San Francisco - USA
San Francisco, Oct 29, 2024 (AFP) -Google's parent company Alphabet reported robust third-quarter results on Tuesday, with revenue climbing 15 percent year-over-year to $88.3 billion, powered by strong performance from its crucial advertising business and growth in cloud services.
The technology giant's net income surged 34 percent to $26.3 billion, while earnings per share increased 37 percent to $2.12.
Operating margins expanded significantly, rising 4.5 percentage points to 32 percent, reflecting improved cost efficiency at one of the world's biggest companies.
"Our commitment to innovation, as well as our long-term focus and investment in AI, are paying off with consumers and partners benefiting from our AI tools," said CEO Sundar Pichai, referring to the burgeoning field of artificial intelligence.
The results showed that Google is holding its own despite worry that the search engine juggernaut has been caught short in the AI race.
Google also faces increasing pressure as its world-dominating search engine competes for ads with a widening array of platforms, including Meta, Amazon, Apple, TikTok and even streamers such as Netflix.
But Emarketer senior analyst Evelyn Mitchell-Wolf said Google proved that its defense "is locked in, and it heads into the holiday season well-positioned to win ad budgets."
The company also satisfied questions about whether its search engine will withstand the growing popularity of generative AI chatbots like ChatGPT, which can answer many queries directly in lieu of an internet search.
In response to these pressures, Google earlier this month reshuffled its search engine business, replacing the division chief after a four-year tenure.
The company also moved its Gemini chatbot team to Google DeepMind, separating it from the search group.
Pichai said that Google Search's AI Overviews, which display a snapshot of information at the top of the results page, was proving a success and available to one billion users in more than 100 countries.
"We are definitely expanding what's possible in search and it's been really heartening to see users adapt," Pichai told analysts.
Google Cloud emerged as a standout performer in the June-to-September period, with revenue jumping 35 percent to $11.4 billion, driven by increased adoption of AI infrastructure and solutions.
That business, which trails market leaders Amazon and Microsoft, provides businesses with computing power, data storage and AI tools delivered over the internet.
The company's core Google Services segment, which includes Search, YouTube, and other advertising products, grew 13 percent to $76.5 billion.
YouTube hit a significant milestone, with total advertising and subscription revenues exceeding $50 billion over the past four quarters for the first time.
After the release, investors sent Google's share price higher by five percent in after-hours trading.
Despite the solid earnings, Google faces significant legal challenges, at least in the long-term.
In August, a federal judge found that Google's search engine was an illegal monopoly, with the US government suggesting a company breakup might be appropriate.
A separate antitrust lawsuit challenges its dominance of online advertising.
Additionally, Google has been ordered to open Android-powered smartphones to rival app shops following a case brought by Fortnite-maker Epic Games, though that decision has been suspended pending appeal.
While those legal battles are expected to take years to resolve, they have raised questions about the company's long-term strategy and its heavy reliance on search engine advertising revenue.
Google reports strong growth driven by AI, cloud
https://arab.news/w4tub
Google reports strong growth driven by AI, cloud
A look back at how Arab News marked its 50th anniversary
- In a year crowded with news, the paper still managed to innovate and leverage AI to become available in 50 languages
- Golden Jubilee Gala, held at the Diplomatic Quarter in Riyadh, now available to watch on YouTube
RIYADH: In 2025, the global news agenda was crowded with headlines concerning wars, elections and rapid technological change.
Inside the newsroom of Arab News, the year carried additional weight: Saudi Arabia’s first English-language daily marked its 50th anniversary.
And with an industry going through turmoil worldwide, the challenge inside the newsroom was how to turn a midlife crisis into a midlife opportunity.
For the newspaper’s team members, the milestone was less about nostalgia than about ensuring the publication could thrive in a rapidly changing and evolving media landscape.
“We did not want just to celebrate our past,” said Faisal J. Abbas, editor-in-chief of Arab News. “But more importantly, we were constantly thinking of how we can keep Arab News relevant for the next five decades.”
The solution, he added, came down to two words: “Artificial intelligence.”
For the Arab News newsroom, AI was not a replacement for journalism but as a tool to extend it.
“It was like having three eyes at once: one on the past, one on the present, and one on the future,” said Noor Nugali, the newspaper’s deputy editor-in-chief.
One of the first initiatives was the 50th anniversary commemorative edition, designed as a compact historical record of the region told through Arab News’ own reporting.
