Google’s revenues from the UK have dropped not only quarter-on-quarter but also year-on-year, with executives saying that the UK economy in a deep recession.
In the last three months of the year, Google’s revenues from the UK came in at $685 million.
Patrick Pichette, SVP and CFO, told analysts that this represented a 1% drop year-on-year and 12% compared with Q3 08.
When asked how the UK would have performed on a constant-forex basis, Pichette responded: “We don’t do the math for everybody! If you do the analysis…you will find the forex has been a significant factor.”
Pichette denied that the apparent slowdown in the UK was a sign that the market was maturing. While insisting that forex was Google’s biggest headache in the UK, “you can’t discount the macro-economic environment.”
He said: “It’d be wrong to say that the dynamics of advertising and spending for products is not affected by this. The UK is in deep recession.”
Google did better in other EMEA markets, with Germany, Netherlands and France metioned as strong performers.