Google parent Alphabet lifted by better-than-expected earnings

An image showing the words Alphabet and inc. being used as search criteria in a Google search on a computer, Frankfurt, Germany, 24 April 2018. Alphabet, the parent company of Google, on late 23 April 2018 reported its first quarter 2018 results, saying its revenues in 1st quarter rose 24 per cent to 24.9 billion USD, more than the 21 per cent that was expected by analysts. Revenues in Alphabet's businesses not linked to advertising rose 36 per cent. Operating income for the first three months stood at 7,001 billion USD, compared with 6,568 billion USD in 2017. EPA-EFE/MAURITZ ANTIN

Google parent Alphabet shares lifted Monday 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.

Profit dipped 9.3 percent to $3.2 billion in the second quarter after accounting for the EU fines, the company said.

Revenues meanwhile jumped 26 percent from a year ago to $32.7 billion, better than most analysts expected.

Shares in Alphabet jumped 4.5 percent in after-hours trade, which could mark a new record for the internet giant if confirmed when markets open Tuesday.

“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.

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.

Following a reorganization 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 percent rise from a year ago. DM


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