Alphabet: the end of the year did not live up to expectations – 02/03/2023 at 14:37

(AOF) – Alphabet, parent company of Google, presented disappointing results yesterday. In the fourth quarter, the internet giant reported net profit of $13.62 billion, or $1.53 per share, compared with net profit of $20.64 billion, or $1.05 per share, a year earlier. The consensus was more bullish at $1.20. Operating income rose in one year from 21.89 to 18.16 billion dollars. The turnover of the group for its part increased by 7% to 76.05 billion dollars. It increased by 7% at constant exchange rates.

Its advertising revenues fell 3.6% to $59.04 billion.

Excluding traffic acquisition costs, Alphabet’s revenue came in at $63.12 billion, falling below analysts’ forecasts of $63.20 billion.

Google’s results show that the digital advertising industry is going through a rough patch.

YouTube recorded a turnover down 7.8% to 7.96 billion dollars while the market was targeting 8.3 billion dollars.

Cloud business revenue rose 32% to $7.315 billion. The latter posted an operating loss of 480 million dollars this quarter against -890 million dollars a year earlier.


The serious European adjustment of the Internet giants

An agreement was reached on March 24 on the supervision of Internet giants, with new legislation on digital markets, the Digital Markets Act (DMA). This text aims to regulate the anti-competitive practices of the main players. With the DMA, the European Commission sets a framework to be respected, the sector now being subject to regulations similar to those of the energy, banking or telecommunications sectors. The scale of fines has also been adapted to the economic power of the players: in the event of an infringement, they may represent 6% to 20% of global turnover. In the event of a repeat offence, business transfers may be imposed. On the other hand, in the United States, the regulatory process has still not succeeded despite the authorities’ determination.

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