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Facebook NZ's 2012 service revenue almost doubles, though small losses endure

Tuesday 25th June 2013

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Facebook New Zealand, the local unit of the global social media website, almost doubled its revenue last year though costs including a rising wages bill resulted in a net loss.

Sales climbed to $787,830 in calendar 2012, from $427,967 a year earlier, according to the company's annual accounts. All of the revenue came from Facebook Ireland under a service agreement and is unlikely to reflect the ultimate parent Facebook's advertising sales in New Zealand.

The net loss was $59,313 compared to a loss in 2011 of $81,193. It paid $28,484 in tax, up from $14,497.

Sales for the local unit are a drop in the ocean for Nasdaq-listed Facebook, which generated revenue of US$5.1 billion in 2012.

The shares have declined 37 percent since its initial public offering in May last year and last traded at US$23.935, valuing Facebook at about US$59 billion. The IPO valued Facebook at US$104 billion, making it the largest-ever such valuation for a newly listed public company. The stock is rated a 'buy' based on the consensus of 37 analysts polled by Reuters, with a median price target of US$33.

Facebook New Zealand's employee expenses jumped about 40 percent to $505,906 in 2012, remaining the biggest cost. Total expenses almost doubled to $818,659.

Details of the company's stock incentive plan show a second worker has been added to the scheme.

According to the Careers at Facebook website, the company has eight jobs available in Sydney, including a communications manager, a creative strategist and four international sales related positions. No jobs are flagged for New Zealand.

Facebook's registered office in New Zealand is given as law firm Kensington Swan in Wellington.

BusinessDesk.co.nz

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