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Facebook sees shares soar as profits treble

FacebookSocial media company Facebook defied its critics by continuing to draw advertisers and trebling its profits.

A 195% jump in first quarter profit to $1.5bn (£1bn) compared to $512m last year. New products such as live video helped boost revenue to $5.3bn from $3.5bn.

When it floated on the Nasdaq exchange there were doubts about its ability to drive income and profits, particularly via mobile.

However, these latest figures show mobile advertising accounted for 82% of all advertising revenue against 73% for the same period last year.

The company said it is to introduce a new class of shares, which will allow founder Mark Zuckerberg to sell his shares without losing control of the company.

Total monthly active users increased 15% to 1.65 billion, which was ahead of analysts expectations. Daily active users were up by more than 20% on mobile devices and the number of people using the site at least once a day on their smartphones is now 989 million.

Investors were impressed with the figures and Facebook shares were up by 9% in after-hours trading.

The positive data contrasts with Twitter’s continuing struggle to turn a profit.

 

 

 

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