Alphabet, the parent company of Google, reported second-quarter revenues up 62 percent year-on-year to USD 61.88 billion. The company said it saw a broad recovery in advertising and a "rising tide" of consumer online activity around the world. Its operating margin nearly doubled compared to a year ago to 30 percent, and net profit jumped to USD 18.53 billion from USD 6.96 billion in the same quarter of 2020.
Google Search revenues rose 68 percent year-on-year to USD 35.85 billion, and YouTube revenues were up 84 percent to USD 7.00 billion. Google Cloud revenues also grew by 54 percent to USD 4.63 billion, and operating losses from the cloud business reduced to USD 591 million from USD 1.43 billion a year ago. Google's 'Other Bets' contributed a slightly bigger loss of USD 1.40 billion on revenues of USD 192 million.
Excluding currency effects, Alphabet's revenues were up 57 percent year-on-year. Its main market, the US grew at the same rate of 57 percent, contributing USD 28.21 billion in revenues. EMEA was the second-largest region, with revenues up 55 percent to USD 17.66 billion at constant rates, and Asia grew by 57 percent on an organic basis to USD 10.88 billion. In the rest of the Americas, revenues were up 77 percent to USD 3.25 billion.
The company's bottom line benefited from a change in accounting to extend the useful life of servers and network equipment to respectively four and five years from the previous three. As a result, depreciation fell by USD 721 million and net profit was increased by USD 561 million.
