Google parent company Alphabet made more from subscriptions to YouTube and purchases in Google Play last quarter. Turnover from those sectors grew by 26 percent compared to the same period last year, while turnover for the entire group decreased slightly.
The turnover that Alphabet calls ‘Google Other’, which also includes the turnover from hardware, amounted to 5.1 billion dollars. That increase was mainly due to subscriptions to YouTube, which the company promotes with popups in the YouTube app. Google released little new hardware last quarter, although the company did release its Pixel Buds wireless earphones in a limited number of countries.
Revenue from Google and YouTube ads declined, mainly because companies wanted to spend less on ads during the lockdowns in many countries due to the coronavirus outbreak. According to director Sundar Pichai, the revenue from advertising increased again towards the end of June, as people started looking more for things to buy.
Sales were $ 38.3 billion, a slight decrease from the same period last quarter. Operating income fell about 25 percent to $ 7.5 billion.