Facebook Takes $3B Charge for FTC Investigation in 1Q
SAN FRANCISCO (AP) — Facebook is taking a $3 billion charge as a contingency against a possible fine by the Federal Trade Commission. The agency has been investigating Facebook, but has not announced any findings yet.
The one-time charge slashes Facebook's first-quarter net income considerably, although revenue grew by 25% in the period. The FTC has been looking into whether Facebook is in violation of a 2011 agreement promising to protect user privacy.
The social network said Wednesday that its net income was 85 cents per share in the January-March period. Revenue grew 26 % to $15.08 billion from a year earlier. Excluding the charge, it earned $1.89 per share.
Analysts polled by FactSet expected earnings of $1.62 per share and revenue of $14.98 billion.
Facebook's monthly user base grew 8% to 2.38 billion.