LONDON: Facebook Inc. said on Wednesday it expects revenue growth to “decelerate significantly,” sending the social media giant’s shares down 3.5 percent in extended trading even as it reported strong ad sales.
The warning overshadowed the company’s beat on Wall Street estimates for quarterly revenue, bolstered by increased advertising spending as businesses build their digital presence to cater to consumers spending more time and money online.
Facebook said it expects Apple’s recent update to its iOS operating system to impact its ability to target ads and therefore ad revenue in the third quarter. The iPhone maker’s privacy changes make it harder for apps to track users and restrict advertisers from accessing valuable data for targeting ads.
The company also announced on Wednesday that it would require anyone working at its US offices to be vaccinated against COVID-19, joining Alphabet Inc. and Netflix .
Monthly active users came in at 2.90 billion, up 7 percent from the same period last year but missing analyst expectations of 2.92 billion and marking the slowest growth rate in at least three years, according to IBES data from Refinitiv.
“The user growth slowdown is notable and highlights the engagement challenges as the world opens up. But importantly, Facebook is the most exposed to Apple’s privacy changes, and it looks like it is starting to have an impact to the outlook beginning in 3Q,” said Ygal Arounian, an analyst at Wedbush Securities.
Brian Wieser, GroupM’s global president of business intelligence, said all social media companies would see slower growth in the second half of the year and that it would take more concrete warnings about activity in June and July for anyone to anticipate a “meaningful deceleration.”
Facebook’s total revenue, which primarily consists of ad sales, rose about 56 percent to $29.08 billion in the second quarter from $18.69 billion a year earlier, beating analysts’ estimates, according to IBES data from Refinitiv.
Its revenue from advertising rose 56 percent to $28.58 billion in the second quarter ended June 30, Facebook said. It pointed to a 47 percent increase in price per ad.
“In the third and fourth quarters of 2021, we expect year-over-year total revenue growth rates to decelerate significantly on a sequential basis as we lap periods of increasingly strong growth,” Chief Financial Officer Dave Wehner said in the earnings release.
Net income in the second quarter more than doubled to $10.4 billion, or $3.61 per share. Analysts had expected a profit of $3.03 per share.
The world’s largest social network has been ramping up its ecommerce efforts, which are expected to bring additional revenue to the company and make its ad inventory more valuable. The push will be key to how Facebook, which hosts more than 1 million online “Shops” on its main app and Instagram, can grow its ad business amid the impact of Apple’s changes.
It is also on the offensive to attract top social media personalities and their fans, competing with Alphabet’s YouTube and short-video app TikTok, which recently hit 3 billion global downloads. Facebook said this month it would invest more than $1 billion to support content creators through the end of 2022.
On a conference call with analysts, CEO Mark Zuckerberg also focused on another ambition for the company: the “metaverse.”
Zuckerberg this week announced that Facebook, which has invested heavily in virtual reality and augmented reality, was setting up a team to work on building a shared digital world, which he is betting will be the successor to the mobile Internet. Microsoft also dropped the buzzy Silicon Valley term on its earnings call this week, talking about its own plans for the converging digital and physical worlds.
“Facebook has its eye on a sci-fi prize,” said Sophie Lund-Yates, equity analyst at Hargreaves Lansdown. “This is little more than an ambition for Facebook at the moment...if the idea comes to fruition, it could be a valuable income source.”
The company also continues to face pressure from global lawmakers and regulators, including from the US Federal Trade Commission which has until Aug. 19 to refile its antitrust complaint against the company and from a group of states who said on Wednesday they would appeal the judge’s dismissal of their lawsuit. Facebook’s market cap hit $1 trillion for the first time last month when the judge threw out the original complaints.
The company, which has long been under fire from lawmakers over misinformation and other abuses on its apps, has also come under renewed scrutiny from President Joe Biden’s administration over the handling of false claims about COVID-19. At Facebook’s office in Washington, D.C., on Wednesday, a group of critics set up an installation of body bags to protest the issue.
Facebook’s slowdown warning hangs over strong ad sales, while Zuckerberg talks ‘metaverse’
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Facebook’s slowdown warning hangs over strong ad sales, while Zuckerberg talks ‘metaverse’
- Facebook expects revenue growth to slow down significantly despite strong ad sales
- Facebook expects Apple’s recent update to its iOS operating system to impact its ability to target ads and therefore ad revenue in the third quarter
Saudi, UN bodies sign deal on media training
- Saudi Media Forum Chairman Mohammed Al-Harthi said that the partnership is the forum’s first strategic initiative and will positively impact Saudi media
RIYADH: The Saudi Media Forum has signed a cooperation agreement with the UN Institute for Training and Research to promote sustainable development and empower individuals as well as media organizations.
It aims to advance media and training efforts in alignment with Saudi Vision 2030 and global sustainable development trends, according to the Saudi Press Agency.
The agreement focuses on creating lasting impact through innovative training programs that combine academic knowledge with practical applications.
