Google Advertising Boosts Company Profits

Online advertising has fuelled a 21% rise in quarterly profits for Alphabet (Xetra: ABEA.DE - news) , the parent company of search engine Google.

Total (LSE: 524773.L - news) company revenue grew £16bn between April and June, year-on-year, whilst net income for the quarter increased by 23% on last year, to £4.6bn.

"Our terrific second quarter results, with 21% revenue growth year on year, reflect the successful investments we've made over many years in rapidly expanding areas such as mobile and video," CEO of Alphabet Ruth Porat said.

The internet giant's earnings have been driven by the rise in consumers shifting to smartphone and mobile devices, leading to a surge in internet use worldwide.

As a result, companies are buying more advertising on its search engine and other products, and users are increasingly clicking on those adverts, fueling growth.

"The strength of the quarter is about mobile," Google CEO Sundar Picahi said.

"Our investment in mobile now underlines everything that we do today, from search and YouTube to Android and advertising."

Advertising revenue increased by 19% compared to the same period for last year, whilst Google's websites helped profits climb 24%

Alphabet Inc replaced Google as the publicly traded entity as part of a company restructure.