Alphabet revenues up 22% on growth in mobile search, YouTube

News General Global 26 JAN 2017
Alphabet revenues up 22% on growth in mobile search, YouTube

Alphabet reported a strong finish to 2016, led by continued strength at its core Google business and smaller losses at its 'other bets'. Revenues rose 22 percent year-on-year to USD 26.064 billion, led by growth in mobile search and YouTube, according to Google CFO Ruth Porat in a statement. Net profit improved to USD 5.333 billion or USD 7.56 per share from USD 4.923 billion or USD 7.06 per share a year ago. 

Google contributed USD 25.082 billion in revenue, up 18 percent from a year earlier, and operating profit of USD 7.883 billion, up 16.1 percent. The other bets had revenue of just USD 262 million, while their operating loss narrowed to USD 1.088 billion from USD 1.213 billion in Q4 2015. 

Google's advertising revenues rose 17 percent to USD 22.399 billion, led by the growing mobile market, and other Google revenues were up an even stronger 62 percent to USD 3.403 billion. Traffic acquisition costs rose slightly to 22 percent of ad revenue from 21 percent a year ago. 

Google reported a nearly 50 percent increase in capital expenditure to over USD 3 billion in the quarter, but free cash flow was still up 40.6 percent to USD 6.335 billion. The company ended the year with total cash of USD 86.333 billion, up from USD 73.066 billion a year earlier. Its headcount rose by over 10,000 in the past year to just over 72,000 employees at the end of 2016. 

Categories:

General

Companies:

Google,  YouTube,  Alphabet

Regions:

Global

Tags:

Financial figures, IT - applications, Advertising services

Related Articles

GLOBAL 5 SEP 2017

Google parent Alphabet sets up new holding company, XXVI

Google's parent Alphabet has announced via an FCC filing that it's setting up a new company called XXVI Holdings to complete its business reorganisation into a conglomerate with units covering a wide range of sectors. Under the new structure, Alphabet's business units, called "Other Bets" and previously under the Google umbrella, will now become subsidiaries of Alphabet with the new XXVI Holdings entity owning the equity of each Alphabet company, including Google. In addition Google will change from a corpo

GLOBAL 24 JUL 2017

Alphabet profit falls in Q2 after USD 2.7 bln fine from EU

Alphabet, the parent company of Google, reported a drop in second-quarter net profit, hurt by the competition fine of USD 2.7 billion imposed on the company by the European Commission. In a rare occurrence for the company since it went public, net profit fell to USD 3.524 billion or USD 5.01 per share from USD 4.877 billion or USD 7.00 per share a year earlier. Excluding the fine, net profit was still up, at USD 6.260 billion, according to adjusted figures presented by Alphabet.

GLOBAL 3 JUL 2017

Record EU fine to cut Alphabet Q2 profit by USD 2.74 bln

Google parent Alphabet has announced that the record EUR 2.42 billion fine from the European Commission for abusing its dominant position in the search market will hit its second quarter net profit by the full amount (2.74 billion in US dollars) because the penalty isn't tax deductible. "We will report a separate operating expense line for the USD 2.74 billion charge on the income statement," said the company in a statement from chief accountant Amie Thuener. The fine was imposed by the EC last week for vio

GLOBAL 28 APR 2017

Alphabet revenue up 22% to USD 24.8 bln in Q1

Google parent company Alphabet reported sales of USD 24.75 billion in the first quarter, up 22 percent year on year, driven by mobile search revenues and apparently unaffected by the recent YouTube ad boycott by advertisers. The group's net profit was up 29 percent to USD 5.43 billion compared to USD 4.20 billion in the year-earlier quarter. Google itself contributed the vast majority of the sales, with revenues from Alphabet's "Other Bets" including Nest, Verily, Google Fiber and Waymo climbing to USD 244

GLOBAL 27 FEB 2017

Mobile to generate 75% of online display ad revenue by 2020

By 2020, more than three-quarters of all online display advertising revenue will come from mobile, according to report from IHS Markit. The report also shows that global mobile display advertising jumped by 72 percent in 2015 compared to the previous year, and accounted for 45 percent of all online display advertising revenue, with a total of EUR 29 billion.

IRELAND 22 DEC 2016

Google saves billions in tax with 'Dutch sandwich'

Google saved billions in taxes in 2015 through the use of a 'Dutch sandwich', a system of holding companies that allows the company to shift profits to Bermuda, where there is no corporate income tax, Bloomberg reports. The extent of the tax savings was disclosed in a filing by a Google subsidiary in the Netherlands with the Dutch Chamber of Commerce, reported first by local newspaper Het Financieele Dagblad. The Dutch subsidiary, Google Netherlands Holdings BV, has no employees. It recorded around EUR 14.9

GLOBAL 28 OCT 2016

Google ad business drives increase in Alphabet Q3 profit

Alphabet, the parent company of Google, reported a strong increase in third-quarter profits, led by continued expansion in Google's advertising business. Revenues rose 20 percent year-on-year to USD 22.45 billion, and operating profit increased to USD 5.77 billion from USD 4.71 billion, leading to an increase in the margin to 34 percent from 33 a year ago. Net profit rose to USD 5.06 billion or USD 7.25 per share from USD 3.98 billion or USD 5.73 per share a year earlier.

GLOBAL 29 JUL 2016

Alphabet underlying sales increase 25% in Q2

Alphabet, the holding company for Google and its other activities, reported sales of USD 21.5 billion for the second quarter, an increase of 21 percent from a year earlier. Excluding currency effects, sales rose 25 percent. In its home market the US, revenues rose 25 percent, and sales were 14 percent in the UK and 19 percent in the rest of the world. Google's search activities grew by 21 percent to USD 21.3 billion, and generated an operating profit of USD 6.99 billion. Revenue from Alphabet's 'Other bets'

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.