Google parent Alphabet reported record revenue in the second quarter
Google’s parent company, Alphabet, reported $26 billion in revenue in the second quarter, the financial statements for the period showed. The result is a 21% increase over the same period last year.
Revenues increased primarily due to the booming business with mobile ads. In addition, the focus on the YouTube video content subsidiary begins to pay off. According to experts, the US company has managed to take more and more advertisers from big TV channels which now advertise online.
“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 during a conference call with investors on Monday.
The €2.4 billion fine imposed by the European Commission (EC) on the parent company of Alphabet Inc., has a strong negative impact on its financial results.
In the second fiscal quarter, profits shrank by 28% to $3.5 billion annually, the internet giant announced after the session ended, Investor reported. Without a record fine for violating EU antitrust rules, Alphabet could generate a profit of $6.3 billion in the past quarter.
Net profit fell to $5.01 per share, while analysts expected earnings of $4.45 per share, according to data collected by Bloomberg, the report said. Ad revenue jumps by 18% and brings $22.7 billion in revenue to the company.
The remaining companies, part of Nest, Fiber, and others, reported an operating loss of $772 million, down from $885 million in the second quarter of 2016. In a separate press release, Alphabet announced its new board member, Sundar Pichai.
“Sundar has been doing a great job as Google’s CEO, driving strong growth, partnerships, and tremendous product innovation,” Alphabet CEO Larry Page said in a statement. “I really enjoy working with him and I’m excited that he is joining the Alphabet board.”
Sundar joined Google in 2004 and helped lead the development of key consumer products which are now used by over a billion people. In 2014 he took over product, engineering, and research efforts for all of Google’s products and platforms. After years of working closely with Google’s co-founders, Larry Page and Sergey Brin, Sundar became Google’s CEO in August 2015.http://gizbrain.com/2017/07/26/google-alphabet-reported-record-revenue-second-quarter/https://i2.wp.com/gizbrain.com/wp-content/uploads/2017/07/google-ceo-sundar-pichai.jpg?fit=944%2C500https://i2.wp.com/gizbrain.com/wp-content/uploads/2017/07/google-ceo-sundar-pichai.jpg?fit=210%2C111GOOGLETECH NEWSAlphabet,Google,Larry Page,Sergey Brin,Sundar PichaiGoogle's parent company, Alphabet, reported $26 billion in revenue in the second quarter, the financial statements for the period showed. The result is a 21% increase over the same period last year. Revenues increased primarily due to the booming business with mobile ads. In addition, the focus on the YouTube...John GreenJohn GreenJohngreen@gizbrain.comContributorJohn Green is a writer at GizBrain.GizBrain - Your Tech Brain