Google's profits lifted by higher advertising revenues

Image caption,
Google has pledged to 'aggressively' invest

Google's latest quarterly results have beaten market expectations after it posted a 32% rise in profits.

The internet giant made a net profit of $2.17bn (£1.4bn) in the three months to 30 September, up from $1.6bn for the same period a year earlier.

Google thanked higher advertising revenues, but also the success of its newer businesses, such as its Android mobile phone operating system.

Its overall revenues were up 23% to $7.29bn.

Google chief executive Eric Schmidt said the company had enjoyed "an excellent quarter".

He added: "Our core business grew very well, and our newer businesses - particularly display and mobile - continued to show significant momentum.

"Going forward, we remain committed to aggressive investment in both our people and our products as we pursue an innovation agenda."

When Google's second quarter results missed Wall Street estimates back in July, some analysts raised concerns about how much money the firm was spending to continue to grow the business.

This spending has now increased further - with its operating expenses totalling $2.2bn in the third quarter, up from $1.64bn a year ago.

However, this expenditure is once again being more than offset by the rise in revenues and profits.

Google said 16% more computer users clicked on advertisements on its website during the past three months than they did a year earlier, and that it was charging companies more to list their adverts.

Analyst Colin Gillis of BGC Partners, said: "Clearly their earnings look good. Top line is healthy, expense controls are good."

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