Capital expenses nearly doubled, hitting $5.5 billion this quarter compared to $2.8 billion a year ago. "The mandated changes to behavior may have a greater impact, but we can not quantify that impact without knowing how Google will alter its operations, or whether it will be forced to comply pending appeals". After subtracting Alphabet's advertising commissions, revenue was $26.24 billion USA, also exceeding Street forecasts of $25.64 billion US. With the massive European Union fine factored in, Alphabet's per share profit declined to just $4.54.
Shares of Alphabet were up around five percent in after hours trading. Even including the record fine, the company generated US$3.2 billion in net income during the second quarter. The company had been plagued by similar scandals throughout a year ago. "That's down from 24 percent last quarter, and aligns with Alphabet CFO Ruth Porat's advisement last quarter that the TAC as a percentage of revenue would slow beginning in Q2".
Alphabet is expected to report per-share earnings of $9.66, excluding the impact of a $5.07 billion charge accrued in connection with a European Commission fine, according to analysts polled by FactSet. Alphabet said it would appeal the fine, but already accounted for the fine in its Q2 results.
But Alphabet's outlook is tempered by cost concerns, and Amazon.com Inc's encroachment into advertising has threatened Google's lucrative deals with media companies and advertisers. (FB.O). "One of the unintentional consequences of GDPR is the strengthening of the duopoly", said Gil Elbaz, a former Google executive who now runs the marketing firm Factual.
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Israel also launched an interceptor missile at the second Syrian rocket, but it is unclear if it hit its target. An Israeli military statement appeared to acknowledge that its mission was related to the civil war next door.
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Meanwhile rail commuters were told to expect some alterations after speed restrictions were imposed on some routes into London. The Met Office declared Monday was the hottest day of the year as mercury rose to 33.3C (91.76) in Santon Downham in Suffolk.
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And he's normally a leader but in the last one, two years, he didn't show he's a leader, he didn't show the right performance. The 29-year-old was criticised after being photographed with Turkish president Recep Tayyip Erdogan at a London event in May.
The sums Google pays out to websites and mobile partners to distribute its search engine and ads - called Traffic Acquisition Costs - also rose to US$6.4 billion for the quarter. Still, that was 23 per cent of ad revenue, down from 24 per cent in the first quarter of 2018.
Following a reorganization of the company, the Google unit that includes the main search engine and YouTube video service still delivered the lion's share of revenues at $32.5 billion, with "other bets" driving $145 million in revenue.
Areas such as cloud computing and "other bets" have also added to Google's spending.
Alphabet's other projects saw losses, despite a 49 percent jump in revenues from a year ago.