Google says that revenue at its Irish office has risen to €38.1bn, up €5.9bn.
The figures, for the 2018 fiscal year, show profit before tax at €1.68bn compared to €1.33bn in 2017. Google’s after-tax profit was €1.4bn, up from €1.16bn in 2017.
Google paid tax here of €272m in 2018, up from €171m in 2017.
Google says that the €5.9bn rise in revenue was “primarily driven by an increase in advertising revenues generated by Google properties and Google Network Members’ properties including an increase in mobile search resulting from ongoing growth in user adoption and usage, as well as continued growth in advertiser activity”.
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The company says that its direct employment at the end of 2018 increased 9.8pc to 3,765, up from 3,428 in 2017.
Staff at Google were paid an average of €100,000 (€373m in total), while three directors – Fionnuala Meehan, Gareth Morgan and Elizabeth Cunningham — shared €1.7m in “remuneration” and €4.2m in “benefits under long term incentive schemes”. Mr Morgan resigned at the end of December in 2018.
Google CEO Sundar Pichai told the Irish Independent last month that Google now employs 8,000 people in Dublin. However, many of these are contractors.
“2018 was a milestone year for Google as we celebrated 15 years in Ireland,” said a Google spokesperson. “Our Irish office continues to play a key role in our Europe, Middle East and African (EMEA) business. As well as growing our turnover, we also added over 300 new jobs in 2018.”
Its statement also says that its cost of sales increased to €11.6bn, an increase of €2.6bn on 2017.
Cost of sales means traffic acquisition costs, which Google describes as “the amounts ultimately paid to Google Network Members, as well as to distribution partners who make available Google’s search access points and services”.
These amounts are “primarily based on revenue share arrangements under which the company pays its Google Network Members and other partners a portion of the fees it receives from advertisers”.
Google also says that administrative expenses increased to €25.1bn in 2018, an increase of €3.2bn on 2017.
“This increase is related to a number of factors including an increase in headcount necessary to support the growth of the business and an increase in sales and marketing efforts across the EMEA region,” the company says.
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