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Google has reported market-beating results for the first three months of the year, easing worries of a slowdown in online advertising.

The owner of the most popular online search engine, said first-quarter profits rose to $1.31bn, up 30% from the same period a year ago.

Google boss Eric Schmidt said “innovation in search, ads, and apps” helped to boost earnings growth.

There have been fears that the firm was being hit by the slowing US economy.

Google said sales were up 42% to $5.19bn for the quarter ended 31 March.

For the first time, the California-based firm earned more revenue abroad – 51% of total sales – compared to its home market. This was partly due to a slump in the weak dollar which increases the value of non-US earnings.

Its shares fell $5.50, or 1.2%, to $449.50 before its results were released, but they rebounded sharply after the closing bell which means that when New York trading begins on Friday, they will rise.

It’s a good time to be a Google bull,” said Colin Gillis, an analyst with Canaccord Adams. “The boys delivered.”

Full story: http://news.bbc.co.uk/1/hi/business/7353677.stm