Facebook mobile ad sales grow; profit falls

Nearly three-quarters of Facebook’s advertising revenue now comes from mobile ads, as many more users access the social network on smartphones and other hand-held gadgets.

Facebook has been coming out with its own standalone mobile apps to capture more of the time people spend on phones.

On Wednesday, the company introduced Hello, a voice-calling app designed for Android phones. In essence, it’s meant to replace the voice dialer on your phone.

Facebook finance chief David Wehner said that mobile “continues to be a key driver” of growth and that Facebook will continue to experiment with apps. For now, the money-making focus is on Facebook itself and, slowly, on popular apps such as Instagram.

In the previous quarter, mobile represented 69% of total ad revenue. That percentage has grown steadily since Facebook began showing mobile ads in 2012.

The company reported adjusted earnings of 42 cents per share in the January-March quarter, above the 41 cents per share that analysts polled by FactSet were expecting. Revenue increased 46% to $3.54 billion, from $2.5 billion a year earlier. Analysts had expected $3.56 billion.

Net income declined as Facebook’s expenses grew 83% from a year earlier. The company earned $512 million, or 18 cents a share, down 20% from $642 million, or 25 cents.

Facebook had 1.44 billion monthly active users as of March, up 13% from a year earlier.