While the company may have a collection of funds to rescue it from EU fines, it still needs money to pay it off and profit at the same time. Fortunately, it doesn't have that much of a problem in terms of getting money.
According to CNET, Google is still doing fine. This is despite the hefty $5 billion fine they've incurred through an anti-trust law they broke. Google's parent company Alphabet announced that they've managed to create a profit of $32.65 billion in sales. That's more than what analysts have seen in the company. Most modest estimates have seen a $32.19 billion profit for Google.
On stocks, Google is performing worth $11.75 per share. However, the EU fine did its job; the company only managed $4.54 per share.
Most of these have been due to the Internet giant creating revenue from ad spaces and other concessions that generated sales. Money spent on Google Shopping ads are money earned for the company and is good money to spend paying fines and other expenses. This has also been a profitable quarter for Google in spite of Amazon.com Inc's own ads business debut, Bloomberg says.
While some of the profit earned during this robust quarter goes into paying off their fines from the EU, some of it will go towards its digital services. Some of it will be spent on its search engine processes, while some may go into the video service YouTube, which Google now runs.
The fine could be considered as equal to costs Google has incurred on spending for other expenses like capital spending--$5.3 billion worth of it-and paying out what is called 'Traffic Acquisition Costs' or the cost of maintaining search engine and ads on other partners and websites. This is worth $6.4 billion, more than the fines the EU is piling up on the company.
Google's successes are because of its innovative services. It has also started investing in the cloud through its cloud division, which is currently worth $1 billion per annum now. However, there is also some considerable risks-like the Waymo self-driving car company, an investment for the future, and Verily, a life sciences firm. Both cost about $732 million this year and $633 million the second quarter of 2017.
