Youtube Generates $15 Billion a Year: Google (Alphabet) Reveals Its Financial Results

Youtube Generates  Billion a Year: Google (Alphabet) Reveals Its Financial Results

YouTube generates $15 billion a year, or 10% of Alphabet’s turnover. Google’s parent company has just unveiled its financial results for the year 2019, with for the first time economic data around the streaming platform.

YouTube

Alphabet has just unveiled its financial results for the year 2019. Google’s parent company reported revenue of $162 billion for the full year with a net profit of $34.3 billion. However, in the fourth quarter of the year alone, Alphabet rather disappointed investors with a turnover of $46.075 billion against $46.9 billion expected. This still represents an increase of 17% year-on-year.

In fact, net income reached $10.7 billion for the quarter, $1.6 billion more than in the fourth quarter of 2018. All this translates into an increase in earnings per share of $15.35 compared to $12.74, as Le Figaro explains. However, this was not enough to calm investor concerns. The gap between their forecasts and the announced results remains $800 million .

To make, one can imagine, a little forget these mixed results, Alphabet has for the first time given detailed figures on some of its activities, including Google Cloud, Search and YouTube. Google Search remains the group’s largest source of revenue, with total revenues of $98.1 billion in 2019, up 15% from 2018.

Read also: EU Wants to Compete with Google, Amazon and Facebook in Data Exploitation

YouTube accounts for 10% of Alphabet ‘s income

Google Cloud generated $2.6 billion in the fourth quarter of 2019 and $8.9 billion over one year. But the business is growing in an increasingly competitive environment. Finally, for the first time detailed figures are available on YouTube. The streaming platform generated $5 billion in advertising revenues in the fourth quarter of 2019 alone and $15 billion over the year.

This represents 10% of Alphabet’s income. YouTube’s advertising department alone generates 1/5th of Facebook’s revenues. The firm reveals that the platform now has 20 million subscribers to YouTube Premium and YouTube Music and more than 2 million subscribers to its streaming TV service.

Since its takeover by Google in 2006, the firm had never revealed what it really got from YouTube. Alphabet explains that YouTube figures are aggregated in the “other” category of results, which generated $5.3 billion in the last quarter. Note in passing that the category also aggregates hardware such as Google Pixel and Google Home speakers.

The share price fell by 4% in the wake of the results announcement.

Source : The Verge

 

 

 

 

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