Google blames warm British weather for fall in ad revenues

Google has reported its first slowdown in UK ad revenues for the first time in eight quarters in the three months to 30 June, blaming exceptionally warm weather and tough comparisons.

Google: UK revenue fell 5% in the three months to 30 June
Google: UK revenue fell 5% in the three months to 30 June

Last week, the global search giant posted revenues of $14.1bn (£9.2bn) in the quarter, up 19 per cent on the year, but below the $14.4bn (£9.4bn) analysts had expected.

However, in the UK revenues fell 5% to $1.32 billion (£868 million) in the three months when compared with $1.39 billion in the first quarter. This figure falls to 3% once exchange rates and other variable are stripped out.

A company spokesperson blamed exceptionally warm weather and tough year-on-year comparisons for the UK slowdown.

The unexpected drop follows the introduction of Google’s new advertising system, enhanced campaigns, in February, designed to help build campaigns with mobile and desktop ads from a single dashboard.

Larry Page, chief executive of Google, said: "The shift from one screen to multiple screens and mobility creates tremendous opportunity for Google. With more devices, more information, and more activity online than ever, the potential to improve people’s lives even more is immense."

Globally, Google's staff numbers have risen from 40,178 to total 44,777 full-time employees in the last quarter – this excludes staff numbers in Motorola Mobile, which have halved to 4,599).