Mobile device push helps Facebook beat forecasts

Facebook last night reported sales that exceeded analysts’ estimates as the operator of the world’s most popular social-networking service attracted more marketers with new features and mobile-advertising tools.

First-quarter sales rose 38% to $1.46bn, Facebook said in a statement. That compares with the average estimate of $1.44bn, according to data compiled by Bloomberg.

So far this year, Facebook chief executive Mark Zuckerberg has unveiled new software for smartphones, added tools for marketers and revamped News Feed, the first thing members see when logging on to the network of more than 1 billion. Investments in upgrades to attract more users and advertisers are beginning to pay off, according to Tom Forte, an analyst at New York-based Telsey Advisory Group.

“I’m very encouraged on how Facebook’s positioning itself for mobile from both a usage and revenue standpoint,” said Forte, whose firm doesn’t have a rating system. “It’s clear to me that the company understands the importance of mobile.”

During the first quarter, mobile made up about 30% of advertising revenue, expanding from 23% during the fourth quarter.

Shares of Facebook, based in Menlo Park, California, declined 1.2% to $27.43 at the close in New York, leaving them down 28% since Facebook’s initial public offering a year ago.

First-quarter profit excluding certain items was 12 cents a share. That compares with the average analyst projection of 13 cents. Net income attributable to shareholders rose 58% to $217m, compared with $137m a year earlier.

Facebook is projected to grab 13% of US mobile-ad dollars this year, up from 9.5% in 2012, according to EMarketer Inc. The total market will reach $7.29bn in 2013, the research firm said.

Bloomberg