Social networking site Facebook has lost $ 5.9 million in the third quarter of the current year. This is the second consecutive quarter, when the company has a deficit.
The reason for the deficit is the change in book-account rules, under which the company has to keep aside a certain amount for the share compensation. If this cost is separated, then the company would have a net profit of $ 31.1 million.
In the quarter, Facebook’s earnings rose by 32 percent to $ 1.26 billion compared to the same quarter last year. This is 6.7 percent higher than the second quarter of this year.
There has been a significant increase in income from advertising to the company. In the third quarter, the company generated $ 1.1 billion, which is 36 percent higher than the same quarter last year. In advertising, 14 percent of the revenue is from the mobile area.
Facebook’s share of this announcement rose 8 percent to $ 21.14 from Facebook’s announcement.