comscore Google parent Alphabet sees record earnings despite EU fine
News

Google parent Alphabet sees record earnings despite EU fine

Alphabet's revenues jumped 26 percent from a year ago to $32.7 billion, better than most analysts expected.

  • Updated: July 24, 2018 9:00 AM IST
sundar-pichai-google

Google parent Alphabet shares have lifted on a stronger-than-expected earnings report for the past quarter, as the tech giant’s results eased concerns over huge fines imposed by the European Union for antitrust actions. Also Read - Google Pay disappears from Apple App Store, users could face payment issues

Profit dipped 9.3 per cent to $3.2 billion in the second quarter after accounting for the EU fines, the company said. Also Read - Realme 7 Pro gets October 2020 update with camera improvements and more fixes

Revenues meanwhile jumped 26 per cent from a year ago to $32.7 billion, better than most analysts expected. Also Read - Asus ZenFone 7 Pro gets first Android 11 public beta

Shares in Alphabet jumped 3.6 per cent to $1,254.12 in after-hours trade, which could mark a new record for the internet giant if confirmed when markets open later today.

“We delivered another quarter of very strong performance,” chief financial officer Ruth Porat said.

“Our investments are driving great experiences for users, strong results for advertisers and new business opportunities for Google and Alphabet.” Last week, EU officials slapped a 4.34-billion-euro ($5 billion) penalty on the US tech giant for illegally abusing the dominance of its operating system for mobile devices.

Without the fine — which is being appealed by the company — profit would have been $8.3 billion.

Brussels accused Google of using the Android system’s near-stranglehold on smartphones and tablets to promote the use of its own Google search engine and shut out rivals.

Daniel Ives of GBH Insights said in a research note that despite some regulatory concerns, “advertising and ‘bread and butter’ search revenues were healthy and a good barometer of potential strength heading into the rest of 2018/2019.” The future of the Android mobile operating system — which powers more than 85 per cent of smartphones — has been clouded by the EU action, which could force Google to change its business arrangements with device makers.

Google chief executive Sundar Pichai said that it was too soon to speculate on how Android may be affected by the ruling but said the company would take a “constructive approach.” “We look forward to finding a solution that preserves the enormous benefits of Android to users,” Pichai told analysts after the earnings release.

Following a reorganisation of the company, the Google unit that includes the main search engine and YouTube video service still delivered the lion’s share of revenues at $32.5 billion, with “other bets” driving $145 million in revenue.

Within Google, advertising remained the key revenue source, pulling in $28 billion in the three months ending in June, a 24 per cent rise from a year ago.

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.

As it ramps up artificial intelligence efforts, Google is in fierce competition with rivals such as Amazon and Microsoft in the market for voice assistants that are powering the next generation of connected devices including appliances, cars and smart speakers.

Alphabet’s “other bets” saw a 49 per cent jump in revenues from a year ago, but they still lost money, with an operating loss of $732 million in the past quarter.

The other bets include the self-driving car unit Waymo and the life sciences division Verily. Alphabet recently “graduated” two of these projects to be independent operating units, the Loon internet balloon service and Wing drone delivery.

Alphabet ended the quarter with cash reserves of $102 billion and saw its employee headcount rise to 89,000 from 75,000 a year ago. (AFP) SMN SMN

This is published unedited from the PTI feed.

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel.
  • Published Date: July 24, 2018 8:59 AM IST
  • Updated Date: July 24, 2018 9:00 AM IST



new arrivals in india

OnePlus 8T
OnePlus 8T

42,999

Samsung Galaxy F41
Samsung Galaxy F41

15,499

Apple iPhone 12 Pro Max
Apple iPhone 12 Pro Max

1,29,900

Apple iPhone 12 Pro
Apple iPhone 12 Pro

1,19,900

Apple iPhone 12 Mini
Apple iPhone 12 Mini

69,900

Apple iPhone 12
Apple iPhone 12

79,900

Poco X3
Poco X3

16,999

Realme Narzo 20A
Realme Narzo 20A

8,499

Realme Narzo 20
Realme Narzo 20

10,499

Realme Narzo 20 Pro
Realme Narzo 20 Pro

14,999

Oppo F17
Oppo F17

17,990

Samsung Galaxy M51
Samsung Galaxy M51

24,999

Poco M2
Poco M2

10,999

Oppo F17 Pro
Oppo F17 Pro

22,990

Realme 7 Pro
Realme 7 Pro

19,999

Realme 7
Realme 7

14,999

Xiaomi Redmi 9A
Xiaomi Redmi 9A

6,799

Vivo Y20
Vivo Y20

12,990

Xiaomi Redmi 9
Xiaomi Redmi 9

8,999

Nokia 5.3
Nokia 5.3

13,999

Motorola Moto G9
Motorola Moto G9

11,499

Realme C15
Realme C15

9,999

Realme C12
Realme C12

8,999

Samsung Galaxy Note 20
Samsung Galaxy Note 20

77,999

Xiaomi Redmi 9 Prime
Xiaomi Redmi 9 Prime

9,999

Oppo Reno4 Pro
Oppo Reno4 Pro

34,990

Samsung Galaxy M01 Core
Samsung Galaxy M01 Core

5,499

Realme 6i
Realme 6i

12,999

Asus Rog Phone 3
Asus Rog Phone 3

49,999

OnePlus Nord
OnePlus Nord

24,999

Infinix Smart 4 Plus
Infinix Smart 4 Plus

7,999

Xiaomi Redmi Note 9
Xiaomi Redmi Note 9

11,999

Samsung Galaxy M01s
Samsung Galaxy M01s

9,999

Vivo X50 Pro 5G
Vivo X50 Pro 5G

49,990

Vivo X50 5G
Vivo X50 5G

34,990

Realme C11
Realme C11

7,499

Poco M2 Pro
Poco M2 Pro

13,999

Realme X3
Realme X3

24,999

Realme X3 SuperZoom
Realme X3 SuperZoom

27,999

Tecno Spark Power 2
Tecno Spark Power 2

9,999

Oppo A12
Oppo A12

9,990

Oppo A52
Oppo A52

16,990

Samsung Galaxy A21s
Samsung Galaxy A21s

15,999

Oppo Find X2
Oppo Find X2

64,990

Motorola One Fusion Plus
Motorola One Fusion Plus

17,499

Samsung Galaxy A31
Samsung Galaxy A31

20,999

Samsung Galaxy M01
Samsung Galaxy M01

8,999

Samsung Galaxy M11
Samsung Galaxy M11

10,999

Infinix Hot 9 Pro
Infinix Hot 9 Pro

9,999

LG Velvet
LG Velvet

Price Not Available

Xiaomi Mi Note 10 Lite
Xiaomi Mi Note 10 Lite

Price Not Available

Apple iPhone SE 2020
Apple iPhone SE 2020

42,500

Honor 30 Pro
Honor 30 Pro

Price Not Available

Honor 30
Honor 30

Price Not Available

OnePlus 8
OnePlus 8

44,999

OnePlus 8 Pro
OnePlus 8 Pro

54,999

Xiaomi Redmi Note 9 Pro
Xiaomi Redmi Note 9 Pro

13,999

Motorola Moto E4
Motorola Moto E4

8,999

Samsung Galaxy On Max
Samsung Galaxy On Max

9,775

nubia N2
nubia N2

15,999

Karbonn K9 Kavach 4G
Karbonn K9 Kavach 4G

5,290

Motorola Moto C Plus
Motorola Moto C Plus

6,999

Best Sellers