Facebook NZ’s 2012 service revenue almost doubles, though small losses endure
June 25 (BusinessDesk) - 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.