Google declares 26% growth in revenue despite hefty EU fine
Google's advertising business accounted for most of its revenue, hitting $28.1 billion in the second quarter, an increase of 23.9 per cent year-over-year
Published - Jul 24, 2018 9:00 AM Updated: Jul 24, 2018 9:00 AM
Google’s parent company Alphabet has announced a boost in revenue by 26% to $32.7 billion as compared the second quarter of 2017, and 23% on a constant currency basis. The surge in revenue came despite the company absorbing a hefty fine of $5.07 billion imposed by the authorities for infringement of European competition law over certain contractual provisions
in agreements between Google and Android partners.
Alphabet declared the financial results for the quarter ended June 30, 2018 on Monday night.
The California-based company reported net income of $3.2 billion , down from $3.5 billion from Q2 last year. Earnings per share was $4.54 including the EU fine and $11.75 excluding the fine.
Google's advertising business accounted for most of its revenue, hitting $28.1 billion in the second quarter, an increase of up 23.9 percent year-over-year. The revenue from advertising business in 2017 was $22.7 billion. The ‘other revenue’ category, hit $4.4 billion revenue, which is a 36.5 per cent increase year-over-year.
Alphabet’s ‘other bets’ category posted a revenue of of $145 million, up from $97 million the same quarter last year.
Traffic acquisition costs, an important metric in Google’s ad business, crept up to 23% of ad revenue in Q2, up slightly from the 22% reported during the same period last year.
The company also announced an increase in the number of employees to 89,058 from 75,606 in 2017.
Announcing the financial results of the company, Ruth Porat, CFO of Alphabet and Google, said, "We delivered another quarter of very strong performance, with revenues of $32.7 billion, up 26% versus the second quarter of 2017 and 23% on a constant currency basis. Our investments are driving great experiences for users, strong results for advertisers, and new business opportunities for Google and Alphabet.”
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