Google’s new par­ent Al­pha­bet re­ports steep profit gain

The Malta Business Weekly - - INTERNATIONAL -

Al­pha­bet the new par­ent com­pany of Google, has re­ported prof­its up al­most 50% for the third quar­ter.

Net in­come was $3.98bn, up from $2.74bn for the same quar­ter last year.

Google's rev­enue was $18.7 com­pared with $16.5bn.

Growth came mainly from mobile searches and YouTube users.

In Au­gust, the com­pany cre­ated Al­pha­bet as the new par­ent com­pany of Google and its other di­verse busi­nesses.

In Jan­uary, Al­pha­bet will re­port Google's financial num­bers sep­a­rately from the other busi­nesses, which in­clude ex­per­i­ments with self-driv­ing cars, in­vest­ing in star­tups, mak­ing In­ter­net-con­nected ther­mostats and search­ing for cures to health prob­lems.

The break out of Google's fig­ures are ex­pected to re­veal how much money Google would have made if it had not di­verted money into chief ex­ec­u­tive Larry Page's so-called ``moon shots".

Al­pha­bet shares were up 11% to $722.53 in af­ter hours trad­ing - a record, boosted by news of a large share buy­back, which will means fewer in­vestors in fu­ture who will there­fore take a higher por­tion of any div­i­dend pay­out.

YouTube an­nounced on Thurs­day a plan to of­fer a monthly com­mer­cial free sub­scrip­tion ser­vice that will com­pete with Net­flix and Ama­zon prime.

The com­pany's board ap­proved a plan to buy back a pre­cise $5,099,019,513.59 in shares start­ing in the fourth quar­ter.

There has been spec­u­la­tion the num­ber rep­re­sented the square root of 26 - the num­ber of let­ters in the al­pha­bet.

Chief financial of­fi­cer Ruth Po­rat ac­knowl­edged that was in­deed the ref­er­ence dur­ing a post-re­sults con­fer­ence.

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