cl-au logo
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.

Story image
Organisations take cloud-first approach to security, though concerns remain
"While the results of this survey show that some security professionals still have concerns, having visibility into cloud services is vital and many organisations are now taking a cloud-first approach to security.”More
Story image
Forrester's guide to staying savvy in the world of COVID-19
Remote working, charting business outlook and CX are covered in this piece filled with advice for operating in the world of the pandemic.More
Story image
City of Melbourne announces financial package for SMEs to migrate online
The grants would allow for businesses to quickly adapt to the new normal of remote working -  offering products online, providing services virtually and offering take-away and delivery of goods.More
Story image
Interview: Barracuda decision-makers discuss public cloud security
Last month, Barracuda released a report outlining the security barriers organisations must overcome to adopt the public cloud, as studies reveal that security was the top concern for such organisations.More
Story image
PMT Security launches body-temp scanning solution for enterprise, Seadan to distribute
"It was a no-brainer for us to choose our trusted partners Seadan. We engaged and took advice from them during the decision-making process to find the best UNV product to bring to market."More
Story image
SailPoint Peer Insights Choice for identity management
SailPoint is the only vendor to receive the ‘Customers’ Choice’ distinction in the Identity Governance and Administration segment.More