Alphabet Overcomes EU Fines To Deliver Quarterly Profit
Alphabet has delivered strong revenues for the quarter, despite the hefty $2.74 billion fines imposed on it by the European Commission.
“With revenues of $26 billion, up 21% versus the second quarter of 2016 and 23% on a constant currency basis, we’re delivering strong growth with great underlying momentum, while continuing to make focused investments in new revenue streams,” said Ruth Porat, CFO of Alphabet.
While the company maintained pretty strong all-around growth, the effect of the landmark fine did a number of Alphabet’s margins for the year, which fell from 28% to 16%.
If not for the fine, Alphabet’s operating income for the year would have been $6.87 billion. Instead, the company reported an operating income of $4.1 billion.
Matching the growth of the previous year’s quarter, Alphabet also its “side bet” revenues grow 34% to 255 million. Its losses for the company’s less-successful experiments also fell approximately 15% to $722 million.
During the earnings call itself, Porat highlighted Google’s hardware efforts as the company’s major source of new revenue growth. More specifically, Google Home and WiFi.
Google Home and WiFi launched in Australia last week.