Alphabet, which owns Google and YouTube, introduced a report for the first quarter of 2022. It follows that the company's net profit fell by $ 1.5 billion, i.e. almost 10%.
In the last period, the company showed record indicators, and this time, although revenue increased by 23% to $ 68 billion, the profit was still reduced.
As reasons, the company notes several factors. Firstly, research expenses have grown by $ 1 billion. Secondly, even with an increase in YouTube revenue by 14% or more loyal viewing by users of video on streaming, instability in Europe led to losses.
The company notes that in all countries of the world people began to spend less time in houses and at the computer, turning back to offline contacts after the pandemic.
In Europe, key advertisers have reduced their budgets for promotion, in connection with losses associated with “leaving Russia”.
In addition, YouTube herself turned off the Russians from monetization and stopped commercial activities in Russia. The latest residues in her Russian accounts are pulled out according to court decisions in favor of local television channels from Constantinople to Gazprom-Media holding, which the video hosting blocked their channels.
Although for several weeks, video hosting was threatened with inevitable blocking, he still works, and all the conversations that Rutube would replace it, when it became clear that there was neither technical capacities nor attractiveness for ordinary authors on the platform, Unlike privileged service of their studios, partner television channels and bloggers.
Alphabet recognized that it was not possible to achieve forecasts for the growth of revenue, and the profit increased less expectations.
One of the key reasons, in addition to the above, the company called the stop "most commercial operations in Russia." In other words, the companies stopped accepting applications for advertising, the authors of the channels turned off payments for shows in Russia, and they reduced the production of content, and regional views fell.
YouTube has somewhat ahead of the development of events, understanding that the economic relations in Russia would be limited to him for blocking the channels of the Russian media, especially with state participation.
The interchange of the situation has not yet been expected. Google continues to be fined in Russia for unsuccessful references to unresolved materials, prepare for the company working fines for non -compliance with the laws "on landing" and localizing these Russians.
Among the new measures, an attempt is considered to completely block payments from Russia in favor of Google and its services. So far, they are so difficult to conduct due to the departure of VISA, MasterCard, PayPal systems from Russia, but some manage to find schemes to pay for Google and other products of the company.
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At this pace, economic efficiency for Google from work in Russia will strive for zero, and for any American company, income in the long term is more important than everything else. This will not only delay the reverse connection of monetization for Russian authors from their content, but will also minimize the company's activities in the country, although blocking individual channels and a tough reaction to them may continue.
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