Alphabet may be a powerful company, but the EU is still strong enough to draw blood. At least, that’s the conclusion we could draw out from the company’s latest financial report, in which we can see that the EU fine left quite a dent on the profits.
According to the report, Alphabet’s revenue jumped 16.7 per cent in the first quarter of the year, hitting a total of $36.3 billion. According to CityAM, this is the company’s “slowest pace in three years”.
Analysts had expected $37.3 billion, so revenue was quite off the mark.
Looking at net income, Alphabet reported $6.7 billion, down from $9.4 billion same time last year. Shares were reported at $9.5 per share, down from $13.33 last year.
Here comes the fun part. If we were to exclude the European Commission’s fine, the company would have earned $11.90 per share.
Shares were down more than sever per cent in after-hours trading.
“We delivered robust growth led by mobile search, Youtube, and Cloud with Alphabet revenues of $36.3bn, up 17 per cent versus last year, or 19 per cent on a constant currency basis,” said Ruth Porat, chief financial officer of Alphabet and Google.
“We remain focused on, and excited by, the significant growth opportunities across our businesses.”
Besides the European Commission, the ‘lesser players’ in the digital marketing industry seem to have left their mark, as well. Alphabet’s marketing revenue slowed down, as where Facebook’s, Snap’s, Amazon’s and Twitter’s revenue was all reported as above or in line with analysts’ expectations.
Image source: Shutterstock/MaximP