Alphabet shrugs off EU's record €4.3bn fine

The company had revenues of $32.7 billion for the quarter, which is up 26% year-over-year - extremely impressive for a company of this size. If you were to look at Alphabet's core operations, without taking into account the $5 billion fine, we'd be looking at a quarter with $7.88 billion in operating income - a full $1 billion higher than the same quarter previous year. Android has around 80 percent of the world's market share of smartphones, thanks to Google's model of letting companies use it free but packaging its own services in the heart of the system.

Alphabet's share price rose over 6% in after hours trading as investors shrugged off the long-term impact of the European Union fine.

'We delivered another quarter of very strong performance, ' chief financial officer Ruth Porat said. Today, Google's advertising business alone is responsible for 86 percent of Alphabet's revenues. Advertising was still the main source of revenue, pulling in $28 billion in the second quarter, which was a 24 percent rise from the year-ago period.

"Google reported a high-quality quarter in which the bulk of the top line outperformance vs. CS came from Websites (ongoing strength in mobile search, YouTube, as well as desktop search) followed by Network revenue (AdMob and programmatic)", the analyst Stephen Ju said.

Alphabet, which relies on advertising for the bulk of its business, is facing an increasingly competitive market, as firms such as Amazon make inroads. So-called "other revenue"-which includes revenue from Google's cloud as well as devices like the Pixel phone and the Home speaker-rose 37% to $4.4 billion, or about 14% of its total revenue". According to Commissioner Vestager, Google had sent its letter about a year too late.

Both Alphabet's headcount and taxes increased.

More news: Harry Maguire, Anthony Martial, Willian

FILE PHOTO: The waxing moon is seen over the logo of Google at its European Engineering Center in Zurich, Switzerland July 19, 2018.

Still, Alphabet's outlook remains tempered by cost concerns, Canaccord Genuity analyst Michael Graham said in a report this month.

Adjusted Earnings: $US11.75 per share compared to an expected $US11.68.

Which brings us, of course, to Google. According to a report published today, Google's secret attempt to settle with the European Union failed because the company waited too long to offer a settlement plan.

Google, though, has increasingly linked together its services technologically through automated ad-buying tools that empower algorithms rather than humans to pick where ads are placed. The largest Ad Revenue-based 'Net business has now averaged 23% growth for 34 (count 'em) straight quarters & shows no signs of slowing.

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