Meta declares first-ever dividend after profit jump
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The news: Social media giant Meta Platforms has announced its first-ever dividend and a share buyback after beating expectations for fourth-quarter revenue.
The numbers: The Facebook and Instagram owner said revenue for the quarter ended December rose 25% to USD40.11 billion ($61 billion), ahead of analyst expectations, while profit tripled to USD14.02 billion. It declared a quarterly dividend of 50 US cents per share and also announced an additional USD50 billion share buyback.
The context: Meta shares surged more than 12% in after-market trading in New York on news of its maiden dividend, which comes ahead of flagship social network Facebook's 20th anniversary. Shares in the company, which also owns messaging app WhatsApp, have been steadily climbing back since a slide in 2022 that wiped out more than three-quarters of its value. The recovery has also been aided by a rebound in user growth and digital ad sales, as well as a cost cutting drive that has seen it shed more than 21,000 employees since 2022.
On Wednesday Meta CEO Mark Zuckerberg apologised to families who said their children had been harmed by social media during a hearing in the US Senate. Ahead of the online safety legislation hearing, Meta announced new safety measures that would block minors from receiving messages on Instagram and Messenger from strangers.
