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Facebook posts strong revenue growth on mobile ads surge

29 July 2016

The performance made Facebook a bright spot in a mixed field of technology company earnings this month.

Net income attributable to Facebook's stockholders rose to US$2.05 billion, or 71 U.S. cents per share, compared with US$715 million, or 25 USA cents per share, a year earlier.

Video is part of Facebook's growing competition for young people whose attention is wandering to Snapchat. The site now entertains 1.57 billion monthly active users on handsets and tablets - that's 20 percent more than a year ago.

"Our community and business had another good quarter", Mark Zuckerberg said in a statement. Analysts expected Facebook (FB) to generate $6 billion in second-quarter revenue, according to S&P Global Market Intelligence, up from $4.04 billion during the same period a year earlier.

Meanwhile, Facebook has yet to reveal how much revenue is generated by Instagram, its mobile photo-sharing app.

Facebook earned $2bn (£1.5bn) in the period from April to June, up from $719m in 2015.

The Silicon Valley company Wednesday reported blockbuster second-quarter earnings, with strong increases across nearly every measure. Analysts predicted earnings of 81 cents per share and $6 billion in revenue.

Meanwhile, Facebook still has several untapped areas for revenue opportunities, including its WhatsApp and Messenger apps, both of which have more than 1 billion users.

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Chief Operating Officer Sheryl Sandberg said in an interview that people are spending more time each day on Facebook, on average.

"We have five billion people left to connect", Zuckerberg said.

First and foremost, Facebook demonstrated that its social network platform is still attracting plenty of users.

Facebook has a long tradition of surpassing analysts' expectations with its quarterly earnings.

Zuckerberg said he sees "one of the biggest opportunities" for growth in developing countries, where high-speed internet is not widely available.

Twitter is struggling to lure advertisers, who would rather spend on larger social networks - like Facebook.

Monthly active user growth was steady at 3.63 per cent, slightly below last quarter's rate, but enough to add 60m users in three months and take total monthly active users to 1.71bn.