Alphabet profit slumps on record $2.7 bln EU fine

Record ID: 903857

  • Title: Alphabet profit slumps on record $2.7 bln EU fine
  • Date: 24th July 2017
  • Summary: MOUNTAIN VIEW, CALIFORNIA, UNITED STATES (FILE) (REUTERS) VARIOUS EXTERIORS OF GOOGLE OFFICES AND SIGNAGE
  • Embargoed: 8th August 2017 00:54
  • Keywords: Alphabet Inc Google results quarterly profit shares revenue
  • Location: MOUNTAIN VIEW, CALIFORNIA, UNITED STATES/PARIS, FRANCE
  • City: MOUNTAIN VIEW, CALIFORNIA, UNITED STATES/PARIS, FRANCE
  • Country: USA
  • Topics: Company News Markets,Economic Events
  • Reuters ID: LVA0016R2WEO7
  • Aspect Ratio: 16:9
  • Story Text: Alphabet Inc. reported a 27.7 percent drop in quarterly profit Monday (July 24) as the company recorded a previously announced charge related to a record $2.7 billion fine imposed on its Google unit by the EU.
    EU antitrust regulators last month hit Google with a record 2.4-billion-euro ($2.7 billion) fine for favoring its own shopping service, taking a tough line in the first of three probes of its dominance in searches and smartphone operating systems.
    The company's shares, which closed marginally up in regular trading on Monday, fell nearly 3 percent to $969 after the bell.
    The shares had gained nearly 26 percent this year through Monday's close.
    Revenue was boosted by robust demand for advertising on mobile and the company's popular video service YouTube.
    Google's ad revenue, which accounts for a lion's share of its business, rose 18.4 percent to $22.67 billion.
    The company faces intensifying competition from social media giant Facebook Inc. for advertising dollars. The companies together dominate the online ad market.
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