Alphabet says revenue up 20.2 percent, sets $7 billion share buyback | Reuters

Google parent Alphabet Inc (GOOGL.O) reported a 20.2 percent rise in quarterly revenue on Thursday, helped by robust sales of advertising on mobile devices and YouTube, and the search giant said it would repurchase about $7 billion of its Class C stock.Alphabet, along with Facebook Inc (FB.O), dominates the fast-growing mobile advertising market.Shares of Alphabet, the world's No. 2 company by market value, were up 1.6 percent in after-hours trading.Google's ad revenue rose 18.1 percent to $19.82 billion in the third quarter, accounting for 89.1 percent of Google's total revenue, compared with 89.8 percent of revenue in the second quarter.Paid clicks rose 33 percent, compared with a rise of 29 percent in the second quarter

Reuters October 28, 2016 02:14:50 IST
Alphabet says revenue up 20.2 percent, sets $7 billion share buyback
| Reuters

Alphabet says revenue up 202 percent sets 7 billion share buyback
 Reuters

Google parent Alphabet Inc (GOOGL.O) reported a 20.2 percent rise in quarterly revenue on Thursday, helped by robust sales of advertising on mobile devices and YouTube, and the search giant said it would repurchase about $7 billion of its Class C stock.Alphabet, along with Facebook Inc (FB.O), dominates the fast-growing mobile advertising market.Shares of Alphabet, the world's No. 2 company by market value, were up 1.6 percent in after-hours trading.Google's ad revenue rose 18.1 percent to $19.82 billion in the third quarter, accounting for 89.1 percent of Google's total revenue, compared with 89.8 percent of revenue in the second quarter.Paid clicks rose 33 percent, compared with a rise of 29 percent in the second quarter. Paid clicks are those ads on which an advertiser pays only if a user clicks on them.Cost-per-click, or the average amount advertisers pay Google, fell 11 percent in the latest period after dropping 7 percent in the second quarter.Analysts on average had expected a decline of 7.9 percent, according to FactSet StreetAccount.

Per-click costs have been falling as people shift to mobile devices from desktops. Because of the limited space, advertising on mobile devices is generally cheaper.Research firm eMarketer has estimated that Google will capture $52.88 billion in search ad revenue in 2016, or 56.9 percent of the global market.Google's Other Revenue, which includes the company's increasingly important cloud business, jumped 38.8 percent after rising 33 percent in the second quarter.

The cloud business competes with services offered by market-leader Amazon.com Inc (AMZN.O), Microsoft Corp (MSFT.O) and IBM Corp (IBM.N).Alphabet's Other Bets generated revenue of $197 million, but reported an operating loss of $865 million. In the year earlier period, revenue was $141 million and the loss was $980 million.Other Bets includes broadband business Google Fibre, home automation products Nest, self-driving cars as well as X, the company's research facility that works on "moon shot" ventures.

The company's consolidated revenue rose to $22.45 billion in the three months to Sept. 30 from $18.68 billion a year earlier.Net income rose to $5.06 billion, or $7.25 per Class A and B share and Class C capital stock, from $3.98 billion, or $5.73 per share, a year earlier. (bit.ly/2eWsu9Y)Excluding one-time items, Alphabet earned $9.06 per share.Up to Thursday's close of $817.35, Alphabet's shares had risen 5.1 percent since the start of the year. (Reporting by Narottam Medhora in Bengaluru; Editing by Ted Kerr and Savio D'Souza)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

also read

Amazon forecast for holiday season disappoints as investment rises
| Reuters
Fwire

Amazon forecast for holiday season disappoints as investment rises | Reuters

By Jeffrey Dastin and Anya George Tharakan Amazon.com Inc provided a disappointing forecast for the holiday season quarter while posting earnings that missed Wall Street estimates in the third quarter, as it invested heavily on shipping, video offerings and other projects, sending its shares down nearly 5 percent.Investors and analysts are trying to gauge how much more Amazon plans to invest in its various ventures, and it unnerved some that it offered wide ranges in its outlook."Amazon really doesn't know what's going to happen this quarter," said analyst Jan Dawson of Jackdaw Research, noting investors disapproved of the "uncertainty" in the company's guidance.Amazon forecast net sales of between $42 billion and $45.5 billion for the current-quarter, which includes the all-important holiday shopping season.The $43.75 billion midpoint of the outlook trailed expectations of $44.58 billion, according to Thomson Reuters I/B/E/S, and Amazon also forecast that operating income would range from nothing to $1.25 billion."At the high end of their operating profit guidance, the Street is still $250 million above them," said Michael Pachter, analyst at Wedbush Securities.Amazon Chief Financial Officer Brian Olsavsky told reporters that new warehouses and spending on video drove up third-quarter costs. "There’s a lot of hiring to support the projects we’re investing in," he said.Total operating expenses rose 31.5 percent to $10.94 billion, including investments in Amazon Web Services and the Prime subscription program internationally.Amazon posted net income that rose to $252 million, or 52 cents per share, from $79 million, or 17 cents per share, a year earlier

Large crowds for Castro's ashes after symbolic Che Guevara reunion
| Reuters
World

Large crowds for Castro's ashes after symbolic Che Guevara reunion | Reuters

By Diego Oré and Sarah Marsh | SANTA CLARA, Cuba SANTA CLARA, Cuba Thousands of people greeted Fidel Castro's funeral cortege on its journey across Cuba on Thursday after a symbolic overnight reunion at the mausoleum in Santa Clara housing the bones of fellow revolutionary Ernesto "Che" Guevara.Waving flags and chanting "I am Fidel," Cubans thickly lined pastel-coloured colonial streets in admiration of Castro, who died on Friday at age 90 as one of the towering figures of the 20th century after establishing a Communist state 90 miles (145 km) from the United States. The government declared nine days of mourning.The outpouring from ordinary Cubans contrasts with the hatred of many Cuban exiles who saw Castro as a tyrant who jailed opponents and ruined the economy with socialism."With the death of Fidel, the revolution must continue on its path, no steps backwards," said Pedro Sanchez, 81, who said he fought in Castro's rebellion against a U.S.-backed president in the 1950s. The procession was slowly making its way east, destined for the final resting place of his ashes in Santiago de Cuba, where Castro's rebels first launched an attack on the U.S.-backed forces of Fulgencio Batista in 1953.Batista was finally driven from Cuba on Jan.

Iraqi army drives Islamic State from Christian region near Mosul
| Reuters
World

Iraqi army drives Islamic State from Christian region near Mosul | Reuters

By Phil Stewart and Babak Dehghanpisheh | QAYYARA, Iraq QAYYARA, Iraq Iraqi army troops on Saturday stormed into a Christian region that has been under Islamic State control since 2014 as part of U.S.-backed operations to clear the entrances to Mosul, the militants' last major city stronghold in Iraq.The advance took place as U.S.