Alphabet: 8% drop in net profit in the 1st quarter


(CercleFinance.com) – Alphabet publishes a turnover of $68 billion for the 1st quarter, an increase of 23% compared to the same period a year earlier ($55.3 billion) – and + 26% at constant exchange rates.

“We are satisfied with this growth in turnover in the 1st quarter, reacted Ruth Porat, financial director of Alphabet and Google. We will continue to invest thoughtfully in Capex, R&D and new talent to support long-term value creation for all stakeholders.’

For its part, the quarterly EBIT of Alphabet is up by 22% and stands at $20.1 billion, against $16.4 billion a year earlier.
On the other hand, net profit fell by 8%, to $16.4 billion. Consequently, EPS stands at $24.62 against $26.29 twelve months earlier.

Alphabet is notably impacted by the sharp decline in its ‘Other income’, which fell from +$4.8 billion in the 1st quarter of 2021 to -1.1 billion in the 1st quarter of 2022, due to the loss on certain investments.

Alphabet also specifies that ‘the fluctuation in the value of [ses] investments can be affected by market dynamics and other factors and could contribute significantly to the volatility of ‘Other income’ in future periods.’

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