Facebook swings to Q3 net loss of $US59m

Facebook swings to Q3 net loss of $US59m

Revenues increased to about $US1.3 billion from about $US954m

Facebook swung to a net loss of $US59 million in the third quarter compared to a net profit of $US227 million in the same period last year. Its revenues increased to about $US1.3 billion from about $US954 million.

Its quarterly costs and expenses increased 64 per cent to $US885 million, from the same quarter last year.

In its quarterly earnings announcement, Facebook founder and CEO, Mark Zuckerberg, underscored social network’s users are increasingly accessing the network on their mobile devices and are more engaged.

Its monthly users using Facebook mobile stood at 604 million, up 61 per cent year-over-year. However that mobile use hasn’t translated into advertising revenue as mobile contributed 12 per cent of its advertising revenues in the third quarter.

“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,” Zuckerberg said.

“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.”

On a monthly basis, Facebook had 1.01 billion monthly active users as of September 30 up 26 per cent year-over-year.

Its revenues from advertising was about $US1.09 billion, which made up 86 per cent of total revenue and was up 36 per cent from the same quarter last year. Facebook claims that excluding the impact of year-over-year changes in foreign exchange rates, advertising revenues would have increased by 43%.

Payments and other fees for the quarter was $176 million, up 13 per cent over the same quarter last year and 9 per cent decline from the second quarter.

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