theEweekly Wrap: 30 Jan
Facebook reveals £462m fourth quarter profits
Facebook has revealed fourth quarter of profits of £462m, a 34% increase on the same period 12 months previous, while its revenue for the year grew from £1.71bn to £2.54bn.
It now has a reported 1.39 billion active users, a 13% increase from 2013, with a growing number accessing via mobile devices.
This shift resulted in its mobile advertising revenue increasing significantly, making up 69% of the total and helping is ad sales rocket 53% to £2.36bn.
However, it says the amount it spent on research and development, which is reported to be £726m, affected company profit on each dollar made which dropped to 29% from 44% a year earlier.
Co-founder Mark Zuckerberg said if Facebook was “only focused on making money, we might put all our energy into ads for people in the US and other developed countries”, and suggests it is “mission driven” and committed to connecting emerging markets with limited internet connections.
Twitter announces two features
Next up it’s the news that Twitter has announced it will be introducing a new group messaging feature which will allow users to send direct messages to up to 20 people.
In a blog post it says that in a departure from the previous system, users won’t need to follow each other to be able to start conversations.
It also revealed it will be introducing another feature which will allow users to film and edit 30 second videos before sharing them.
Both will be introduced in the next few weeks, and they look to be a way of increasing engagement and the time users spend there.
The news comes after Twitter sent some high profile users a message suggesting they stop posting photos taken on Instagram, a move which attempted to attract users away from its rival.
There have been more changes recently, it announced ‘While You Were Away’ last week which shows users tweets they missed during time away from the network.
Android ahead of iOS in terms of downloads
To conclude this week’s Wrap we have the news that Google Play outpaced the Apple App Store in terms of downloads by 60% during 2014, according to a report from analytics firm App Annie.
But despite having less of the market, the financial picture looks entirely different as Apple made 70% more in revenue, suggesting Apple users are more likely to make purchases.
Worldwide, the most downloaded game across both platforms was Candy Crush, while it came third in terms of revenue behind Clash of Clans and Puzzle & Dragons.
In the UK, the Match.com dating app was the most lucrative, with Skype and Spotify close behind.
Overall, the United States, South Korea and Japan generated more revenue that the rest of the world combined, while the fastest growing nations were Brazil, Russia, India and China.
It is worth noting the results will be affected by the fact the Google Play store isn’t the only Android based app store. Amazon and Samsung provide alternatives while China has multiple different options available to mobile and tablet users.