Tuesday 25 October 2016

Google retail unit sales sink to €201m

Published 11/11/2015 | 02:30

internet giant Google suffered a rare setback last year, as sales of its electronic products, including Google Glass, that were notched up by an Irish subsidiary plunged 29pc to €201.2m.

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The newly-filed accounts for Dublin-based Google Commerce confirm that the fall was due to reduced online and retailer sales.

Google Commerce sells content from its Play store, fast-moving consumer goods to third parties, and earns revenue from an affiliate in respect of activities provided by the company. The company also opened a showroom in central London last year to sell Google Glass directly to consumers.

Sales of Google Glass - which was really a concept product - were halted at the beginning of this year. But the company is developing a successor, rumoured to be known as the Enterprise Edition, that could be released next year.

Google Commerce said the cost of sales at the company last year fell by €80.1m to €195.4m.

"These costs consist of amounts ultimately paid to suppliers and manufacturers of equipment, warranty and inventory provisions, freight and warehousing service providers, and consumer support providers," the firm noted.

It made a €2.6m operating profit last year compared to €1.4m in 2013. But interest and other charges sliced €2m off last year's figure.

The accounts for Google Commerce also reveal that the company had a provision for liabilities in respect of warranties on its goods of €3.5m at the beginning of 2014, with a further €7.3m arising during the year.

Irish Independent

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