Alphabet, which owns the Internet giant Google, has published its financial results for the first quarter of 2019. According to the reporting documentation, its revenue for the specified period amounted to $36,3 billion, which is 17% more than last year's first quarter. However, the rate of revenue growth slowed down noticeably, as the increase in 2018 compared to the year 2017 was more tangible and amounted to 26%.
As Alphabet CFO Ruth Porat noted, the main "engines" of the corporation's revenue growth were mobile search, YouTube video hosting and the Cloud cloud service. At the same time, the number of employees of the company exceeded 100 people, while a year earlier this figure barely exceeded 000.
However, not everything in the report is so rosy. In the column "operating profit" for the first quarter of 2019, the amount of $6,6 billion is indicated, while a year earlier the corporation earned $7,6 billion. An even bigger difference is observed in net profit, which decreased from $9,4 billion to $6,65 billion. Immediately after the announcement of these results, the shares of the Alphabet holding fell by 7%. Obviously, the situation was aggravated by the imposition of a fine of € 1,49 billion on Google. According to the decision of the European Commission adopted at the end of March, the Internet giant will pay this amount for abusing its dominant position in the online advertising market.
Far from ideal were the affairs of Google in the field of manufacturing devices under its own brand. And while the company did not disclose financials for its hardware business in isolation, CFO Ruth Porat admitted that Pixel smartphone sales have dwindled under the influence of the flagship smartphone market. She did not specify what exactly this influence was, but, most likely, several negative factors were meant at once, including competition from Samsung and Apple and the tendency to increase the price of premium devices, which now hovering around $ 1000, forcing consumers to postpone the purchase of new devices. Fix the situation, perhaps the release of more affordable modifications will help , which are expected to be announced in May at the Google I/O conference. At the same time, a new version of the Android operating system, Android Q, will be announced.
Source: 3dnews.ru