Five questions answered on Facebook's third quarter losses

Company reports $59 million loss.

The internet's biggest social networking site is still in the red, even after third quarter profit rises. We answer five questions on Facebook's third quarter figures.

What profits and losses is Facebook reporting?

Facebook has reported a loss of $59 million, despite profits exceeding expectations in the third quarter and rising by 32 per cent to $1.26bn, between July and September.                                    

How can Facebook be reporting a loss and a profit rise?

This is because in the last quarter Facebook lost $157m.

What about Facebook’s shares?

Facebook’s shares are also down by 50 per cent since they first floated on the stock market in May.

There is a lot more advertising on Facebook nowadays – has their revenue from advertising risen?

Yes. In fact, revenues from advertisements rose by 36 per cent from July to September compared to the same period last month. Advertising revenues stood at $1.09 billion, up from 28 percent growth in the second quarter.

Where is Facebook going to focus on gaining new revenue from in the future?

Facebook sees its future in mobile phones. 604 million of its 1.01bn users access the social networking site on their mobile phone. Mobile phone advertising makes up 14 per cent of its sales, bringing in $152.6m.

Chief Executive Mark Zuckerberg said in a statement:

"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."

Facebook. Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

Ukip's Nigel Farage and Paul Nuttall. Photo: Getty
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Is the general election 2017 the end of Ukip?

Ukip led the way to Brexit, but now the party is on less than 10 per cent in the polls. 

Ukip could be finished. Ukip has only ever had two MPs, but it held an outside influence on politics: without it, we’d probably never have had the EU referendum. But Brexit has turned Ukip into a single-issue party without an issue. Ukip’s sole remaining MP, Douglas Carswell, left the party in March 2017, and told Sky News’ Adam Boulton that there was “no point” to the party anymore. 

Not everyone in Ukip has given up, though: Nigel Farage told Peston on Sunday that Ukip “will survive”, and current leader Paul Nuttall will be contesting a seat this year. But Ukip is standing in fewer constituencies than last time thanks to a shortage of both money and people. Who benefits if Ukip is finished? It’s likely to be the Tories. 

Is Ukip finished? 

What are Ukip's poll ratings?

Ukip’s poll ratings peaked in June 2016 at 16 per cent. Since the leave campaign’s success, that has steadily declined so that Ukip is going into the 2017 general election on 4 per cent, according to the latest polls. If the polls can be trusted, that’s a serious collapse.

Can Ukip get anymore MPs?

In the 2015 general election Ukip contested nearly every seat and got 13 per cent of the vote, making it the third biggest party (although is only returned one MP). Now Ukip is reportedly struggling to find candidates and could stand in as few as 100 seats. Ukip leader Paul Nuttall will stand in Boston and Skegness, but both ex-leader Nigel Farage and donor Arron Banks have ruled themselves out of running this time.

How many members does Ukip have?

Ukip’s membership declined from 45,994 at the 2015 general election to 39,000 in 2016. That’s a worrying sign for any political party, which relies on grassroots memberships to put in the campaigning legwork.

What does Ukip's decline mean for Labour and the Conservatives? 

The rise of Ukip took votes from both the Conservatives and Labour, with a nationalist message that appealed to disaffected voters from both right and left. But the decline of Ukip only seems to be helping the Conservatives. Stephen Bush has written about how in Wales voting Ukip seems to have been a gateway drug for traditional Labour voters who are now backing the mainstream right; so the voters Ukip took from the Conservatives are reverting to the Conservatives, and the ones they took from Labour are transferring to the Conservatives too.

Ukip might be finished as an electoral force, but its influence on the rest of British politics will be felt for many years yet. 

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