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Google is pandemic winner: the advertising business is growing and growing

2021-04-30T15:13:16.246Z

Sales of 55 billion dollars in three months, profits almost tripled: Google's parent company Alphabet presents dazzling quarterly figures. The pandemic is not harming their business - on the contrary.



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Google European headquarters in Dublin

Photo: Clodagh Kilcoyne / REUTERS

The corona pandemic is boosting Google's advertising business.

The turnover of the parent company Alphabet rose in the past quarter year on year by 34 percent to 55.3 billion dollars (45.7 billion euros).

The boost reflects the increased online activity of consumers, said CFO Ruth Porat.

Among other things, advertising customers from the retail sector have ensured the growth - but also from the travel industry, which is preparing for a relaxation of the corona restrictions.

In terms of profits, there was a jump to $ 17.9 billion from $ 6.8 billion a year ago, as Alphabet announced after the US market closed on Tuesday.

Approximately $ 4.75 billion contributed valuation gains from investments in startups.

Among other things, the tech group is involved in the Stripe payment platform, which was valued at 95 billion dollars in the latest financing round.

YouTube is booming like never before

At Google, where practically the entire alphabet business is still running, revenues from the search engine business rose by 30 percent to almost 32 billion dollars.

The video platform YouTube contributed a good six billion dollars - around 50 percent more than a year earlier.

During the pandemic, people spent more time on YouTube and other video offerings.

Most recently, YouTube had two billion monthly active users and over a billion hours of video content was streamed daily.

In the competition with the TikTok video app, the short clips from YouTube Shorts now reach 6.5 billion views per day.

In the cloud business, sales rose by 46 percent to a good four billion dollars.

At the same time, the division drove an operating loss of $ 974 million.

With promising business ideas such as self-driving cars or delivery drones, sales rose by around 47 percent to $ 198 million.

At the same time, their operating losses also increased from $ 1.12 billion to $ 1.14 billion.

More than $ 1,500 billion market value

The Google share rose in after-hours trading at times by around four percent.

Alphabet now has a market value of more than $ 1,500 billion.

The company announced a share buyback worth up to $ 50 billion.

Buybacks traditionally support the course.

clh / dpa-AFX

Source: spiegel

All business articles on 2021-04-30

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