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Facebook Revenue Grows By A Third To £790m

(c) Sky News 2012

Facebook's revenue has grown by almost a third over the last three months to £790m ($1.26bn), according to its latest results.

The 32% increase during its third-quarter came as the company reignited advertising growth with the help of larger-than-expected gains in mobile.

The company's shares leapt 9% to £13.31 ($21.22) in after-hours trading on Tuesday.

Facebook saw advertising revenue increase 36% year-on-year to £684m ($1.09bn), but revenue from its payments and other businesses increased just 13% to £110m ($176m).

Mobile revenue made up 14% of total advertising sales, which analysts said came in above their expectations.

Social media expert Caroline Baxter said: "With mobile usage growing exponentially, Facebook has to find a way to monetise more effectively without crowding the limited space there is.

"The fact that (Facebook chief executive) Mark Zuckerberg led with mobile in his statement shows how important it is.

"Despite signing up its one billionth user earlier this month, Facebook has experienced a phenomenal fall from grace since its IPO.

"But these stronger than expected numbers suggest that Facebook has maybe started to find its way. But it still faces a major challenge.

"One billion users is both Facebook's biggest asset and its biggest liability.

"A seventh of the world's population is a lot of people to get on the wrong side of as Facebook seeks to maximise the amount it makes through paid advertising to satisfy its increasingly vocal investors."

The world's most popular online social network company posted a net loss of £37m ($59m), in the three months up to September 30. It reported a profit of £142m ($227m) a year earlier.