iWorld

Q1-2016: Facebook ad revenue up 56.8 per cent, income triples

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/internet-images/2016/04/28/Untitled-1.jpg?itok=vGrgLa68

BENGALURU: Facebook Inc., (Facebook) advertisement revenue increased 56.8 per cent year-on year (YoY)for the first quarter ended 31 March 2016 (Q1-2016, current quarter) at $5,201 million as compared to $3,317 million in Q1-2015. Advertisement revenue growth in percentage terms was led by the US and Canada (64.3 per cent growth) and the A-Pac (62 per cent growth) regions. Ad revenue share by geography in Q1-2016 was: US and Canada - 50.3 per cent); Europe - 24.4 per cent; A-Pac - 16.3 per cent), and the rest of the world (ROW) - 9 per cent.

Facebook reported 51.9 percent growth in total revenue at $5,382 million as compared to $3,543 million in the corresponding quarter of the previous year.The social media giant’s GAAP income in Q1-2016 almost tripled (by 2.95 times) year-on-year (YoY) to $1,510 million, as compared to $512 million in Q1-2015. Non-GAAP income in the current quarter was 87.5 per cent higher YoY at $2,229 million as compared to $1,189 million.

Growth in revenue in percentage terms was also led by growth from the US and Canada (57.6 per cent growth) and the A-Pac (59 per cent YoY growth) geographical regions. A major share of Facebook’s revenue (50.9 per cent) came from the US and Canada region, while the A-Pac regioncontributed 16 per cent to revenue in Q1-2016. Europe’s contribution to Facebook revenue was 24.3 per cent and ROW contributed 8.8 per cent in Q1-2016.

Historical numbers suggest that Facebook’s revenue in Q1 is the lowest for the year, with revenue peaking in Q4. Hence, revenue increase for the year 2016 should be substantial, considering that the company has also launched new revenue generating products.

"We had a great start to the year," said Facebook founder and CEOMark Zuckerberg. "We're focused on our 10 yearroadmap to give everyone in the world the power to share anything they want with anyone."

Please refer to Fig 1 for Facebook’s revenue and Fig 2 for Facebook’s advertisement revenue breakup by geography below.

It is evident from Fig 2 below that the share of revenue from US and Canada, and A-Pac regions has been increasing, while share of revenue from Europe and ROW has been declining.

Facebook’s daily average users (DAU) increased 16.5 per cent YoY in the current quarter to 1,090 million as compared to 936 million in Q1-2015. For the current quarter A-Pac (21.9 per cent YoY growth) and the ROW (21.9 per cent YOY growth) regions lead DAU growth in percentage terms. In Q1-2016 DAU from US and Canada grew by 16.5 per cent YoY, while Europe DAU grew 7.5 per cent YoY. Please refer to Fig 3 below.

The proportion of people logging on to Facebook on their mobiles has grown to 90.7 per cent in the current quarter as compared to 85.3 per cent in Q1-2015 and 90 per cent in the immediate trailing quarter (Q4-2015).

The curve B in Fig 3 below signifies the ratio of DAUs’ to Monthly Average Users (MAU), while curve A indicates the percentage of Mobile DAUs’ to DAUs’. Mobile DAU’s in Q1-2016 have increased 23.9 per cent YoY to 989 million as compared to 798 million in Q1-2015.

ARPU

Facebook’s worldwide average revenue per user (ARPU) in the current quarter was $3.32 in the current quarter as compared to $2.50 in Q1-2015 and $3.73 in Q4-2015. The US and Canada regions lead in terms of ARPU by far. ARPU for the US and Canada region was $12.43 in the current quarter. Corresponding numbers for other regions for Q1-2016 were Europe $3.98; A-Pac1.56; ROW $0.91.

