Facebook expects FTC fine of up to $5bn in privacy investigation
Company makes revelation in financial reports showing first-quarter revenue growth to more than $15bn
Facebook is expecting to pay as much as $5bn to the US Federal Trade Commission (FTC), it revealed in first quarter financial reports, which otherwise showed continued revenue growth to more than $15bn for the first three months of the year.
Facebook recorded a $3bn legal expense “in connection with the inquiry of the FTC into our platform and user data practices”, the company said. The expenses result in a 51% year-over-year decline in net income, to just $2.4bn. Absent this one-time expense, the company noted, Facebook’s earnings per share would have beaten analyst expectations, and its operating margin (22%) would have been 20 points higher.