
Facebook Net Income dropped 49% on the first semester of 2019 - edpichler
https://investor.fb.com/investor-news/press-release-details/2019/Facebook-Reports-Second-Quarter-2019-Results/default.aspx
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vertoc
This seems solely because of the recent fines: "Includes an additional $2.0
billion legal expense related to the U.S. Federal Trade Commission (FTC)
settlement and a $1.1 billion income tax expense due to the developments in
Altera Corp. v. Commissioner, as discussed below. As the FTC expense is not
expected to be tax-deductible, it had no effect on our provision for income
taxes. Excluding these expenses, our operating margin would have been 12
percentage points higher, our effective tax rate would have been 30 percentage
points lower and our diluted EPS would have been $1.08 higher."

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tareqak
Why is the legal expense $ 2.0 B? Is that only including lawyer fees and not
the $ 5 B from
[https://news.ycombinator.com/item?id=20515235](https://news.ycombinator.com/item?id=20515235)
?

~~~
tomaha
They already expensed $3 B last quarter.

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opportune
"Includes an additional $2.0 billion legal expense related to the U.S. Federal
Trade Commission (FTC) settlement and a $1.1 billion income tax expense due to
the developments in Altera Corp. v. Commissioner, as discussed below. As the
FTC expense is not expected to be tax-deductible, it had no effect on our
provision for income taxes. Excluding these expenses, our operating margin
would have been 12 percentage points higher, our effective tax rate would have
been 30 percentage points lower and our diluted EPS would have been $1.08
higher."

This accounts for more than the difference YoY. In other words, without these,
net income would have actually grown

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bdcravens
This title is very editorializing, and ignores the fact that outside of legal
expenses as others have pointed out, net income is actually up. In other
words, on core business metrics, they are better year-over-year.

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cosmodisk
Increase in costs & expenses by $5 billion,while revenue from advertising is
up by $3.6 Billions... My only question is where did those $5 billion gone
to??

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tareqak
Maybe here:
[https://news.ycombinator.com/item?id=20515235](https://news.ycombinator.com/item?id=20515235)
?

~~~
cosmodisk
I haven't been FB user for years,so don't follow news related to them,looks
like the fine explains the numbers pretty well.

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folkrav
Mostly due to their 2bil legal fees for their settlement with the FTC and
Altera Corp. v. Commissioner. Actual revenue is up across the board.

