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Facebook India records 74% surge in revenue in FY19

The social media giant has also posted a net profit of 105 crore rupees for the fiscal ended March 31, 2019

Nov 5, 2019 by The Passage Team
Facebook India records 74% surge in revenue in FY19

Facebook India’s revenue has gone up 71% surge from 521 crore rupees to 892 crore rupees a year back. The social media giant has also posted a net profit of 105 crore rupees for the fiscal ended March 31, 2019 – up 84% from last year, according to documents filed with the registrar of companies (RoC).

In the fiscal 2018, Facebook India Online Services Pvt. Ltd reported a net profit of 57 crore rupees, which is a 40% jump from 40.7 crore rupees the previous fiscal.

In 2017-18, the company’s revenue and profits both witnessed a slower growth across the globe after the social networking platform was hit by a massive data breach allegation in March 2018.

The mercurial rise in revenue and profit has been chalked up to the adoption of a local selling structure for its advertising model in October 2018. Now the advertising revenue is recorded in India and not Dublin as previously. The company has six months of advertising revenue reflecting in its profit-and-loss statement for fiscal 2019, Economic Times reported.

Facebook had a single business segment for providing IT-enabled business process outsourcing services (ITeS) till the previous year and started acting as a ‘non-exclusive reseller of advertising inventory to customers in India for a related corporation’ during the year under review.

For its primary business, which it referred to as ITeS, the company reported revenue of around ₹628 crore and the advertising reseller business segment (ARB) revenue stood at ₹263.9 crore for fiscal 2019. The segmented profit before tax for the two businesses was reported at ₹84 crore for ITeS and ₹71crore for ARB, ET reported.

Facebook said it acts as a ‘reseller’ of advertising inventory to local customers through a reseller agreement with another group company and generates revenue primarily through resale of advertising inventory on its platform.

The Passage Team

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