Browse content similar to 31/01/2013. Check below for episodes and series from the same categories and more!
Line | From | To | |
---|---|---|---|
with Sally Bundock and World Trying to win back friends on Wall | :00:18. | :00:21. | |
Street. But Facebook shares fall despite a 40% jump in revenue Plus | :00:21. | :00:25. | |
- high spirits. Why posh drinks are proving | :00:25. | :00:35. | |
:00:35. | :00:43. | ||
recession proof for distilling Welcome to World Business Report. | :00:43. | :00:45. | |
Since the world's biggest social network floated last year it has | :00:45. | :00:48. | |
been battling to justify its $100 billion valuation, and its shares | :00:48. | :00:54. | |
have lost well over a third of their value. It has more than a | :00:54. | :00:57. | |
billion users worldwide, but can it really turn that popularity into | :00:57. | :01:01. | |
profit? Well, last night its second earnings update since going public | :01:01. | :01:05. | |
began to answer some of those questions. Revenues from | :01:05. | :01:08. | |
advertising jumped by around 40% from a year ago, to almost $1.6 | :01:08. | :01:14. | |
billion. More importantly, much more of that revenue came from | :01:14. | :01:17. | |
mobile users, a key concern of investors, as that is the direction | :01:17. | :01:23. | |
the internet is going. But profits plunged some 80% to just $64 | :01:23. | :01:28. | |
million. Facebook is having to invest heavily to get that | :01:28. | :01:32. | |
advertising revenue, and that has Wall Street worried. Shares were | :01:32. | :01:35. | |
down as much as 11% in after hours trade before settling down about 3 | :01:35. | :01:45. | |
:01:45. | :01:46. | ||
per cent. Here's Michelle Fleury If you were to catch up and your | :01:46. | :01:52. | |
friends latest update, forget your PC. Why reverse I getting Updates | :01:52. | :01:57. | |
on the go on devices like this. The company has been referred to as a | :01:57. | :02:03. | |
mobile company. For the first time in the company's is to be, mobile | :02:03. | :02:08. | |
uses top to face that Mac desktop users. Revenue for the war's | :02:08. | :02:15. | |
largest social media company grew 40%. It is thanks to a strong | :02:15. | :02:20. | |
performance in mobile advertising. Along with a revenue, costs are | :02:20. | :02:30. | |
:02:30. | :02:31. | ||
also rising. We make a decision to continue in 2013. This will cause | :02:31. | :02:40. | |
expenses to grow at a faster rate than we expected. One press in | :02:40. | :02:45. | |
development is something called a graph search. It allows you to | :02:45. | :02:49. | |
search your own network. It was the biggest launch yet as a public | :02:49. | :02:54. | |
company. Investors are unconvinced. Shares remain below the price of | :02:54. | :03:01. | |
the stock market debut. This man believes the concerns are overblown. | :03:01. | :03:06. | |
They are proving their majority. They are steadily growing. They | :03:06. | :03:10. | |
have been answering key questions over whether they wouldn't ever | :03:10. | :03:19. | |
make any money. It is substantial progress. What a boost octet, the | :03:19. | :03:23. | |
reality is that the company is moving forward nicely. -- was ever | :03:23. | :03:29. | |
the stock did. The company is under pressure to make money. The | :03:29. | :03:38. | |
challenge is to make sure that we do not untrained it in the process. | :03:38. | :03:48. | |
:03:48. | :03:52. | ||
We now have more analysis from a technology analyst. I think the PC | :03:52. | :03:56. | |
just ran was right. This is a company that despite what Wall | :03:56. | :04:02. | |
Street may be doing is on the move. They are expanding. I was at the | :04:02. | :04:06. | |
campus last week. I could not many see lots of employees about, but | :04:06. | :04:14. | |
news that a new campus was being built across the street. This is a | :04:14. | :04:18. | |
company that does have a lot of expenses. They are investing long- | :04:18. | :04:26. | |
term. Mark as a Bird sees it as a marathon, not a sprint. He hopes to | :04:26. | :04:33. | |
