Facebook Revenues Surges on the Back of Mobile Advertising Growth

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Social networking giant Facebook has posted a 44 percent rise in its quarterly revenues as the company continues to build on its mobile advertising revenues.

The company posted revenues of USD2.59 billion, and a huge hike in profits of USD523 million -- compared to USD64 million a year ago. Profits last year were depressed by high stock options for employees. Excluding stock options, profits were up by 83% over the year.

Revenue from advertising was $2.34 billion, a 76% increase from the same quarter last year. Mobile advertising brought in just over half the total, up from less than a quarter a year ago.

Approximately 757 million people around the world used the social network on an average day last month, and three-quarters of them logged on using mobile devices.

At the time of the company's stock market listing, the firm warned that its mobile advertising revenue was negligible, so has completely turned around the situation. In fact, it could start raising concerns that the company is becoming too dependent on the mobile side for its revenue growth.

The company nonetheless describes itself as a "mobile first" business now.

Facebook's chief financial officer, David Ebersman said that despite selling 8 percent fewer ads, the average effective price for an advert rose by 92 percent compared with the previous year.

However, with three-quarters of users accessing the site through a mobile device, that such advertising represented just half of the revenue shows how mobile advertising is still failing to meet the revenue expectations that can be earned from desktop views.

Capital expenditures for the fourth quarter of 2013 were US$483 million, and the company ended the year with USD11.45 billion in cash and equivalents.

Around 1.23 billion people now log onto the service at least once per month.

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