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Google under pressure in the online advertising and sealed by a fine in the EU



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San – Francisco (AFP)

Alphabet Google father suffered a slowdown due to the pressure which is supported in online advertising in the first quarter was also marked by the fine imposed by the European Union.

Always very conscious revenue growth, health indicator of its core business –the pub–, investors punished the stock exchange group: until 10:50 pm EDT, the name fell more than 7% in electronic trading after the close of Wall Street.

36.3 billion (+ 17%) below the average turnover of expectations, which predicted a billion more. This evolution is also a sharp slowdown in growth estimates: in 2018 it increased by 26% year on year.

This slowdown is primarily due to the fact that smart phones to capture more consumer activity. Now, the online platform to collect smaller advertisers to place ads on a mobile device than on a computer. As more and more consumers are using their smartphones, this revenue is under pressure.

Pressing particularly strong during the quarter, as the growth itself (number of clicks on the & # 39; yavah) traffic also slowed, including YouTube, said Chief Financial Officer Ruth Porat on a conference call with analysts.

Google and Facebook dominate the global market for online advertising.

Letters, which also produces devices such as smart phones or speakers connected also noted "market pressure on the high-end smart phones", thereby implying that the sale of its pixels have been disappointing. But "pulse lasts" regarding speakers connected to the voice control, assured Ms. Porat.

He also promised "a & # 39 classified" side of the device at the annual Google developer conference in May.

– consumption –

The Group has for several quarters of strong increase in its costs (recruitment and technology, in particular), and once again warned on Monday that costs will increase.

"Our priority has always been to invest in the long term," he explained Sundar men, Google's boss.

Alphabet has also invested heavily in buying local: he announced in 2018 a few large purchases of real estate in New York.

In February, Google announced plans to invest $ 13 billion in the office and "data center" in the United States in 2019.

another element, it looked at the markets, the cost of acquisition of income ( "for the purchase of traffic costs" or the TAC) increased to 6.86 billion (+ 9%). These TACs with & # 39 are the amounts donated by other means the Google, make sure that the device's default search engine or the operating system or its various applications are already installed in smartphones.

The European Commission imposed March 20 for the third time in less than two years, a heavy fine at Google, accusing it of new anti-competitive practices in the European Union.

Financial penalty has reached 1.49 billion euros, a figure lower than the previous two, two and three, respectively, above.

Because of this new European fine quarterly net profit Alphabet fell by 29% to 6.7 billion.

The Group had 103.459 employees in the end of March, against 85,050 at the end of March 2018.

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