Alphabet (NASDAQ:GOOG) smashing earnings badly hit by the European Commission Fines
Alphabet (NASDAQ:GOOG) unveiled its quarterly results as the company witnessed revenue growth of about $26 billion that was up 21% year over year.
However Alphabet Inc (GOOG) suffered by the record fine imposed by the European Commission last month.
According to the numbers revealed last night, profits of Google’s mother company were $3.5 billion, above 40% less than they would have been without the fine.
In the second quarter company’s year-on-year profits plunged almost 30%.
Total fine was 2.42 billion Euros or $2.7 billion by the European Commission last month following the announcement of verdict that the company had mistreated its influence by promoting its own shopping comparison service at the top of search results.
This fine was the regulator’s largest penalty to date given to the firm charged of distorting the market. Alphabet nevertheless might challenge the fine.
The company may faces additional fines if it does not modify the way Google Shopping ads are displayed within three months
In the meantime these results shows very out of true picture of the shape of Alphabet. It’s been a marvelous quarter which, would have topped all prediction, if have escaped the fine.
As Search giant is set to appeal against the fine , so it is quite possible that at some point in the future those billions are added back on, making the current quarter even more fruitful.
Furthermore the cost per click has came down by 23% year over year. That’s way above than the earlier predictions.
Alphabet (GOOG) generates most cash from advertising. Company’s revenues from advertisers on its own sites, such as YouTube and Gmail, and other sites together surged 18% year-on-year to reach $22.7billion.
For the three months to the end of June, Internet giant’s other revenues, such as app purchases and its cloud services also surged more than 40% to about $3 billion.