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Meta sees revenue decline for the first time due to weak advertising market

ANP

NOS Newsyesterday, 23:14

The revenue of Meta, owner of Facebook and Instagram, has fallen for the first time since the company was founded. It is a revenue decline of only 1 percent, but it is not good news for the tech giant, which always wants to continue to grow and has strong competition from TikTok.

Meta’s total revenue is largely driven by advertising revenue, but the digital advertising market is in a deadlock due to high inflation. Last quarter, Meta received $28.82 billion. In the same period last year, that was still 29.08 billion dollars.

The revenue forecast for the next quarter is also lower than what analysts had expected. Meta expects a turnover of between 26 and 28.5 billion dollars, analysts estimated at 30.52 billion dollars.

Much less profit

The company’s net profit fell a lot faster than sales at 36 percent. Earnings were $6.69 billion compared to $10.39 billion last year.

In Europe, the number of monthly active Facebook users is also decreasing. There are now 407 million. The number of daily active Facebook users is declining less rapidly.

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