Google's revenue and profits in Russia

Main article: Google Russia

2024: The bankruptcy trustee estimated Google's property in Russia at 14.9 million rubles

In July 2024, the property of Google LLC Russia was estimated at 14.9 million. rubles"Buttons" - YouTube souvenirs for the number of subscribers - were estimated at 1 ruble each. The assessment was made by the bankruptcy trustee Valery Talyarovsky, responsible for the bankruptcy procedure of the company.

2022:82% drop in revenue to RUB 24.2 billion

The revenue of the Russian subsidiary Google in 2022 amounted to 24.2 billion rubles, which is 82% less than a year earlier. Such data are contained in the financial report, which Google LLC disclosed in early May 2023.

According to TASS, citing the company's materials, its net loss in 2022 turned out to be 10.2 billion rubles, which is 61% less than losses a year ago.

Revenue of the Russian subsidiary Google for the year fell by 82%

In November 2022, the Arbitration Court of Appeal introduced an initial bankruptcy procedure against Google LLC at the request of the company. Then it was reported that the receivables of Google's subsidiary in Russia amounted to 27.025 billion rubles. In addition, the court materials said that the amount of the company's monetary obligations to creditors is 18.7 billion rubles. The debt on remuneration of the debtor's employees and payment of severance pay to them is 271.2 million rubles, on mandatory payments - 85.7 million rubles.

Google began preparing to close its office in Moscow long before filing for bankruptcy. In March 2022, the company began exporting employees from Russia. A significant part of those who agreed to the relocation were sent to Dubai. Those who did not want to move were fired.

In May 2022, Google began disconnecting the servers of the Google Global Cache network located in Russia, which, in particular, provides quick delivery of Google content (including videos on YouTube) to customers of Russian Internet providers.

In the spring of 2022, the confrontation between Google and the Russian authorities escalated in connection with the special military operation of Russia in Ukraine. As a result, Roskomnadzor blocked access to the Google news aggregator due to the distribution of "numerous materials containing inaccurate information about the situation in Ukraine."^[1]

2021: Revenue growth 1.6 times to RUB 134.27 billion

The revenue of the Russian representative office of Google in 2021 turned out to be equal to 134.27 billion rubles, which is 1.6 times more than a year earlier. The company's net losses amounted to 26.4 billion rubles, while in 2020 there was a net profit of 1.7 billion rubles. Such data were released on May 11, 2022.

According to Interfax, citing the financial statements of Google LLC, the company's gross profit at the end of 2021 increased 1.5 times compared to 2020 and reached 5.8 billion rubles. Profit from sales almost doubled - to 3.9 billion rubles.

Google revenue in Russia for the year increased 1.6 times

Cash flows from current operations of Google LLC in 2021 amounted to 127.3 billion rubles against 83.62 billion rubles a year earlier. Accounts receivable by the end of 2021 decreased to 502.9 million rubles from 17.74 billion rubles a year earlier. The company has accumulated cash and cash equivalents in the amount of 3.09 billion rubles, which is almost four times less than the end of 2020.

The Russian division of Google, having analyzed queries in the search engine at the end of 2021, named the ten most important events for Russians. In first place in terms of the number of requests was the European Football Championship. It was supposed to take place in the summer of 2020, but due to the COVID-19 pandemic, it was postponed for a year. The second place in the ranking of important events was taken by the Olympic Games in Tokyo, which were held from July 23 to August 8.

The third most popular event among Russians was the Eurovision Music Contest. In 2021, the Italian group Maneskin won it. The top five also included the World Hockey Championship and the establishment of a new holiday - Father's Day.

In addition, according to Google, the Russians in 2021 followed the conflict in Afghanistan, the shooting in Kazan, the elections to the State Duma and the blocking of the Suez Canal.^[2]

2020: The Federal Tax Service announced Google's income in Russia in the amount of 144.4 billion rubles

In January 2022 Federal Tax Service of the Russian Federation , she disclosed in court the income Google in: in Russia 2020, they could amount to more than 144.4 billion rubles.

According to the Federal Tax Service, the revenue of various legal entities of the corporation is 49.2 billion rubles, 95.2 billion rubles, 40.6 million rubles. and 398.6 thousand rubles, which in total amounts to the aforementioned 144.4 billion rubles. The document does not specify for what particular year such an amount of income was received. But Article 13.41, according to which the company is considering the payment of a fine, was introduced into the Administrative Code and began to operate only in 2021 and is not retroactive, emphasized the interlocutor of RBC, partner of the A-pro law firm Anton Vorobyov. Since the case was considered in December 2021, and the statute of limitations for bringing to administrative responsibility for this offense is three months from the date of the offense, it turns out that the total income preceding the year in which the offense was committed was received in 2020.

