Stocks/Earnings

Alphabet’s ‘Other Bets’ Unit Sees Revenues Rise, Losses Dip in Q2

Google Fiber, Nest, Verily drive gains 7/26/2017 10:36 AM Eastern Last updated at 7/27/2017 4:35 AM

Other Bets, the unit of Alphabet that includes Google Fiber and Nest, turned in improved financials in Q2 amid rising revenue and shrinking losses.

Other Bets pulled down revenue of $248 million, up from $185 million a year, along with an operating loss of $772 million, improving on a year-ago loss of $855 million.

Speaking on an earnings call Monday (July 24), Alphabet CFO Ruth Porat said Other Bets revenue was driven primarily by Nest, Google Fiber and Verily.

Other Bets accrued capex was $152 million, primarily reflecting a reduced investment in Google Fiber due to the pause in expansion that the company announced in the third quarter of 2016, she noted.

RELATED: Google Fiber Pauses Expansion Plans, Laying Off Some Staff

YouTube, meanwhile, has about 1.5 billion monthly viewers, with users watching an average of 60 minutes per day on their phones and tablets, Sundar Pichai, Google’s CEO, said.

Google has not announced subscriber numbers for YouTube TV, its new pay TV service that expanded to an additional 10 markets last week.

Alphabet posted consolidated Q2 revenue of $26 billion, up 21% year-on-year, with Google ad revenues contributing $22.67 billion to that total. Google also accrued $2.74 billion in the quarter from a fine imposed by the European Commission tied to display and ranking of shopping search results and ads that infringed on European competition law.

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