Revenues at Irish arm of Meta increase to €58 billion

Revenues at the Dublin-based international headquarters for the operator of Facebook and Instagram last year increased by €5.7 billion from €52.32 billion to €58.05 billion – or average weekly revenues of €1.1 billion.

New accounts filed by social media giant, Meta Platforms Ireland Ltd with the Companies Office show that after the 11pc increase in revenues, the company’s pre-tax profits increased by 47% rising from €1.18bn to €1.75bn.

Pre-tax profits were hit at the company after Meta Platforms Ireland Ltd set aside an additional €1.43bn for potential regulatory fines.

The revenues recorded by the Dublin based unit account for 54.5% of Meta’s global revenues of $116.6bn (€106.5bn) for 2022.

The directors for the Irish arm state that the company “has continued to grow during the year. Substantially all revenue is generated from advertising.

The firm recorded a post tax profit of €1.21bn after incurring a corporation tax charge of €535.93m.

The accounts disclose that during the year, the company paid a dividend of €3.7bn to its parent company, Facebook International Operations Ltd.

Last year, Meta axed around 350 roles at its Irish base and the directors state that the company recorded severance expenses for impacted employees of €22.5m.

In May of this year, Meta announced another round of jobs losses where up to 490 jobs were expected to be cut here.

Last year, average headcount at the business increased by 9% with employee numbers rising from 2,440 to 2,662.

Staff costs increased by €93.4m or 22% from €425m to €518.48m.

Combined salary costs of €335.14m and share based payments of €88.3m, amounting to €423.44m in total, show average pay for Meta workers at €159,070 for 2022.

A breakdown of the roles show 924 in community operations, 710 in administration, 607 in sales and 421 in engineering.

Directors received pay of €1.9m along with €4m under long term incentive schemes. A note states that other director payments in connection with retirement from office amounted to €100,000.

Last year, Meta scaled back its plans for its new European HQ in Dublin 4 and the accounts disclose that the company’s profits sustained a €221.3m impairment charge for tangible assets “as a result of implementing a facilities consolidation strategy impacting leased office buildings”.

Last month, Meta Ireland – led by Cork native, Anne O’Leary after her formal appointment in June of this year – officially opened its new international HQ at Ballsbridge.

The accounts also disclose that profits were hit by the company setting aside an additional €1.43bn concerning regulatory compliance provisions during 2022 in addition to the €2.99bn already set aside resulting in €4.42bn being set aside at the end of last December.

A note explains that the regulatory compliance provisions relate to amounts identified for administrative fines arising from various ongoing regulatory compliance investigations or decisions by relevant data protection supervisory authorities.

The directors said the increase in regulatory provision contributed to administrative expenses rising from €48.5bn to €53.8bn last year.

The directors state that the increase is also attributable to continued growth in business operations, which has driven an increase in intercompany related expenses and to an impairment charge.

The company’s Research and Development (R&D) costs last year increased from €131.74m to €196m. The profit also takes account of non-cash depreciation costs of €65.16m

The company’s operating profits last year increased by 4% from €1.252bn to €1.305bn and ‘other income’ concerning a €424m ‘gain of derivate’ was the chief factor behind the €566m jump in pre-tax profits.

The dividend payout offset by the post tax profits last year resulted in accumulated profits reducing from €2.09bn to €267m.

The company’s cash funds declined from €6.08bn to €2.3bn.

Reporting by Gordon Deegan

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