Alphabet hits record $85m a day in profit


Google's parent company Alphabet has again revealed record revenues in the last quarter, however there are mixed results as costs have also risen.

On one hand, there are the positives: Alphabet reported earnings of $39.27bn in the fourth quarter of 2018.

Revenue rose 22 per cent year-on-year, while recorded profits hit $8.9 billion. Europe's revenue rose 20 per cent thanks to a stronger euro and pound. Middle East and Africa saw a 29 per cent jump, as well.

On the other hand, however, are the negatives: fees that the company has to pay Google and Apple to remain their default search engine were also up in the same time period. They are now up $7.4 billion, up from $6.6 billion year-on-year.

Cloud, hardware and media services have seen $6.4bn in revenues, while 'other bets' – autonomous vehicles, fibre optic and healthcare, raked in 154m in revenue. However, the losses from 'other bets' rose sharply, from $748m last year, to $1.3bn this year.

Revenue from its advertising business kept growing at the same pace of 20 per cent, compared to the same period last year. It now hit $32.6 billion.

The news resulted in the company's shares falling three per cent in after-hours trading.

Amazon also issued a new regulatory filing recently, saying it had spent some $1.65 billion on acquisitions last year.

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