If you’re looking for a clue about AOL”s importance to Google look no further than the 10Q, which clearly states that AOL is responsible for roughly 10 percent of all revenue. That’s down form 12 percent in 2004 but still real money — and a real reason to both to Keep AOL and keep it away from the competition.
– It looks like Google is cutting back on guaranteed contracts. Agreements with some Google Network members and partners require Google to make guaranteed revenue share payments. The aggregate outstanding amount: $298.5 million through 2007 compared to $462.9 at the close of 2004. Also from the 3Q05 10Q:
– Google is still projecting slower revenue growth and “downward pressure” on operating margins, due to increasing competition, decline in growth rate and increased expenses.
– Revenues from the new Google Publication Ads Program, the trial program placing ads in magazines, were not material in 3Q05.
– International revenues accounted for about 39 percent of Google’s revenes in the first nine months of 2005, compared to 33 percent for the same period in 2004. But more than half of Google’s traffic during those times came from out side the U.S.
– Google closed the third quarter with $7.6 billion in cash , cash equivalents and securities.
Meanwhile, Google shares broke the $400 barrier during regular training Thursday, closing up $5.30 at $403.45.
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