Facebook hoping to wow with mobile ads

FACEBOOK is expected to reveal soaring revenues this Wednesday, as the social network enjoys a massive rise in companies paying for advertising on its mobile apps.

Analysts are predicting the firm will reveal sales of around $1.48bn (£958m) for the first three months of the year, up around 40 per cent on the same period in 2012.

Significantly, as much of a third of this will be from mobile, less than a year after it started selling adverts on smartphones. In the previous quarter, mobile made up 23 per cent of revenue, and just 14 per cent in the three months before that.

Facebook, whose business model was built on selling web adverts, has suffered some teething pains over the last year as users spend more time on smartphones, although investors have been impressed with chief executive Mark Zuckerberg’s focus on mobile services in recent months. Shares are up more than 50 per cent since September lows, though still some way off last May’s $100bn IPO price.