Google sales soared in the fourth quarter as clicks on ads exploded, boosted by mobile searches -- but the amount that advertisers paid Google for those clicks continued to slip.
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NEW YORK (CNNMoney) -- Google's got a mobile dilemma.
The search giant's sales soared in the fourth quarter as clicks on ads exploded, boosted by mobile searches -- but the amount that advertisers paid Google for those clicks continued to slip. Google also lost money on its Motorola business.
Google said its revenue rose 39% to $11.3 billion in the fourth quarter, excluding advertising sales that it shares with partners. Net income rose to $2.89 billion, up 6.6% from a year ago. Shares of Google rose by 4.5% in after hours trading.
The number of paid clicks Google racked up surged 24%, but the cost per click fell 6% compared to last year -- the fifth consecutive quarter in which average click costs fell.
Motorola's mobile business lost $353 million in the quarter.
Still, Google said mobile remains a huge opportunity.
"We ended 2012 with a strong quarter," Larry Page, CEO of Google, said in a prepared statement. "In today's multi-screen world we face tremendous opportunities as a technology company focused on user benefit. It's an incredibly exciting time to be at Google."
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