Saturday - Jul 22, 2017

Facebook continues to run up record profits thanks once again to strong mobile ad growth


Facebook continues to run up record profits thanks once again to strong mobile ad growth

Social networking giant Facebook, recently announced another round of tremendous profitability, with their second quarter profit for 2014, up by more than 100% from the same period last year, with turnover jumping by 61% to $2.91 billion from $1.81 billion in the same quarter last year, driven by unrelenting growth in mobile advertising.

For the second quarter ended June 30, 2014, Facebook reported a net income of $791 million equivalent to $0.30 per share, compared to $333 million or $0.13 per share for the same quarter in 2013.

Most industry analysts expected Facebook to return profits of $2.81 billion for the period.

Facebook’s total advertising revenue constituted more than 92% of total revenue, while mobile ad revenue represented about 62% of advertising revenue for the second quarter, up from about 53% from the previous quarter and 41% from the same period last year.

Commenting on the second quarter figures, Mark Zuckerberg, Facebook founder and CEO understated his company’s results by stating that they had a good second quarter as the company has continued to grow. “We see a lot of opportunity ahead as we continue our mission to connect the rest of the world to the Internet.” Zuckerberg summed up.

On the news of another successful quarter, Facebook shares gained 4.25% in after hours trading rising to $71.29.

According to their statement announcing their second quarter results, Facebook ended the second quarter with 1.32 billion monthly active users, up 14% from the same period last year earlier. Daily active users were 829 million on average for June, an increase of 19% from last year, while monthly active users jumped by more than a third to 1.07 billion at June 30.

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