A further EU-billion penalty it has loaded the Google parent group Alphabet to the beginning of the year. Compared with the previous year, the net profit broke the bottom line by 29 percent to 6.7 billion dollars.
This is the Internet group announced on Monday after the U.S. market close. Sales increased due to the continued bubbling of advertising revenue, however, by about 17 percent to 36.3 billion dollars, but it was around a billion dollars below analysts ‘ expectations of the world.
The developments came not from investors. The share price reacted after trading hours initially, with substantial losses and fell temporarily with about five percent into the red.
increased costs
Google’s growth in sales is waning ever more strongly in the prior-year period, it was still 26 percent in the previous quarter, at 22 percent. This time, sales growth was the lowest since three years. The Alphabet-daughter feels the increased competition in the market for Online Ads, where, for some time, for example, Amazon is celebrating major successes.
For a frown among investors resulted in the increased costs. This rose to start off the year by 16.5 percent to nearly $ 30 billion, how the Alphabet said. Experts are warning for some time of a rising cost pressure in the group that spent more money for the Expansion of its network of data centers, new properties and the development of projects based on Artificial intelligence.
The EU Commission had imposed in March for the third Time, a high penalty against Google. Due to disability from other providers in the business with search engine advertising, the group was condemned to a payment of approximately 1.5 billion euros. The penalty left clear traces in the balance sheet, even if the income was still comparatively high.
Loss and other transactions
“We have delivered a robust quarter, led by mobile search, Youtube and Cloud services,” said chief financial officer Ruth Porat. However, the Video subsidiary Youtube, the results of which Alphabet does not show separately, there were some problems. Some of the advertisers interfere with the handling of controversial content, which is why analysts have warned before the possible reduction of the Revenue.
Alphabets other transactions, which are conducted under the name of “other bets”, only managed a revenue increase of 150 million to $ 170 million, which falls in the overall analysis of the group’s sales. The operating loss of the division, to the car, for example, the Robot developers Waymo counts increased from 571 million to 868 million dollars.
Even with the share price development of the Alphabet can not with his immediate American rival. Since the beginning of the year, the title grew 23 percent, while Facebook shares rose nearly 50 percent, Netflix papers 39 percent increased and the share of the iPhone-manufacturer Apple increased by 30 percent. (Dec/sda)
Created: 29.04.2019, 23:04 PM
