Mobile Ad Revenue Pushes Facebook Earnings to $1.46 billion

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Facebook’s revenues grew 38% to $1.46bn (£938m) in the first quarter from the same period a year ago, boosted by a jump in advertising revenue, the company has reported.

Advertising revenue was up 43% to $1.25bn, of which 30% came from mobile advertising.

Net profit rose to $219m from $205m a year earlier.

“We’ve made a lot of progress in the first few months of the year,” said founder Mark Zuckerberg.

The social networking site said its monthly active users were up 23% year-on-year to 1.11 billion.

That included 751 million mobile users, a rise of 54% on the year.

The comparative figures from last year were from when Facebook was still a private company.

It went public in May 2012 in a high-profile flotation.

Higher costs

Facebook has rolled out new and revamped features and products in recent months.

For instance it has overhauled its newsfeed and search feature, and launched Facebook Home, an app for Android phones.

The app, which effectively replaces the phone’s home screen with a Facebook feed and chat options, has received mixed reviews from users.

The increased spending on infrastructure, together with the fact the firm now employs more people than it did a year ago, contributed to a 60% jump in costs and expenses to $1.08bn in the quarter.

Its shares were down 1.22% in after hours trading.

 

[BBC]

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