Revenues at Facebook's main Irish based unit last year surged by 34.5% to a record €34.32 billion - or an average of €94 million per day.
New accounts show that the €8.8 billion surge in revenues to €34.32 billion contributed to Facebook Ireland Ltd’s pre-tax profits increasing by 33% to €481.88 million for 2019.
The company’s corporate tax liability increased almost threefold to €173.22 million from €63.2 million.
The chief reason for the sharp increase in corporation tax is Facebook Ireland agreeing in October 2020 “to the resolution of certain tax matters with tax authorities relating to prior tax years”.
Taxes due
The note states that this resulted in additional taxes due of €53 million.
The note points out that the tax liability is recognised for the 2019 accounts along with a related interest liability and expense of €27 million.
As a result, Facebook Ireland’s post tax profits for last year totalled €306.65 million.
The accounts - signed off on December 2nd - also reveal that Facebook Ireland last year set aside €302.3 million concerning “amounts identified for administrative fines arising from various regulatory compliance matters principally under investigation by the relevant data protection supervisory authorities”. Facebook Ireland expects the regulatory matters to be resolved over the next two financial years.
The revenues generated by Facebook Ireland last year account for 59% of the social media giant’s global revenues of $70.6 billion in 2019.
Salaries
Numbers employed by Facebook Ireland last year increased by 46% - or 614 - to 1,944.
The company last year paid out €201 million in salaries which equates to an average salary of €103,443.
The salary total of €201m doesn’t include €58.49m in share based payments and €34m in other benefits to employees.
Facebook Ireland’s staff here are made up of sales and marketing - 740, community operations - 512, administration - 448 and engineering 244.
Directors’ pay increased from €706,000 to €1.3m as an additional three people joined the board in 2019.
Covid impact
The directors state that the revenue increase was due to growth in advertising revenues from third party customers.
The company last year paid a dividend of €15 million.
On the impact of Covid 19, the directors state that it has continued business operations with limited disruption and has remained engaged in performing its principal activities.
At the end of 2019, Facebook Ireland’s shareholder funds totalled €2.23 billion that included accumulated profits of €1 billion.
The company’s cash funds last year increased from €1.2 billion to €1.79 billion.
