The New Zealand chapter of global social media giant Facebook has doubled its revenue in 2012, although it still remains in the red on the back of increased employee benefits.
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According to Facebook's 2012 financial statement to the Companies Office, the social network raked in $787,830 selling its wares in the country, which mostly consists of online advertising and services around it. This is almost double the $427,967 earned in 2011.
Employee expenses increased by around $150,000 to $505,906. Facebook made a net loss of $59,313, which is $21,880 closer to black than last year where it netted a loss of $81,193.
Facebook is on the same boat as Google, which funnels its online advertising earnings through Ireland to take advantage of favourable tax rates.
In 2012, Facebook only paid $28,484 in taxes to the New Zealand government. According to the Interactive Advertising Bureau New Zealand's latest ad spend figures, New Zealand companies spent $1.72 million in social media advertising in the first quarter of this year alone. A large portion of this will likely be on Facebook advertising.
Idealog has contacted Facebook New Zealand for further comment.
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