Facebook NZ’s revenue almost doubles, pays almost no tax

Facebook New Zealand, the local unit of the global social media website, almost doubled its revenue last year, though costs including a rising wages bill resulted in a net loss.

Sales climbed to $787,830 in calendar 2012, from $427,967 a year earlier, according to the company's annual accounts. All of the revenue came from Facebook Ireland under a service agreement and is unlikely to reflect the ultimate parent Facebook's advertising sales in New Zealand.

The net loss was $59,313 compared to a loss in 2011 of $81,193. It paid $28,484 in tax, up from $14,497.

Sales for the local unit are a drop in the ocean for Nasdaq-listed Facebook, which generated revenue of $US5.1 billion in 2012.

The shares have declined 37 percent since its initial public offering in May last year and last traded at $US23.935, valuing Facebook at about $US59 billion. The IPO valued Facebook at $US104 billion, making it the largest-ever such valuation for a newly listed public company.

The stock is rated a 'buy' based on the consensus of 37 analysts polled by Reuters, with a median price target of $US33.

Facebook New Zealand's employee expenses jumped about 40 percent to $505,906 in 2012, remaining the biggest cost. Total expenses almost doubled to $818,659.

Details of the company's stock incentive plan show a second worker has been added to the scheme.

According to the Careers at Facebook website, the company has eight jobs available in Sydney, including a communications manager, a creative strategist and four international sales-related positions. No jobs are flagged for New Zealand.

Facebook's registered office in New Zealand is given as law firm Kensington Swan in Wellington.

(BusinessDesk)

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