Alphabet surprises as ad sales beat forecasts

| Updated Jul 24, 2018 at 12:15pm

 

 

Shares in Alphabet, Google's parent company, jumped as much as 5% in after-hours trading after the firm reported stronger ad sales than expected.

Alphabet earned $32.7bn in revenue in the three months to the end of June, up 26% from the same period last year.

But the record €4.34bn EU fine over over Google's Android mobile operating system knocked $5bn off its profits.

Alphabet reported net income of $3.2bn. Without the fine, it would have been almost $8.3bn, the firm said.

The EU said Google had used the mobile operating system to illegally "cement its dominant position" in search.

Alphabet is appealing the decision, which drove a 36% increase in costs in the quarter.

On a call with financial analysts, chief executive Sundar Pichai said it was too early to say how the changes requested by regulators would affect the firm's business over the long term.

"There is more work to be done and I think it will become clearer as we go along," he said.

Mr Pichai also said it was too early to say what effect Europe's new privacy law - the General Data Protection Regulation (GDPR) - is having.

SOURCE: BBC NEWS



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