October 26, 2021
It was another great 90 days selling media subscriptions and digital movie and TV show transactions on Google.
Alphabet Inc. Oct. 26 announced that its Google Services segment generated $23.9 billion in third-quarter (ended Sept. 30) operating income, which was up 66% from operating income of $14.5 billion during the previous-year period. Revenue skyrocketed 40% to $59.9 billion, from $42.5 billion last year.
Google Services covers Android, Chrome, Google Maps, Google Play, Search, and YouTube — generating revenue primarily from advertising; sales of apps, in-app purchases, digital content (i.e. movies, TV shows, video games, music, etc.) products, hardware; and fees received for subscription-based products such as YouTube Premium and YouTube TV.
Specifically, YouTube advertising generated $7.2 billion, up 44% from $5 billion in the previous-year period. Network revenue increased almost 40% to $7.9 billion, from $5.7 billion. Google generated another $6.7 billion in fees, movie, TV show, music, games and related media unit sales and subscriptions (YouTube TV). That was up 23% from revenue of $5.7 billion a year ago.
“Our consistent investments to support long-term growth are reflected in strong financial performance, with revenue of $65.1 billion,” CFO Ruth Porat said in a statement. “We continued to deliver across our business by providing helpful and valuable experiences for both consumers and our partners.”