Share windfall for Facebook staff in Ireland

Executives and staff at the main Irish unit of Facebook last year shared a €13.9 million share windfall as revenues at Facebook Ireland surged past the €1 billion mark for the first time.

New figures show that Facebook Ireland Ltd last year accounted for 44 per cent of the social networking giant’s global revenues of $3.15 billion.

Yet despite a fourfold increase in revenues, accounts just filed at the Companies Office show the business slumped into the red.

Massive jump

Facebook Ireland recorded a loss of €18 million on sales of €1.051 billion, compared to a profit of €1.8 million in 2010 on sales of €229 million.

The massive jump in revenue arises from the Dublin-based company billing third-party customers for online advertising on the Facebook website for the whole of 2011 compared to just four months in 2010.

The figures show that staff and executive directors enjoyed share-based payments totalling €13.95 million last year. However, of this, 42 per cent or €5.9 million went to unidentified key management personnel.

Facebook globally recorded profits of $1 billion in 2011.

The accounts show that corporate tax paid by Facebook Ireland Ltd totalled €3.23 million.

The company blamed a sharp rise in administrative expenses for the 2011 loss. This was attributed to an increase in headcount – staff numbers jumped by 90 per cent to 287 over the year – and royalty payments made by Facebook Ireland Ltd to Facebook entities.

The figures show that administrative expenses surged by €818.5 million from €221.6 million to €1 billion.

Staff costs totalled €35.6 million, including €17.2 million in salaries and the €13.95 million in share-based payments. It does not include emoluments to directors, who are paid by Facebook Inc.

Salaries to key management personnel increased from €644,000 to €1.58 million.

Capital contribution

In a post-balance sheet event, the accounts also disclose that the company received a capital contribution of $300 million from its immediate parent, Facebook Ireland Holdings, in February of this year.

The company officially opened its European headquarters in Dublin in October 2009. In October, Facebook – which went public this year – recorded its one billionth member.