Facebook gets more friends as 2009 revenues 'hit $900m'
Saturday 19 June 2010
The ubiquitous social networking website Facebook achieved revenues of $900m (£608m) in 2009, it was reported yesterday.
The figure not only surpassed previous estimates about its commercial performance but will also have investors clamouring for a flotation of the company.
The six-year-old, privately-owned group refused to comment on the reports last night. Previously, analysts had predicted that Facebook would report revenues of up to $500m for 2009.
Last September, Facebook said it had become free cashflow positive, meaning that it was generating enough income to cover its operating expenses, as well as its capital spending needs. It is also thought that it made several million dollars of net profit.
Facebook is the world's largest social network, with nearly half a billion users. The hugely popular website has been banned from many workplaces. If yesterday's reports are accurate, investors will increase pressure on the company, based in Palo Alto, California, to list. Facebook has previously insisted that an initial public offering is not a short-term priority.
However, the company will be conscious of the experience of other social networking websites that have fallen in popularity and left investors significantly out of pocket. This week, Bebo, the networking site once de rigeur for teenagers, was offloaded by AOL for $10m – a tiny fraction of the $850m it paid for the site just two years ago.
Such was Bebo's poor performance under AOL's ownership, caused largely by the popularity of Facebook, that the US media giant had threatened to close down the website altogether.
Bebo was launched in 2005, the year after Facebook.
- 1 Michael Douglas regrets 'embarrassing' Catherine Zeta-Jones with oral sex comments
- 2 Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
- 3 Tunisian builder has been hailed a hero after knocking gunman to the ground with roof tiles
- 4 German ethics council calls for incest between siblings to be legalised by Government
- 5 Fifty Shades of Grey author E.L James's Twitter Q&A didn't go exactly as planned
Kim Jong-un shows off airport designed by architect he likely had executed
Michael Douglas regrets 'embarrassing' Catherine Zeta-Jones with oral sex comments
Tunisia hotel attack: Locals form 'human shield' to protect hotel from gunman Seifeddine Rezgui
Greece debt crisis: Athens has one day to find €1.6bn
German ethics council calls for incest between siblings to be legalised by Government
The moment a Queen's Guard soldier lost it and drew his gun at annoying tourist
Greece crisis: The wider lesson is that it’s time to abandon this failed experiment in currencies
'I wish the BBC would stop calling it Islamic State' – David Cameron unleashes frustration at broadcaster
David Cameron struck double blow in his hopes to win Britain a new EU deal
Extend Right To Buy to tenants of private landlords, Labour's Jeremy Corbyn says
Pentagon accuses Russia of 'playing with fire' over nuclear threats towards Nato
iJobs Money & Business
£22500 - £27000 per annum + OTE £45K: SThree: Since our inception in 1986, STh...
Negotiable: Recruitment Genius: This extremely successful and well-established...
Competitive with monthly bonus: Guru Careers: We are seeking an experienced FX...
Competitive (Freelance) : Guru Careers: An Investment Writer / Stock Picker is...