Financial News

  • 24 July 2014, 23:05

Facebook Shares Hit Record High As Profit Soars

Facebook shares hit a new record high after the social network posted profits growth of 137% for its last quarter.

All the major indicators of its business health seemingly delighted investors, with revenue from crucial mobile advertising continuing to grow at a strong pace while more people used the service and more often.

The company's shares climbed nearly 5% in extended trading after the results came out - with investors who bought - and held on to - Facebook stock during the company's initial public offering two years ago now being close to doubling their money.

Facebook earned $791m (£464m) in the April-June period - up from $331m in the same quarter a year ago.

Revenue jumped 61% to $2.91bn from $1.81bn with advertising revenue jumping 67%.

Mobile ad revenue, a closely watched figure because of the importance of Facebook capitalising on growing device use, was 62% of Facebook's total advertising revenue for the quarter.

The world's largest internet social network said it now counted 1.32 billion monthly users with almost 63% of them accessing Facebook's service every day in the second quarter, up from 61% in the same period a year ago.

"We had a good second quarter," CEO Mark Zuckerberg in a statement.

"Our community has continued to grow, and we see a lot of opportunity ahead as we connect the rest of the world."

Facebook has been growing its share of the worldwide digital advertising market but it is still a long way from catching up to rival Google.

Facebook had a near 6% share of the market compared with Google's 32%, according to researchers eMarketer.