Alphabet's quarterly profits fall after $5 billion European Union fine

Adjust Comment Print

Google parent company Alphabet reported blockbuster second quarter earnings on Monday despite being hit with a major European antitrust investigation and $5 billion fine.

The company reported earnings of $11.75 per share, beating analysts' estimate of $9.66, according to The Wall Street Journal. In the same quarter a year ago, Alphabet reported earnings of $5.01 per share on revenue of $26 billion. "We are analyzing the decision and I think it's too early to comment or speculate", he said.

On the face of it, the European Commission's massive fine hasn't really hurt Alphabet - at least not in the eyes of investors. The headlining story of this release is that the market was surprised by Google acheiving far stronger ad sales than expected.

"One of the biggest opportunities for investment continues to be in our ads business", Porat told analysts on the earnings call.

In a statement, Ruth Porat, chief financial officer of Alphabet and Google, said the company had delivered "another quarter of very strong performance". Statista compiled StatCounter across both desktop and mobile (thus somewhat less relevant to this mobile-focused debate) and found that Google's search engine market share in all five countries stands between 90 and 95 percent.

Israel evacuates 800 White Helmets to Jordan as Syrian forces advance
The rescue was organized by Israel, which has otherwise avoided direct intervention in the brutal civil war ravaging its neighbor. Israelis involved in the rescue operation told Hadashot news that it was one of the most emotional efforts to help Syria to date.

TAC, an important metric in Google's ad business, crept up to 23% of ad revenue in Q2, up slightly from the 22% reported during the same period past year. That leaves the infamously opaque "other revenues" segment - including the hardware business, Play Store, etc. - to bring in $4.4 billion in revenue. It is gaining ground on Amazon, the ecommerce giant that is the world's second... The ruling dwarfs the previous record for European Union fines, last year's $2.7 billion in penalties for shopping comparisons in search results, levied against-you guessed it, Google.

Another good signーAlphabet also saw slowing growth in its so-called traffic acquisition costs, or how much the company pays to drive views to its sites.

"Alphabet also breaks out the revenues and losses for its 'Other Bets, ' like healthcare company Verily, internet service provider Fiber, and self-driving auto company Waymo". The margin was down from 26 percent a year ago.

Pichai called out notable cloud wins and customers during the call, include PwC, Domino's Pizza, SoundCloud and Target. Other Bets posted Q2 revenue of $145 million on operating losses of $732 million ...

Although advertising remains the key driver of revenue, Google has been moving into cloud computing services for businesses, artificial intelligence and devices, including its Pixel smartphones and notebook computers.