At the same time, it was previously reported that Google LLC earned 85.46 billion rubles of revenue in 2020, which is 14% more than the previous year (74.95 billion rubles). The company's net profit during this time almost doubled and reached 1.73 billion rubles (in 2019 - 871.8 million rubles).

The financial indicators of Google LLC are quoted by Interfax with reference to the company's financial statements. It follows from it that the profit from sales from the Russian subsidiary Google at the end of 2020 amounted to 2.06 billion rubles, not reaching 27.2% of the figure a year ago. Gross profit decreased by 26%, to 3.75 billion rubles.

Revenue of the Russian representative office of Google in 2020 increased by 14%

From the reporting of Google LLC, it also follows that advertising sales brought the company the bulk of its revenues - 82.8 billion rubles at the end of 2020 (+ 15.6% by 2019). Revenue from the provision of marketing services amounted to 2.4 billion rubles, a decrease of 28% compared to revenues a year ago.

The cost of providing advertising services amounted to 79.6 billion rubles, while the purchase of inventory for displaying advertisements cost Google LLC 78.1 billion rubles. This operation was carried out with Google Ireland Ltd.

Advertising and marketing costs relate to commercial expenses of a legal entity. The company does not disclose absolute figures, but based on taxable profit, it can be concluded that Google's subsidiary's promotion costs have decreased 10 times. Total commercial expenses increased by 8%, to 1 billion rubles.

It is also reported that Google LLC paid dividends to Google International's parent company in the amount of 10 billion rubles as a result of profit distribution for 2015-2017. American The technology giant received its first dividends from its Russian subsidiary in 2015 - 3.1 billion rubles. Dividends at the end of 2020 were the first payment since that time.^[3][4]

2019: Revenue growth to 74.9 billion rubles

According to rating of profitability of Russian companies of foreign vendors Google Russia (Google LLC) takes 5th place. The company's revenue for the year amounted to 74,948,874,00 thousand rubles.

2018: Revenue growth to RUB 59.8 billion

The revenue of Google LLC for the year amounted to 59,843,818,00 thousand rubles.

2017: Revenue growth by 51% to RUB 45.2 billion

In 2017, Google's revenue in Russia amounted to 45.2 billion rubles, an increase of 51% compared to 2016, according to data from the SPARK-Interfax system.

This growth rate was the highest in the last five. At the same time, the revenue of the main competitor of the company - Yandex - according to international financial reporting standards increased by 24% to 94.1 billion rubles.

The net profit of Google LLC, the Russian subsidiary of the Google Internet holding, in 2017 increased by 87% to 5.8 billion rubles. The growth in profit from sale turned out to be almost two times - up to 6.99 billion rubles.

Google's revenue in Russia is growing twice as fast as that of Yandex

In a conversation with RBC, Otkritie Broker analyst Timur Nigmatullin linked Google's growing revenues in Russia with the fact that the domestic market for contextual and media online advertising is increasing. In 2017, the advertising market began to emerge from the crisis, which affected the company, which receives 95% of its revenue from it, he said.

Sergey Libin, senior telecommunications and media analyst at Raiffeisen Bank, agrees that Google's profit and revenue in the Russian Federation are increasing due to the growth of the online advertising market. Another factor could be the growth of Google's search share in Russia, in particular, due to the growth of mobile Internet traffic, Libin said.

According to the LiveInternet service, in January 2017, Google's share in the Russian Internet search market was 38.6%, and in December the figure reached 43%.

Libin suggests that revenue growth could also be affected by the growth of income from the app store amid an increase in the number of Android devices among Russian users. According to the report of the analytical company Unified Data AI (formerly App Annie), in total in app stores (expenses were taken into account in the App Store, Google Play and third-party Android stores without deducting store fees), Russians spent $580 million in 2018.^[5]

2014: Revenue of 18 billion rubles (+ 22.4 %)

The revenue of Google LLC increased in 2014 by 22.4%, compared with 2013, to 18 billion rubles. from 14.7 billion rubles, the media reported with reference to the SPARK-Interfax database. The company's net profit increased by 4.7%, to 1.56 billion rubles. Profit from sales increased by 7.3% to 2 billion rubles^[6]

by Google the end of 2014, the Russian market reached a maximum number of search queries of 33.6%, while at the end of last year the share of the service was only 32.1%. Experts note that the increase in indicators by 1.5% occurred due to the search service Yandex"," which during the same period of time lost 1.2% and stopped at 58.1% of the total number of requests on the network. In turn, it is also noted that for long holidays, Yandex's indicators traditionally fall, as the number of users using the search engine from personal computers at work decreases, while increasing the share of requests from mobile devices, where Google's position is traditionally strong.

