Alphabet Posts Strong Revenue From Higher Mobile Ad Sales, Demand For Video

Earnings Reuters

Google-parent Alphabet Inc's <GOOGL.O> revenue increased a bigger-than-expected 21.3 percent in the second quarter, driven by strong advertising sales on mobile devices and for video content.

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The company's shares surged more than 6 percent in after hours trading, before easing to trade up about 3 percent.

Alphabet's consolidated revenue rose to $21.50 billion in the three months ended June 30, from $17.73 billion a year earlier.

Analysts on an average were expecting revenue of $20.76 billion, according to Thomson Reuters I/B/E/S.

Google's ad revenue increased 19.5 percent to $19.14 billion, while it notched an 29 percent rise in paid clicks, where advertisers pay the company only if a user clicks on the ad.

Alphabet, which dominates the mobile ad market along with rival Facebook Inc <FB.O>, has been trying to beef up ad revenue from mobile and video businesses, both of which till last year were a little less profitable than its desktop business.

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Revenue at Alphabet's Other Bets business rose 150 percent to $185 million, while operating losses widened to $859 million.

The division includes broadband business Google Fiber, home automation products Nest, self-driving cars and X – the research facility that works on "moon shot" ventures.

Net income rose to $4.88 billion, or $7.00 per Class A and B common stock, from $3.93 billion, or $4.93 per share.

Excluding items, the company earned $8.42 per share, beating analysts average estimate of $8.04, according to Thomson Reuters I/B/E/S.

 

(Reporting by Rishika Sadam in Bengaluru; Editing by Savio D'Souza)