Photo: Johannes Eisele Agence France-Presse
Google has posted the smallest revenue growth in nearly five years.
The Associated Press and
in San Francisco
Alphabet, the parent company of Google, has posted a net profit of more than $ 6.8 billion in the first quarter, compared to a little less than 6.7 billion a year ago, a sign that the impact of the economic crisis is not felt, for the moment, for the giant advertising on the Internet.
Its turnover rose 13 % to 41.2 billion, and its results, better than expected in a context of drying of the budgets of the advertisers, to him, represented an increase of 3 % from its title to Wall Street during the electronic trade after the closing of the stock Exchange.
Google has posted the lowest revenue growth in nearly five years, the recession caused by the pandemic has started to reduce its sales of ads in the first quarter. The containment measures generalized, which require consumers to stay at home, have prompted some companies to advertise their products and services.
The picture is also incomplete because the demand for advertisements in most regions of the world has not been severely affected before the end of February and beginning of march. “The performance has been solid over the first two months of the quarter, but in march, we recorded a significant downturn in advertising revenues,” explained the financial director of Alphabet, Ruth Porat.
The growth of the company’s revenue has not been this low since the summer of 2015, before Google creates Alphabet to make it a holding company which would include within a group are supplemented by a number of small technology companies to be more risky.
It is the increase of the revenue of YouTube in the first quarter, compared to the same period last year.
The social network Facebook, the second largest seller of digital advertising behind Google, is also expected to reveal a dramatic slowdown Wednesday, when it will unveil its results for the same period. The current quarter, April to June, is expected to provide data even darker, the major advertisers are airlines, hotels, and other travel that will have little or no reason to spend anything to reach consumers, including the prospects of summer vacation are at the point of death.
Even though its revenue down, Google is still a machine to print money. YouTube is particularly well behaved in the first quarter; its revenue increased 33 % compared to the same period last year, The demand of all kinds of services online has also helped to support sales of the company’s services which help to operate web sites. The division of cloud-based Google has recorded an increase of 52 % of its revenues.
But the advertising linked to the results of research remains at the heart of the financial business, and it wobbles with the rest of the economy. The revenue generated by the Google search engine increased by 9 % during the first quarter and are likely to be deteriorated since the end of march.
For its part, the automobile manufacturer Ford has warned Tuesday expect to record an operating loss of 5 billion in the second quarter, due to an anticipated fall in sales volumes of cars in all geographic areas, because of the pandemic of sars coronavirus. This deficit is in addition to an operating loss of 632 million in the first quarter, according to a press release. All in all, the brand to the blue oval, which has still not unveiled the date for the reopening of its us plants closed to comply with the measures of social distancing and containment designed to contain the spread of the Covid-19, should have lost more than $ 5.6 billion in six months.
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