Alphabet overcomes Android fine to record $33bn in revenue
EU penalty hurts profits but cloud, advertising and video drive growth
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.
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