Facebook sees revenue soar in latest results

Thursday 25 July 2013 11.04
Founder and CEO Mark Zuckerberg said Facebook had made good progress in making money from mobile
Founder and CEO Mark Zuckerberg said Facebook had made good progress in making money from mobile

Facebook has seen its second quarter revenue soar to $1.813 billion - a 53% increase on the $1.184 billion made in the same period last year.

The world's biggest social network made $333 million dollars in net income from April to June compared with a net loss of $157 million a year ago, according to the company's latest financial results.

An average of 699 million people used the social media platform every day in June, it said, an increase of 27% on the same time last year.

The number of monthly users accessing Facebook on mobile devices - including smartphones and tablets - rose by 51% year-on-year to 819 million in June.

Facebook founder and chief executive Mark Zuckerberg said: "We've made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile.

"The work we've done to make mobile the best Facebook experience is showing good results and provides us with a solid foundation for the future."

Facebook said it made $1.6 billion of revenue from advertising, which was 88% of total revenue and a 61% increase from the same quarter last year.

Mobile ad cash made up 41% of advertising revenue for the first quarter of 2013, it added.

Introducing video to Instagram, the photo-sharing and editing platform Facebook paid $1 billion for last year, saw five million videos uploaded in the first 24 hours, the company said.

Jed Hallam, head of social strategy at media agency Mindshare UK, said: "Facebook has posted some very positive results this quarter, exceeding expectations based on its tumultuous last three months, especially through its mobile advertising platform.

"This is a clear sign that Facebook is starting to understand its role as a conduit between users and brands - from the slow decision around brand advertising being displayed on inappropriate pages, to the apparent delays on the video ad platform that's been rumoured for months, it hasn't been an easy three months."

Facebook was floated on the Nasdaq in May last year in what was one of the largest initial public offerings in history, netting co-creator Mr Zuckerberg more than $1 billion.

But its share price fell dramatically months later and it saw $49 billion wiped from its value.

In December it became the latest firm to come under scrutiny over its tax affairs after reportedly siphoning hundreds of millions of dollars into an offshore haven to avoid payments in overseas markets.