EU's record fine takes a toll on Google's Q2 earnings

Google's parent company Alphabet has announced the financial results for the second quarter of the year and its clear that the EU's record fine has taken a toll on company's earnings that also sent it's stock down more than 3 percent during after-hours trading.

Alphabet's total net income for the quarter came in at $3.5 billion, significantly down from $4.9 billion it pulled in a year ago. However, Alphabet was quick to note that without the EU's massive $2.7 billion fine, net income would have come in at $6.3 billion.

The search and advertising giant reported earnings of $5.01 per share, down from $7 per share during the same period last year. Adjusted earnings that did not include the fine came in at $8.90 per share. Revenue was up 21 percent to $26.01 billion. Despite the profit decline, both revenue and earnings were well ahead of Wall Street's expectations.

Revenue was boosted by robust demand for advertising on mobile and the company's popular video service YouTube. Google's ad revenue, which accounts for a lion's share of its business, rose 18.4 percent to $22.67 billion. Notably, Alphabet's 'Other bets' like Verily, Nest, Google Fiber and many other experimental projects came in at $248 million. According to the company, though that's a drop in the bucket, growth is definitely going in the right direction. Operating loss shrunk to $772 million during the quarter.

As for the "Google Other" category, which includes the Google Play store, cloud computing services, and hardware, it grew to $3.1 billion, a more than 40 percent increase over this time last year.