These programs will empower journalists and organizations, enhance professional awareness in both public and private sectors, and promote media literacy and innovative education.
The partnership will also support media organizations in achieving sustainable development goals through professional training, remote learning and educational resources.
Saudi Media Forum Chairman Mohammed Al-Harthi said that the partnership is the forum’s first strategic initiative and will positively impact Saudi media.
He added that Saudi Arabia, a nation of continuous renewal, must stay ahead of transformations to advance its development.
The forum continues to forge strategic partnerships with local and international entities to elevate Saudi media’s global standing while providing media professionals and organizations with the tools to create world-class content, the SPA reported.
Israeli soldiers desecrate church in southern Lebanon in latest religious site incident
- IDF soldiers are filmed performing a mock wedding inside an Orthodox church
- Online users question continued support by Western Christians despite rise in attacks toward non-Jewish religious sites
LONDON: Israeli soldiers have come under fire after a video surfaced showing them desecrating a Christian church in southern Lebanon, marking the latest attack on a religious site amid rumors of an imminent truce in Lebanon.
The incident reportedly took place in Deir Mimas, near the border with Israel, and involved soldiers from the Israeli Defense Forces Golani Special Operations Unit.
The video, which began circulating widely online on Monday, depicts the soldiers performing a mock wedding ceremony inside the Orthodox church, sparking outrage across social media platforms.
The footage shows a male soldier, pretending to be a bride, wearing a hood and participating in a staged ritual led by another soldier using a disconnected microphone. The mock priest asked for the bride and groom’s names as the group laughed.
The scene escalates into chaos as another soldier interrupts, kneels before the “bride,” and simulates a dramatic objection, followed by soldiers piling on top of each other.
The timing of the video remains unclear, but its release has drawn condemnation online.
Another video of Israeli soldiers desecrating a Church in South Lebanon and mocking the holy sacraments.
— Karim Emile Bitar (@karimbitar) November 25, 2024
Deafening silence of US and European politicians who spent the past 20 years masquerading as defenders of Eastern Christians, only to pander to Western Islamophobes. https://t.co/0ACJuGV1dg
Karim Emile Bitar, professor of international relations at Saint Joseph University in Beirut, called it a blatant act of disrespect, posting on X: “Another video of Israeli soldiers desecrating a Church in South Lebanon and mocking the holy sacraments. Deafening silence of US and European politicians who spent the past 20 years masquerading as defenders of Eastern Christians, only to pander to Western Islamophobes.”
Other users voiced their anger, accusing Western Christians of ignoring Israeli acts of disrespect toward non-Jewish religious sites.
“It is incomprehensible that US Christians continue to blindly defend Israelis who desecrate the Church,” voiced another user.
This incident follows a string of troubling actions targeting cultural and religious landmarks by Israeli forces.
Earlier this month, the same IDF brigade allegedly vandalized two memorials in Hula, south Lebanon, using graffiti that read, “A good Shiite is a dead Shiite.”
In August, footage emerged showing IDF soldiers burning copies of the Qur’an in a Gaza mosque, drawing widespread condemnation and prompting an internal Israeli Military Police investigation.
UK police forces quietly withdraw from X platform amid content concerns
- Several UK police forces cut X usage to a minimum after misinformation on the platform fueled UK’s summer riots
- X has been a primary communication tool for the British government, public services, institutions and millions of people for over a decade
LONDON: Several British police forces have largely withdrawn from Elon Musk’s X social media platform as concerns over its role in promoting violence and extreme content persist, a Reuters survey of forces’ social media output showed.
X, formerly Twitter, was used to spread misinformation that sparked riots across Britain this summer, and has reinstated British-based accounts that had been banned for extremist content.
Musk’s comment in August that civil war in Britain was “inevitable” drew rebukes from Downing Street and police leaders.
Critics argue that Musk’s approach fosters hate speech, though Musk has said he is defending free speech and has described Britain as a “police state.”
Reuters reported in October that North Wales Police had ceased posting on X. Others are moving in that direction, according to Tuesday’s survey.
Reuters visually monitored posts on X from 44 territorial police and British Transport Police over the three months to Nov. 13 and focused on ones that had noticeably fewer posts, comparing their output to a year previously.
Reuters then contacted those eight forces.
West Midlands Police, one of Britain’s biggest police forces which serves the second city of Birmingham, reduced its X posts by around 95 percent in annual terms in that period.
Lancashire Police in the north of England, cut its usage of X by around three-quarters compared with a year ago.
“We understand that, as the digital landscape changes, so too does our audiences’ channels of choice,” the force said.
And Derbyshire Police, which serves around a million people in central England, made its last original post on Aug. 12 and has responded only to queries since. It said it was reviewing its social media presence.
X-COMMUNICATION
Other forces said X remained useful for updates on things like road closures, but platforms like Facebook and Instagram were better for reaching communities.
X did not respond to a request for comment.
X has been a primary communication tool for the British government, public services, institutions and millions of people for over a decade.
