Facebook has had another exceptional quarter for growth with profit up 186 per cent year on year. It earned $2 billion (€1.8bn) in the period from April to June, up from $719 million in 2015.
Wall St anticipated revenue of $5.8 billion, but the company managed to beat those expectations bringing in $6.4 billion in revenue. CEO Mark Zuckerberg said the company was particularly pleased with the growth in video.”Our community and business had another good quarter,” he said, “We’re particularly pleased with our progress in video as we move towards the world where video is at the heart of all our services.” Facebook has been encouraging businesses to experiment with video and rolling out new advertising platforms for mobile ads.
Shares of the social media giant jumped 7 per cent in after-hours trading.
Mobile advertising made up 84 per cent of Facebook’s ad revenue in the second quarter up from 76 per cent last year. The company has benefited from an influx of advertising money moving away from television and on to digital platforms.
The number of monthly-active-users (MAU) – a key measurement for advertisers – increased by 15 per cent to 1.71 billion as of 30 June 2016. By comparison, Twitter’s MAU increased by just 3 per cent in that period. The number of daily active users topped one billion for the first time. The time spent on the site by daily users also rose.