Facebook Is Not Pegged To Zynga: Revenue Up, Promising Future With Mobile Users [Report]

Must Read

WhatsApp Might Lose 60 Million Indian Users Post Updated Policy Changes, New Survey Reveals!

The Facebook-owned instant messaging platform’s decision to update their privacy and terms of service brought about a...

Uber and Ola In Hot Water: India Authorities Launch Fresh Probe!

The Directorate General of Goods and Services Tax Intelligence (DGGI) sent a summons to Uber and Ola...

Happy B’Day Gordon Moore: One Of The Founding Fathers Of Silicon Valley

Gordon Earle Moore co-founded the paramount Intel Corporation (NASDAQ: INTC) with Robert Noyce in July 1968, which is worth $204.16...

Since the Facebook initial public listing , a series of steps are being taken to emphasize its revenue via desktop or mobile. Facebook’s IPO value is currently fluctuating between $28 -$29, which is way lower than its initial pricing of $38. Facebook’s stock has already stirred dissatisfaction amongst most of its shareholders. But still Facebook manages to shape up its revenue through the second quarter earning.

Facebook Q2 Financial Report 2012:

The 2nd quarter earning reports shows a revenue of $1.18 billion ending 30th June this year. It is an increase of 32% of $895 million compared to the 2nd quarter result of 2011. The ad revenue for the firm was $992 million which is 84% of its total revenue.

The second quarter ad revenue is an increase of 28% compared to the Q2 report of 2011. Also the GAAP loss from operations was $743 million, compared to income from operations of $407 million for the 2nd quarter last year.

Advertisements

Non-GAAP income from operations for Q2 was $515 million, compared to $477 million for Q2 result of 2011.

In addition to that, other details were revealed. There was a year-over-year increase of 29% with 955 million active users as of June 30 2012 whereas an increase of 32% was seen with 552 million daily active users on average. Monthly mobile active users increased to 67% with 543 million users.

Facebook Is Not Pegged To Zynga:

Earlier due to the disappointing 2nd quarter result of Zynga (almost 11% decrease from the expected revenue), it was expected that it might have an ill impact on Facebook’s revenue as well. Moreover, as Facebook’s IPO stock value was not so promising above its initial pricing of $38 per share and many shareholders where disappointed by this, the decline in its revenue was expected. But Zynga is not the only revenue source for Facebook.

As mentioned earlier,  84% of its total revenue for Facebook is from its ads on user’s pages, especially due to the increasing number of active users both in mobile and desktop. Zynga pointed out fingers at Facebook, saying that it had changed its algorithm, leading users to play new games (like the villi type games) online other than the existing Zynga games. John Schappert – chief operating officer of Zynga said “Our users did not remain as engaged and did not come back as often. Instead new games were promoted.”

Now this was not an issue with Facebook, what ever games were played through Facebook, the benefit is for Facebook. In addition to this Facebook also launched its App center internationally, which means more revenue.

Advertisements

It is mentioned in the Facebook newsroom:

” Game developer Kixeye has seen a lift in the quality of organic installs, and found that App Center traffic produces better than average revenue per user for its games War Commander and Battle Pirates. Similarly, a growing percentage of new players in Disney’s Marvel: Avengers Alliance are originating from the App Center, and those users are more engaged than those who come through other channels.”

There are other popular apps and games on Facebook like Diamond Dash by Wooga, Bubble Witch Saga by King.com, Jetpack Joyride by Halfbrick, Angry Birds Friends by Rovio, Ninja Showdown by Noritown, Soundcloud (Germany), Spotify (Sweden), and Deezer (France) etc.

Facebook ads records more clicks from android than iOS and Blackberry. Facebook’s mobile ad CTR is 11 times higher than non-mobile ads (desktop ads) and also CTR on mobile ad campaigns are 15x more than the non-mobile ad campaign.

Whether it’s ads or games, this might prove a promising future for Facebook’s revenue via the mobile devices in the years to come.

2 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Snapchat Spotlight: A New Way for Creators to Earn Money

Short-form video applications have increased overwhelmingly in popularity in recent times. The surge in this format of...

COVID-19 Unemployment Leading To Ageing Indian Workforce, CMIE Reports

The latest data shared by the CMIE aka Centre for Monitoring Indian Economy has highlighted a huge red flag.

The Slip-Ups Keep On Coming: WhatsApp Web Users’ Mobile Data Leaked On Google

As the developments have unfolded over the past week, the clock for WhatsApp seems to be ticking with every passing minute and...

Trump Administration Has Landed Its Final Blow On Chinese Companies: Xiaomi Blacklisted!

In its recent move to safeguard national security, the United States’ Trump Administration has decided to go after China’s second-biggest smartphone marker...

Huawei Is Gunning For Acquiring A Fifth Of Android’s Userbase With Its Own HarmonyOS!

After Google’s ban on Huawei in 2019, the Chinese-origin tech company is all set to roll out HarmonyOS later in 2021 as...

Battle Lines Are Drawn: Qualcomm’s Latest Acquisition to Challenge Apple, Intel

The quest to gain supremacy creates a butterfly effect for sure. With the challengers and the champion pulling out all stops to...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This