Alphabet/Google’s Profit Soars 21 Per Cent

(FILES) - File picture taken March 2, 2015 shows Google's Senior Vice President Sundar Pichai giving a keynote address during the opening day of the 2015 Mobile World Congress (MWC) in Barcelona. Google unveiled a new corporate structure August 10, 2015, creating a parent company dubbed Alphabet led by chief executive Larry Page, with the Internet search unit as one of several entities. In a surprise announcement, Page said Alphabet will be the umbrella company for the tech giant's research arm X Lab, investment unit Google Ventures and health and science operations, as well as the search unit Google, whose CEO will be current vice president Sundar Pichai. AFP PHOTO / LLUIS LLENE

Alphabet, Google’s parent company, has reported its fastest growth rate in two years as companies bought more ads on its search engine and other products, plus users clicked more on those ads.

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Alphabet revenues rose 21 per cent to $US21.5 billion in the second quarter over a year prior. Excluding payments to advertising partners, revenue was $US17.5 billion.

Net profit for Alphabet rose to $US4.88 billion, or $US7 a share, from $US3.93 billion, or $US4.93 a share, a year prior. Excluding certain items, Alphabet earned $US8.42 a share, beating analysts’ estimates of $US8.04 a share.

 

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In a statement, Alphabet chief financial officer Ruth Porat said the results “reflect the successful investments we’ve made over many years in rapidly expanding areas such as mobile and video. We continue to invest responsibly in support of our many compelling opportunities.”

Porat said the gains were from “increased use of mobile search by consumers, benefiting from our ongoing efforts to enhance the mobile search experience.” She also cited “solid growth in desktop and tablet search as well as continued strength in YouTube and programmatic advertising.”