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Category: Business, Economics and Finance / Company News / Science and Technology / Internet Technology

A is for advertising: Google owner Alphabet posts revenue surge

Friday, 29 Jul 2016 11:16:19 | Peter Ryan

Google is pushing ahead with research into machine learning. (AFP)

Internet giant Google has confirmed its dominance in mobile advertising sales by posting better-than-anticipated revenue fuelled by growing demand for video content.

Key points:

  • Google parent Alphabet posts 21.3pc revenue rise to $US21.5b
  • Company's shares surge as high as $US816 in after-hours trade, before settling at $US765
  • "Our investment in mobile underlines everything that we do": Alphabet CEO

Google's parent Alphabet Inc said second quarter revenue rose by 21.3 per cent to $US21.5 billion from $US17.73 billion a year earlier.

Advertising revenue increased by 19.5 per cent, with a 29 per cent rise in "paid clicks" where advertisers pay only when a user clicks on an advertisement.

Investors welcomed the confirmation that Google is successfully pushing its advertising towards the growing mobile market, given fierce competition from the likes of Facebook, Ebay, Twitter and Yahoo.

The company's shares surged as high as $US816 a share in after hours trading to finally settle at $US765 a share.

In addition to growing advertising sales, Google is pushing ahead with research into machine learning and artificial intelligence.

The company's major projects include businesses developing self-driving cars, home automation and a its "X" project, which works on "moonshot" ventures - investments Google believes could change the world.

Google promises life-changing developments

Chief executive Sundar Pichai told investors the company wants to deliver life-changing experiences for consumers and businesses.

"The internet is one of the world's most powerful equalisers and for making information available for everyone wherever they are," Mr Pichai said.

"Our investment in mobile underlines everything that we do today from search and YouTube, to Android and advertising.

"We are at a pivotal and transformational moment.

Thanks to advances in machine learning, we have the unique opportunity to take a big step forward for the next ten years.

Mr Pichai cited work with Indian Railways to bring high speed wireless internet access to travellers across India's rail network.

"There are already two million people logging in every month," he said.

Google is also increasing its presence in Indonesia, where growth in monthly advertising buyers has quadrupled in the last 18 months.

Follow Peter Ryan on Twitter and on his Main Street blog.

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