US IT giants Google's holding company and Microsoft announced their financial results for the three months ended last month.
The impact of the economic slowdown is beginning to appear in Google's business results, with Internet advertising revenues declining and Microsoft's personal computer-related sales declining.
Google's holding company announced its financial results for the three months from July to last month on the 25th, and sales increased by 6% compared to the same period of the previous year to 69,092 million dollars, equivalent to Japanese yen. It was about 10.19 trillion yen.
On the other hand, the final profit decreased by 26% to 13.91 billion dollars, or about 2.05 trillion yen in Japanese yen, resulting in an increase in sales and a decrease in profit.
Amid mounting concerns about record inflation and an economic slowdown, companies cut their online advertising budgets, and this is believed to be the main reason for the decline in advertising revenues on the video-sharing site YouTube.
In addition, Microsoft's financial results for the same period showed that sales increased by 10% compared to the same period of the previous year to 50.122 billion dollars, or about 7.39 trillion yen in Japanese yen.
On the other hand, the final profit decreased by 14% to 17,556 million dollars, or about 2,580 billion yen in Japanese yen, resulting in an increase in sales and a decrease in profit.
In addition to the sluggish demand for personal computers, the amount of sales of Windows to manufacturers has decreased, and the strong dollar has reduced profits outside the United States.
The impact of the economic slowdown is beginning to appear among IT companies that have maintained strong performance due to the corona crisis.