Google parent company Alphabet has lifted profits by 24 per cent on the back of strong advertising demand for the search engine, as the group continues to capture users and advertisers shifting to mobile.
Dow Jones reports that Alphabet’s growth continued in the second quarter as companies bought more ads on its search engine and other products, while users clicked more on those ads.
Alphabet revenues, fuelled almost entirely by Google’s advertising business, rose 21 per cent to $US21.5 billion in the second quarter, compared to the previous year. Excluding payments to advertising partners, revenue was $US17.5 billion, beating analysts’ estimate of $US16.86 billion.
Net profit for Alphabet rose to $US4.88 billion, or $US7 a share, from $US3.93 billion, or $US4.93 a share the previous year.
Google has said more than half of its searches now come on mobile devices, and some analysts estimate more than half of its revenue now comes from mobile. Advertisers’ spending on mobile search ads increased 63 per cent in the second quarter compared to the previous year, while overall search-ad spending rose just 10 per cent over the period, according to marketing-technology firm Kenshoo.
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