Story image

Google AU hits $1b in revenue… or is it $3b?

02 May 2018

Google Australia has reported $1.02 billion in revenue in the previous financial year, down from 2016’s $1.14 billion, however, profit for the year was up 16%

According to its latest financial results, the IT titan paid $23.5 million in taxes, or 16% of pre-tax profit, leaving Google Australia equity holders with $125 million to take home.

Interestingly, the statement notes that while their reported revenue would have been $3.46 billion, due to some recent changes in accounting practices it drops significantly down to the $1.02 billion number.

The reasoning provided is that previously, Google Australia would have been considered the principal in many of its advertising and reseller agreements, while under the new approach they are the considered the agent.

As ChannelLife understands it - while they used to be the party in the agreement that the resellers bought advertising from, now they are just providing a platform that resellers can use to advertise.

There is no note of how the discrepancy is accounted for when it comes to taxation or where the $2.44 billion difference is being accounted for.

However, it does note that the shift to the new model of accounting makes no difference when it comes to before-tax profit.

Other points of interest in the report include that operating costs came in at $416 million, made up of sales and marketing, as well as general and administrative expenses, and the cost of sales and services took out $459 million.

The company’s primary source of income was from advertising revenue, which netted them $600 million, followed by $266 million from research and development services and $136 million from hardware sales, with the last $16 million lumped into ‘other’.

Advertising revenue is also where Google Australia saw its biggest dip in revenue, dropping from $882 million in 2016.

Google dished out just shy of $300 million in wages and salaries to Aussie workers, with an additional $116 million in stock-based payments and ‘other short-term benefits’.

This time last year Google had the spotlight shone on it in for tax issues, coming under scrutiny from the Australian Taxation Office for unpaid tax bills.

Cryptomining apps discovered on Microsoft’s app store
It is believed that the eight apps were likely developed by the same person or group.
A multi-cloud approach - what is in it for me?
OVH CEO Michel Paulin explains the benefits of a multi-cloud approach to an organisations digitalisation and what to consider before implementation.
IDC: Top 10 trends for Australia’s digital transformation
The CDO title is declining, 35% of us will be working with bots, the Net Promoter Score will be key to success, and more.
50 million tonnes of e-waste: IT faces sustainability challenges
“Through This is IT, we want to help people better understand the problem of today’s linear “take, make, dispose” thinking around IT products and its effects like e-waste, pollution and climate change."
Enterprise WLAN market heading toward global slowdown
Revenue contribution from licenses exceeds contribution from access points for Enterprise Cloud in next five years.
Flashpoint signs on emt Distribution as APAC partner
"Key use cases that we see greatly benefiting the region are bolstering cybersecurity, combating insider threats, confronting fraud, and addressing supply chain risk, to name a few."
Why SD-WAN is key for expanding businesses - SonicWall
One cost every organisation cannot compromise on is reliable and quick internet connection.
Electric car infrastructure needs to be a high priority
“Australians should be able to drive all over this massive nation with complete confidence in a zero-emission vehicle.”