Alphabet makes less profit by EU fine and sees sales grow

Jul

24

2018

Google parent company Alphabet has made clear in its quarterly figures the consequences of the recent European fine for abuse of power with Android. The company is still making a profit, although it has been reduced. Sales, on the other hand, have increased.

In the announcement of his figures Alphabet writes that his profit in the second quarter of this year amounted to about 3.2 billion dollars. That is slightly less that in the same quarter a year ago, when the company made $ 3.5 billion profit. It explains that there was also an EU fine in that quarter. Without the recent fine of 4.3 billion euros , or about 5 billion dollars, the profits of Alphabet would have amounted to 8.2 billion dollars. An analyst says to the New York Times that the fine has no meaning given the size of Alphabet. “It is as if a delivery company has to pay a parking fine,” he says.

Turnover did increase compared to last year. For example, it came to 32.7 billion dollars compared to 26 billion in 2017. The vast majority of this was generated by subsidiary Google, while 145 million dollars was generated by a category that Alphabet identifies as ‘other bets’. That includes Waymo, which deals with self-driving cars. The ‘other bets’ division caused a loss of $ 732 million this quarter, about $ 100 million more than a year ago. The Verge writes that Alphabet has placed its Nest part with Google in February and that the figures show that the company spends more on experimental projects.

Recently it was announced that Google has to pay a fine of 4.34 billion euros for abuse of power with its mobile operating system Android. According to the Commission, Google prohibited illegal tying by requiring that its Search app and Chrome browser be installed on Android devices in advance. In addition, Google would have paid manufacturers to install Search on their devices and would have actively countered Android forks. Google said to appeal.

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