Alphabet Confirms That Youtube is a Magnet for Commercials…

While Apple, Amazon and Microsoft have published plump results for their last quarter of 2019, at Google Alphabet, it’s more like a soupçon of grimace. The group which includes Google announced a turnover of 46.08 billion dollars for the months of October, November and December (+17%), which is below the Wall Street consensus which bet on 46.93 billion.

We’re not going to lie to each other, it’s still a lot of money…

Operating profit amounted to 9.3 billion, again a disappointment compared to the average of analysts (9.9 billion) but an increase of 20% compared to the previous year. This is the ninth time in ten quarters that Alphabet has failed to win over the financial community regarding its profits, as the WSJreminds us. Advertising accounts for the bulk of the group’s revenues, which was recently headed by Sundar Pichai, Google’s CEO: 37.93 billion in total, compared with 33.91 billion in the third quarter of 2019 and 32.63 billion in the fourth quarter of 2018.

For the first time in its history, Alphabet also reveals its YouTube revenues: $15.15 billion last year, including $4.72 billion for the fourth quarter of 2019. YouTube had recorded revenues of $11.16 billion. In other words, the video service (excluding YouTube TV subscriptions) is doing quite well in terms of advertising business, earning $28,822 per minute.


Image: MKBHD

Another revelation is the revenues from Cloud Computing it will record sales of $8.92 billion in 2019, including $2.61 billion in the last quarter. By 2018, the cloud had earned 5.84 billion. Revenues from “betting” (Loon balloons, Wing drones, Verily medical wearables , etc.) totalled 172 million, compared with 154 million at the same time last year. But these bets on the future continue to lose much more money: more than 2 billion in the last three months of 2019 (700 million more year on year).

The cost of traffic acquisition, i.e. what Google pays other platforms to be the default Search Engine – as in Safari – cost $8.5 billion last quarter. That’s just over $1 billion more than in the same quarter of 2018.

For the year as a whole, Google’s revenues were $162 billion (+18% compared to 2018), with an operating profit of $34.2 billion (+21%).

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