Facebook parent company Meta Platforms has suffered its first quarterly revenue decline since going public in 2012, due to poor online advertising sales.
Meta said on Wednesday that sales dropped 1 percent to 28.82 billion dollars for the three months through June compared with a year earlier.
Net profit tumbled 36 percent year-on-year to 6.69 billion dollars.
Increasing economic uncertainty weighed on the company's online ad sales. So did a tougher privacy policy by tech giant Apple that allows users to prevent tailored ads appearing.
Meta is also facing intensifying competition with rivals, including video-sharing app TikTok.
The company says it expects poor ad sales to continue in the current quarter.
Advertising is the main revenue source for many IT firms, but it tends to be affected by economic trends. Social media giant Twitter and Google owner Alphabet have also felt the impact of sluggish ad sales.
Meta said on Wednesday that sales dropped 1 percent to 28.82 billion dollars for the three months through June compared with a year earlier.
Net profit tumbled 36 percent year-on-year to 6.69 billion dollars.
Increasing economic uncertainty weighed on the company's online ad sales. So did a tougher privacy policy by tech giant Apple that allows users to prevent tailored ads appearing.
Meta is also facing intensifying competition with rivals, including video-sharing app TikTok.
The company says it expects poor ad sales to continue in the current quarter.
Advertising is the main revenue source for many IT firms, but it tends to be affected by economic trends. Social media giant Twitter and Google owner Alphabet have also felt the impact of sluggish ad sales.
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Summary
Meta Platforms, Facebook parent company, experienced its first quarterly revenue decline since IPO in 2012, with a 1% decrease in Q2 sales to $28.82 billion, attributed to poor online ad sales. Net profit dropped 36%. Factors influencing this were increased economic uncertainty, Apple's tougher
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ID: 62e270b4-8e64-41c1-b047-72f7c0a80b98
Category ID: nhk
URL: https://www3.nhk.or.jp/nhkworld/en/news/20220728_28/
Date: July 28, 2022
Created: 2022/07/28 20:19
Updated: 2025/12/09 14:41
Last Read: 2022/07/28 20:19