Facebook India Online Services profit surges 43% to Rs 505 crore

New Delhi: Social media major Meta's advertisement unit, Facebook India Online Services, has posted a 43% growth in profit to Rs 504.9 crore in the financial year ended on March 31, 2024, according to documents shared by Tofler.

The company had posted a profit of Rs 352.91 crore in FY2023.

Facebook India Online Services is engaged in the business of selling advertising inventory to customers in India and providing IT-enabled support services and design support services to Meta Platforms Inc.

The company reported a 9.33% increase in turnover to Rs 3,034.82 crore in FY24 against Rs 2,775.78 crore in FY23.

"The company's total expenses for the fiscal were reported as Rs 2,350 crore," Tofler said in a report.

Globally, Meta announced that its total revenue for Q3 2024 reached approximately $40.6 billion, marking a 19% year-over-year increase. This growth was driven significantly by its advertising sector, which accounted for a lion's share of the revenue, with ad revenue alone climbing to an estimated $39.9 billion. 

This represents a surge in both ad impressions and pricing, with ad impressions increasing by 7% and the average price per ad rising by 11% compared to the same period last year.

The company’s earnings per share (EPS) came in at $6.03, surpassing Wall Street's expectations of $5.25, signalling not only strong revenue growth but also efficient cost management and operational improvements. 

Operating margins for the quarter also improved, rising to 43% from 40% in the prior year, indicating a healthy profit conversion from its revenue.

Meta's user engagement metrics also showed positive trends. The daily active people across its family of apps, including WhatsApp and Threads, reached 3.29 billion, up by 5% from the previous year. This growth in user base supports the ad revenue increase, as a larger audience provides a broader platform for advertisers.

Meta forecast a "significant acceleration" in infrastructure spending in 2025, focusing heavily on AI and the development of metaverse technologies, which might pressure future margins. The company's Reality Labs division, focusing on AR/VR and metaverse projects, continues to post losses, although revenue there increased to $270 million from last year, with operating losses widening to $4.43 billion.

Looking forward, Meta provided guidance for Q4 2024, expecting revenue to fall between $45 billion and $48 billion, aligning with, if not slightly above, analyst predictions.