Google receives a record profit

Revenue growth also accelerated for the first time since the US recession began in December 2007.

The third-quarter results are the strongest indication yet that the internet advertising market is bouncing back from its worst crisis since the dot-com bust at the start of the decade.

Google is considered a good barometer for the state of online commerce because its search engine serves as the hub of the web's largest advertising network.

"The worst of the recession is clearly behind us and because of what we have seen, we now have the confidence to be optimistic about our future," Eric Schmidt, Google's chief executive, told analysts in a conference call.

Mr Schmidt's optimism echoed his public remarks leading up to the earnings release. That sentiment has helped propel Google to a succession of new 52-week highs this week, a rally that continued after the company put out its third-quarter numbers.

Google earned 1.64 billion dollars (£1 billion), or 5.13 dollars (£3.20) per share, in the three months ending in September. That represented a 27% increase from £810 million, or £2.54 per share, at the same time last year.

Revenue for the three months ending in September climbed 7% to 5.94 billion dollars (£3.7 billion) - Google's fastest growth rate so far this year.

In a telling sign that things are picking up again, Google's third-quarter revenue rose 8% from the second quarter. That is the biggest sequential quarterly increase since the end of 2007.

After subtracting commissions paid to Google's advertising partners, the company's revenue totalled 4.38 billion dollars (£2.74 billion) -- about 140 million dollars (£87.5 million) above analyst estimates.