Mobile and video pump profit at Google parent Alphabet

October 28, 2016
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 Google shares rose about 1.5 percent to $830 in after-market trades that followed release of the earnings figures
Google shares rose about 1.5 percent to $830 in after-market trades that followed release of the earnings figures

, SAN FRANCISCO, US, 28 Oct – Google parent Alphabet on Thursday reported its quarterly profit climbed 27 percent to $5.1 billion, boosted by mobile and video advertising revenue.

Total revenue in the recently ended quarter was $22.5 billion, up from $18.7 billion in the same period a year earlier.

Shares rose about 1.5 percent to $830 in after-market trades that followed release of the earnings figures.

“We had a great third quarter,” Alphabet chief financial officer Ruth Porat said in the earnings release.

“Mobile search and video are powering our core advertising business and we’re excited about the progress of newer businesses in Google and Other Bets.”

It has been about a year since the California internet titan revamped its corporate structure, making the Google internet operations a division of Alphabet and putting units such as autonomous cars and internet service balloons in an “other bets” category.

The self-driving car effort that was once part of the X lab at Google devoted to bold, futuristic projects has become a separate business unit at Alphabet but little has been revealed of its plans for going to market.

The loss reported from Other Bets in the recently ended quarter was $865 million as compared with $980 million in the same period a year earlier.

Meanwhile, Google this month took on rivals Apple, Samsung and Amazon in a new push into hardware, launching premium-priced Pixel smartphones and a slew of other devices showcasing artificial intelligence prowess.

The unveiling of Google’s in-house designed phone came as part of an expanded hardware move by the US company, which also revealed details about its new “home assistant” virtual reality headset and Wi-Fi router system.

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