Facebook’s advertising revenues have stabilized since early April. The American giant has doubled its profits and revealed a turnover better than expected. The action should jump when the US equity markets open this Thursday.
Facebook is causing a sensation. If the world n ° 1 in social networks revealed weaker results than expected, in the first quarter, the turnover is better than expected … and the action is expected (for the time being) up 8% at the opening on Wall Street. The group founded by Mark Zuckerberg saw its net profit double (+ 102%) to $ 4.9 billion, or $ 1.71 per share. The Factset consensus is $ 1.74 per share. Revenues increased 18% to $ 17.74 billion (versus 17.33 expected on average by analysts), including $ 17.44 billion (+ 17%) for advertising sales.
Facebook had 2.6 billion monthly users at the end of the first quarter, up 10%. Their growth accelerated compared to the fourth quarter: + 8%. The number of daily users, for its part, stood at 1.73 billion, up 11%. It had increased by 9% the previous quarter. “In the last three weeks of the first quarter of 2020, we have seen a significant reduction in the demand for advertising, as well as a corresponding drop in the price of our advertising. Due to growing uncertainty in our business prospects, we do not not provide specific revenue forecasts for the second quarter or the whole of 2020, but rather a snapshot of second quarter results to date, “commented the group.
Before adding: “After the initial sharp drop in advertising revenue in March, we saw signs of stability in the first three weeks of April, when advertising revenue remained roughly stable compared to the same period from the previous year “.