Mobile advertising pays off for Facebook in third quarter

24 Oct 2012

Facebook CEO Mark Zuckerberg

Some 14pc of Facebook’s revenue came from mobile advertising, the social networking giant has revealed in its third-quarter financial results.

Facebook began showing ads to users who access the social network from their mobile phones and tablet computers about six months ago.

“As proud as I am that a billion people use Facebook each month, I’m also really happy that over 600m people now share and connect on Facebook every month using mobile devices,” said Mark Zuckerberg, Facebook CEO.

“People who use our mobile products are more engaged, and we believe we can increase engagement even further as we continue to introduce new products and improve our platform. At the same time, we are deeply integrating monetisation into our product teams in order to build a stronger, more valuable company,” Zuckerberg added.

Some 60pc of Facebook users access the site using a mobile device, the company said. At the end of the second quarter, fewer than 57pc of its then-955m users came from mobile devices.

In the July-September 2012 period, Facebook reported a revenue increase from US$954m to US$1.26bn.

The company reported a loss of US$59m, or US$0.02 per share, in the third quarter, a decrease from earnings of US$227m, or US$0.10 per share last year.

Facebook earned US$311m, or US$0.12 per share, excluding special items, mainly related stock compensation expenses, in the latest quarter.

Facebook’s number of monthly users also increased, by 26pc from a year earlier, to 1.01bn.

Advertising revenue amounted to US$1.09bn, up 36pc from a year ago, representing about 86pc of Facebook’s total revenue.

Revenue from payments and other fees rose 13pc to US$176m. That number includes Facebook’s cut from virtual goods its users buy for games they pay on the social network.

Tina Costanza was a journalist and sub-editor at Silicon Republic