4/24, 10:06 PM (Source: TeleTrader)
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Facebook's EPS falls 49.7% to $0.85 in Q1

Legal expenses of $3 billion due to a privacy scandal in the United States impacted net income in the first quarter, Facebook Inc. said on Wednesday. Revenue jumped 26% to $15.08 billion from the same period of one year before but net income fell 51.3% to $2.43 billion or 49.7% to $0.85 per diluted share. Excluding the said hit, profit per share would have come in at $1.89, the social media operator added in the results published on Wednesday. The adjusted level would have beaten Wall Street forecasts. Shares surged over 5% after the bell.

"We had a good quarter and our business and community continue to grow. We are focused on building out our privacy-focused vision for the future of social networking, and working collaboratively to address important issues around the internet," said Mark Zuckerberg, Facebook co-founder, chairman and chief executive.

Total costs surged 80.5% to $11.76 billion, but the rise was only 34% without the one-off item. The technology giant said the damage could rise to as much as $5 billion. Operating margin would also have been 20 percentage points higher than the 22% registered for the first quarter, compared to 46% one year before. Facebook said the numbers of daily and monthly active users – DAUs and MAUs – both advanced 8% to 1.56 billion on average and 2.38 billion, respectively.

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