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NEW YORK, Oct 28 (Reuters) - Internet content delivery company Akamai Technologies Inc reported stronger-than-expected revenue growth despite worries that growing competition would slow down sales. Akamai, which helps companies deliver Internet content smoothly by navigating less congested routes over the Web, said third-quarter revenue rose 5 percent to $206.5 million, from $197.3 million a year earlier. That compared with the average Wall Street forecast of $199.4 million and the company's own forecast range of $195 million to $203 million. "We saw better-than-expected growth in both key segments. We continue to see strong traction for our value-added service around commerce ... but we also saw it on our media side," Chief Executive Paul Sagan told Reuters. Net profit fell to $32.7 million from $33.4 million a year earlier, although it was unchanged per share at 18 cents. Excluding special items, earnings per share fell to 38 cents per share from 40 cents a year earlier, although it was higher than Wall Street's average view of 35 cents. Analysts say that a shift in consumer entertainment to the Internet will likely continue supporting sales for Akamai. Apple Inc and News Corp-owned MySpace use its services to deliver online music and videos. But the company also faces the risk of pricing pressure and slower revenue amid increasing competition, not only with traditional rivals like Limelight Network Inc but also with new market entrants like AT&T Inc. Sagan said that despite the strong quarterly results, customers are still sensitive to price. "Nobody is saying the recession is over -- hallelujah," he said. (Reporting by Ritsuko Ando; Editing Bernard Orr) Keywords: AKAMAI/ (ritsuko.ando@thomsonreuters.com; +1 646 223 6084; Reuters Messaging: ritsuko.ando.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved.
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