Facebook announcement

Facbook has announced that its board of directors has approved a proposal to amend and restate its existing certificateof incorporation to create a new class of non-voting capital stock, known as the class C capital stock. If the proposal isapproved, Facebook intends to issue two shares of class C capital stock as a one-time stock dividend in respect of each outstanding share of its class A and class B common stock. This proposal is designed to create a capital structure thatwill, among other things, allow the company to remain focused on Zuckerberg's long-term vision for it and to encourageZuckerberg to remain in an active leadership role at Facebook. The adoption of the proposal is subject to the approval Facebook’s stockholders at its 2016 annual meeting of stockholders to be held on June 20, 2016. The record date for thepayment of the class C stock dividend would be set by the board of directors at a later date.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/15/PUBG.jpg?itok=RVSmpKXs
Of gaming and opportunities, a look into the Indian esports ecosystem

MUMBAI: Esports is a fairly new buzzword in the country. While esports tournaments have been a part of the country’s gaming ecosystem for quite some time, in the past couple of years, the popularity has surged high enough to attract international attention and now many are scrambling to get a slice...

iWorld Gaming
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/14/filmfare.jpg?itok=LAYP1aGx
Filmfare Awards to simulcast on Facebook globally

MUMBAI: Worldwide Media, India’s leading lifestyle and entertainment content company, has entered into a strategic partnership with Facebook for its iconic Filmfare Awards Franchise. The year-long partnership will provide exclusive non-linear digital simulcast partnership to the entire Filmfare...

iWorld Social Media
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/14/watcho.jpg?itok=jFP8Gig3
Watcho streams special original series for Valentine’s Day

MUMBAI: With Valentine’s Day just around the corner, Dish TV India Limited, India’s leading DTH Company is all set to premier two new shows on its OTT platform, Watcho. Watcho is giving a chance to its viewers to get immersed in the season of love through their daily episodic show ‘Love Horoscope’...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/14/mobile-world-congress.jpg?itok=FVHIeNgb
Coronavirus fallout: MWC cancelled; HK FilMart postponed

The Wuhan-originating coronavirus is leaving its impact on industry confabs in Europe and Asia. The Mobile World Congress which was scheduled to be held from 24-27 February in Barcelona was cancelled yesterday, following the pullout by a large number of partner companies, with concerns over the...

iWorld Telecom
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/13/actus.jpg?itok=JDIsZ1TL
Actus Digital to demonstrate all-in-one media platform at 2020 NAB Show

At the 2020 NAB Show, Actus Digital will demonstrate how its mandatory compliance solution is part of a much larger media intelligence platform, providing cross-organizational benefits to the operations, marketing and research, and new media departments of broadcasters and media companies. The...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/13/docubay.jpg?itok=WN8Sxvq_
DocuBay signs strategic content integration deal with PatchWall on Mi TVs

MUMBAI: DocuBay, the premium global membership video-on-demand documentary platform by IN10 Media, today announced a significant content partnership with PatchWall on Mi TV, India’s number 1 Smart TV brand. DocuBay is now available as an integrated offering for all PatchWall users, featuring high-...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/13/hike.jpg?itok=8JbsGrHD
Hike adds more cheer to Valentine’s Day; gives love back to users!

MUMBAI:  As Valentine’s Week is upon us, Hike adds to the celebration of love with a slew of newly launched love stickers and Valentine’s Day surprises for top 2,000 users. As a platform dedicated to enabling shared online experiences between friends and closed one, Hike also shared that over 1...

iWorld Social Media
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/12/merki.jpg?itok=RKssDeqE
4 ink strategic partnership

MUMBAI: Merkle Sokrati, the leading data-driven performance marketing agency from the house of Dentsu Aegis Network (DAN), has inked a strategic partnership deal with TikTok - world’s leading short-video creation platform, for India. Given the platform’s popularity and content diversity, brands...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/02/12/ott.jpg?itok=pyQdgBvI
Nielsen’s consumer attitude insights on streaming video

MUMBAI: Streaming video is becoming increasingly crucial for Indian legacy broadcasters, as GenZ continues to spend an increasing amount of time on video apps, watching their favourite shows. But the business is not easy, burning away ginormous amounts of capital. Customer acquisition is expensive...

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories