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
Algerian TV channel suspended for racism against African migrants
- Since the start of April, Algeria has expelled some 5,000 Africans to neighbouring Niger, according to state television. About half were from Niger
ALGIERS: Algerian authorities on Friday suspended broadcasts by a television news channel for 10 days after it used a racist word on social media to describe African migrants.
Echorouk News TV used the derogatory word in a Facebook post after police raids in which migrants from sub-Saharan Africa were detained.
The ANIRA broadcasting authority called the publication "extremely serious".
The report contained "a racist and discriminatory term, an attack on human dignity, conveying hate speech against a category of people because of their race," said ANIRA which demanded that the channel's management make an official apology.
Tens of thousands of undocumented African migrants have used Algeria as a staging post to attempt to get to Europe. Many have sought jobs in the North African country.
Since the start of April, Algeria has expelled some 5,000 Africans to neighbouring Niger, according to state television. About half were from Niger.
Eurovision lifts ban on Palestinian flags as scrutiny of Israel’s participation grows
- Fans will now be allowed to bring and display any flag that does not contain racist content, hate symbols
- Iceland, Spain and Slovenia have all raised concerns about Israel’s participation at this year’s contest
LONDON: Organizers of the Eurovision Song Contest have lifted a ban on Palestinian flags for audience members, but maintained restrictions for participating artists, as pressure over Israel’s inclusion in this year’s event increased.
The change, confirmed by Danish broadcaster DR, marks a shift from the European Broadcasting Union’s longstanding rule prohibiting flags from non-competing countries and territories. That policy led to Palestinian flags being banned in previous years.
According to updated guidelines obtained by DR, fans will now be allowed to bring and display any flag that does not contain “racist and/or discriminatory content,” or symbols thought to incite hatred, violence, or linked to banned organizations.
In a statement to CNN, the EBU said the update seeks to “strike a balance to ensure that our audiences and artists can express their enthusiasm and identities,” while offering greater clarity for national delegations.
However, the relaxed policy applies only to the audience. Participating artists will still be restricted to displaying official national flags in all official Eurovision spaces, including the stage, green room, and Eurovision Village. Artists may show only the flag of the country they represent.
The revised policy comes amid growing criticism of Israel’s participation in this year’s contest to be held in Basel, Switzerland, with semifinals on May 13 and 15 and the final on May 17.
Officials in countries including Slovenia, Spain and Iceland have questioned Israel’s inclusion.
Icelandic Foreign Minister Porgerour Katrin Gunnarsdottir told a local outlet she found it “strange and actually unnatural that Israel is allowed to participate,” accusing the country of committing “war crimes” and “ethnic cleansing” in Gaza.
Despite these objections, the EBU has confirmed that Israel’s entry meets the competition’s rules. As with last year, large-scale protests are expected in Basel against Israel’s participation.
Despite pressure from pro-Israel organizations, Swiss authorities said demonstrations are permitted in principle, including those opposing Israel’s presence, provided they comply with public safety regulations.
Spotify, EA Sports test in-game music integration in Saudi Arabia
- Players in Kingdom can now link their account directly with video game
LONDON: Spotify and EA Sports have launched a pilot project that allows players to link their Spotify accounts directly with the EA Sports FC 25 video game.
The feature is being rolled out in Saudi Arabia and selected other markets.
The project, which was announced on Thursday, enables Spotify Premium users to log in via a new tab in the main game menu and control music playback during gameplay, including during team selection or from the pause menu.
The Swedish music platform said the partnership aimed at offering players more control over their in-game audio.
It said: “Long seen as the perfect companion to gaming, music boosts focus, amplifies adrenaline, and heightens the emotional highs of every match.
“Through this collaboration, players can now curate their perfect in-game soundtrack, listening to the artists they love.”
Podcast access and curated playlists will also be available.
The feature is currently accessible to Premium users playing EA Sports FC 25 on PlayStation 5 and Xbox Series X|S in Saudi Arabia and Australia.
