Google Australia claims 2010 financial loss

Renai LeMay
Monday, 02 May 2011 16:12

The company's listed revenues jumped substantially over the 12 months, according to the statement, rising from $110.31 million in 2009, to $151.39 million for the year to December 31, 2010. Google's biggest local cost was its 434 employees - which soaked up some $111.6 million in the period, meaning their average salary was a whopping $257,000.

However, the company also spent a great deal on advertising and promotional expenses '” $10.53 million in 2010. Other major expenses included travel and entertainment - which was $7.13 million.
The company's basic profit and loss statement only listed tax costs of $1.1 million, although the company was actually slated to pay some $7.4 million in taxes in 2010. However it balanced that figure out with deferred tax payments and adjustments.

At the end of the year, Google Australia was holding some $21.3 million in cash and cash, as well as $34.2 million of what it said were 'trade and other receivables'. It had some $16.1 million worth of property, plant and equipment.

However, not everyone believes that Google's disclosed finances reflect an accurate picture of the company's local revenues - with industry figures and analysts having stated over the past several years that they believe Google to be making something between $650 million and $1 billion. As Google is not listed on the Australian Stock Exchange, it is not required to go into a great deal of detail about its local finances.

In the financial statements released last week, Google stated in the revenue recognition section of the documents that it had a number of agreements with other Google subsidiaries which guided how it recognised revenue.