Facebook increases profit and revenue
Facebook continues to grow and is earning more money than expected. The social network is benefiting greatly from its mobile advertising offerings.
In the third quarter, net profit amounted to 806 million dollars, as the company announced on Tuesday. This means that the Group almost doubled its profit compared to the same period last year. Facebook also saw strong growth in revenue: from July to September, Facebook was able to increase its revenue by 59 percent year-on-year to 3.2 billion dollars.
"This was a good quarter with strong results," said Facebook CEO Mark Zuckerberg. Despite this encouraging news, announcements about next year caused the price of Facebook shares on the stock exchange to fall by around ten percent after the close.
CFO David Wehner announced plans to increase spending by 55 to 75 percent in the coming year. Facebook plans to invest heavily in investments such as the messenger app WhatsApp and the 3D glasses company Oculus. In addition, sales growth in the final quarter will slow to 40 to 47 percent year-on-year.
Strong growth in mobile advertising
Internet giants such as Facebook, Google and Yahoo earn their money primarily through advertising. So far, Facebook has been most successful in making a breakthrough in the increasingly important mobile market. Two thirds of its advertising revenue, which has risen by 64 percent to 2.96 billion dollars, comes from the mobile business. A year ago, it was only half.
The number of monthly Facebook users climbed from 1.32 to 1.35 billion in the last quarter. In the particularly popular mobile market, it grew from 1.07 to 1.12 billion.
WhatsApp makes millions in losses
For the first time, Facebook also announced details of its new subsidiary WhatsApp, which the company bought for 22 billion dollars. The company posted a loss of 232.5 million dollars in the first six months of this year, compared to 58.8 million dollars in the same period last year.
Analysts pointed out that investors need to take a long-term view of WhatsApp. The most important thing at the moment is to gain more users. There are no ads on the chat software. Zuckerberg has stated that he is in no hurry to make money with WhatsApp. (SDA)
Facebook: Expansion of WhatsApp & Co will be expensive









































