The India unit of Facebook's parent company Meta has released the results for the financial year 2024 on Saturday (November 2). Meta India's net profit in FY24 increased by 43% year-on-year to Rs 504.93 crore.
Meta India has benefited from strong growth in online advertising due to increasing digital adoption in the country. The company's revenue increased by 9.3% year-on-year to Rs 3,034.8 crore in FY24, which was Rs 2,775.7 crore in FY 2023. The company has given this information in the latest filing.
Gross advertising revenue to increase by 24% in FY2024
The company's gross advertising revenue increased by 24% to Rs 22,730.7 crore in financial year 2024. In the financial year 2023 it was Rs 18,308 crore. However, the fiscal year 2023 revenue included gross advertising reseller revenue of Rs 6,120 crore till July 2022.
Meta's India unit generates advertising revenue by displaying ad products on Facebook, Instagram, Messenger and third-party websites and mobile applications. It earns revenue from impression-based ads when ads are shown to users.
In August 2022, Meta India switched from a reseller of ad inventory to an operating license model with Meta USA. Due to which the company was granted a non-exclusive license to commercialize intellectual property (IP) related to ad sales activities in India.
Meta India's net advertising revenue increased by 48%
Under the new arrangement, Meta India pays royalty to Meta USA for the commercialization of its IP. It also pays infrastructure fees for the maintenance of the infrastructure. Under this model, Meta India's net advertising revenue is expected to grow by 48.9% to Rs 1,817.5 crore in FY 2024 from Rs 1,220.5 crore in FY 2023.
Royalty payment increased by 95.1% to Rs 17,887 crore in financial year 2024. It was Rs 9,167.1 crore in the financial year 2023. Whereas in FY24, the company's infrastructure cost increased by 89% on annual basis to Rs 2,922.2 crore. In the financial year 2023 it was Rs 1,543.5 crore.
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