Alphabet profit falls in Q2 after USD 2.7 bln fine from EU

News Broadband Global 24 JUL 2017
Alphabet profit falls in Q2 after USD 2.7 bln fine from EU
Alphabet, the parent company of Google, reported a drop in second-quarter net profit, hurt by the competition fine of USD 2.7 billion imposed on the company by the European Commission. In a rare occurrence for the company since it went public, net profit fell to USD 3.524 billion or USD 5.01 per share from USD 4.877 billion or USD 7.00 per share a year earlier. Excluding the fine, net profit was still up, at USD 6.260 billion, according to adjusted figures presented by Alphabet. 

Revenues still rose 21 percent to USD 26.010 billion, in line with the company's usual growth rate. The Google segment also grew by 21 percent, to USD 25.762 billion in revenue, and the company's 'other bets' contributed USD 248 million, up from USD 185 million a year ago. The operating loss from other bets narrowed slightly, to USD 772 million from USD 855 million in Q2 2016.

Alphabet's capital expenditure increased to USD 2.831 billion in the quarter from USD 2.136 billion a year ago. Stock option costs also increased, to pass over USD 2 billion compared to 1.50 billion in Q2 2016. 

Alphabet still ended the quarter with over USD 94.7 billion in cash and equivalents at the end of June, up from USD 92.4 billion three months earlier. Headcount also continued to grow, passing 75,600 versus just under 75,000 at the end of March. 

Categories:

Internet,  Mobile

Companies:

Google,  Alphabet

Regions:

Global

Tags:

Financial figures, Advertising services

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