Google reveals record profit in third quarter

The internet ad market is showing signs of an uplift, after Google reported its highest quarterly net profit, up 27% to £1bn compared to the same period a year ago.

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The internet search company also saw a 7% rise in revenue to £3.6bn in the third quarter compared to a year ago.

Chief executive Eric Schmidt says the worst of the recession is now behind it and it is planning to start heavily investing in its business. In a conference call with analysts he said that it planned to start making “strategic acquisitions, both large and small”.

The latest results come as technology company IBM raised its profit forecast for a second time.

While its revenue fell 7% in the three months to the end of September to £14.5bn, net profit rose 14% to £1.96bn. It is expecting at least $9.85 per share in profit for the full year, ahead of analysts forecast of $9.78 per share.

Meanwhile, this week Google announced that its video-sharing website YouTube had secured a deal with Channel 4 to make the latter’s programming available for free on the site.

The three-year revenue-sharing arrangement will see ad-funded content appearing on a branded YouTube channel in the coming months and will be fully rolled out by early next year.

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