Alphabet overcomes Android fine to record $33bn in revenue

EU penalty hurts profits but cloud, advertising and video drive growth

Gmail app icon

Alphabet beat analyst expectations to deliver huge revenue yesterday, despite its earnings being hit with a $5 billion fine from the EU.

Google's parent company raked in $32.7 billion in revenue in the quarter ending June 2018, it revealed yesterday, up 26% year-on-year.

However, profit fell by a third to $3.2 billion after accounting for the EU's $5 billion penalty levied against Google for its Android antitrust practices, which Google plans to appeal.

But it still saw Google's advertising revenues grow to $28 billion, from $22 billion last year, and Google-owned subsidiaries brought in $23 billion.

"Our investments are driving great experiences for users, strong results for advertisers, and new business opportunities for Google and Alphabet," said Ruth Porat, CFO of Alphabet and Google.

CEO Sundar Pichai pointed to Google Cloud Platform and YouTube as growth drivers, saying on a call with analysts that "our cloud business has great momentum", and that the firm is "investing for the long run".

When asked about the impact of the Android ruling, Pichai said: "We are analysing the decision. We will always take a constructive approach. We'll appeal the Commission's decision and take the due process available to us.

"But, we are also looking forward to finding a solution above all that preserves the enormous benefits of Android to users. I'm confident that we can find a way to make sure Android is available at scale to users, everyone."

While the firm's 'Other Bets' category - including investment arm GV and self-driving car division Waymo - recorded $145 million revenue, it made a $732 million loss, higher than last year's corresponding $633 million loss.

Featured Resources

Digital document processes in 2020: A spotlight on Western Europe

The shift from best practice to business necessity

Download now

Four security considerations for cloud migration

The good, the bad, and the ugly of cloud computing

Download now

VR leads the way in manufacturing

How VR is digitally transforming our world

Download now

Deeper than digital

Top-performing modern enterprises show why more perfect software is fundamental to success

Download now

Recommended

IBM and SAP expand partnership to support software on hybrid cloud
Cloud

IBM and SAP expand partnership to support software on hybrid cloud

21 Oct 2020
DoJ charges Google with multiple antitrust violations
Policy & legislation

DoJ charges Google with multiple antitrust violations

20 Oct 2020
Killed by Google
business apps

Killed by Google

20 Oct 2020
VDI vs DaaS: the flavors of desktop virtualization
virtualisation

VDI vs DaaS: the flavors of desktop virtualization

19 Oct 2020

Most Popular

The top 12 password-cracking techniques used by hackers
Security

The top 12 password-cracking techniques used by hackers

5 Oct 2020
IT services giant Sopra Steria falls victim to Ryuk ransomware
Security

IT services giant Sopra Steria falls victim to Ryuk ransomware

23 Oct 2020
How to wipe a laptop easily and securely
Security

How to wipe a laptop easily and securely

5 Oct 2020