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Facebook reports sharp drop in profits

February 06, 2013 By: Dr Search Principal Consultant at the Search Clinic Category: Facebook, internet, Mobile Marketing, Pay Per Click Advertising, Search Clinic, Social Media, Social Networking, Uncategorized

Facebook has reported a sharp drop in profits- partly due to increased spending on research and development.Facebook reports sharp drop in profitsThe social network site made a profit of £41 million in the final three months of 2012, compared with £133 million a year earlier.

Revenue was up 40% at £1.02 billion, largely due to a big jump in advertising revenue, a quarter of which came from mobile platforms.

Shares in Facebook fell by almost 6% in after-hours trading in New York.

The shares launched on the Nasdaq stock exchange in May at $38, and had halved in value by September.

They have since recovered to stand at $31 at the close of trading. The drop in after-hours trading suggests the shares will fall back again when full trading resumes on Thursday.

Revenue from advertising was £833 million, 41% up on a year earlier.

Mobile revenue, an important indicator of the company’s ability to capitalise on the growing move towards mobile platforms, accounted for 23% of overall revenue.

“In 2012, we connected over a billion people and became a mobile company,” said Mark Zuckerberg, Facebook founder and chief executive.

“We enter 2013 with good momentum and will continue to invest to achieve our mission and become a stronger, more valuable company.”

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