Search engine Google reported a continuing growth in online advertising spending, posting net income of $343m on revenue of $1.38bn in the most recent quarter.

The figures were up 300 per cent and 97 per cent respectively on the same period last year. Corrected for fees paid to partner websites, the search giant's revenues reached $890m.

Just like its main rival Yahoo, Google failed to meet analyst expectations of a dramatic growth in online advertising. The company's stock price slipped 5.7 per cent following the earnings release.

Company executives remained upbeat, however. "We had a very strong quarter," chief executive Eric Schmidt said in a conference call.

Chief financial officer George Reyes warned that the coming quarter would be weaker because summer holidays tend to reduce web traffic in Europe.

Google has released a slew of new services in the past three months, from Google Maps to Google Earth and a localised search offering. But the company warned that it will be some time before the services become profitable.

Google is completely dependent on advertising sales, both on its own website and for online partners through its AdSense programme.

AdSense allows owners of websites, ranging from blogs to professional publishers, to tap into Google's pay-per-click keyword-based advertising programme.

Sales on the Google web pages slightly outgrew the AdSense programme. Some 53 per cent of the company's revenue now comes directly from the Google network, up from 52 per cent in the previous quarter.