STREAMING NOW: Watch Now

Even a $5 billion fine can't slow Google down

Google managed to make billions even after being hit with a massive fine that would cripple many businesses.Al...

Posted: Jul 24, 2018 5:06 AM
Updated: Jul 24, 2018 5:06 AM

Google managed to make billions even after being hit with a massive fine that would cripple many businesses.

Alphabet, Google's parent company, saw its profit dented in the second quarter by this month's record European antitrust fine, but a surge in sales helped offset that hit.

The company's profit fell to $3.2 billion in the quarter ending in June, down from about $3.5 billion in the same period a year ago. Chalk that up to the $5 billion fine the European Commission levied last week. Without the penalty, Alphabet's profit would have been $8.3 billion.

The EU fined Google for unfairly pushing its apps on smartphone users and thwarting competitors. The Commission also ordered Google to give manufacturers greater freedom in deciding which apps to install on Android smartphones.

Related: Europe has fined Google $5 billion. But that won't hurt it

Although the EU levied the fine after the second quarter ended, Alphabet previously said it expected to take the charge for the quarter. Google says it will appeal the decision.

When asked about the potential business impacts from the EU ruling on a conference call with analysts Monday, Google CEO Sundar Pichai said it's "too early" to tell. "We are analyzing the decision," he said.

Alphabet's sales soared to $32.7 billion in the quarter, up 26% from the year prior, driven by the continued strength of Google's ad sales machine, including mobile search ads and YouTube video ads.

Google's advertising sales hit $28 billion, up from $22.7 billion a year earlier.

The company's stock popped as much as 5% in after hours trading Monday, hitting an all-time high, after the earnings results.

Daniel Ives, an analyst with GBH Insights, said the ad sales results are "a clear feather in the cap" for those who are bullish on Google's businesses at a time when it faces mounting regulatory scrutiny for antitrust concerns and data privacy.

-- CNN's Ivana Kottasov- contributed to this report.

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 68503

Reported Deaths: 867
CountyCasesDeaths
Multnomah15561230
Washington940198
Marion8650135
Clackamas568777
Umatilla421248
Lane405040
Jackson357925
Malheur234942
Deschutes207414
Yamhill161516
Linn131019
Polk114015
Douglas88217
Jefferson79811
Union7463
Klamath7454
Benton7447
Morrow6357
Lincoln60014
Wasco49719
Josephine4824
Columbia4573
Coos4061
Hood River3751
Clatsop3450
Baker2703
Crook2086
Grant1301
Curry1202
Tillamook1150
Lake1131
Harney901
Wallowa703
Sherman230
Gilliam210
Wheeler30
Unassigned00
Eugene
Broken Clouds
47° wxIcon
Hi: 51° Lo: 29°
Feels Like: 44°
Corvallis
Broken Clouds
42° wxIcon
Hi: 50° Lo: 31°
Feels Like: 42°
Roseburg
Overcast
44° wxIcon
Hi: 51° Lo: 30°
Feels Like: 44°
North Bend
Clear
46° wxIcon
Hi: 55° Lo: 34°
Feels Like: 44°
KEZI Radar
KEZI Temperatures
KEZI Planner

LATEST FORECAST

Community Events