“It was meant to be like a mini history book, telling the history of the region using Arab News’ archive with a story from each year,” said Siraj Wahab, acting executive editor of the newspaper.
The issue, he added, traced events ranging from the outbreak of the Lebanese civil war in 1975 to the swearing-in of Donald Trump, while also paying homage to former editors-in-chief who shaped the newspaper’s direction over five decades.
The anniversary edition, however, was only one part of a broader strategy to signal Arab News’ focus on the future.
To that end, the paper partnered with Google to launch the region’s first AI-produced podcast using NotebookLM, an experimental tool that synthesizes reporting and archival material into audio storytelling.
The project marked a regional first in newsroom-led AI audio production.
The podcast was unveiled during a special 50th anniversary ceremony in mid-November, held on the sidelines of the Arab Media Forum, hosted by the Dubai Future Foundation. The event in the UAE’s commercial hub drew regional media leaders and officials.
Remarks at the event highlighted the project as an example of innovation in legacy media, positioning Arab News as a case study in digital reinvention rather than preservation alone.
“This is a great initiative, and I’m happy that it came from Arab News as a leading media platform, and I hope to see more such initiatives in the Arab world especially,” said Mona Al-Marri, director-general of the Government of Dubai Media Office, on the sidelines of the event.
“AI is the future, and no one should deny this. It will take over so many sectors. We have to be ready for it and be part of it and be ahead of anyone else in this interesting field.”
Behind the scenes, another long-form project was taking shape: a documentary chronicling Arab News’ origins and its transformation into a global, digital-first newsroom.
“While all this was happening, we were also working in-house on a documentary telling the origin story of Arab News and how it transformed under the current editor into a more global, more digital operation,” said Nugali.
The result was “Rewriting Arab News,” a documentary examining the paper’s digital transformation and its navigation of Saudi Arabia’s reforms between 2016 and 2018. The film charted editorial shifts, newsroom restructuring and the challenges of reporting during a period of rapid national change.
The documentary was screened at the Frontline Club in London, the European Union Embassy, Westminster University, and the World Media Congress in Bahrain. It later became available on the streaming platform Shahid and onboard Saudi Arabian Airlines.
It was also nominated for an Association for International Broadcasting award.
In early July, a special screening of the documentary took place at the EU Embassy in Riyadh. During the event, EU Ambassador to Saudi Arabia Christophe Farnaud described the film as an “embodiment” of the “incredible changes” that the Kingdom is undergoing.
“I particularly appreciate … the historical dimension, when (Arab News) was created in 1975 — that was also a project corresponding to the new role of the Kingdom,” Farnaud said. “Now the Kingdom has entered a new phase, a spectacular phase of transformation.”
Part of the documentary is narrated by Prince Turki Al-Faisal, the former Saudi ambassador to the US, who in the film delves into the paper’s origins.
The grand slam of the anniversary year was the Golden Jubilee of Arab News gala, held in late September in Riyadh’s Diplomatic Quarter.
Hosted by the Dean of Diplomatic Corps in Saudi Arabia and Ambassador of Djibouti to Riyadh Dya-Eddine Said Bamakhrama, the evening featured a keynote address by Prince Turki, who spoke about Arab News’ founding under his father, the late King Faisal, and its original mission to present the Kingdom to the English-speaking world.
Arab News was established in Jeddah in 1975 by brothers Hisham and Mohammed Ali Hafiz under the slogan to give Arabs a voice in English while documenting the major transformations taking place across the Middle East.
The two founders were honored with a special trophy presented by Prince Turki, Assistant Media Minister Abdullah Maghlouth, Editor-in-Chief Abbas, and family member and renowned columnist Talat Hafiz on behalf of the founders.
During the gala, Abbas announced Arab News’ most ambitious expansion yet: the launch of the publication in 50 languages, unveiled later at the World Media Congress in Madrid in cooperation with Camb.AI.
The Madrid launch in October underscored Arab News’ aim to reposition itself not simply as a regional paper, but as a global platform for Saudi and Middle Eastern perspectives.
The event was attended by Princess Haifa bint Abdulaziz Al-Mogrin, the Saudi ambassador to Spain; Arab and Spanish diplomats; and senior editors and executives.
As the anniversary year concluded, Arab News released the full video of the Golden Jubilee Gala to the public for the first time, making the event accessible beyond the room in which it was held.
For a newspaper founded in an era of typewriters and wire copy, the message of its 50th year was clear: longevity alone is not enough. Relevance, the newsroom concluded, now depends on how well journalism adapts without losing sight of its past.
