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Facebook reports 138% surge in profits | Facebook reports 138% surge in profits |
(about 1 hour later) | |
Facebook has announced a 138% rise in net income for the second quarter to $791m (£464m). | Facebook has announced a 138% rise in net income for the second quarter to $791m (£464m). |
Revenue from advertising, which makes up most of Facebook's income, was $2.68bn, up 67% compared with the second quarter of 2013. | Revenue from advertising, which makes up most of Facebook's income, was $2.68bn, up 67% compared with the second quarter of 2013. |
Adverts on mobile devices now account for 62% of advertising revenue, which is a spectacular rise as mobile ads accounted for almost nothing in 2012. | Adverts on mobile devices now account for 62% of advertising revenue, which is a spectacular rise as mobile ads accounted for almost nothing in 2012. |
But Facebook's rapid expansion has resulted in a sharp rise in costs. | But Facebook's rapid expansion has resulted in a sharp rise in costs. |
Expenses were $1.52bn in the second quarter up 22% from 2013. | Expenses were $1.52bn in the second quarter up 22% from 2013. |
"We had a good second quarter," said Facebook founder and chief executive Mark Zuckerberg in a statement accompanying the results. | "We had a good second quarter," said Facebook founder and chief executive Mark Zuckerberg in a statement accompanying the results. |
"Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world," he said. | "Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world," he said. |
The company now has 1.32 billion active users every month, up 14% on last year. | The company now has 1.32 billion active users every month, up 14% on last year. |
Of those users more than a billion are on mobile devices. | Of those users more than a billion are on mobile devices. |
Analysis | |
Leo Kelion, BBC Technology Desk Editor | |
Facebook looks to have pulled off a tricky balancing act. | |
Its members have shifted to using the social network on smartphones. That means they are seeing fewer adverts, but the firm has compensated by charging more for them. | |
That has been helped by the launch of auto-playing "premium" video slots. | |
A move announced in May to start placing ads in other companies' apps should also help the firm continue with its desktop-to-mobile transition. | |
Facebook's ability to draw on its rich knowledge about its users' interests and habits means it has a strong case to claim it's best suited to match specific brands to specific users. | |
The firm acknowledged, however, that it would take years to build up a solid businesses around its Whatsapp messaging app and Instagram photo network - both expensive acquisitions. | |
Instagram recently announced plans to roll out ads in the UK, Canada and Australia having already done so in the US. | |
But Whatsapp has promised users that ads will never interrupt their chats. | |
One deal that has just finished is Facebook's $2bn takeover of Oculus VR | |
Mark Zuckerberg told analysts on the conference call that a future shift to virtual reality (VR) could be as big as the one we've already seen to mobile. | |
But it represents a giant bet. The division has yet to release its first Oculus Rift helmet to consumers and there's no guarantee it will succeed where other VR firms have failed. |