The Indian division of Facebook’s parent company Meta on Saturday (November 2) released FY2024 results. Meta India’s net profit in FY24 increased 43% year-on-year another to reach Rs 504.93 crore.
Meta India has enjoyed strong growth in online advertising due to increasing digital adoption in the country. The company’s revenue grew 9.3% year-on-year to Rs 3,034.8 crore in FY24 from Rs 2,775.7 crore in of fiscal year 2023. The company provided this information in the latest filing.
Gross advertising revenue will increase 24% in fiscal 2024
The company’s gross advertising revenue grew 24% to Rs 22,730.7 crore in FY 2024. In FY 2023, it stood at Rs 18,308 crore. However, FY2023 revenues included gross advertising reseller revenues of Rs 6,120 crore till July 2022.
Meta’s Indian unit generates advertising revenue by displaying advertising products on Facebook, Instagram, Messenger and third-party websites and mobile applications. It generates revenue from ads based on impressions when the ads are shown to users.
In August 2022, Meta India transitioned from an advertising inventory reseller to a licensing model with Meta USA. Through this, the company was granted a non-exclusive license to commercialize intellectual property (IP) related to the ad sales business in India.
Meta India’s net advertising revenue increased by 48%
Under the new agreement, Meta India pays royalties to Meta USA for commercializing its intellectual property. It also pays infrastructure fees for infrastructure maintenance. Under this model, Meta India’s net advertising revenue is expected to grow 48.9% to Rs 1,817.5 crore in FY 2024, up from Rs 1,220.5 crore in FY2024. fiscal year 2023.
Royalty payment increased by 95.1% to Rs 17,887 crore in FY 2024. It stood at Rs 9,167.1 crore in FY 2023. While in FY24, the company’s infrastructure costs increased by 89% on a year-on-year basis to Rs 2,922.2 crore. In FY2023, it stood at Rs 1,543.5 crore.