Tech

Facebook prints money like never before

Facebook increased its revenue by a third in the fourth quarter of 2020. US $ 28.1 billion is also a new record, as is operating profit of US $ 12.8 billion (+ 44%) and net profit of US $ 11.2 billion (+ 53%). The group is benefiting from the coronavirus pandemic: users spend more time online, shop more online, and currently spend less on services and more on products. And product promotion is Facebook’s strength.

Facebook.com, Instagram, Whatsapp and Messenger had a total of 3.3 billion users in December. Facebook.com alone had 2.8 billion users in December, two thirds of which were logged in every day. Facebook.com users brought the data company an average of $ 3.38 per month in advertising revenue. There was also about ten US cents of other income, for example from transaction fees.

The distribution over the earth is very different. Facebook users in the US and Canada brought in an average of $ 17.85 a month, those in Europe $ 5.62, and users in other parts of the world only made $ 1 a month. That goes from the Wednesday evening published Financial figures Facebooks emerged.

In total, enormous amounts come together. In 2020 as a whole, the group had sales of $ 86 billion (+ 21%), of which 98 percent was advertising revenue. Operating profit rose 36 percent to $ 32.7 billion, and net profit rose 58 percent to $ 29.1 billion. Still, the company still doesn’t pay a dividend.

Instead, the Board of Directors has approved the repurchase of its own shares (Type A) valued at up to $ 25 billion. This budget is in addition to a previously approved share buyback program of $ 34 billion, of which $ 8.6 billion is still available. At the turn of the year Facebook had 58,604 employees – 30 percent more than a year earlier.

For the first half of the current year, Facebook expects strong growth, especially since the comparison period 2020 was characterized by reduced advertising activities due to the pandemic. The growth rates are expected to be lower in the second half of the year. The data company expects headwind from European data protection and in the form of tracking warnings in apps for Apple’s iPhones from iOS 14.


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