Google increases advertising revenue even in the smartphone age
Internet giant Google increased its profits and revenue at the start of the year. Google saw growth in its advertising business. This main source of revenue brought in $16.5 billion for Google in the first quarter, an 11 percent increase from a year earlier.
Google's advertising business has also grown in the smartphone age. "We continue to see great momentum in the mobile advertising business," said Chief Financial Officer Patrick Pichette, who stepped down at the end of May, on Thursday evening (local time). Google mainly earns its money with ads related to search queries. However, the online advertising business follows users from PC to smartphone screens. The rates for ads on mobile devices are lower. However, Google was able to compensate for the decline in average revenue per click with a higher volume. However, the competition is also making strong gains in this area. Facebook in particular, which only reported a 42% jump in revenue on Wednesday, is an unpleasant adversary.
More sales
Overall, Google's profits in the first quarter grew by four percent year-on-year to 3.59 billion dollars, and turnover climbed by twelve percent to 17.3 billion dollars. However, like many other companies in the USA, Google suffered from the strong dollar. Without the influence of the exchange rate, which reduces the revenues generated abroad when converted into the US currency, the increase in turnover would have been 17 percent. At the same time, Google was more successful in keeping costs under control. Expenses grew by 21 percent following an increase of 35 percent in the previous quarter.
Below expectations
Overall, the quarterly figures fell short of market expectations for the sixth time in a row. Nevertheless, the share price rose by more than three percent in after-hours trading. In the past twelve months, however, the share price performance had also lagged significantly behind that of the Nasdaq technology index. However, the company currently has other concerns besides its share price. The EU Commission recently accused Google of abusing its dominant market position. It is threatening to fine the company billions. (SDA)
