Quarterly reports of the American corporation Alphabet Inc. have been released. The main and most famous project of the company is the search engine Google. The quarantine has had a positive effect on the figures for the first quarter of this year; the company has managed to increase both the net profit indicator and the revenue. But the advertising revenue of the American high-tech giant expectedly has fallen by 10%. But this data is regarding March, not the quarter.
So, for the reporting period, the net profit has totaled 6.84 billion US dollars amounting to 9.87 US dollars in terms of per share. For the same period last year, the figures were equal to 6.66 billion US dollars and 9.5 US dollars, respectively. It is fair to mention that in the first quarter of last year, the company had to pay a fine of $ 1.7 billion by the EC decision, which hit the reporting.
The quarterly revenue has exceeded the consensus forecast ($ 40.8 billion) and amounted to $ 41.16 billion. The increase has totaled 13%.
The company’s press release, issued simultaneously with the financial results, has reflected the difficulties the company faced in March. This is primarily about a significant reduction in revenue from advertising. The company intends to focus on the restoration of this segment.
So, for the first quarter, Google’s revenue has grown to $ 40.98 billion (+ 14%), traffic costs have amounted to $ 7.45 billion (+ 9%), advertising revenue has totaled $ 33.76 billion (+ 10%).
YouTube revenue has jumped to $ 4.04 billion (+ 33%); the company’s cloud division revenue has soared to $ 2.78 billion (+ 52%).
Due to such strong reporting, on Tuesday, the holding’s shares managed to almost recover from the loss since the beginning of the year. The increase has amounted to 7.5%. We recall that since the beginning of the year, the securities of the company have decreased in price by 7.7%.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group