Google hedges against exchange-rate changes
Published: 20 Oct 2008 12:03 BST
In recent months, financial analysts have expressed concern that Google's financial results could be hurt by foreign-exchange rate changes. But Google said Thursday that it has taken measures to insulate itself from the potential problem.
ZDNet.co.uk blogs
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Specifically, Google has invested about $80m (£45m) in hedging programmes that counteract currency swings, chief financial officer Patrick Pichette said on a conference call to discuss Google's third-quarter financial results. The foreign-exchange issue affecting Google is that the dollar is currently growing stronger in relation to other currencies, which effectively devalues revenue from other countries.
The hedging programmes "should be viewed as an insurance policy", Pichette said.
Google has hedging programmes for the euro, the Canadian dollar and the pound sterling, and plans to extend the programme to other foreign currencies, he said.
"Our hedging programmes are working well," Pichette said.
In the third quarter, 51 percent of Google revenue came from outside the US, Google said.
Credit: Google hedges against foreign currency swings from CNET News.com
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