Facebook Announces Q2 2019 Revenue Mainly Unaffected by $5 Billion FTC Fine
Facebook reported the financial results for the second quarter of 2019 on Wednesday, July 24, confirming a $2 billion settlement with the U.S. Federal Trade Commission (FTC).
The revenue during the reporting period was $16.9 billion, which represents a 28% increase on a year-to-year basis. The number is slightly higher than it was expected by analysts ($16.49 billion).
Moreover, the number of monthly active users grew 8% in comparison to the same period last year, summing up to 2.41 billion people. The mobile advertising revenue comprised a 94% of advertising revenue for the second quarter of 2019, compared to 91% in Q2 2018.
In the report, Facebook for the first time confirmed it would pay a $5 billion fine to FTC due to the misuse of customers' data. Following the Cambridge Analytica scandal, the tech giant plans to significantly enhance its practices and processes for privacy compliance and oversight.
Facebook’s most noticeable announcement in Q2 2019 came mid-June when the corporation officially revealed the white paper of its cryptocurrency Libra. The project’s blockchain is set to launch in the first half of 2020. Visa, Uber, MasterCard, eBay, PayPal, and other major companies have made investments in the project.
However, the U.S. regulators were relatively cautious about the digital currency, although Facebook representatives urged the legislators to support the development of cryptocurrencies and prevent China from keeping the leading position on the market.
Earlier in July, United States Justice Department launched an antitrust investigation against Facebook, Amazon, Google, and Apple to review whether the tech giants were violating the competition rules in such areas as web search, social media, and retail.