Alphabet, Google's parent company, has posted better than expected quarterly and end of year results after adopting a new transparent reporting method.

The new reporting structure separates the results of search engine Google from the company's 'other bet' ventures such as self-driving cars, glucose-monitoring contact lenses and Internet balloons.

Alphabet's consolidated revenue jumped 18 per cent to $21.33bn (£14.78bn) in the fourth quarter ended December 31st, from $18.10bn (£12.54bn) a year earlier.

The full year results for 2015 showed that as a separate entity Google's operating income rose to $23.42bn (£16.23bn) compared with $19.01bn (£13.17bn) in 2014.

Google reported a fourth quarter rise in profit to $4.9bn (£3.4bn), up from $4.7bn (£3.2bn) in the same period last year.

Google's advertising revenue increased nearly 17 per cent to $19.08bn (£13.22bn), while the number of ads, or paid clicks, rose 31 per cent, the company said. Advertisers only pay Google if someone clicks on their ad.

Google's shares rose 6.4 per cent to $820 in after-hours trading today, putting the company on track to overtake Apple Inc as the most valuable company in the US when regular trading resumes tomorrow.