Google LLC (Kyiv), a subsidiary of Google that provides advertising services, increased revenue by 75% in 2017, which is higher than the rate of 2016. The corporation is now among Ukraine’s top 100 largest taxpayers, Google LLC CEO Dmytro Sholomko has said, Interfax-Ukraine reports.
“While two years ago the share of small and medium-sized enterprises in our total revenue was 40%, now it is greater than 60%,” he said of the main reasons for this growth at a traditional discussion of the macroeconomic forecast for the year organized by the European Business Association (EBA).
Sholomko stressed the rapid growth of the mobile Internet segment. He said that mobile Internet traffic has already exceeded the computer one, which also contributed to the successful performance.
Generally, the Google LLC CEO said that Ukraine’s IT industry continues to expand rapidly, the country is improving its worldwide reputation in this field, which, in turn, encourages major global IT corporations to set up their development centers here. He named PayPal, Samsung, and Waze as examples. According to him, such centers are now being set up not only in Kyiv and Lviv and cities with at least 1 million inhabitants but also in other regional centers.
Among the difficulties, Sholomko pointed out the issues with funding for this industry in Ukraine, which makes it less competitive compared to neighboring countries, for instance, Poland and Lithuania.
In 2016, Google LLC raised its revenue by 61.3% to reach $35.73, and between January and September 2017 it grew to $38.51. The company’s net loss in 2016 increased 2.7-fold, up to $3.1 million. Conversely, between January and September 2017, it obtained net profit of $580 thousand.
According to the State Fiscal Service, in January-November 2017, Google has become the 94th largest taxpayer of Ukraine, between Shakhtar FC ($12.57 million in taxes) and Mariupol maritime merchandise port ($12.09 million). The information on the exact amount of taxes paid by Google for this period is unavailable from the State Fiscal Service.