Facebook Australia’s operations generated $1.74 billion in gross advertising revenue from select local advertisers last year, marking a 19% increase from $1.46 billion in 2024. However, the subsidiary transferred $1.51 billion to other Meta-owned entities worldwide for access to ad inventory on platforms like Facebook, Instagram, and WhatsApp.
Financial Highlights
Financial statements filed with the corporate regulator indicate net revenue of $223.9 million after the offshore payments. The company recorded employee expenses of $81 million and paid $47.9 million in income tax, resulting in a net profit of $61.2 million—a 26% rise from $48.6 million the prior year.
Facebook Australia issued its first dividend in at least two years, distributing $120 million to its U.S.-based parent company in Delaware. This payout exceeded the annual profit, drawing from accumulated retained earnings. Staff numbers grew slightly to 128 employees from 125 in 2024, though the local workforce has declined nearly 20% since 2022 amid revenue growth of hundreds of millions.
The subsidiary acts as a reseller, meaning Australian businesses purchase ad space through it, which then procures inventory from global Meta companies. Actual earnings from Australia likely exceed these figures, as many advertisers buy directly from offshore Meta entities.
News Media Bargaining Incentive Looms
Australian officials prepare to introduce draft legislation for the News Media Bargaining Incentive, targeting tech giants with over $250 million in annual revenue. Platforms must pay publishers about 1.5% of revenue or face a 2.25% charge. This addresses a prior loophole that allowed firms like Meta to avoid payments by removing news content.
Meta ended its Australian news deals in March 2024, citing minimal value in such content. The new measure applies charges regardless of news presence on platforms.
AI Push and Workforce Changes
Meta plans to cut 10% of its global staff starting May 20 to fund expanding AI initiatives. Locally, headcount stabilized despite overall reductions.
Chief Technology Officer Andrew Bosworth outlined the “Agent Transformation Accelerator,” aiming for AI agents to handle most tasks while employees oversee improvements. A related “Model Capability Initiative” tracks employee interactions—like menu selections and screen content—to enhance AI training in human-like behaviors.
Meta spokesperson Andy Stone clarified that this data will not influence performance reviews.
Analyst Insights and Earnings Outlook
Josh Gilbert, eToro’s lead analyst for the Asia-Pacific region, highlighted the ad business’s role in supporting AI investments. “Meta’s story is the simplest of the five, with its dominant ad business funding its AI future,” Gilbert stated. “Zuckerberg has earned more rope than most on AI spending because the ad business keeps delivering, but the market will want to see AI monetisation compounding, not stalling.”
Meta reports first-quarter U.S. earnings this week, alongside Alphabet, Amazon, Microsoft, and Apple—firms representing nearly a quarter of the S&P 500’s weighting.
