Changes in India’s accounting standards have reportedly hit the revenues of the world’s leading search engine.
Yes, we are talking about Google!
Google India’s revenues have reportedly come down by around 50% in the previous fiscal year that ended March 31, 2019.
While the company reported Rs. 9,377 crore earnings in 2018, the number halved to Rs. 4,147 crore at the end of March 31, 2019.
However, there was a 16% rise in company’s overall profits!
Despite rise in overall profits, the company’s ad revenues have come down to 28% from 69% a year ago.
“As per IND AS 115, as the control to operate the AdWords platform is with GAP (Google Asia Pacific) and not with the Company, accordingly, revenues and associated direct cost of sales are presented on a net basis in the statement of profit or loss and comprehensive income,” Google said in a statement.
While Google claims that it is only a third-party partner for Google AdWords and other advertising products and services in India, the Indian authorities say that comes under royalty payments and are taxable.
According to a business intelligence platform Tofler, IT enabled services (36%), IT services (36%) and advertising revenue (28%) contributed majorly to Google India’s overall turnover.
According to another market research firm, the search engine giant is expected to generate USD 105.33 billion in its net digital ad revenue in 2019, thus accounting to 32% share of the global digital ad market. Facebook stands second in the list with a 21.1% share.
We cover more top India business news headlines. Stay tuned!. Catch us on Catch us on Social Media across Facebook, Twitter,Instagram and Youtube for latest news updates.
