Meta Platforms subsidiary Facebook India Online Services has posted a commendable set of financial numbers in FY24, with profits up 43% as the company controlled costs well and gleaned maximum revenues. The bottom line of ₹504.9 crore topped ₹352.91 crore in the year-ago period, bringing a “good bottom line growth”.
Revenue Growth Sturdy at 9.3%
Facebook India’s revenue grew at a moderate pace of 9.3% in FY24 to reach ₹3,034.8 crore, up from ₹2,775.7 crore in FY23. Growth was largely driven by two key revenue streams:
- Advertising Inventory Sales: This forms the core of its business: advertising continues to be where revenue will be generated using Meta’s scale across borders to deliver targeted solutions to advertisers.
- IT-Enabled and Design Support Services: This continues to be an important component of operational revenue for its parent company, Meta Platforms Inc.
- Although operational revenue continues to move in the right direction, non-operating income decreased 25% to ₹28.95 crore. However, the companies’ overall revenue, including non-operational components, stood at ₹3,063.7 crore.
- Good cost management is where the profitability lies: Facebook India demonstrated strong cost control measures, with expenses rising by only 2.4% to ₹2,349.6 crore in FY24. This disciplined approach significantly contributed to the company’s profitability.
Key expense details include:
- Employee Benefits: Increased by 7.8% to ₹476.1 crore, reflecting investments in talent while keeping costs manageable.
- Other Expenditures: Maintained at ₹1,435.3 crore, showcasing Facebook India’s ability to contain operational costs.
- Depreciation and Amortization: Reduced by 10.8% to ₹271.3 crore, which increased the net profits
However, all costs dipped are not:
- Legal Expenses: Increased 52.1% to ₹166.7 crore for increased regulatory and compliance activities
- Miscellaneous Expenses: Dipped 32% to ₹463.1 crore, indicating increased cost-efficiency in non-core spending
These measures reflect Facebook India’s strategies of optimization in expenses and investments in areas that will boost its growth.
Strengthening Its Digital Advertising Leadership
Performance of Facebook India This factsheet again emphasizes Facebook India’s leadership position in the fast-growing digital advertising market of India. With strong focus on high-demand advertising solutions and IT-enabled services, the company continues to strengthen its market position.
The digital advertising sector in India is rapidly evolving, with businesses increasingly relying on targeted ads to engage customers. Facebook India’s extensive platform, supported by Meta’s global reach, places it in a prime position to capitalize on these opportunities. Manoj Gupta, head of communication, at Facebook India, said, “Our performance in FY24 reflects disciplined cost management and a sharp focus on core business priorities. As the digital advertising ecosystem evolves, we will continue to drive innovation and deliver value to our clients.”
Opportunities for Future Growth
Digital Ad spending in India is all set to exponentially grow as the internet and smartphone penetration increases. The market is likely to grow from ₹38,000 crore in 2023 to ₹70,000 crore by 2028. This opens tremendous scope for platforms like Facebook to expand their networks.
The strong positioning for Facebook India will be made because of its operational efficiency alongside adapting to the changing market dynamics and is likely to gain a better market share in this booming market. With businesses focusing on digital strategies, it will continue to witness more demand for its advertisement and IT-enabled solutions.
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Explore our programs today and make your startup dream a reality. Performance of Facebook India in FY24: Demonstrates its ability to thrive in an evolving market, maintaining its profitability through cost management. As the digital advertising landscape grows, the company is well-positioned to drive innovation and strengthen its foothold in India’s dynamic economy. Learn more about such interesting news through Founderlabs daily.