The Kingdom has become a growing market for gaming and electronic sports, driven by a young and tech-savvy population.
Gaming now plays a prominent role in the Kingdom’s Vision 2030 diversification strategy, with plans for the sector to contribute more than $13 billion to the economy and create tens of thousands of jobs, according to Savvy Games Group.
Riyadh hosted the inaugural Esports World Cup last summer, a large-scale tournament featuring 23 events across major titles including Fortnite, Call of Duty, and EA Sports FC, with a record-setting prize pool of $62.5 million.
Jeddah communication conference explores anime’s digital evolution
- The session focused on anime’s shift from traditional television broadcasts and DVDs to digital platforms, including live streaming, instant subtitling and cloud-based production
RIYADH: The eighth session of the Digital Communication Conference, titled “Anime in the Digital Space,” explored the transformation of Japanese anime over the past two decades, highlighting the impact of digital innovation and the internet.
According to Saudi Press Agency, the session focused on anime’s shift from traditional television broadcasts and DVDs to digital platforms, including live streaming, instant subtitling and cloud-based production.
Streaming giants such as Netflix, Crunchyroll, and Funimation were highlighted as pivotal players in the transition, offering translated or dubbed episodes immediately upon release and funding original series such as “Devilman Crybaby” and “Cyberpunk: Edgerunners.”
Speakers in the session, including Manga Productions CEO Essam Bukhary, said that social media and online forums have opened the door to unprecedented engagement among fans, as well as community and cultural interaction, since audiences now take part in evaluating episodes.
Concerns were raised that heavy dependence on technology could erode the handcrafted aesthetic that defines traditional anime.
Saudi Arabia’s burgeoning interest in manga and anime, which dates back to the 1970s, is helping to usher in a revolution in cultural production.
Japanese art forms have captivated audiences of all ages, gaining significant popularity in recent years. Their ability to combine entertainment, culture and education has made them of great interest to Saudi society.
To support this interest, the General Entertainment Authority has hosted events like the Saudi Anime Expo, drawing international visitors.
In line with these efforts, the ministries of culture and education launched the Manga Education program to nurture student talent, as well as integrate arts and culture into public education.
Israel arrests veteran Palestinian journalist in West Bank
- Ali Al-Samoudi’s family denies claims of links to Islamic Jihad
- Palestinian Journalists Syndicate condemns reporter’s arrest
DUBAI: Israeli forces arrested prominent Palestinian journalist Ali Al-Samoudi during an overnight raid on Tuesday in the northern West Bank city of Jenin, according to media reports.
Al-Quds newspaper correspondent Al-Samoudi, 58, was detained after the Israeli military raided and searched up his home in Al-Zahraa neighborhood, destroying “some of its contents”.
According to the military, he is accused of having ties with the militant Palestinian Islamic Jihad organization and transferring funds to the group. However, the military did not provide evidence to support the claim.
After he was interrogated at a disclosed location, Al-Samoudi was transferred to an Israeli hospital due to his health deteriorating, his son Mohammed told the BBC.
His family, who denies the accusations, was not informed of the name of the hospital where he was being treated, or any other details.
Al-Samoudi previously survived an attack by Israeli forces in 2022, the same assault that killed prominent Palestinian-American journalist Shireen Abu Aqleh, who was a correspondent for Al-Jazeera.
Al-Samoudi was shot and wounded in his back.
The Palestinian Journalists Syndicate condemned Al-Samoudi’s arrest in a statement on Tuesday.
As of April 30, 2025, the Committee to Protect Journalists has documented 79 arrests of journalists by Israel in the Palestinian territories of the West Bank and Gaza since Oct. 7 war began, in addition to five other arrests by the Palestinian authorities.
Forty-nine of these journalists, including the five held by Palestinian authorities, have since been released, while 35 remain under arrest.
The CPJ’s preliminary investigations also showed at least 176 journalists and media staff were killed during Israel’s war on Gaza, West Bank and Lebanon, marking the deadliest period for journalists in the region.
