Alphabet quarterly profit climbs on ads and other bets

(MENAFN- AFP) Google's parent company Alphabet on Thursday reported that its profit in the recently-ended quarter climbed 32.4 percent to $6.7 billion with revenue up from online ads as well as "other bets."

Alphabet said revenue in the quarter was $27.8 billion, up 24 percent from the same period a year earlier, with chief financial officer Ruth Porat crediting "strength across Google and Other Bets."

The earnings topped market expectations, and Alphabet shares quickly rose nearly 3.5 percent to $1,026 in after-market trades on the Nasdaq exchange.

A corporate reorganization started two years ago created Alphabet, which has holdings including cash-engine Google and ventures devoted to innovative "moon shots" such as Waymo self-driving car unit and a Loon project for delivering internet service from high-altitude balloons.

Subsidiaries other than Google were put into an "other bets" group which saw revenue in the quarter rise to $302 million from $197 million during the same three-month period last year.

Google ads accounted for the bulk of Alphabet revenue, contributing $27.47 billion, according to the earnings release.

Alphabet earlier this year spun off a little-known unit working on geothermal power called Dandelion, which will begin offering residential energy services.

Dandelion chief executive Kathy Hannun said her team had been working for several years "to make it easier and more affordable to heat and cool homes with the clean, free, abundant, and renewable energy source right under our feet," and that the efforts culminated in the creation of an independent company outside of Alphabet.

Meanwhile, Alphabet's life sciences unit Verily announced a study to track people for years, right down to their genetics, in a quest for insights into staying healthy.

Alphabet also owns Nest, which recently expanded its line-up of smart home devices to include a security system.


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