Google parent Alphabet ratchets up $22.4bn revenues in Q3

28 Oct 2016

Google Docks. Image: Luke Maxwell

Google parent company Alphabet has reported Q3 revenues of $22.5bn, up 20pc, as ‘Other Bets’ begin to show growth.

Alphabet CFO Ruth Porat’s presence is being felt, as a more cohesive picture emerges of the company’s finances.

With revenues up 20pc from $18.6bn to $22.5bn, Alphabet reported a 26pc jump in profits to $5.7bn.

Future Human

Out of this, Google is still the main breadwinner for the Alphabet group, bringing in revenues of $22.2bn and generating an operating income of $6.7bn.

Google advertising revenues clocked up $16.7bn, up 18pc, while other revenues were up 39pc to $1.7bn.

Still making those alpha bets

But ‘Other Bets’, areas like driverless cars, future of health and other blue sky products, are also showing signs of growth – with revenues up 40pc, from $141m to $197m.

Operating losses at Other Bets narrowed from $980m last year to $865m, proving Alphabet is getting shrewder in its money management.

“We had a great third quarter, with 20pc revenue growth year-on-year, and 23pc on a constant currency basis,” Porat said.

“Mobile search and video are powering our core advertising business and we’re excited about the progress of newer businesses in Google and Other Bets.”

Yesterday (27 October), Google revealed that Fionnuala Meehan is to become Google’s new country manager for Ireland and the head of a 6,000-strong organisation, as Ronan Harris takes up a new role as head of Google UK and Ireland.

Google now employs around 6,000 people in Dublin.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years