Facebook share price rises after video advertising boost helps it outfox analysts

Oliver Gill
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Oops... they've done it again: Facebook beats expectations (Source: Getty)

Facebook’s push into video advertising helped the social media giant post a 71 per cent jump in second quarter profits.

Reporting figures after the bell, it said total revenues surged 45 per cent to hit $9.32bn (£7.1bn), the bulk of which came from mobile advertising, which now contributes 87 per cent (or $8bn) to the tech titan’s total ad revenues of $9.16bn.

Shares in the US-listed firm, already trading near all-time highs, popped a further 0.8 per cent in after hours trading.

Facebook has been warning investors that growth would be slowing this year, but so far the company doesn’t seem to have slowed down much,” said Jim Cridlin, the global head of innovation of WPP subsidiary Mindshare.

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Net income rose to $3.89bn, or $1.32 per share, in the second quarter ended June 30 from $2.28bn, or 78 cents per share, a year earlier. Analysts had pencilled in profits of $1.13 per share according to a poll by Thomson Reuters.

The sales growth is more than double that posted by Alphabet – 21 per cent – in its second quarter figures on Monday evening.

“With over 2bn monthly active users, Facebook continues to print money,” added Cridlin.

Facebook founder and chief executive Mark Zuckerberg said: "We had a good second quarter and first half of the year.”

“We're focusing on bringing the world closer together."

Facebook is expected to generate $36.3bn in net digital ad revenue this year, a 35 per cent jump from 2016, according to research firm eMarketer.

Read more: Facebook revenue tops expectations off the back of rising ad sales

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