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Google workers ride bikes outside of Google headquarters in Mountain View, Calif., Thursday, April 12, 2012.

Paul Sakuma/AP

Google Inc.'s core Internet business boosted revenue 21 per cent in the second quarter, while its recently acquired Motorola Mobility business raised Google's overall revenue to $12.21-billion.

Shares of Google were up 3 per cent at $609 in after-hours trading on Thursday.

Google, which recently acquired hardware maker Motorola Mobility, posted overall revenue of $12.2-billion for the quarter and net income of $2.79 -billion, or $8.42 per share, on a consolidated basis.

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"Search demand in the U.S. search was pretty solid, and despite economic challenges in Europe, I'm getting the sense that search demand was not too bad there," said Needham & Co analyst Kerry Rice.

The cost per click for Google's online search ads continued to decline in the second quarter, falling 16 per cent year-on-year, while the overall number of clicks on its ads increased 42 per cent.

Google, the world's No. 1 Web search engine, closed its $12.5-billion acquisition of Motorola in mid-May, giving the company a foothold in the fiercely competitive smartphone hardware business, dominated by companies such as Apple Inc. and Samsung.

Motorola reported an operating loss of $233-million in the second quarter, on revenue of $1.25-billion.

Google said revenue for its existing Internet business totaled $10.96 billion in the quarter, compared with $9-billion a year earlier.

The cost-per-click for Google's online search ads continued to decline in the second quarter, falling 16 percent year-on-year, while the overall number of clicks on its ads increased 42 per cent.

Cost-per-click "was down more than I expected, but this could be a trough, since we did see a sequential uptick," Mr. Rice added. "We may have hit the bottom here."

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