Date
29 July 2017
A rise in ad revenue and growing mobile users helped Facebook post better-than-expected results for the third quarter. Credit: Bloomberg
A rise in ad revenue and growing mobile users helped Facebook post better-than-expected results for the third quarter. Credit: Bloomberg

Facebook 3Q results top forecasts; shares hit new high

Social media giant Facebook Inc. reported Wednesday better-than-expected revenue and profit for the third quarter, sending its shares to an all-time high.

The company announced a 40.5 percent jump in revenue to US$4.50 billion in the three months to September on the back of new advertising services and its mobile app, Reuters reported.

Net income rose to US$891 million from US$802 million a year earlier.

Excluding items, the California-based tech giant earned 57 cents per share, topping analyst average expectations of 52 cents per share.

Ad revenue grew 45.4 percent to US$4.30 billion, with mobile ads accounting for 78 percent of the total compared with 66 percent in the same quarter last year, the report said.

Facebook continued to expand its reach, hitting 1.55 billion monthly active users as of the end of September, up 14 percent from a year ago. Of these, 1.39 billion used the service on mobile devices.

“Growth is happening across the board and we’re of course looking for a lot of growth in the future in emerging markets,” Chief Operating Officer Sheryl Sandberg was quoted as saying in an interview.

“We’re also pretty focused on helping bring the next set of people who are not online, online.”

Following the strong quarterly results, Facebook shares surged about 5 percent to an all-time high of US$109.34 in extended trading on Wednesday, before paring gains to about 2 percent. 

The results were announced after the closing bell.

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CG/RC

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