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Figures beat expectations

Zuckerberg $3.4bn richer after Facebook surges

FacebookFacebook continues to deliver astonishing growth figures, defying critics who dismissed it as a passing fad.

Profit rose 186% in the last quarter, compared to the same period last year, hitting $2.1 billion (£1.5bn), against $719m in 2015.

Revenue was well ahead of expectations, up 59% to $6.44 billion, against estimates of $6bn.

The figures drove the shares 6.5% higher in after-hours trading, adding $3.4bn to chief executive Mark Zuckerberg’s personal fortune in just over an hour. The 32-year-old’s stake in the company is now worth $56.7bn, making him the world’s fifth richest person.

The shares have outperformed the market, up 18% since the beginning of the year, while the Standard & Poor’s 500 index has increased 6%.

Mobile advertising, which was a sticking point in its early days, accounted for 84% of Facebook’s advertising revenue in the second quarter, against 76% last year.

It is now attracting more advertising spend from television and this is expected to accelerate as it moves increasingly into video.

The number of monthly-active-users (MAU) – a key measurement for advertisers – increased by 15% or 41 million to 1.71 billion at 30 June.

The company is forging ahead of rivals such as Twitter whose MAU increased by 3% in the period.

Facebook chief executive Mark Zuckerberg said the company was particularly pleased with the growth in video.

“Our community and business had another good quarter,” he said, “We’re particularly pleased with our progress in video as we move towards the world where video is at the heart of all our services.”

 

 

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