Google parent company Alphabet’s second quarter earnings report was dominated by the impacts of a $2.7 billion fine from European Union antitrust authorities.
Revenues of $26.01 billion, which were up 21 percent year over year, beat expectations by $410 million. Earnings per share of $5.01 also exceeded estimates by 58 cents. But the fine took a significant bite out of the company’s operating income, dragging it down to $4.13 billion, and nearly halved net income to $3.5 billion.
Alphabet CFO Ruth Porat tried to keep attention on the bright side, though, noting the company’s “strong growth with great underlying momentum.” She says Alphabet will continue to make “focused investments in new revenue streams.” However, it remains to be seen whether Google Fiber will regain its share of the pot.
Revenue for the company’s Other Bets segment, of which Google Fiber is a part, were $248 million. Operating losses for that segment were down year over year from $855 million to $772 million. CapEx stood at $152 million, a figure Porat says is a reflection of the company’s decision to pause its Google Fiber expansion. Porat says the company is “pleased” with its progress across Other Bets, but other than that remained mum on Google Fiber during Monday afternoon’s earnings call.