Alphabet increased profits to $ 11.24 billion from $ 7.06 billion in the same period last year. The company announced this on October 29, 2020 after close of trading on the New York Stock Exchange (PDF) . The Google parent company Alphabet achieved in the three months to September a sales increase of 14 percent to 46.17 billion US dollars.
Third quarter net income was in line with analyst estimates. Alphabet shares rose more than 8 percent after close of trading on Thursday.
Youtube generated $ 5 billion in advertising revenue in the third quarter of 2020 – an indication that advertisers who cut their spending due to the Coronavirus earlier in the year may be returning to normal. “We are pleased that advertisers have actually reactivated their budgets in the third quarter,” said Ruth Porat, CFO of Alphabet and Google, in the conference call with analysts.
“We had a strong quarter in line with the broader online environment,” said Sundar Pichai, CEO of Alphabet and Google. “It’s also testament to the deep investments we’ve made in AI and other technologies.”
Google’s advertising revenue was $ 37.1 billion, up from $ 34 billion in the same period last year. Youtube advertising revenue grew 30 percent from $ 3.8 billion in the third quarter of 2019.
The US Department of Justice and eleven states are suing Google for abuse of its dominant position in the search engine and advertising market. The Group’s search engine records more than 92 percent of global search traffic, and the proportion is even higher on mobile devices. Google Maps and its sister companies Waze and Google Earth have a market share of 89 percent in navigation, while Youtube controls an estimated 73 percent of the online video sector.