movies, music videos, documentaries, and personal productions.
