Social networking giant Facebook, whose user base is expanding primarily on the back of rising penetration in emerging markets like India and Brazil, will make capital investments worth USD 1.6 billion this year.
In the first half of this year, the California-based firm incurred a capital expenditure of USD 595 million on setting up data centres and storage infrastructure, among others.
Besides, Facebook shelled out USD 221 million on acquisitions and other assets such as patents.
"We anticipate making capital expenditures in 2013 of approximately USD 1.6 billion," Facebook said in a filing to the US Securities and Exchange Commission (SEC).
Industry watchers feel that the company will be looking to capitalise on its user numbers and its mobile advertising base.
Bolstered by rising number of users in high growth markets like India and Brazil, Facebook raked in 61 per cent -- USD 1.60 billion -- of its total revenues from advertising in the second quarter of this year.
Internet major Google, which is also competing with Facebook, generated 92 per cent of its revenues from its advertisers in the six months ended June 30.
Facebook's investment plans for increasing infrastructure would get a boost as it posted strong second quarter results helped by a surge in userbase and rising mobile ad revenue, which now represents 41 per cent of its total revenue from advertising, they added.
Facebook posted a net income of USD 333 million for the April-June quarter against a loss of USD 157 million in year-ago period. Its revenue totalled USD 1.81 billion in the
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Source: http://financialexpress.com/news/facebook-to-make-capital-investments-worth-1.6-bn-in-2013/1147843/
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