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Alphabet reports lower Q2 profit following EU Google fine, revenue higher than expected

Google HQ logo on building

Alphabet has announced its second quarter earnings for 2017, reporting a drop in profit following a $2.7 billion USD fine from the European Union. According to the EU, Alphabet’s Google had violated antitrust rules for its online shopping practices.

On the plus side, Alphabet posted $26.01 billion in revenue, up from $21.5 billion a year ago.

“With revenues of $26 billion, up 21 percent 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, in a statement.

Furthermore, ‘Other Revenues,’ which consists of hardware sales of the Google Pixel and Google Home, as well as Play Store, enterprise efforts and more, performed better this year compared to last. 2017 marked revenues in this area at $3.09 billion, compared to $2.17 billion in the same quarter last year.

As for Google’s bread and butter, the amount of paid ads that were clicked on rose 52 percent. However, the cost per click on each ad dropped 23 percent — much higher than the 15 percent drop analysts had predicted.

Via: CNBC

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