Alphabet growth in all areas and increases sales by 23 percent

Alphabet growth in all areas and increases sales by 23 percent

Alphabet continued to grow at the end of 2020. The now relevant quarter numbers of Google Holding illustrate the success of online videos in Corona times, because the revenue with YouTube advertising increases by 46 percent. The cloud business continues to grow, but still has to accept losses in billions.

Alphabet has implemented $ 56.9 billion in the fourth quarter of last year, an increase of 23 percent towards the fourth quarter of 2019. The operating profit has jumped by 69 percent to 15.7 billion US dollars, the net profit at least 43 percent to 15.2 billion. The turnover yield increased year-on-year from 20 to last 28 percent.

YouTube grow strong thanks to Covid

The main company of alphabet remain the Google Services with the advertising revenue from search engine and the video platform Youtube, which together make up 93 percent of sales. Revenue from Google search increased by 17 percent to the last year, but Youtube advertising has even grown by 46 percent.

According to Philipp Schindler, Google’s Chief Business Officer, you have also risen Youtubes visitor numbers and these have spent more time with the videos. YouTube now reach more people of the age group from 18 to 49 years as all television channels. More than 100 million people now look at YouTube on the TV, as the video app is also integrated into many modern TV devices.

Google Cloud LOSS

Google’s cloud business only contributes a relatively small part to the total turnover of alphabet, but grown by 47 percent year-on-year. Here Alphabet has shown the operating gains for the first time. However, these are significant losses. Google’s Cloud Judgment lost $ 1.24 billion in the fourth quarter and even $ 5.61 billion over the past year. For comparison: Amazon’s Cloud business could enter an operating profit of 3.6 billion US dollars in the last quarter alone.

Nevertheless, Google and Alphabet CEO Sundar Pichai is satisfied with his cloud: "We continue to taste disciplined investments to scale the business and improve the profitability." In addition, he was added that Google’s cloud business grown stronger than the cloud industry overall.

Growth reduced, stock increases

Over the last year, Alphabet was able to implement $ 182.5 billion in US dollars. This corresponds to an increase of 13 percent against 2019. However, the growth rate is somewhat reduced, because sales rose by 18 percent in 2019 in 2017.

Nevertheless, the financial figures are clearly about the expectations of the analysts. Google shares increased by almost eight percent in subsequent trading.

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