Investing.com - Google’s parent company, Alphabet (NASDAQ:GOOGL) reported a 27.7% drop in quarterly profit, following the $2.74 billion regulatory fine levied by the European Union.
Alphabet reported net income of $3.52 billion, or $5.01 per share on $26.01 billion in revenue, compared to net income of $4.88 billion or earnings of $4.49 per share on $21.5 billion in revenue a year ago.
Analysts were expecting Alphabet to report earnings of $4.49 per share on revenue of $25.6 billion.
Despite earnings that topped expectations on both the bottom and top line, shares of Alphabet slipped more than 2% in after hours trade, as the tech giant recognised a non-deductible $2.74 billion European Union fine in its results, lowering profit.
Excluding the one-time charge, Google said it earned $8.90 per share.
Alphabet Chief Financial Officer hailed the quarter a success pointing to an uptick in revenues and signalled the company would continue to invest in opportunities that will spur top-line growth.
"With revenues of $26 billion, up 21% versus the second quarter of 2016 and 23% on a constant currency basis, we're delivering strong growth with great underlying momentum, while continuing to make focused investments in new revenue streams," said Ruth Porat, CFO of Alphabet.