This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-21270604
The article has changed 2 times. There is an RSS feed of changes available.
Previous version
1
Next version
Version 0 | Version 1 |
---|---|
Facebook sees sharp drop in profits | Facebook sees sharp drop in profits |
(35 minutes later) | |
Facebook has reported a sharp drop in profits, partly due to increased spending on research and development. | Facebook has reported a sharp drop in profits, partly due to increased spending on research and development. |
The social network site made a profit of $64m (£41m) in the final three months of 2012, compared with $302m a year earlier. | |
Revenue was up 40% at $1.6bn, largely due to a big jump in advertising revenue, a quarter of which came from mobile platforms. | |
Shares in Facebook fell by almost 6% in after-hours trading in New York. | |
The shares launched on the Nasdaq stock exchange in May at $38, and had halved in value by September. | |
They have since recovered to stand at $31 at the close of trading on Wednesday. The drop in after-hours trading suggests the shares will fall back again when full trading resumes on Thursday. | |
"Mobile revenue was expected to be a little higher," said analyst Aaron Kessler at Raymond James. | |
"Overall it's a solid quarter but maybe [the company has suffered from] high expectations going into the quarter." | |
Revenue from advertising was $1.3bn, 41% up on a year earlier. | |
Mobile revenue, an important indicator of the company's ability to capitalise on the growing move towards mobile platforms, accounted for 23% of overall revenue. | |
"In 2012, we connected over a billion people and became a mobile company," said Mark Zuckerberg, Facebook founder and chief executive. | |
"We enter 2013 with good momentum and will continue to invest to achieve our mission and become a stronger, more valuable company." |
Previous version
1
Next version