Google's Parent Says Profits Higher Despite Virus

Google parent Alphabet on Tuesday said that profit rose slightly in the first quarter of this year despite a slowdown in online ads caused by the pandemic.

Alphabet shares climbed three percent in after hours trades that followed release of earnings figures that eased fears the pandemic would devastate digital ad revenue that is the internet firm's income engine.

Chief executive Sundar Pichai said that "we've marshalled our resources" to assist people during the crisis.

"Given the depth of the challenges so many are facing, it's a huge privilege to be able to help at this time," he said.

Alphabet reported a profit of US$6.8 billion, up nearly three percent from last year, on revenue that grew 13 percent to US$41 billion compared with the same quarter a year earlier.

The internet colossus said however the impact of the pandemic began to hit online ads, its main source of revenue and profit, in March.

"Performance was strong during the first two months of the quarter, but then in March we experienced a significant slowdown in ad revenues," chief financial officer Ruth Porat said.

"We are sharpening our focus on executing more efficiently, while continuing to invest in our long-term opportunities." (AFP)