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Google shares drop on Q2 earnings report

Search engine's net profit rises by more than a dollar per share in second quarter

Search engine company Google's net profit jumped 23.9 per cent to $1.84bn, or $5.71 per share, for the three months to the end of June, up from $1.48bn, or $4.66 per share, a year earlier.

The second quarter revenue also increased 23.5 per cent to $6.82bn, from the $5.52bn posted a year ago. On an adjusted basis, earnings reached $2.1bn, or $6.45 per share, from $1.7bn, or $5.36 per share.

Google's revenue beat Wall Street's forecast of $5bn, but earnings fell short of its anticipated $6.52 per share. Google's shares fell over 4 per cent in after-hours trading.

Company chief executive Eric Schmidt said they had a strong second quarter due to growth in Google's core and emerging businesses. "We feel confident about our future, and plan to continue to invest aggressively in our core areas of strategic focus," he added.