Support 100 years of independent journalism.

  1. Business
24 October 2012

Five questions answered on Facebook’s third quarter losses

Company reports $59 million loss.

By Heidi Vella

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.

Sign up for The New Statesman’s newsletters Tick the boxes of the newsletters you would like to receive. Quick and essential guide to domestic and global politics from the New Statesman's politics team. The best of the New Statesman, delivered to your inbox every weekday morning. The New Statesman’s global affairs newsletter, every Monday and Friday. A handy, three-minute glance at the week ahead in companies, markets, regulation and investment, landing in your inbox every Monday morning. Our weekly culture newsletter – from books and art to pop culture and memes – sent every Friday. A weekly round-up of some of the best articles featured in the most recent issue of the New Statesman, sent each Saturday. A weekly dig into the New Statesman’s archive of over 100 years of stellar and influential journalism, sent each Wednesday. Sign up to receive information regarding NS events, subscription offers & product updates.
I consent to New Statesman Media Group collecting my details provided via this form in accordance with the Privacy Policy

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.”