online marketing services boost Google profits

A rise in aggregate paid clicks and higher revenues from ads shown on partner sites helped Google record a 32 per cent annual increase in its third quarter profits.

The search engine recorded net income of $2.17 billion (£1.35 billion) between July and September, up from $1.64 billion during the corresponding period of last year.

Revenue from pay per click services for Google sites and AdSense partners rose by 16 per cent year-on-year and was four per cent higher compared with the second quarter.

Meanwhile, ads on the Google Network brought in $2.2 billion, or 30 per cent of total earnings, an increase of 22 per cent on Q3 2009.

The bulk of revenue came from sites owned by the company, such as YouTube. At $4.67 billion, this was also up 22 per cent on 12 months earlier.

Just over half (52 per cent) of earnings came from outside the US, the same level as the second quarter but down one per cent year-on-year.

"Google had an excellent quarter," said the search engine's chief executive Eric Schmidt.

"Our core business grew very well and our newer businesses – particularly display and mobile – continued to show significant momentum."

During the third quarter, Google's worldwide full-time workforce grew from 21,805 to 23,331.

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