Alphabet shrugs off European Union fine to bring in $3.2 billion Q2 profits

Alphabet shrugs off European Union fine to bring in $3.2 billion Q2 profits

Revenue jumped to $32.66 billion from $26.01 billion. Alphabet shares were up 3.6 percent to $1,254.12 in after-hours trade. Google is set to appeal the decision, and has already argued that apps are easy to remove and that OEMs are free to preload their own alternatives alongside Google's offerings.

Net income came in at $US3.2 billion, down from $US3.5 billion in the same quarter of 2017, largely due to the European fine.

European authorities ordered Google to stop effectively requiring phone-makers in Europe to install Google's search engine and Chrome internet browser on their devices in order to use the Android software.

Analysts surveyed in advance by Yahoo Finance expected Google's parent company to post earnings of $9.54 per share on revenue of $32.17 billion for the quarter.

More news: Conte thanks players, staff and fans in gracious statement after Chelsea exit

Business Insider has contacted Google for comment.

But Google in the second quarter entered the second year of its latest multi-year deal with Apple, which analysts said helped even out costs. The shares rose as much as 5.3 per cent, the most in nearly nine months, to US$1,275 at the market open in New York Tuesday. It is appealing the ruling.

These profits came despite Google's recent $5 billion European Union fine. "I'm confident that we can find a way to make sure Android is available at scale to users everywhere", he said.

On the company's conference call, CFO Ruth Porat said, "One of the biggest opportunities for investment continues to be our ads business, where we're continuing to invest meaningfully".

More news: 'Stand your ground' law protects gunman in deadly shooting over parking spot

Macquarie Group senior analyst Benjamin Schachter wrote in a report this month that "we are approaching a point where we (and we believe The Street collectively) are not understanding the size of search vs YouTube vs programmatic, which may lead to increasing volatility" in share price. It is gaining ground on Amazon, the ecommerce giant that is the world's second...

Investors are also looking for signs of growth beyond advertising, such as Google's cloud-computing business. Oddly enough, however, Alphabet isn't spending much money to get those groups going - capital expenditures for Other Bets was a puny $10 million for the quarter, compared to $148 million a year ago.

In other parts of the Alphabet business, the ever-mysterious "other bets" segments pulled in $145 million, up 49 percent from a year ago - but losses have increased to $732 million (up 16 percent).

More news: #BhookampAaGaya: How Twitterati reacted to Rahul Gandhi’s speech in Lok Sabha

Related Articles