Google Profits continue to rise

Internet search engine Google has seen quarterly profits soar by a massive 69%, beating expectations, boosted by strong advertising revenue.

Net income climbed to $1bn (£499m) in the first three months of 2007, up from $592m on a year earlier.

Google’s market share has grown and recently it sealed a $3.1bn deal with web advertising network Doubleclick.

Google’s results contrast sharply with Yahoo, whose sales fell 11% in the first three months of this year.

Yahoo’s net profit fell to $142m (£71m) for the three months to March 31, compared with $160m a year earlier.

Martin Pykkonen, an analyst with Global Crown said: “Like last quarter, Google didn’t crush the quarter but the street is getting used to that. And the company is showing good gains versus Yahoo.”

‘Impressive’

Google has gone from strength to strength since it listed in August 2004, defying expectations.

The Doubleclick cash buyout deal was the biggest in Google’s history, allowing it to increase its dominance on the internet advertising market – its main source of income.

And last year Google paid $1.65bn for video sharing website YouTube.

In response to the latest figures, Rick Meckler, president with Libertyview Capital Management said: “The number as always is very impressive.”

Even though the firm’s shares have fallen since the previous earnings were released, its market value has reached close to $150bn.

Mr Meckler said: “Their gains have extended beyond the point where most people thought was possible and where they hinted would be possible a year or two ago when they said growth can’t go on forever.

“For now it’s still growing at a phenomenally healthy pace.”

Google shares were 3% higher in after-hours trade.

Profit was $3.68 per share compared with $2.29 per share a year before.