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Facebook Reports a Loss but Revenues Up in Third Quarter

Facebook Reports a Loss but Revenues Up in Third Quarter

Facebook posted a loss of $59m (£37m), despite a revenue increase of 32% in the third quarter.

Social media giant Facebook enjoyed a period in which revenue increased to $1.26 billion in the period between the months of July and September. But the site is still struggling to turn its dominance of the social media industry into profit.

Despite a bump in revenue which exceeded expectation, the online social network remained in the red following a $157 million loss in the previous quarter. Facebook also fares poorly on the stock exchange with shares having lost around 50% of their value since the Facebook IPO in May.

Of the 1.01 billion users who access Facebook, the company revealed that 604 million do so via a mobile device, which is an area that Chief Executive Mark Zuckerberg believes could be the key to unlocking the site’s moneymaking potential.

In an official statement, the Facebook boss said: "People who use our mobile products are more engaged, and we believe we can increase engagement even further as we continue to introduce new products and improve our platform."

Another positive for Facebook was news that revenue from advertising has increased by 36% during the period, when compared with the same quarter last year. Mobile revenue alone made up 14% of the total advertising income.

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