Google results: YouTube boycott has minimal impact, EU fine gouges profit

Arvind Hickman
By Arvind Hickman | 26 July 2017
 

Google has grown search and display advertising revenue by 20% to $18.4 billion in three months to June when compared to Q2 in 2016.

However, net income was 28% lower at $3.5 billion after the company was hit with a $2.7 billion European Commission antitrust fine last month.

The results indicate the tech giant suffered minimal impact from YouTube brand safety boycott earlier this year. Google's parent company Alphabet reported group revenues were up 21% to $26 billion year-on-year (Y-O-Y).

Cost-per-click was down 26% year-on-year on Google properties and dropped 11% on Google Display Network member sites.

Paid clicks increased by 61% on Google properties and was up by 9% on Google Display Google paid out $3 billion to network members, up 15% Y-O-Y.

This amounts to 72% of members' properties revenues. Acquisition costs to distribution partners was up 52% Y-O-Y to $2 billion.

“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," Alphabet CFO Ruth Porat said.

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