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Facebook takes $3B charge for FTC investigation in 1Q

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Via AP Business

FILE – In this March 28, 2018, file photo, a visitor poses for a photo with the Facebook logo reflected on her sunglasses at the company’s headquarters in Menlo Park, Calif. Facebook reports earnings Wednesday, April 24, 2019. (AP Photo/Marcio Jose Sanchez, File)

SAN FRANCISCO (AP) — Facebook is taking a $3 billion charge as a contingency against a possible fine by the Federal Trade Commission. The agency has been investigating Facebook, but has not announced any findings yet.

The one-time charge slashes Facebook’s first-quarter net income considerably, although revenue grew by 25% in the period. The FTC has been looking into whether Facebook is in violation of a 2011 agreement promising to protect user privacy.

The social network said Wednesday that its net income was 85 cents per share in the January-March period. Revenue grew 26 % to $15.08 billion from a year earlier. Excluding the charge, it earned $1.89 per share.

Analysts polled by FactSet expected earnings of $1.62 per share and revenue of $14.98 billion.

Facebook’s monthly user base grew 8% to 2.38 billion.


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