Facebook mobile gains spur revenue growth
Posted on: 02:21 AM IST Oct 24, 2012
San Francisco: Facebook Inc posted a 32 per cent jump in third-quarter revenue to $1.26 billion, as the company reignited advertising growth with the help of larger-than-expected gains in mobile. The company's shares leapt 9 per cent to $21.22 in after-hours trading on Tuesday. Advertising revenue increased 36 per cent year-on-year to $1.09 billion, but revenue from its payments and other businesses increased just 13 per cent to $176 million.
Mobile revenue made up 14 per cent of total advertising sales, which analysts said came in above their expectations. "Advertising revenue from mobile was the number that really stood out," said Sterne, Agee & Leach analyst Arvind Bhatia. "They are saying mobile ad revenue was 14 per cent of total ad revenue. That would be about $140 million and I was expecting $40 or $50 million from this."
The world's No 1 online social network company posted a net loss of $59 million, or 2 cents a share, in the three months ended September 30. It had a profit of $227 million or 10 cents a share a year earlier. Its third-quarter revenue surpassed the average analyst expectation of $1.23 billion, according to Thomson Reuters I/B/E/S.