Google owner Alphabet hit by soaring costs

Alphabet, Google's parent company, undershot profit expectations due to the high costs of initiatives including the launch of the Pixel smartphone range.

Google owner Alphabet hit by soaring costs

The business reported fourth quarter revenues up 22% to $26.1bn (£20.8bn), which it put down to increased ad income across both mobile search and on YouTube.

But while profits also grew 8% to $5.3bn (£4.2bn), they were lower than forecast.

Capital expenditure, meanwhile, was up by 46%, as Alphabet poured resources into assets and products including Pixel, the Google Home smart speaker, and cloud computing operations.

This meant that units of the business other than Google itself made a loss of more than $1bn – though revenue was up year on year from $150m to $262m.

A spokesperson said: "Strength in mobile and YouTube continues to grow at a significant rate. We’ve only scratched the surface on these businesses."

Become a member of Campaign from just £46 a quarter

Get the very latest news and insight from Campaign with unrestricted access to campaignlive.co.uk plus get exclusive discounts to Campaign events

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now
Making media fun again: why we must free our industry from outdated models
Shares0
Share

1 Making media fun again: why we must free our industry from outdated models

The industry needs an audience-first media revolution that balances brand and outcomes, writes Mindshare's global chief executive.

Just published

More