MOUNTAIN VIEW, Calif. — Google-parent Alphabet announced surging profits, shrugging off the impact of a $5 billion fine by the European Union.
The internet giant on Monday reported second-quarter profit of $3.2 billion even after accounting for the fine, imposed by the EU earlier this month for abusing its market dominance On a per-share basis, the Mountain View, California-based company said it had net income of $4.54. Earnings, adjusted for non-recurring costs, came to $11.75 per share.
The results topped Wall Street expectations. The average estimate of 13 analysts surveyed by Zacks Investment Research was for earnings of $9.45 per share.
Top-line growth was also strong. Alphabet reported total revenue of $32.7 billion, up 26 percent from the year-ago period. After subtracting Alphabet’s advertising commissions, revenue was $26.2 billion, also exceeding Street forecasts. Thirteen analysts surveyed by Zacks expected revenue of $25.6 billion.
“Our investments are driving great experiences for users, strong results for advertisers, and new business opportunities for Google and Alphabet,” said Ruth Porat, chief financial officer for both Alphabet and Google in a statement.
Alphabet shares have risen 15 percent since the beginning of the year, while the Standard & Poor’s 500 index has risen 5 percent. In the final minutes of trading on Monday, shares hit $1,211, a climb of 22 percent in the last 12 months.
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