Alphabet Inc., an American multinational conglomerate, and a parent company of Google has finally declared its 2nd quarter profits of 2017. The company stated a year-over-year hike of 21% in revenue, as compared to the revenue of $21.5 billion in the last year’s second quarter. All through the period from April to June, a total of $25.1 billion rolled into the funds of the company.

The company announced its Earnings per share on $5.01, which surpassed the Wall Street estimations of $4.49. While clicks on its advertisements escalated by 52 percent, the cost per click plummeted by 23 percent. However, the Wall Street was expecting a drop of 15 percent, which means that promoters funded a much lesser amount to advertise on Google than estimated.

EU Fine Brings The Google Parent Alphabet’s Second Quarter Profit DownFurthermore, another reason for having an undesirable effect on the report was a whopping fine of $2.74 billion, that was charged EU on Google, for antitrust violations. Also, the company saw an increase in Traffic acquisition costs or TAC, from $4.75 billion to $5.09 billion. The operating income too saw a surge of 15% in the quarter, after taking the fine into consideration. Overall, Alphabet stated a drop in the profits of the second quarter. Growth in Revenue growth was directed by YouTube advertisements and mobile searching advertisements.

Moreover, Google CEO, Sundar Pichai, was included on the board of the Alphabet. The company also proclaimed that during the second quarter, it had recruited more than 1,000 new employees, and most of them working in the cloud business of the Google company.

Google is formulating a plan on bringing up-to-date Google Search features as more and more smartphone users are crowding the application. The company’s triumphs in search are one of the reasons that the EU penalized the company. Owing to the Google’s success in search, the EU concluded that Google had been taking advantage of its domination in search to increase its market share in online shopping as compared to those of competitors.

Since the report has been released to the public, investors have begun to dispose of the Alphabet shares. However, Google has faith that business can someday eclipse its advertising sales, which formed 88 % of its total $US90. 27 billion in the last year.