Google reports good first quarter in all sectors

Google has reported steady sales growth over the past quarter

Google has reported a good first quarter for the year, logging a 23 per cent year-on-year rise in revenues to $6.7bn (£4.34bn).

The company said that the US search market is recovering more strongly than expected, and that advertisers are starting to spend again internationally.

Overseas revenue, which accounts for 53 per cent of Google's business, rose 24 per cent following strong growth in eastern Europe and South America.

"As we enter 2010, it is clear that the digital economy continues to grow rapidly," said Patrick Pichette, Google's chief financial officer.

"It has been a very positive start to the new year. Large advertisers have come back in force, reflecting an improving economy."

Google is in the middle of a major recruitment drive for engineers and sales staff. The company has projects sitting on the back burner because of staff shortages, but Pichette said that Google will still maintain its high level of entry qualifications.

Android performed well during the first quarter, according to the figures, and Pichette claimed that 60,000 new handsets are activated every day. There are now 34 different Android smartphones available from 12 manufacturers.

The Android Market has grown by over two thirds to 38,000 applications, the company said, including thousands of business applications.

Google released few figures for the Nexus handset, although it said that the division is profitable and had contributed to the $300m (£194m) in sales outside Google's traditional search business. It is also an important driver for mobile searches.

"We are taking a mobile first approach," said Jeff Huber, vice president of engineering at Google.

"Voice search is increasingly ubiquitous and we are using the unique characteristics of mobile smartphones to be location-aware for new services. Tools like the 'Near me now' link under the search box are proving very popular. "