It had just over 10 million British app users in October, compared with 4.5 million for Threads and 433,000 for Blue Sky, according to data from digital intelligence platform Similarweb.
But usage is dropping, with X’s British app users down 19 percent on a year ago, Similarweb data showed.
The government still posts to X but does not use it for paid communications. It does, however, advertise on Meta’s Instagram and Facebook, a government source said last month.
Several well-known organizations, including the Guardian and non-profit Center for Countering Digital Hate, have quit X due to concerns over its content.
Cary Cooper, professor of organizational psychology and health at Alliance Manchester Business School, said many institutions were wary of Musk’s power over the platform, as well as his “very substantial views.”
Asked why more police forces had not quit, Cooper told Reuters: “Institutions, just like individuals, get addicted. They invested in it over a period of time.”
North Wales Police is the only force to officially quit X completely.
“As X was no longer an effective communication medium, this change hasn’t affected our abilities to reach our communities,” it said. (Reporting by Andy Bruce Editing by Christina Fincher)
Saudi Media Forum opens registration for annual media awards
- Process open to media professionals, organizations until Dec. 10
RIYADH: The Saudi Media Forum has launched the registration process for its prestigious annual media awards, an event which aims to inspire creativity and recognize excellence across the media sector.
The awards are held in conjunction with the forum’s activities and the Future of Media Exhibition, which is to be held in Riyadh from Feb. 19-21 next year.
Mohammed Fahad Al-Harthi, the president of the Saudi Media Forum, stressed the awards’ growing importance in highlighting the role of the media in shaping societal values and fostering innovation, and added the event sought to recognize exceptional efforts in the fields of media and communication.
Last year’s edition saw more than 3,000 submissions locally and regionally, and the SMF said it expected participation to double this year amid growing interest in the sector.
The awards span a wide range of categories, including journalism, television programs, podcasts, academic research, and public relations campaigns. Individual achievements will also be recognized through accolades such as Media Personality of the Year, Best Digital Content, and the Columnist Award.
Al-Harthi also highlighted the introduction of the Tolerance Award, an international track focused on coexistence and dialogue and developed in partnership with the King Abdullah bin Abdulaziz International Centre for Interreligious and Intercultural Dialogue.
Registration is open to media professionals and organizations until Dec. 10, with submissions being accepted through the forum’s official platform.
Detailed criteria and submission guidelines can be accessed on the forum’s website at saudimf.sa/ar/awards.
Media watchdogs condemn ‘concerning’ Haaretz boycott by Israeli government
- Committee to Protect Journalists says tactic is ‘disturbing evidence’ of efforts to prevent coverage of Gaza war
- Haaretz publisher Amos Schocken critical of Israeli policies, prompting government call for restrictions on left-leaning paper
LONDON: Media watchdogs have strongly criticized the Israeli government’s decision to boycott Haaretz, one of the country’s oldest and most critical newspapers, calling it a troubling blow to media freedom and pluralism.
“We are extremely concerned over Israel’s authoritarian drift that undermines media pluralism and the public’s right to know,” said IFJ General Secretary Anthony Bellanger, who called on “the government to review its decision and stop damaging press freedom in the country by boycotting a newspaper.”
Jodie Ginsberg, CEO of the Committee to Protect Journalists, labeled the boycott “deplorable” and accused Israel of intensifying its restrictions on critical media. “Israel’s increasing deployment of restrictions on critical media is further disturbing evidence of its efforts to prevent coverage of its actions in Gaza,” she said.
The Israeli government unanimously approved a proposal on Nov. 24 by Communications Minister Shlomo Karhi to halt all government advertising in and communication with Haaretz.
The decision effectively boycotts the left-leaning outlet, citing comments by publisher Amos Schocken, who had earlier called for sanctions against Israel and referred to Palestinian resistance groups as “freedom fighters.”
Schocken, who has led the paper for over three decades, later clarified that he did not include groups like Hamas in his reference to freedom fighters, emphasizing his support for nonviolent resistance.
Despite this, Haaretz faced significant backlash, publishing an editorial distancing itself from his remarks.
Karhi defended the government’s move, saying Israel “cannot fund a newspaper whose publisher calls for sanctions against the state and supports its enemies during wartime.”
He has previously accused Haaretz of propagating “anti-Israel propaganda” and called for financial penalties against the paper.
The boycott comes amid wider concerns over media freedom in Israel.
Critics point to the introduction of laws like the so-called “Al Jazeera law,” which allows temporary bans on foreign media deemed a national security risk, and ongoing attempts to privatize the public broadcaster Kan.
“Communications Minister Shlomo Karhi, who follows the hardline stances of the Likud party, is leveraging the ongoing war — the longest in the country’s history — to silence voices that criticise the far-right coalition in power,” said Paris-based media watchdog Reporter Without Borders.
The Paris-based watchdog added that such measures will have “lasting, detrimental effects on Israel’s media landscape.”
In response, Haaretz described the government’s actions as an attempt to “silence a critical, independent newspaper,” vowing to continue its reporting despite the restrictions.
