Facebook records $59 million loss despite rise in ad revenue

The world’s most popular online social network, Facebook, has posted a loss of $59m despite recording revenues rise of 32 per cent during the third quarter. The company revealed that its income rose to $1.26bn, between July and September 2012.

Despite the revenue boost Facebook’s performance remains below par, following a loss of $157m in the previous quarter. Facebook is still struggling to turn its online dominance into profits. The company shares have lost about 50 per cent since its stock market listing in May.

Mark Zuckerberg, Chief Executive Officer, Facebook, is happy that more subscribers enjoy more access to the website via mobile. He said 604 million of its 1.01 billion users access its site using a mobile device. “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,” he claimed.

Mobile revenue of $152.6m made up 14 per cent of total advertising sales, which analysts said came in above their expectations.

There is also an upward movement in the area of revenue realisable from advertisement. Revenue from advertising increased 36 per cent to $1.09 billion, between July and September, up from 28 per cent in the second quarter. But revenue from its payments and other businesses increased just 13 per cent to $176 million.

The company had lost more than $40 billion in market value since holding the largest Internet Initial Public Offer on record as investors feared that it would not ramp up mobile-related sales.

Source: PM News