The top online search engine, Google, defied current economic worries with almost a 26% increase in profits. Google earned £778m ($1.35bn) this quarter (third quarter of 2008), beating analysts’ expectations. The firm stated its earnings had grown thanks to its online search and advertising businesses.

Quarterly revenue of Google, comprising commissions to affiliated advertisers, increased 31% to $5.54bn. A Google spokesperson, while announcing its results, stated the firm would continue to improve and improvise its core businesses activities, and would invest in future areas of online growth. Eric Schmidt, Google chief executive, said:

“While we are realistic about the state of the global economy, we will still continue to manage it for the long-term,” he added. Analysts liked the figures.

Canaccord Adams’s Colin Gillis said:

“It is the power of the model (paid search) that is the best form of media advertising still out there. Advertisers even in a down market are going to seek customers. These results separate out the firm from the eBays and the Yahoos.”

Another expert, Manning & Napier’s Greg Woodard, said Google is and would be a dominant player. “I think they will emerge strong,” he added.