Key Points
- Net profit went up by 43% to Rs 505 crore in FY24.
- Gross ad revenue increased 24% to Rs 22,730.7 crore.
- Revenue from operations grew by 9.3% to Rs 3,034.8 crore.
- Changed from a reseller to an operating license model with Meta USA.
- Royalty payments jumped by 95.1% to Rs 17,887 crore.
- Income from IT-enabled business process outsourcing dropped to Rs 1,135.4 crore.
Looma News
Meta India’s financial results for the fiscal year ending March 2024 (FY24) showed impressive growth, with net profit rising by 43% to Rs 504.93 crore compared to the previous year. This growth came from a big boost in online advertising revenue as digital use spreads across the country.
The company’s revenue from operations reached Rs 3,034.8 crore in FY24, a 9.3% increase from Rs 2,775.7 crore in FY23. The gross advertising revenue saw a significant increase of 24%, rising to Rs 22,730.7 crore from Rs 18,308 crore in FY23. It’s worth noting that last year’s numbers included Rs 6,120 crore from advertising reseller revenue before Meta India ended its reseller deal with its parent company, Meta Platforms Inc.
In August 2022, Meta India shifted from reselling ad space to an operating license model with Meta USA. This change allows the Indian unit to use advertising-related intellectual property while making royalty payments to the parent company. As a result, Meta India’s net advertising revenue climbed 48.9% to Rs 1,817.5 crore in FY24 from Rs 1,220.5 crore in FY23, despite rising royalty and infrastructure costs.
Royalty payments soared by 95.1% to Rs 17,887 crore in FY24, up from Rs 9,167.1 crore in FY23. Infrastructure costs also increased sharply, rising by 89% to Rs 2,922.2 crore from Rs 1,543.5 crore the previous year.
Additionally, revenue from IT-enabled business process outsourcing dropped to Rs 1,135.4 crore, down from Rs 1,251.1 crore in FY23, which had included income from marketing support services. Design support services brought in Rs 81.9 crore in FY24 after a new service agreement with Meta USA in October 2023.
Total expenses for the company went up by 2% to Rs 2,349.6 crore, mainly due to a 7.8% increase in employee benefits expenses, reaching Rs 476.2 crore.
India is the biggest market for Meta’s apps, like Facebook, Instagram, and WhatsApp, with over a billion monthly users. This region is key for Meta’s AI projects and business messaging, both of which have seen strong growth. Sandhya Devanathan, head of Meta India, pointed out that ad spending as a part of India’s GDP is still low, hinting at a bright future for advertising revenue growth as digital use increases.
