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Costs rise caps Google Q2 profits

Google profits - Not as strong as expected
Google profits - Not as strong as expected

Internet search and advertising giant Google has reported a 24% increase in profits for the second quarter of this year.

Net profit rose to $1.84 billion, while revenue also rose by 24% from a year earlier to $6.82 billion.

But the figures were not as strong as Wall Street analysts had expected, as its costs rose by a higher than expected 22%. This was because it took on more staff and spent heavily on research and development.

Google is increasingly moving into new areas - such as smartphone operating systems and mobile advertising - in search of future growth.

'Google had a strong second quarter,' chief executive Eric Schmidt said in a statement. He said there was solid growth in its core business.