Date
22 November 2017
Fast-growing mobile advertising business helped Facebook report forecast-beating results for the second quarter to June. Photo: Bloomberg
Fast-growing mobile advertising business helped Facebook report forecast-beating results for the second quarter to June. Photo: Bloomberg

Facebook revenue tops forecasts; stock hits record high

Facebook Inc, which operates the world’s top internet social network platform, posted a 61 percent rise in revenue for the second quarter on the back of its fast-growing mobile advertising business.

Revenue rose to US$2.91 billion in the three months ended June from US$1.81 billion in the same period last year, beating analyst forecasts, Reuters reported Wednesday.

The better-than-expected result sent the company’s shares to a record high in after-hours trading in the US overnight.

Facebook said it saw increased interest from both advertisers and users during the second quarter.

The company now counts 1.5 million advertising customers and its ad business saw strong growth across all of its geographic regions in the quarter, Chief Operating Officer Sheryl Sandberg told Reuters in an interview on Wednesday.

Mobile advertising revenue represented 62 percent of Facebook’s ad revenue in the second quarter, up from 41 percent in the year-ago period and compared with 59 percent in the first quarter of 2014.

Newsfeed ads, which inject paid marketing messages straight into a user’s stream of news and content, have fueled the firm’s revenue growth and boosted its stock price during the past year.

Facebook shares, which finished Wednesday’s regular trading session at US$71.29, have nearly tripled since last July, the report noted. In after-hours trading, the stock was up about 4 percent at US$74.10.

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