Facebook reports Q1 fall despite annual revenues climbing 41%

Facebook has posted its first quarterly revenue fall in two years, despite increasing 41% year on year to $1.06bn (£656m) and active monthly users surpassing 900 million.

Facebook: posts Q1 results
Facebook: posts Q1 results

Net income for the world's largest social network fell slightly to $205m as costs nearly doubled to $677m.

Marketing and sales spend was up from $68m to $159m while research and development costs were up from $57m to $153m in the period.

The fall in profits comes ahead of the highly-anticipated float of the social media giant in May and could be a concern for potential investors.

The number of monthly active users on Facebook rose to 901 million, up from 678 million the previous year. Of these, Facebook said 488 million used Facebook mobile products.

The filling also reveals that Facebook agreed a $200m break-up fee to Instagram should its $1bn purchase fail to go through, and paid $300m and 23 million shares for the start-up.

Further disclosures in the filing include staff level growing by about 1,100 employees to 3,539 in the year.

Follow John Reynolds on Twitter @johnreynolds10

Have your say...

Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Media Week Jobs
Search for more media jobs

Latest

McDonald's marks 40 years with charity ad

McDonald's marks 40 years with charity ad

McDonald's UK is tonight launching the first ad in its 'Here's to What Matters' campaign, focusing on its charity work.

Share
BSkyB secures £4.9bn for Sky Europe deal

BSkyB secures £4.9bn for Sky Europe deal

BSkyB has secured a £4.9 billion deal to takeover Sky Italia and Sky Deutschland, to create Sky Europe.

Share
McCann picked to resurrect Homepride's Fred

McCann picked to resurrect Homepride's Fred

Premier Foods has picked McCann London to bring the Homepride brand mascot, Fred, back to TV advertising.

Share

Get news by email