Internet giant Google has posted a profit margin increase of 26 per cent this month, with third quarter earnings totalling $1.35 billion (£780 billion).

The online business defied the current financial climate to shock analysts, who had predicted a smaller forecast for the search engine-based company.

Shares in Google also fought back on Thursday upon the announcement, rising by $36.98 to $390 after extended trading, recovering the 49 per cent drop that the organisation has suffered this year due to adverse economic conditions.

Chief executive Eric Schmidt thanked the company's hard work in what he said was a good year for Google.

"These results reflect that as marketing budgets are squeezed targeted advertising is more attractive," Computing reported Mr Schmidt as saying.

"Similarly consumers are using the web to search for lower prices online helps drive business."

This week, it was announced that Google's mobile operating system, Android, had a kill switch implemented to ensure that "bad" programs could be remotely removed.

A recent Connect survey found that the two major concerns about outsourcing services like IT support were 'loss of control' (56 per cent) and 'budget over-runs' (43 per cent).