Google is also growing strongly as Alphabet
Alphabet is picking up where Google left off. The first financial results since the corporate restructuring into the new holding company Alphabet are encouraging: revenue and profit rose sharply.
Because the Group wants to buy back shares, the shares also rose significantly. From July to September, profits rose year-on-year from 2.74 to 3.98 billion dollars, as Alphabet announced on Thursday. Turnover increased by 13 percent to 18.68 billion dollars. Adjusted for costs incurred by the company to attract users to its websites, revenue amounted to 15.1 billion dollars.
Analysts had expected weaker figures. The share price initially rose by over ten percent after the close of trading. The announcement of share buybacks worth up to 5.1 billion dollars may have contributed to the strong market reaction.
Costs rise less sharply
Advertising revenue, the Group's most important source of income, climbed by 13% to 16.78 billion dollars. Expenses, which are critically observed by investors, increased by 9.1 percent to 13.97 billion dollars.
The company is becoming more economical under the new CFO Ruth Porat - in the previous quarters the increases were ten, 13 and 22 percent.
The former Google Group surprisingly announced the reorganization into a new holding company called Alphabet in August and completed it at the beginning of October. The previous Google shareholders became shareholders in the new holding company.
However, there have been no changes to the accounting for the time being. The first quarterly figures with the new structure will not be published until January. (SDA)
