Google quarterly profit decelerates

2008-01-31 19:09:34 Xinhua English

BEIJING, Feb. 1 (Xinhuanet) -- Google earned 1.21 billion U.S. dollars, during the final three months of 2007, up 17 percent year on year, and it's the first time Google's quarterly profit has climbed by less than 25 percent since it went public nearly 3.5 years ago, media reported Friday.

Google Inc.'s earnings and revenue growth decelerated more than analysts anticipated, magnifying worries that the iternet search leader's moneymaking machine is bogging down as the U.S. economy teeters on the brink of recession.

The quarterly results released Thursday spooked already jittery investors, causing Google's slumping stock price to plunge another 7 percent.

Chief Executive Eric Schmidt rebuffed the notion that the feeble U.S. economy undercut Google's growth.

"I am happy to say we have not seen a negative impact from the rumors of a future recession," Schmidt told analysts during a Thursday conference call.

Company co-founder Sergey Brin said in an interview that the company hasn't seen evidence of the recent economic turmoil affecting its business.

"I'm very happy with things," Brin said. "I think things are going really well."

(Agencies)