Google’s Australian corporation may have taken a hit for the sake of expansion, having reported a loss of $3.08 million in its accounts for the 2010 calendar year.
WhileGoogle Australia‘s revenue increased from $110.31 million in 2009 to $151.39 million in 2010, the company’s expenses rose as well. With $111.6 million spent on employees, $10.53 million on promotions and advertising, and another $7.13 million on travel and entertainment, there wasn’t much room left in the budget for a profit.
It seems likely that Google Australia was willing to dip into its reasonable cash reserves of $21.3 million to fund expansion, hoping for a better result in 2011. Google is not listed on theAustralian Stock Exchangeand thus has limited reporting requirements, so it’s hard to gauge whether the company’s loss was a strategic decision or simply the result of a poor year.
The kicker is that Google paid a mere $7.4 million in taxes on its $151.39 million revenue after deferred tax payments and adjustments.
Story byJoel Falconer
Joel Falconer is the Features Editor at TNW. He lives on the Gold Coast, Australia with his wife and three kids and can sometimes be found g(show all)Joel Falconeris the Features Editor at TNW. He lives on the Gold Coast, Australia with his wife and three kids and can sometimes be foundgamingorconsulting. Follow Joel onTwitter.
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