Facebook expects to lose users

Facebook s’attend à perdre des utilisateurs

Photo: Olivier Douliery Agence France-Presse
Nearly three billion people use at least once a month one of the platforms of the group, Facebook (Facebook, Instagram, WhatsApp, or Messenger).

The Duty and

Agence France-Presse


19: 47

  • Economy

Facebook raised $ 17.7 billion of revenue in the first quarter of 2020, in spite of a decline in advertising revenue at the end of march due to the crisis, the sars coronavirus, and has reassured the market. The title of the giant of social networks was 10 % after the close of the New York stock Exchange on Wednesday.

Nearly three billion people have used at least once a month one of the platforms of the group (Facebook, Instagram, WhatsApp and Messenger), a figure which rose by 11 % year on year, but the company expects “a reduction in commitment” when the measures of social distancing will be relaxed, according to its press release.

With an increase in revenues of 18 % and a net profit of almost US $5 billion, the california-based company seems to emerge unscathed from a first quarter marked by the spread of pandemic COVID-19. Facebook admits, however, to have undergone ” a significant reduction in demand from advertisers and a decline in its rates during the last three weeks of march “.

Like Google on Tuesday, the other big player in online advertising, the platform doesn’t venture a forecast that is encrypted for the second quarter, reflecting the uncertainties weighing on the global economy. “Trends in the month of April reflect a weakness (revenue) on all of our geographical areas, while most of the major countries have put in place measures for containment,” says Facebook.

“This suggests that the second quarter will be much more complicated,” says Debra Aho Williamson, analyst at eMarketer. “Businesses are going to reopen at different speeds in different countries and even within countries, like the United States. It will be incredibly difficult for a company like Facebook to regain its momentum in advertising sales “.

In detail, the first social network in the world said that its advertising revenues were broadly stable during the first three weeks of April compared to the same period of last year, after a sharp decline in march due to the reduction of the marketing budgets of companies in the face of uncertainty related to the coronavirus.

And if Facebook has posted a turnover increase of nearly 18 % in the first quarter, it was the lowest increase ever recorded,the agency says Reuters. The total turnover of the group amounted in the period to 17,74 billion, against 15,08 billion a year earlier. The advertising revenues of the group increased by 17 % to 17,44 billion compared to the first quarter of 2019 (14,91 billion).

Facebook has also announced that its costs and expenses overall had increased by only 1% 11,84 billion over the quarter, adds Reuters. This low increase has had the effect of greatly increasing its operating margin, which amounted to 33 % against 22% in the first quarter of 2019.

Facebook has also stated that more than 2.99 billion of users had “interacted” with at least one of his applications each month during the quarter, we read in the text of the agency.

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