80% of Facebook's ad revenues driven by mobile as profit more than doubles... and more

Facebook: mobile now accounts for 80% of ad revenue
Facebook: mobile now accounts for 80% of ad revenue

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80% of Facebook’s advertising revenues driven by mobile as Q4 profit more than doubles

Facebook has seen its mobile advertising revenue rocket, with ads appearing on users’ smartphones driving 80% of its revenues, up from 69% a year earlier.

The social media giant was reporting its quarterly results for the three months ending 31 December, when it achieved a net profit of $1.6bn, more than doubling net income from the same period in 2014, when the figure was $701m.

Revenue for the full financial year was up 44% to to $17.93bn, while net profit was $3.69bn.

The number of daily active users (DAUs) was an average 1.04bn during December, an increase of 17% year-on-year. Mobile accounted for the lion’s share of consumer interaction with Facebook - mobile DAUs were 934m for December, up 25% year-on-year, while mobile monthly active users were 1.44bn, growing 21% from a year earlier.

Stephanie Carr, vice-president EMEA of online ad business Marin Software, said that the results were a testament to Facebook’s embracing of mobile technology.

She said: "Tonight’s results prove that Facebook, despite a slowing in the acceleration of its growth, continues to make use of its engaged user base of over 1 billion every month on mobile."

But she argued that overall online spending levels on mobile are not where they should be. "On average, 25% of all UK media consumption is via mobile devices, yet only 10% of all ad spend goes on mobile," she said.

"Facebook on the other hand embraces this ubiquitous channel and spends accordingly. The acquisition of Oculus last year and just, this week, the controversial but hugely valuable changes being made to Facebook-owned WhatsApp are both evidence of the company’s ambitions to reach its users in increasingly diverse ways."

Mark Zuckerberg, Facebook’s chief executive, who returned to work this week after two months’ paternity leave, said: "2015 was a great year for Facebook. Our community continued to grow and our business is thriving.

"We continue to invest in better serving our community, building our business, and connecting the world."

Source: Facebook

Google could face European investigation over tax

The European Competition Commissioner told the BBC that she would be willing to investigate Google’s tax arrangements should someone complain about them.

Margrethe Vestager told the BBC’s Today programme: "If we find that there is something to be concerned about if someone writes to us and says, well, this is maybe not as it should be then we will take a look."

The news comes in the midst of a row over Google’s tax affairs in the UK, after it paid £130m in back tax.

Source: BBC

Comparethemeerkat owner BGL to float on stock exchange

Comparethemarket owner BGL Group is to float on the stock market 10 years after the business was founded by a South African entrepreneur.

According to reports, the group has brought advisers Rothschild onboard to gauge interest in a flotation from bankers and investors.

BGL is owned by a Guernsey company understood to have been started by South African entrepreneur Douw Steyn.

Source: The Telegraph

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