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Social network defies tech fears

Facebook soars as advertisers like mobile

FacebookShares in Facebook soared after the social media company reported a 52% rise in fourth quarter revenue.

The company said it had sold more adverts via smartphones, an issue which had previously concerned sceptical investors.

Mobile ads accounted for 80% of total ad revenue in the quarter, compared with 78% in the third quarter and 69% in the corresponding period a year earlier.

Mark Zuckerberg, chief executive, said: “2015 was a great year for Facebook. Our community continued to grow and our business is thriving.

“We continue to invest in better serving our community, building our business and connecting the world,” he posted.

Income for the quarter rose from $3.85 billion to $5.84 billion and for the year it increased 44% to $17.93bn.

The figures defied recent negative sentiment around tech companies following warnings from from Apple and eBay and a strong dollar which has depressed overseas sales.

Facebook also helped offset Wall Street worries over prospects for the messaging service WhatsApp and virtual reality unit Oculus, which have yet to generate profits.

Its shares rose almost 12% in after-hours trading.

It  is also seeing a return on other businesses such as the photo-sharing app Instagram, which now has 400 million users and last year began selling adverts. Video views are also attracting revenues.

The company has 1.59 billion monthly active users as of the end of December, a 14 % rise over the year. The vast majority – 1.44 billion – used the service on mobile devices, an increase of 21% on a year earlier.

There were 1.04 billion average daily active users (DAUs) in December, an increase of 17% year-on-year.

Mobile DAUs were 934 million on average, an increase of 25%.

 



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