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Facebook staff here share €14m windfall

FACEBOOK'S Irish staff scooped a €13.9m share windfall as revenue at the company soared.

STAFF at the Irish operation -- which is the European HQ for the company -- will get an early Christmas present after revenues at Facebook Ireland Ltd surged past the €1bn mark in 2011.

On average, the Dublin staff took home total compensation including shares worth more than €59,300.

Earnings for key management personnel increased from €644,000 to €1.58m.



Profits

This is the second year in a row that Irish Facebook staff have enjoyed a slice of the profits.

Last year staff and executive directors shared share-based payments of €13.95m.

But 42pc of €5.9m went to unidentified management personnel.

Despite the operation netting a staggering €1bn in revenue last year, Facebook only paid €3.23m in corporation tax.

Accounts filed for Facebook Ireland Ltd show turnover more than quadrupled from €229m to €1.051bn during 2011.

Yet despite a fourfold increase in revenues, accounts just filed at the Companies Office show the business slumped into the red.

Facebook Ireland recorded a loss of €18m on sales of €1.051bn, compared to a profit of €1.8m in 2010 on sales of €229m.

New figures show that Facebook Ireland Ltd last year accounted for 44pc of the social networking giant's global revenues of $3.15bn.

The massive jump in revenue arises from the Dublin-based company billing third-party customers for online advertising on the Facebook website for the whole of 2011 compared to just four months in 2010.

Facebook globally recorded profits of $1bn in 2011.

Like a number of US firms operating here, Facebook uses a perfectly legal tax avoidance technique known as the "Double Irish" which sees the company pay roayalties to another company, usually based off-shore.

hnews@herald.ie


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