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Alphabet revenue up 21 percent to $26B but profit falls thanks to EU fine

Google CEO Sundar Pichai speaks at Google I/O 2017
Google CEO Sundar Pichai speaks at Google I/O 2017. (Screenshot)

Google parent Alphabet recorded a 21 percent jump in revenue during its second quarter of the year, and even though net income was down compared to last year courtesy of European Union regulators, it still came in ahead of financial analyst expectations.

The $26 billion in revenue comes almost entirely from the Google division of the company; Alphabet’s “Other Bets” group, which includes things like the shrinking Google Fiber project and Nest, recorded $248 million in revenue. Advertising revenue came in at $22.7 billion, and “Google Other” (some undisclosed portion of which is revenue from Google Cloud Platform) revenue was $3.1 billion.

On the income side, Google had already warned Wall Street that profit would be lower than usual this quarter because of the $2.7 billion fine levied against Google by the EU antitrust regulators. After the fine, net income fell to $3.5 billion, down from $4.9 billion in the year-ago quarter, but that was still significantly more on an earnings-per-share basis than analysts were expecting.

Ahead of the earnings announcement, Alphabet announced that Sundar Pichai, the CEO of Google, would join its board of directors. Pichai was named CEO of Google back in 2015 when the Alphabet parent company structure was created, elevating co-founder Larry Page to CEO of Alphabet.

Alphabet will hold a conference call at 2pm PT today to discuss its earnings, and I’ll update this post with anything interesting from that call.

Source: Geekwire Google

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