Published: Wed, February 06, 2019
Money | By Ethel Goodwin

Google parent Alphabet hit by rising costs (WRAP-newseries)

Google parent Alphabet hit by rising costs (WRAP-newseries)

Also notable: Alphabet's other revenues, which include non-Google business, such as the company's autonomous vehicle project, saw its losses almost double, to the tune of $1.3 billion for the holiday quarter.

Advertising revenues were up 20% from last year's fourth quarter, to $32.6bn, the same rate of growth as last quarter.

San Francisco: Riding on Google's robust ad business, the parent company Alphabet has logged $39.3 billion in revenue for the fourth quarter of 2018 - an increase of 22 per cent from the same period a year ago.

Alphabet's fourth-quarter revenue rose 22 percent from a year ago to $39.28 billion, compared with Wall Street's average estimate of $38.93 billion, according to IBES data from Refinitiv.

A man walks past the logo of the United States multinational technology company Google. Advertising directors speaking to CNBC have said some brands were moving 50 to 60 percent of their ad spending from Google to Amazon. Shares of the Mountain View, California-based company rose 1.1 percent at 10:25 a.m.in NY on Monday amid a broader rally in technology and and internet stocks that included Facebook, Netflix, Microsoft and Apple.

Google network revenues - display ad cash from non-Google sites - were $5.6bn were up 12 per cent from $5bn last year's quarter.

On the other hand, however, are the negatives: fees that the company has to pay Google and Apple to remain their default search engine were also up in the same time period. Investors also would the company to provide a more detailed breakdown of revenues by business, including YouTube.

One stunning number is telling about Google's effectiveness as a business. "We are confident that Google will continue to have rising paid click volumes for the foreseeable future". And these are very much bets - it lost $3.4 billion on Other Bets in the past year.

Shout out to Google Cloud Google CEO Sundar Pichai singled out Google Cloud for praise on the earnings call, along with outgoing CEO Diane Greene.

Among the numbers that stood out was the jump in costs and capital expenditures, both in Google and Alphabet's other bets.

Google doesn't report its cloud revenues, itself an indication that it continues to trail far behind market leader Amazon Web Services Inc. and Microsoft Corp.

Another Google segment of wide interest, called "Other Bets", that includes such companies like as health venture Verily and self-driving firm Waymo, rose 18 percent, to $154 million, well short of the $187.4 million analysts were looking for.

"Acquisitions are an attractive complement to what we do to drive organic growth", Porat said on Monday.

Porat said a big spending increase was in hiring and compensation of workers, particularly engineers and product managers.

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