Google India's ad revenue rises 11% to ₹34,700cr
What's the story
Google has reported an 11.3% increase in its gross advertising revenue in India for the financial year ending March 2025 (FY25). The company's gross ad revenue stood at ₹34,742 crore, up from ₹31,221 crore in the previous fiscal year. However, its net advertising revenue saw a slight decline of 2% to ₹2,694.4 crore in FY25 from ₹2,743.4 crore in FY24.
Revenue details
Increased ad space purchases impact net revenue
The decline in net advertising revenue can be attributed to higher payments made to Google Asia Pacific for ad space purchases. These costs rose by 12.6% to ₹32,047.6 crore in FY25 from ₹28,477.8 crore in FY24. Despite this, Google's gross sales from enterprise products saw a significant jump of 32.4%, reaching ₹2,054.9 crore for the year compared to ₹1,551.9 crore in FY24.
Operational revenue
Google India's revenue from operations declines
Google India's revenue from operations witnessed a rare decline of 3% to ₹5,340.1 crore in FY25, down from ₹5,518.1 crore in the previous fiscal year. This decline was mainly due to lower sales from advertising space and enterprise products. However, it was partially offset by an increase in other income. Net sales from these segments also fell by 3% to ₹2,880.9 crore in FY25 compared to ₹3,128.5 crore in FY24.
Financial growth
Total revenues and net profit show slight increase
Despite the decline in operational revenue, Google's total revenues grew by 3% year-on-year to ₹6,115.9 crore for FY25 from ₹5,921.1 crore in FY24. The company's net profit remained nearly flat at ₹1,436.90 crore for FY25 compared to ₹1,424.9 crore in the previous fiscal year. This indicates a stable financial performance amid challenges in certain revenue segments.
Expense details
Google India's employee benefits expense rises
Google India also witnessed a 7.9% increase in its employee benefits expense to ₹2,145.9 crore in FY25 from ₹1,989.2 crore in FY24. This includes a 13.4% hike in salaries and wages to ₹1,473.9 crore for the year and a 5.5% decrease in share-based payment expenses to ₹518.9 crore. Despite these rising costs, total expenses fell by 1.2% to ₹4,136.3 crore during the year from ₹4,184.4 crore in FY24 due to unspecified cost reductions as per Tofler's report on Google's financials.