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Google’s advertising revenues surge to $19 billion, ‘Other Bets’ business reports bigger operating loss.
Google parent Alphabet late on Thursday said revenue and net profit climbed 21% and 24% respectively in the second quarter, driven by strong ad sales.
Its core Google business, which includes search, Android, YouTube, and advertising and related services, saw revenue in the three months to 30 June surge to US$21.32 billion (€19.21 billion) from $17.65 billion a year earlier.
Ad revenue jumped 19% year-on-year to $19.14 billion. Cost per click was down 7% on last year, but paid clicks were up 29%.
The performance drove Alphabet’s group revenue to $21.5 billion from $17.7 billion in Q2 2015. On a constant currency basis, revenue was up 25% year-on-year. Operating income jumped to $5.97 billion from $4.83 billion as revenue growth offset higher operating expenses and cost of revenues. Net income came in at $4.88 billion, compared to $3.93 billion a year ago.
"Our terrific second quarter results, with 21% revenue growth year on year, and 25% on a constant currency basis, reflect the successful investments we’ve made over many years in rapidly expanding areas such as mobile and video," said Alphabet CFO Ruth Porat, in a statement on Thursday.
Alphabet’s Other Bets division, which encompasses self-driving cars, its fibre broadband and MVNO services, its Nest smart home unit, and its research lab ‘X’, which works on so-called moonshot ideas like its Project Loon Internet balloons, generated revenue of $185 million in the second quarter, up from $74 million a year ago.
However, the division’s operating loss widened to $859 million from $660 million.
"We continue to invest responsibly in support of our many compelling opportunities," Porat said.
