Alphabet, formerly known as Google, recently announced the yearly revenues of its Indian counterpart for the year 2014. In its annual return filed on Saturday, the company disclosed a 35% increase in revenues over the last year, earning about Rs 4,108 crores of revenue in the year 2014-15.
However, the profit number were not disclosed by the company. Google India’s managing director for Southeast Asia and India, Rajan Anandan, declined to comment on revenues.
Although the rate of increase fell down as the company had posted 47% increase last year while earning Rs 3,050 crore in 2013-14. The slowdown is attributed to the diversification of advertising to social media and mobile applications, which was earlier a monopoly of Google.
Spends on several social media apps are taking away share from plain Internet advertising, which was controlled by Google to an extent.
said Nitin Mathur, an analyst at Societe Generale. It is a known fact that a majority of Google revenues (as high as 89%) come from advertisement revenues.
However in the past three years or so, Facebook has rapidly expanded its advertisement business and owing to a large number of people on its social network, it has become a top choice of advertisement by marketers and advertisers.
And India is one of the top destinations for both behemoths due to the sheer number of people in the country. According to the results of a survey by the Internet and Mobile Association of India (IAMAI) which were posted last month, internet user base in India is set to surpass the number of users in the US with an increase of 49% over the last year to reach 402 million in December.
This makes India second only to China which has about 600 million internet users. Moreover, as compared to China whose market is reportedly almost saturated, the number of users in India will increase further as 4G is set to be launched by next year and more people will have access to the web.
Due to this reason and to capture majority market share in India, Google is one of the key players in the Digital India initiative by the government. It has collaborated with the government for various initiatives like bringing internet through balloons and WiFi hotspots at railway stations to name a few.
On the global scale too, Alphabet had showed remarkable numbers when it filed its first earning report for quarter around two months back. The report showed gross revenues of $18.7 billion in the second quarter which was a 13% increase over the same period last year which had $16.52 billion in revenues.
It even exceeded the analysts’ expectations of $7.21 earnings per share recording $7.35 earnings per share during the third quarter. The stocks of Google had then soared and had taken the company past the $500 billion mark in market capitalisation, next only to the Cupertino giant Apple.