Google’s mother alphabet boosts revenue and profit
The profit of $ 5.43 billion at Alphabet and $ 7.6 billion at Google. Currently, only the search engine sheds money.
Alphabet publishes the balance sheet for the first quarter of 2017. The company’s sales are growing by 22 percent to 24.75 billion dollars. Net profit increased 29 percent to $ 5.43 billion, or $ 7.73 per share. In both cases, the Google mother surpassed analysts’ expectations, which had predicted a $ 7.40 per share surplus of $ 24.2 billion.Investors reacted mainly positive. In post-trading, the price of the alphabet stock rose by 4.27 percent to 929.50 dollars. The trading day had already completed the trading day with an increase of 0.26 percent and in the meantime reached a new 52-week high of 893.38 dollars.
Google contributed 24.506 billion dollars to the overall result. This resulted in an operating profit of 7.6 billion dollars (plus 22 percent). Nest, Google Fiber, and other business sectors, the alphabet called “Other Bets,” generated $ 244 million (up 48%). The consolidated balance sheet burdened them with a deficit of 855 million dollars, 10 percent more than a year ago.
Google’s revenue figures include traffic acquisition costs of $ 4.63 billion. Their share of advertising revenues rose by one point to 22 percent. Excluding this amount, the company’s net revenues were $ 19.88 billion. Revenue per click dropped another four percent.
Almost half (47 percent) revenue was achieved by Alphabet in the US. Growth there was 25 percent. In the EMEA region, the increase was 13 percent. There, Google Alphabet spent a total of 8.09 billion dollars – about a quarter of the region’s sales came from Great Britain. In the Asia-Pacific region as well as the rest of America, the company improved by 29 and 34 percent, respectively.
Chief Financial Officer Ruth Porat justified the good result with a positive development in mobile advertising. The cloud platform is also one of the company’s fastest growing businesses. CEO Sundar Pichai also focuses on artificial intelligence and machine learning. “Advances in machine learning help us improve many Google products. “We continue to drive the speed of using Artificial Intelligence and Machine Learning,” said Manager.
The Wall Street now predicts a non-GAAP profit per share of $ 8.05 for revenue of $ 25.3 billion for the current second quarter. In the second quarter of 2016, Alphabet had sales of $ 21.5 billion and a non-GAAP equity gain of $ 8.42.