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Facebook planning to invest $1.6bn in 2013

The social network has made a capital investment of $595m in data centre and storage infrastructure.

By CBR Staff Writer

Facebook has announced further capital investments of $1.6bn this year as it seeks to bolster its infrastructure.

The social network has already made a capital investment of $595m during the first six months of the year, including spending on data centre and storage infrastructure.

It also spent around $221m on acquisitions and other assets such as patents.

In a filing to the US Securities and Exchange Commission, the company said: "We anticipate making capital expenditures in 2013 of approximately $1.6bn.

"Cash used in investing activities during the first six months of 2013 primarily resulted from $595m for capital expenditures related to the purchase of servers, networking equipment, storage infrastructure and the construction of data centres."

Facebook generated 61%, or $1.6bn, of its revenues from advertising in the second quarter of this year, strengthened by the exponential growth in the number of users in emerging markets, including India and Brazil.

As the company posted strong second quarter results, its plans for investing in increasing infrastructure would get a shot in the arm, according to market analysts.

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Facebook’s net income for the second quarter of 2013 rose to $333m, compared to a loss of $157m in the same period a year ago.

It generated revenue of $1.81bn during the same quarter, registering an increase of 53% from the corresponding quarter of 2012.

The firm saw its global daily active users totalling 699m on average last month, an increase of 27% from 552m during June 2012.

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