EU's fine on Google hits Alphabet profit
Google parent Alphabet has reported a quarterly profit of $3.5 billion, with a massive fine by the European Commission biting into earnings.
The technology giant on Monday reported that revenue grew to $26 billion in the recently ended quarter, and that profit would have tallied nearly $6.3 billion if it weren't for a $2.74 billion antitrust fine levied on search engine Google by the European Commission. Revenue was up 21 percent from the same quarter last year, according to earnings figures.
"We're delivering strong growth with great underlying momentum, while continuing to make focused investments in new revenue streams," said Alphabet chief financial officer Ruth Porat. Alphabet shares slid about 2.9 percent to 969.03 in after-market trades that followed release of the earnings figures. Investors have been concerned about what the regulatory trouble in Europe means for Alphabet, which gets most of its money from Google advertising while investing in "other bets" such as self-driving cars.
Alphabet took in $248 million in revenue and posted a narrowed loss of $772 million in its "other bets" category in the recently ended quarter.