Bulletin: Alphabet Inc.'s Second Quarter Profit Fell Due To European Commission Fine; Revenue And Cash Flow Are Strong

NEW YORK (S&P Global Ratings) July 25, 2017--S&P Global Ratings today said Mountain View, Calif.-based global technology company Alphabet Inc.'s second-quarter 2017 results reflect lower-than-expected net income as a result of a €2.42 billion (approximately $2.74 billion) fine imposed by the European Commission on Google Inc., a wholly-owned subsidiary of Alphabet Inc., for infringing European competition law related to Google's display and ranking of shopping search results and ads. Nevertheless, revenue and cash flow generation were strong as expected and our rating and outlook on Alphabet remain unchanged. Alphabet Inc. (AA+/Stable/A-1+), Google Inc.'s parent holding company, generated total revenues of $26 billion in the second quarter of 2017, up 21% on a year-over-year basis and up 23% at constant currency.

...NEW YORK (S&P Global Ratings) July 25, 2017--S&P Global Ratings today said Mountain View, Calif.-based global technology company Alphabet Inc.'s second-quarter 2017 results reflect lower-than-expected net income as a result of a 2.42 billion (approximately $2.74 billion) fine imposed by the European Commission on Google Inc., a wholly-owned subsidiary of Alphabet Inc., for infringing European competition law related to Google's display and ranking of shopping search results and ads. Nevertheless, revenue and cash flow generation were strong as expected and our rating and outlook on Alphabet remain unchanged. Alphabet Inc. (##+/Stable/A-1+), Google Inc.'s parent holding company, generated total revenues of $26 billion in the second quarter of 2017, up 21% on a year-over-year basis and up 23% at constant currency. The strong growth in the second quarter was similar to that in 2016, driven by mobile search, YouTube, programmatic advertising, Google Play, cloud, and hardware. An overwhelming...

Bulletin