Google sees record $1.6bn profit

Google profits beat analysts' expectations

Google has reported its highest quarterly profit, suggesting that the internet advertising market is bouncing back from the recession.

Google reported net profit of $1.64bn (£1bn) for the third quarter, a 27% increase on the same period a year ago.

Revenue for the three-month period came in at $4.38bn, which was well ahead of analysts' expectations of $1.29bn.

"The worst of the recession is clearly behind us," said Google chief executive Eric Schmidt.

"Because of what we have seen, we now have the confidence to be optimistic about our future."

Google's shares rose $16.44, or 3.1%, to $546.35 in extended trading.

The internet search engine has weathered the recession better than other advertising-dependent companies, and it was widely expected to be one of the first beneficiaries of an economic recovery.

"Google has no competition. Yahoo is withering on the vine and [Microsoft's] Bing is too tiny now," said Coin Gillis, senior analyst at Brigantine Advisors.

"They did great on every single metric. We think this is sustainable."

Source