Today

US internet giant Google has reported a 60 per cent increase in first-quarter profits on the back of strong advertising sales.

Google recorded a net profit of $592m, compared with $372m for the same period a year ago.

Revenue jumped 79 per cent to $2.25bn, easily beating market expectations.

Google, which added 1,110 employees in the first three months of the year, attributes the rise in its quarterly profits to an increase in its online search advertising.

Founded by entrepreneurs Sergey Brin and Larry Page in California, the company receives money from advertisers each time an internet user clicks on adverts displayed next to its search results.

Revenue from the above search advertising rose to $1.3bn, compared with $657m a year earlier.

The firm's partner sites generated revenues, through AdSense programs, of $928m, up 59 per cent on last year.

Eric Schmidt, Google: "Google had an exceptional quarter with strong growth and profitability, from both Google properties and the network."

"Google had an exceptional quarter with strong growth and profitability, from both Google properties and the network," said chief executive Eric Schmidt.

"We are driving this growth through investments in our infrastructure and our people, product innovations that attract new users, and relationships with advertisers and partners around the world.

"The strength of our business model gives us the opportunity to invest in our business, allowing us to maintain and grow our market leadership."

Nearly half of all US web searchers are done using the Google search engine.

Google's share of the US online search market was 48.5 per cent in February, according to tracking firm Nielsen Media Research.

Earlier this week, US rival Yahoo announced a 22 per cent drop in first-quarter profits.

Shares in Google jumped $4.50 following the announcement to $415.