Facebook profit leaps 71% as mobile ad sales soar

The Facebook logo is displayed on the company's website in an illustration photo taken in Bordeaux, France on Feb 1, 2017.
The Facebook logo is displayed on the company's website in an illustration photo taken in Bordeaux, France on Feb 1, 2017. PHOTO: REUTERS

SAN FRANCISCO (AFP) - Facebook on Wednesday reported that its quarterly profit leapt 71 per cent from a year ago to US$3.9 billion (S$5.9 billion) as it dished out money-making ads to its more than two billion users.

Revenue in the recently-ended quarter climbed 45 per cent to US$9.3 billion, Facebook said in a stronger-than-expected earnings report for the second quarter.

Facebook shares that ended the day slightly up rose less than a per cent to US$166.95 in after-market trades that followed release of the earnings figures.

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

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"Our community is now two billion people and we're focusing on bringing the world closer together." The number of people using Facebook at least once a month was 2.01 billion at the end of June, an increase of 17 per cent from the same time last year, according to the leading social network.

The vast majority of Facebook's revenue came from advertising, and 87 per cent of that was derived from ads served to people connecting with mobile devices.

Facebook expenses, meanwhile, rose 33 per cent to US$4.9 billion as the Silicon Valley giant continued investing in its platform and new innovations.