Facebook Revenue Doubled to $1.6B with a Net Income of $500M in First Half of 2011

According to a source that is claiming to possess knowledge on Facebook’s financial, whose name Reuters did not reveal, stated that Facebook has impressively doubled its revenue to $1.6 billion in the first half of 2011, with a net income of almost $500 million.

In 2008, sources indicated that Facebook  had nearly made $280 million to $300 million in revenue, and in 2009 it likely reached between $600 and $700 million. According to the documents provided by Goldman Sachs, Facebook earned $335 million in net income in the first nine months on revenue of $1.2 million in the year 2010.

However, the revenue growth chart as per Wikipedia is slightly higher than what was predicted –

Facebook revenue Growth as per Wikipedia

Facebook’s most important and primary revenue channel is advertising. Microsoft    is Facebook’s exclusive partner for banner advertising. Thus, it serves only those ads that exist in Microsoft’s advertisement inventory. However, the revenue boost could be due to the massive daily deals done by sites like  Groupon  and  LivingSocial.

Facebook also generates a huge amount of revenue from its Facebook Credits program. Facebook Credits  are a virtual currency with which you can buy virtual goods in all games on the Facebook platform. You can purchase Facebook Credits  using your credit card, PayPal, a mobile phone or other alternate payment method. We expect that Facebook nearly generates around $300 million to $500 million in revenue from their Credits  platform.

With more than 750 million users and counting, Facebook has become one of the most visited websites, and is the first ever website to cross 1 trillion page views per month. There’s no doubt that it has pressurized web companies like Yahoo, which is currently going through a rough time, and had to oust its CEO Carol Bartz on Tuesday.

On the other hand, Google’s social networking site Google+ (Facebook’s competitor), is growing rapidly, attracting over more than 20 million users in the first few weeks after its launch. To make the competition tougher with Facebook, Google+ started to offer games such as Zynga Poker and Angry Birds.

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