Profits of Facebook Soar Amidst Cambridge Analytica Scandal

Photo by downloadsource.fr from Flickr

An increase in quarterly profits amounting to 63 percent was reported by Facebook.  The social media giant which is currently under pressure provided no evidence that the Cambridge Analytica scandal has affected its breakneck growth.

The social network of Mark Zuckerberg disclosed that the revenues during the first quarter of this year had increased to $12bn (£8.6bn), a rise of 49 percent on the same period in 2017.

The number of people who are using Facebook every month has is not at 2.2 billion, exceeding the expectations of analysts and suggesting that the #deletefacebook campaign that followed the privacy debacle of the company was a minor drop in the ocean. The profits of the company reached $5 billion, up from the $3.1bn during the previous year.

The social media titan has been hit with one of the biggest crises during its 14-year history after it was revealed last March that millions of Facebook users had their personal data obtained and compromised by Cambridge Analytica prior to 2015.

The private details of 87 million Facebook users such as religious beliefs, relationship statuses, and likes are said to have been collected.

As a response, Facebook has pledged to introduce tighter controls and a thorough audit of social media website. However, the shares of the company have still dropped by almost 15 percent since the said scandal was first revealed as it has faced increasing calls for regulation and resentment from various parts of its user base.

The results for the three months to the end of March 2018 cover only the first two weeks of the said controversy, so it may not reveal its full consequences. However, the results were greeted with an immediate increase in shares during after-hours trading.

Recently, Facebook has pledged to increase its spending on securing the data of its users and stopped making use of information that is obtained from data brokers to target advertisements, a move that most analysts expect will cost the company billions.

The chief executive of Facebook, Mark Zuckerberg, said: “Despite facing important challenges, our community and business are off to a strong start in 2018.

“We are taking a broader view of our responsibility and investing to make sure our services are used for good.”