Alphabet spells confidence despite EU fine against Google

24 Jul 2018113 Views

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Google logo. Image: Mentatdgt/Shutterstock

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Google owner and investors shrug off $5.1bn EU fine.

Google’s parent company, Alphabet, has reported second-quarter revenues of $32.66bn, ahead of analyst expectations.

The company’s stock soared 5pc in after-hours trading, suggesting investors were unconcerned about the record EU fine levelled against Google last week for alleged anticompetitive practices related to its Android mobile operating system.

‘Our investments are driving great experiences for users, strong results for advertisers, and new business opportunities for Google and Alphabet’
– RUTH PORAT

However, investors will be paying close attention to Google traffic acquisition costs, which were up to 23pc of ad revenue compared with 22pc last year.

Alphabet delivered earnings of $11.75 per share, higher than the expected $11.68.

The strong quarter delivered a solid $3.5bn profit for the internet giant.

“We delivered another quarter of very strong performance, with revenues of $32.7bn, up 26pc versus the second quarter of 2017 and 23pc on a constant currency basis,” said chief financial officer Ruth Porat.

“Our investments are driving great experiences for users, strong results for advertisers, and new business opportunities for Google and Alphabet,” Porat said.

Alphabet and those Other Bets

Google advertising revenues on their own stood at $28bn, up from $22bn last year.

Other Bets revenues surged from $97m last year to $145m in Q2. Operating losses in the Other Bets group rose to $732m.

Those Other Bets include Waymo, Fiber, Verily and infosec player Chronicle.

Alphabet also recently moved its Loon balloon internet project and Wing autonomous drone initiatives under the Other Bets umbrella.

Google logo. Image: Mentatdgt/Shutterstock

Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com