A significant proportion of users of mobile devices based on Android search through the Google service. In turn, the representation of Android in Runet is constantly increasing, and by the end of 2014 it reached 34.6%, which is 11.9% more than a year ago. The number of devices based on the operating system from Google and the market as a whole is increasing. Thus, the number of smartphones and tablets based on OS Android is 83% and 89%, respectively.

According to the StatCounter service for November 2014, Google controls more than half (50.88%) of the Russian Internet search market (taking into account traffic from computers, smartphones and tablets). Since May, when the share was 55.82%, it has been steadily declining. The main competitor Yandex"," on the contrary, strengthens its position: according to the results of the last spring month of 2014, the share of the search engine was 36.2%, and six months later it rose to 40.45%.

According to LiveInternet.ru statistics for the third quarter of 2014, Yandex accounts for 60% of Russian searches in search engines. Google's figure is 31%.

2011: Revenue of 6.8 billion rubles (+ 80 %)

The revenue of the Russian subsidiary of Google - Google LLC increased by 80% compared to the previous year and amounted to 6.8 billion rubles. Such data are provided in the company's reports published in the SPARK-Interfax database. Net profit increased by 70% and reached 633.6 million rubles, Vedomosti reported in July 2012.

In 2011, Google's share in the number of Runet searches grew, mainly due to the company's main competitor, Yandex. According to the Liveinternet.ru Internet Statistics Counter, in 2011 Google's share grew to 25.9%, and Yandex's share decreased to 59.6%.

Yandex's revenue in 2011 increased by 61.8% to 21.3 billion rubles, and net profit - by 46% to 6.56 billion rubles, SPARK-Interfax reports. Those numbers are slightly lower than Google's.

It would seem that Google in Russia is growing faster than Yandex, but it is impossible to directly compare them on this indicator due to Google's income from the parent American company.

At the same time, the profitability of the Russian LLC Google in terms of net profit last year was an order of magnitude lower than that of Yandex - 9.3% and 30.8%, respectively. Troika Dialog analyst Anna Lepetukhina believes that the reason could be higher costs than Yandex in promoting its products and services in Russia.

2009: Revenue growth by 57% to RUB 2.2 billion

The world's largest search engine Google earns almost four times less than Yandex in Russia and almost 1.5 times less Mail.ru. This follows from the reports published by his Russian subsidiary, Google LLC.

Google's reporting traditionally does not disclose the performance of the corporation's regional divisions. But the other day, the reports of the Russian subsidiary Google - Google LLC - according to Russian standards (RAS) were published in the SPARK-Interfax database. Based on these data, the revenue of the Russian Google in 2009 increased by 57% compared to the previous year and amounted to 2.2 billion rubles. ($69.3 million), and net profit - 4.5 times, amounting to 126.7 million rubles. ($4 million). Previously, the reports of Google LLC were not published in the public domain.

In Russia, Google is second: its share in the number of accepted search queries is 2.9 times less than that of Yandex. And in terms of revenue, if it is compared with the income of Yandex LLC, the Russian Google is inferior to its competitor even more - 4.2 times (Yandex earned 9.3 billion rubles last year according to RAS).

According to this indicator, Google LLC was inferior even to Mail.ru, whose share in Russian search is three times less than that of Google. Last year's Mail.ru revenue - even excluding the gaming business of Astrum Online Entertainment, acquired at the end of 2009 - was 30% higher than Google. True, the income items of these two companies are different. Google earns mainly from the sale of contextual advertising in search results (in 2009, advertising earnings provided 97% of its revenue worldwide), and Mail.ru primarily from media advertising (banners) and paid services.

Judging by the reporting of Google LLC, its operating profitability in 2009 could be about 16%, says Troika Dialog analyst Anna Lepetukhina; this is a very modest indicator for an Internet company. The chairman of the board of Finam Vladislav Kochetkov agrees with Lepetukhina: for example, Yandex had an operating profitability of 28.8% in 2009, he calculated, based on the company's reporting under RAS. SPARK-Interfax estimates this figure at Yandex even higher - at 35.7% over the past year (and in 2008 it was 8.1 pp more). Operating profitability of Google as a whole amounted to 36% in 2009, according to the corporation.

The Russian reports of Google LLC do not reflect in any way the company's payments to partners whose sites house part of the advertising sold by Google, Lepetukhina notes. She believes that these deductions should be included in the "cost of goods, products, services sold," which amounted to 1.5 billion rubles last year. Global Google gave 31% of advertising revenue to partner platforms last year; if the same proportion operated in Russia, then Russian sites - Google partners last year could theoretically earn about 680 million rubles.

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