In what is usually a slow quarter for online, Google reported a record $1.6 billion in revenue for the third quarter, nearly double in the same quarter a year ago, and up 14 percent from the second quarter of this year, reports ClickZ. Net income increased sevenfold from year-ago profits, reaching $381 million, or $1.31 per share. Revenue from abroad constituted 39 percent of all revenue, up four percent from 3Q04, driven in part by Google's reseller program in China.

Growing much faster than sites in the AdSense network, Google's own sites accounted for 56 percent of the quarter's revenue, or $885 million - 20 percent more than in 2Q05. Network revenues increased 7 percent, to $675 million, or 43 percent of the quarter's revenue.

Traffic acquisition costs - payments to publishers that carry Google search results and paid listings - grew to $530 million from $494 million in the second quarter, but they decreased as a percentage of ad revenues, from 36.1 percent to 34 percent, because Google made more of its money from its own sites.