June 23, 2024

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War in Ukraine cuts profits for Alphabet, Google's parent company |  international |  News

War in Ukraine cuts profits for Alphabet, Google’s parent company | international | News

The slow growth of advertising revenue on YouTube and the worsening global economic situation due to the war in Ukraine affected Alphabet’s profits, Last Tuesday’s net profit amounted to $16.436 million between January and March.

This number represents A decrease in profits by 8.3%. Compared to the same period a year earlier, the parent company of Google, While the Russian invasion of Ukraine, high inflation and supply chain problems reduced advertising investment by companies.

In addition to affecting the global economic situation, The war prompted Google to halt its operations in Russia, which contributed to a slowdown in revenue growth in Europe to 19%.While it was 33% last year.

Meanwhile, advertising sales on the Alphabet-owned YouTube video portal fell short of analyst expectations.

YouTube, such as Netflix, Hulu and other on-demand content platforms, have benefited greatly from restrictions on movement and social activities during the pandemic, But it ran out as countries returned to normal.

advertising earnings

Alphabet was billed during the first three months of the year 68,011 million, the vast majority of ads, 23% above 55,314 million entered in the first quarter of 2021.

for this part, Alphabet investors have earned $24.62 a share over the past three months, up from $26.29 a year ago..

The company based in Mountain View (California, USA) increased revenue in all its business segments, although the growth of advertising on the online video platform YouTube was less than expected.

If a year ago Alphabet entered $6,005 million via YouTube, now that number is $6,869 million, which is lower than analyst expectations..

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Alphabet’s biggest source of income is the sale of advertising space on its various online platforms, which account for more than 80% of all sales.

In contrast, within the advertising segment, revenue from advertising via Google is the highest ($39,618 million in the last quarter). Apart from advertisingThe company is also raising funds through cloud computing platform Google Cloud, which in the past three months has contributed $5,821 million to the company’s coffers..

The “Other Bets” business segment, which includes Waymo’s autonomous vehicle unit, doubled its revenue in one year to $440 million, compared to $198 million in the same period in 2021.

By markets, the US is Alphabet’s main source of income (46% of the total), followed by the region comprising of Europe, Middle East and Africa.

“We delivered a quarter of strong growth in the cloud and in search in particular, helping people and businesses with their digital transformation,” said Sundar Pichai, CEO of Alphabet, when presenting the accounts.

The results of the company’s most used search engine on the Internet in the world did not convince Wall Street investors, and the company’s shares fell 5.96% to $2,231 per share in electronic operations after markets closed. (me)