RoW, APAC revenue grows fastest for Facebook in 2017


BENGALURU: Social media giant Facebook (FB) reported 47.1 per cent revenue growth for the year ended 31 December 2017 (FY 2017, the year under review) at USD 40,653 million as compared to USD 27,638 million for FY 2016. Growth during the year under review was led by 55.2 per cent and 54.1 per cent growth in revenue from Rest of the world (ROW) and the Asia-Pacific (APAC) regions respectively. The contributions to FB’s revenue from these regions also grew in FY 2017 as compared to the previous year. ROW’s contribution to FB revenue increased to 10 per cent from 9.5 per cent, while the A-Pac regions contribution increased to 16.6 per cent from 15.9 per cent. FB reports revenue from four regions–ROW, APAC, Europe and the US and Canada (US).

Contribution to FB’s revenue from the European region grew 24.3 per cent in FY 2017 from 23.7 per cent in FY 2016, while the contribution from the US region declined in FY 2017 to 49.1 per cent from 50.9 per cent in the previous year.

However, during the quarter ended 31 December 2017 (Q4 2017, quarter under review), it was the European region that led FB’s growth in revenue. FB’s revenue in Q4 2017 grew 47.3 per cent to USD 12,972 million from USD 8,809 million in the corresponding year ago quarter (y-o-y). FB’s revenue from the European region grew 57.4 per cent followed by the A-Pac region with 52.6 per cent. Revenue from ROW and the US grew 51.5 per cent and 40.3 per cent respectively.

FB’s advertisement revenue increased 48.6 per cent in FY 2017 to USD 39,942 million from USD 26,885 million in FY 2016. Revenue from payments and other fees declined 5.1 per cent during the year under review to USD 711 million from USD 753 million in the previous year. Ad revenue in Q4 2017 increased 48.1 per cent y-o-y to USD 12,779 million from USD 8,629 million. Revenue from payments and other fees grew 7.2 per cent y-o-y to USD 193 million from USD 180 million.

In Q4 2017, about 38.9 per cent (828 million) of FB’s 2,129 million monthly active users were from the RoW region, 32.5 per cent (692 million) were from the A-Pac region, 17.4 per cent (370 million) were from Europe and 11.2 per cent (239 million) were from the US region.

Facebook’s average revenue per user (ARPU) in Q4 2017 grew 28 per cent y-o-y to USD 6.18 from USD 4.83 in Q4 2016; APRUs from ROW grew 31.9 per cent to USD 1.86 from USD 1.41, from -Pac grew 22.7 per cent to USD 2.54 from USD 2.07, from Europe grew 48,2 per cent to USD 8.86 from USD 5.98 and from US grew 35.1 per cent to USD 26.76 from USD 19.81.

In its earnings release, FB says that mobile advertising revenue represented approximately 89 per cent of advertising revenue for the fourth quarter of 2017, up from approximately 84 per cent of advertising revenue in the fourth quarter of 2016.

"2017 was a strong year for Facebook, but it was also a hard one," said Facebook founder and CEO Mark Zuckerberg. "In 2018, we're focused on making sure Facebook isn't just fun to use, but also good for people's well-being and for society. We're doing this by encouraging meaningful connections between people rather than passive consumption of content. Already last quarter, we made changes to show fewer viral videos to make sure people's time is well spent. In total, we made changes that reduced time spent on Facebook by roughly 50 million hours every day. By focusing on meaningful connections, our community and business will be stronger over the long term."

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