Facebook revenues jump 50% on video and mobile push
Mobile ad sales deliver 84% of total revenue for social media group
Facebook employs 1,500 at its international headquarters in Dublin, and is said to be seeking further office space in the capital
Facebook’s quarterly revenue surged 50.8 per cent at the end of last year as the world’s largest social network continued to benefit from its aggressive push into mobiles and video.
Mobile ad revenue accounted for 84 per cent of the company’s total advertising revenue of $8.63 billion (€8.01bn) in the fourth quarter ended December 31st, compared with 80 per cent a year earlier. Analysts on average had expected total ad revenue of $8.31 billion, according to research firm FactSet StreetAccount.
Shares jumped by 3 per cent in after-hours trading.
The strong results allay some concerns after the company warned in November that ad growth would likely slow “meaningfully” due to limits on “ad load” – the total number of ads Facebook can show to each user.
Facebook is expected to generate about $29.71 billion in mobile ad revenue in 2017, according to research firm eMarketer, up about 35.2 per cent from 2016.
Net income attributable to Facebook shareholders rose to $3.56 billion, or $1.21 per share, from $1.56 billion, or 54 cent per share, a year earlier. Total revenue rose to $8.81 billion from $5.84 billion.
Facebook employs some 1,500 at its international headquarters in Dublin, and is said to be seeking further office space in the capital. It is also developing a data centre in Co Meath. – Reuters