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Google Australia profit sees small increase in 2018

Google Australia profit sees small increase in 2018

Total of 3.4 per cent increase resulted in $129.4 million profit

Google Australia reported $1.07 billion revenue for the year ended 31 December 2018, which include $560 million of advertising and other reseller revenue.

Hardware revenue accounted for $216 million, research and development services generated revenues of $290 million and another $2.5 million was categorised as "other".

Google Australia's profit after tax totaled $129.4 million, a small increase from the previous year's result of $125.1 million.

Google Australia paid $26.5 million in taxes over the business' $155 million pre-tax profit. The company said it invested almost $1 billion in its Australian operation during 2018.

As previously reported, Google is among a group of technology giants that have been under fire from the Australian Taxation Office (ATO).

The ATO created the Multinational Anti-Avoidance Law (MAAL) as part of the government's efforts to combat tax avoidance by multinational companies operating in Australia. The MAAL has been established to ensure that multinationals pay their fair share of tax on the profits earned in Australia.

The Government has carried inquiries into companies such as Microsoft, Apple and Google over their tax practices in Australia dating back to at least 2012.

The ATO's 2016-17 tax transparency report showed those companies being watched have met the 30 per cent rate. Google, which reported an income of $1.7 billion, had a taxable income of $177 million paying $33.1 million in taxes. Only two years ago, Google had reported taxable income of $106.1 million, but paid $12.2 million in taxes. 

Another reporting entity for the business in the country, Google Cloud Australia posted $20.3 million in revenue for the year ended 31 December 2018 or a 43 per cent increase from the previous year's result of $14.2 million.

However, this does not account for the whole Google cloud business but only for hosting services provided through its technology centre. Google does not break down its cloud services.

The business, which provides hosting services through its technology centre, saw a significant increase in the cost of providing services going from $13.1 million in 2017 to $18.8 million in 2018 which were topped with further financial expenses of $667,000.

This resulted in a profit before tax of $815,247. After paying $355,129 in taxes Google Cloud has an operating profit after tax of $460,118, or a 4.5 per cent increase from the previous year's result of $440,508.

Read more: Online shopping searches via mobile devices up 40 per cent: Google


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