Facebook India Online Services, which is a subsidiary of Meta Platforms Inc., has also witnessed impressive financial results in FY24, with profits from the company increasing by 43%. This was good enough to increase its earnings to Rs 504.9 crore from Rs 352.91 crore during the previous fiscal year. The company thus proved to be a very efficient firm in terms of effectively managing operational costs and using advertisement services.
Revenue growth is more modest than profit at 9.3%. It rose to Rs 3,034.8 crore from Rs 2,775.7 crore in FY23. Revenue in operations increased on account of these two major sources of revenues: selling advertising inventory, and providing IT-enabled, and design support services, to its parent company, Meta Platforms Inc. Such two revenue streams are as important as ever, marking the continued demand for a digital advertising solution in the Indian market.
Significantly, while the operational revenue improved, the non-operating income was down by 25%, which stood at Rs 28.95 crore. So, the total revenues of Facebook India, including the non-operational elements, stood at Rs 3,063.7 crore for FY24. The balance depicts the effective concentration of the company on its core activities and controlled expense growth, which were instrumental in achieving higher profitability.
Proper evaluation of costs reveals that costs incurred by Facebook India remain remarkably low. In the current fiscal, its expenses have only risen 2.4% to Rs 2,349.6 crore. This involves a consistent trend in other expenditures at Rs 1,435.3 crore along with moderate employee benefits that registered an increase of 7.8% at Rs 476.1 crore. These were good accounts of cost control which were useful in proper utilization of funds without overspending and thereby overstepping important budgets.
The other expenses include depreciation and amortization, which declined by 10.8% as it reduced to Rs 271.3 crore from Rs 304.2 crore in FY23, which also helped increase profitability. On the other hand, legal expenses increased by 52.1% at Rs 166.7 crore, which suggests an increase in compliance and regulatory activities. However, miscellaneous expenses declined favorably by 32% at Rs 463.1 crore.
These financial results show that Facebook India has been able to keep costs under control and focus on core revenue streams. Despite the challenges, its approach has opened up a strong profit trajectory, thus strengthening its position as one of the major players in India’s digital advertising space. This success is not only a reflection of operational efficiency but also adaptability in an evolving market. With the growing importance of digital advertising, the high-demand service focus by Facebook India is likely to gear up further growth.
