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Google Q2 Booms as EU Fine Worries LoomGoogle Q2 Booms as EU Fine Worries Loom

The search giant reported revenue up 26% in Q2, largely thanks to the continuing strengh of its mobile ad revenue.

Dan Jones

July 23, 2018

1 Min Read
Google Q2 Booms as EU Fine Worries Loom

Alphabet, the umbrella company around Google, reported that its revenues were up 26% for its second quarter, but the company is keeping a wary eye on the possible fallout from the recent $5 billion fine levied by European anti-trust regulators.

Alphabet Inc. reported revenue up at $32.7 billion compared to $26 billion in the same period last year. Net income, meanwhile was down, from $3.5 billion in 2017 to $3.2 billion this quarter, as Google has set aside the $5 billion EU fine.

"Android has really worked well for users globally, said Google CEO Sundar Pichai on the call, citing "robust competition" for the mobile operating system, which is used by around 80% of the world's smartphones. Pichai said that the company is still "analyzing" the decision, although Google has already said it will appeal the fine.

Nonethless, despite Alphabet's other ventures and moonshots, the Android mobile operating system is key to the company because it helps to drive its mobile ad revenue, still the key component of its revenue. Advertising revenue was $28 billion for the quarter.

Financial analysts on the call worry that Google might be forced to decouple its mobile Chrome browser -- a crucial conduit for serving ads to Android users -- from other apps that the search giant is alleged to have pushed on smartphone vendors that wanted to use the open source Android OS.

None of this is a concern for investors yet, however, Alphabet shares are trading up $13.12 (1.10%) to $1,211.00 in after-hours trading Monday evening.

— Dan Jones, Mobile Editor, Light Reading

About the Author(s)

Dan Jones

Mobile Editor

Dan is to hats what Will.I.Am is to ridiculous eyewear. Fedora, trilby, tam-o-shanter -- all have graced the Jones pate during his career as the go-to purveyor of mobile essentials.

But hey, Dan is so much more than 4G maps and state-of-the-art headgear. Before joining the Light Reading team in 2002 he was an award-winning cult hit on Broadway (with four 'Toni' awards, two 'Emma' gongs and a 'Brian' to his name) with his one-man show, "Dan Sings the Show Tunes."

His perfectly crafted blogs, falling under the "Jonestown" banner, have been compared to the works of Chekhov. But only by Dan.

He lives in Brooklyn with cats.

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