Facebook user numbers continue to rise, ensuring huge ad revenue increase
In the face of increasing pressure from regulators and massive privacy fines, Facebook's fortunes have remained strong for the second quarter of the year.
In Q2, revenues hit $16.9 billion - an increase of 28% - while daily and monthly active users increased by 8% to 1.6 billion and 2.4 billion respectively. It shows that there has been little impact on the corporation's fortunes despite its punishments and investigations.
After the revelations surrounding data-focused consulting firm Cambridge Analytica, Facebook was fined a total of $5.1 billion in the last few days alone - following the judgements of the Federal Trade Commission (FTC) and Securities and Exchange Commission (SEC).
The two fines did limit Facebook's profits, following the a $3 billion expense set aside last quarter ahead of a predicted oncoming fine. However, the conclusion of the investigations led to a 1.14% boost in its share price.
In 2012, the FTC issued an order forbidding Facebook from obscuring from users how their data would be used. The social giant was found in violation of this act, incurring the fine as a result. The FTC also cited “a new set of deceptive practices” at play.
The SEC's fine was as a result of the company's alleged failure to disclose to its investors the acquisition of user data by Cambridge Analytica in 2015, after it had been made aware of the practice.
Facebook has refused to acknowledge its wrongdoing in both, but introduced privacy-related governance procedures as a response to the FTC's claim, and agreed to pay the fine.