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Google parent Alphabet's profit up 29 percent on strong ad sales

Google parent Alphabet's profit up 29 percent on strong ad sales

Outperforming Wall Street expectations, Google's parent company Alphabet posted the first-quarter earning reports on Thursday. Moreover, earnings per share (EPS) clocked in at $7.73, lower than last quarter's $9.36. In 2016, more than 88 percent of Google's $89.7 billion in revenue came from advertising.

For the three months ended March 31, Alphabet reported revenues of US$24.8 billion - up 22% year-on-year and 24% on a constant currency basis.

Shares of the company rose 2.8 per cent to US$916.80 after the bell on Thursday. Year-to-date, GOOGL has gained 12.49%, versus a 7.21% rise in the benchmark S&P 500 index during the same period. "Network revenues were US$4 billion, up 9% year on year, reflecting the ongoing strong growth of programmatic and AdMob".

"With the change to Alphabet, oversight has been easier because of increased visibility", he wrote.

The so-called "other bets", which include smart home devices, self-driving cars and life sciences, took in $244 million in revenue but delivered an operating loss of $855 million, Alphabet said.

Cloud services continue to fuel the company's growth - it reported that its e-commerce business is still growing, and its video streaming platform is starting to generate significant revenue.

Speaking on an analyst call following the results announcement, Alphabet CEO Sundar Pichai said Google had been on a charm offensive.

The figures were higher than analysts predicted ahead of the announcement, which also included a net income rise from of more than 200 million dollars (£155m) on the same quarter a year ago, to 724 million dollars (£561m). Aggregate cost per click fell 19% year over year, and cost per click on Google properties fell 21%.

Alphabet Inc is a holding company.

Google's "other revenues", a category that includes hardware and cloud services, hit almost $3.1 billion (roughly Rs. 19,930 crores) in the most recent quarter, a gain of about 50 percent from the same quarter a year earlier.

Alphabet lumps the rest of its financials into a category called "other bets".

Sundar Pichai, the India-born CEO of Google, saw his compensation nearly double to $200 million in (calendar year) 2016, the spike coming mainly from stock awards.

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