Facebook makes over $1bn profit in three months
Facebook made more than $1bn in quarterly profit for the first time as a surge in people accessing the social network on mobile phones led to a leap in advertising revenues.
In a set of results that smashed even the most optimistic expectations on Wednesday night, the company revealed a 52pc increase in revenues for the final quarter of 2015, sending shares soaring in after-hours trading.
Profit more than doubled year-on-year $1.56bn as the number of people using Facebook rose by 40m in the three-month period, a rate of almost 500,000 a day.
In the year after Facebook’s IPO in 2012, investors feared that it would be unable to make significant revenues as its hundreds of millions of users began to access the social network on their smartphones rather than desktop PCs.
But Facebook now makes 80pc of its advertising revenues from mobile users, and more than half of the 1.6bn people who log in to Facebook at least once a month do so only on their phones.
Shares rose more than 13pc in after-hours trading with the results significantly above forecasts, extending a run that has continued despite fears over other technology companies including Apple and Twitter.
Facebook’s chief executive Mark Zuckerberg, who returned to work on Tuesday after the birth of his first child, said: “Our community continues to grow and we're making progress towards connecting the world."