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Alphabet, Google's parent company, posted a net profit of $ 6.66 billion for revenue of $ 36.3 billion for the quarter ended March 31. But the results were disappointing for investors, who were also penalized by a fine of nearly $ 1.7 billion due to EU antitrust laws.
"We have seen strong growth, driven by mobile search engines, YouTube and the Cloud, generating $ 36.3 billion in revenue, up 17% from last year," he said. Ruth Porat, Chief Financial Officer of Alphabet. "We remain focused on and stimulated by significant growth opportunities in our business."
The problem for Alphabet, of course, is that its non-Google businesses are just that: opportunities. And all are losing money: Alphabet announced that its "other bets" had generated a quarterly operating loss of $ 868 million on revenues of only $ 170 million.
Google, of course, continues its momentum: its advertising business generated revenues of $ 30.7 billion during the quarter, up $ 26.6 billion a year ago. Advertising accounted for 84.5% of Google's revenue. A year ago, it was 85.5%. Google is the largest online ad seller in the world and accounts for one in three ads posted online.
And while it's not a big company for Google, the company did mention that its smartphone business faces "headwinds year after year," which means it sold less than in the past quarter. The company expressed hope that future innovations, such as 5G and folding handsets, would boost sales in the future. And this has highlighted the success of smart home devices compatible with Google Assistant.
"We are seeing strong momentum," said Google CEO Sundar Pichai.
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