Net profit of Facebook in 2014 has almost doubled, reaching $ 2.94 billion. The main reasons for the company’s profit growth was the increase in the audience of mobile applications, as well as a successful increase monetization of social networks. However, a new strategy for Facebook makes it dependent on the growth of the mobile advertising market, analysts said.
Social network Facebook announced its financial results for 2014. Over the past year the company’s revenue grew by 58% to $ 12.47 billion. Net profit for the same period increased by 96% to $ 2.94 billion. Operating profit also increased by 78% – to $ 4.99 billion.
The number of daily active users of social networks by the end of December 2014 amounted to 890 million people, which is 18% more than last year. The number of active monthly users also increased by 13% to 1.39 billion people.
The growth of the company’s revenue is largely due to an increase in the sale of advertising in social networks, as well as the growth of users of the mobile application Facebook. By the end of the year they use every day 745 million people. At the same time, revenue from advertising in the fourth quarter increased by 53% compared to last year, to $ 3.59 billion.
Facebook is also seriously increased the amount of funds to purchase third-party companies, follows from the statements of the company. If in 2013 for this purpose has been spent $ 368 million, free cash flow, in 2014 this amounted to $ 4.975 billion. Seriously increased and the amount of investments – from $ 2.624 billion in 2013 to $ 5.913 billion in 2014.
«From major purchases this year we can recall the acquisition of Oculus VR for $ 2 billion, and closing the deal to buy Whatsapp. With regard to investments, fixed assets have been spent on the development of advertising and mobile platforms and improving security “- says principal analyst of the Russian Association for Electronic Communications (RAEC) Karen Ghazaryan.
Investment Analyst Company “Freedom Finance” Shamil Kuramshin in turn suggests that the investment costs Facebook mainly related to marketing and technical costs. “Large sums were spent on marketologicheskie innovations, such as the announced network of business contacts Facebook at Work, as well as the modernization of existing products, including mobile applications messenger” – he said “Gazeta.ru».
«Almost two years from the standard social network Facebook has managed to become a mobile company, while increasing and the proportion of PC users,” – said Ghazarian.
This expert also explains the increased rate and seriously goodwill (equal the purchase value of the company minus the fair market value of net assets and liabilities). If in 2013 it amounted to only $ 839 million, then in 2014 increased to $ 17.981 billion. “The impact of Facebook in the world seriously increased, while taking into account the development of advanced mobile platforms more and more large companies prefer to advertise it in the social network,” – said Kazarian.
However, in the future, Facebook will become increasingly dependent on the revenues it with mobile advertising, aided and consistently implement innovation company, analysts say.
«new trend for Facebook goes mobile video advertising, and lately more and more companies are experimenting with the placement of the rollers is not on Youtube, and on Facebook. It will be interesting to see how the company in this direction will compete with Google », – says Ghazaryan. At the same time Kuramshin believes that the leadership of Facebook to learn correctly to profit from a large number of users of social networks. “The company’s revenue increased significantly, while the number of users has increased not so much. This means that Facebook is successfully increased monetization, including by increasing the attractiveness of advertising and increasing purchasing activity of users, “- he said.
« The most important areas of development will be further promotion in emerging markets, as well as the launch of a voice communication in messenger Whatsapp.
In this case, the social network will face serious opposition from mobile operators “, – says Ghazaryan.
According to a study Pew Research, Facebook audience is gradually becoming older and young people switched to other services. For example, among two thousand people in the US over 18 years of active accounts have 56% of people under the age of 65 years. At the same time, according to Frank N. Magid Associates, in 2014 the share seated on Facebook American teenagers from 13 to 17 years was 88%. Even a year ago, this figure was 94%, and in 2012 – 95%.
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