the Google logo on an iPad Mini 2. in the second quarter has just the good Google advertising business for strong revenue made at the parent alphabet (Photo: AP)
Mountain View Strong growth at Google the parent alphabet jumps in sales and profits. During the quarter, revenues from alphabet YoY grew by 21 percent to 21.5 billion dollars (19.4 billion euros). Profit rose by nearly a quarter to around $ 4.88 billion, as the company announced after US market close on Thursday.
The other areas except Google shall still mainly for high costs. Your sales falling despite a jump of 74 $ 185 million still negligible. At the same time as well as their loss of 660 expanded to 859 million dollars. These include the specialist for household networking Nest, the fiber provider Fiber and the innovation lab Google X and the development of self-driving cars.
Chief Financial Officer Ruth Porat a limited, that most of these so-called “other bets” ( “Other Bets”) still do not generate revenue. They also assured the analysts in a conference call several times that alphabet was extremely disciplined in investment. “A long-term focus does not exempt us from managing the cost.”
The business of online advertising on Google’s own sites grew by 24 percent to 15.4 million dollars. The number of paid clicks on ads rose by 29 percent. That was the decline in revenue per click by seven per cent to more than compensate. The price to pay for advertisers per click on an ad is determined by auction. With the rise of smartphones the average price decreases continuously because advertising on the small screen costs less. Nearly four billion dollars in sales ranged Google back to partner sites, brought the user to the service of the Internet Group.
Google does not quantify how the proceeds to individual business sectors such as the video platform YouTube or the operating system Android distribute. but analysts expect at least assume that more than half of the advertising revenue of Google from mobile devices is
Google’s revenues from other business areas as online advertising -. such as the content platform Play store or the hardware -Business – rose by a third to around $ 2.2 billion
alphabet located now on a cash mountain of 78.5 billion dollars.. About two thirds of store outside the United States. The tax rate in the last quarter at 20 percent. The Group now has 66,575 employees to 57,148 a year ago.
The Alphabet shares gained after trading in a first reaction to almost five percent, because the numbers were better than expected by investors.
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