Google's profit rose 17 per cent to $1.21bn (£608m) in the fourth quarter of 2007, but fell short of analyst predictions.

Earnings per share came to $4.43 (£2.23), just less than the forecast $4.47 (£2.25). Quarterly revenue hit $4.83bn (£2.43bn), a year-on-year rise of 51 per cent.

Overall sales for 2007 rose 56 per cent to $16.6bn (£8.3bn) and income jumped 37 per cent to $4.2bn (£2.1bn).

Google has yet to see any impact from the rumours of future recessions in the wake of the credit crunch, said chief executive Eric Schmidt.

"We are very pleased with our performance this quarter," said Schmidt.

"It reflects strong momentum in our core business, growing receptivity to our new business initiatives, and improved discipline in managing our operating expenses."