Alphabet (GOOG) reports big revenue gains but EU fine takes a bite from earnings and income

Google parent Alphabet announced second-quarter results. Both revenues and earnings per share beat Wall Street consensus estimates. The EU antitrust fine of $2.7 billion took a toll on net income and earnings per share.

The company reported just over $26 billion in total revenues (up 21 percent), with Google contributing all but $248 million of that revenue. Advertising on Google generated $22.7 billion.

Once again mobile revenue and YouTube were big contributors to growth. Google reported that it has just over 75,600 employees at the end of the quarter. New hires were “mostly engineers and product managers.”

Here’s the revenue breakdown by segment:

• Google properties: $18.4 billion
• Google network: $4.2 billion
• Google “other revenues”: $3.1 billion
• Other bets: $248 million

Paid clicks on Google properties were up a whopping 61 percent year-over-year and 15 percent sequentially. However, aggregate cost-per-click was down 23 percent since last year and 6 percent since the previous quarter.

Alphabet shares are down is after-hours trading. We’ll update this post with highlights from the earnings call, which is in progress.

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