Google parent Alphabet has the A, B, C of running its business down to a T, but is losing money on bets including X Labs
Google parent company Alphabet reported revenues of $21.5bn in its second-quarter results as advertisers continue to shift to mobile.
Revenues were up 11pc year-on-year, which the company attributed to advertisers focusing increasingly on mobile and video platforms.
Google contributed the lion’s share of revenue, adding $21.3bn to Alphabet’s coffers, an increase from $17.6bn last year. The search giant reported an operating profit of $6.9bn, up from $5.6bn.
During the quarter, Google opened a $150m data centre in Dublin and revealed that employment in the city was nearing 6,000 people.
But it appears Google is haemorrhaging money in what it called “other bets”, including the work of its mysterious X Labs, where teams are working to solve future problems in everything from health and space communications to self-driving cars.
The A, B, C and X of Alphabet Inc
While revenues from Alphabet’s other bets increased from $74m last year to $185m in its Q2 2016 report, losses continue to mount, increasing to $859m from $660m a year ago.
Digging into Google, the company’s websites saw revenues increase to $15.4bn from $12.4bn a year ago.
Overall, Google advertising revenues were $19.1bn, up from $16bn a year ago.
“Our terrific second-quarter results, with 21pc revenue growth year-on-year and 25pc on a constant currency basis, reflect the successful investments we’ve made over many years in rapidly expanding areas such as mobile and video,” said Alphabet CFO Ruth Porat.
“We continue to invest responsibly in support of our many compelling opportunities.”
Alphabet blocks image via Shutterstock
