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Facebook grows members and revenue but still loses money

Social notworking
Wed Oct 24 2012, 13:39
A Facebook logo

SOCIAL NETWORK Facebook has reported its financial results for the third quarter that ended 30 September.

Recently the firm announced that it has a billion users, and those billion people have helped it increase revenues. Facebook is hoping to increase engagement too, as presumably this will equate to cash somehow.

"As proud as I am that a billion people use Facebook each month, I'm also really happy that over 600 million people now share and connect on Facebook every month using mobile devices," said Mark Zuckerberg, Facebook founder and CEO.

"People who use our mobile products are more engaged, and we believe we can increase engagement even further as we continue to introduce new products and improve our platform. At the same time, we are deeply integrating monetization into our product teams in order to build a stronger, more valuable company."

While revenues were up the firm also posted a loss, something that won't please investors who so far have watched the firm's share price do a good impression of falling down stairs.

Revenue for the third quarter grew by around a third, 32 percent to $1.26bn, but the loss was $59m. It does not take a financial genius to tell you that a loss of $59m compares badly against an earlier profit of $227m, which was what the firm announced in its third quarter last year.

Facebook claims that its members number 1.1 billion, an increase of 26 percent year on year. µ

 

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