be able to see significant profits on the way forward. Employees and | :04:33. | :04:38. | |
stockholders will agree. reaction was very short-term in | :04:38. | :04:45. | |
your view? It is not looking at the long picture? I think it was short- | :04:45. | :04:51. | |
term. Facebook has initial expenses. Long-term it has a good outlook. I | :04:51. | :04:57. | |
cannot predict the future. The big question for me is not expenses, | :04:57. | :05:00. | |
but whether what they are selling well be in demand and if people | :05:00. | :05:08. | |
will turn away. They have to keep innovating. They have a lot of work | :05:08. | :05:14. | |
to do. That will cost money. Short- term they may continue to have | :05:14. | :05:18. | |
returns not as profitable as expected. They have to tread | :05:18. | :05:24. | |
carefully. I'm seeing people say that they will leave Facebook | :05:24. | :05:27. | |
because they're worried about what is being done with pictures and | :05:27. | :05:36. | |
information. They have to get that right, don't they? That is right. I | :05:36. | :05:43. | |
work free company which does work with Facebook. We have written | :05:43. | :05:47. | |
about Facebook privacy. It is important. They understand it if | :05:47. | :05:55. | |
information they will turn people away. You say they understand that. | :05:55. | :06:00. | |
They are owned inns to ground. They did it very wrong. They made a | :06:00. | :06:10. | |
:06:10. | :06:13. | ||
mistake. -- Instagram. The company fewer mistakes recen | :06:14. | :06:19. | |
used to. Their chief operating officer has officer hass is | :06:19. | :06:29. | |
:06:29. | :06:40. | ||
an energetic company. Thank you. Global drinks giant Diageo brings | :06:40. | :06:46. | |
out its half-year profits in a few hours' time. Diageo's sales and | :06:46. | :06:49. | |
profits have held up well throughout the past few years of | :06:49. | :06:52. | |
recession and slow economic growth in the West. But a lot now depends | :06:52. | :06:56. | |
on what stake it can gain in the emerging markets of Asia. Jeremy | :06:56. | :07:06. | |
Howell reports. Won an Indian tycoon wanted to sell off a quarter | :07:06. | :07:12. | |
of his company, they leapt on the chance. They have a 40% share of | :07:12. | :07:16. | |
the Indian spirits market. They are now bidding to take a majority | :07:16. | :07:21. | |
stake. Imported spirits are expensive in India. The government | :07:21. | :07:25. | |
puts tariffs of up to three-headed % on them. If these are reduced, | :07:25. | :07:30. | |
the market could boom. A spirits market is important for them. They | :07:30. | :07:37. | |
will have 15% of their operating profit coming from Asia. There is | :07:37. | :07:44. | |
critical. United's spirits would give access to the growing Scotch | :07:44. | :07:50. | |
market. Without the import duties the market in India could be the | :07:50. | :07:55. | |
largest. Drinking spirits is an expensive habit. He would have | :07:55. | :07:58. | |
thought that during recent lean times, the market would have dried | :07:58. | :08:05. | |
out. But this company has been doing quite well. In the US they | :08:05. | :08:10. | |
are increasing sales by an average of 5% a year. Profits are | :08:10. | :08:15. | |
increasing by 7% a year. These are good times to be a spirits producer. | :08:15. | :08:20. | |
They are rapidly becoming the thing to drink. So spirits have been | :08:20. | :08:26. | |
increasing. They are taking market share. There is partly due to young | :08:26. | :08:30. | |
women. Beer drinking more alcohol than prior generations. They are | :08:30. | :08:36. | |
more likely to drink a spirit then a beer. The resource away changing | :08:36. | :08:45. | |
tastes in young men. Eastern markets like China, where the | :08:45. | :08:49. | |
company is seen rapid growth, it could take decades to build up | :08:49. | :08:54. | |
strength in the market. They must make the most of changing tastes in | :08:54. | :09:00. | |
Mantua, Western markets. Particularly in the United States. | :09:00. | :09:03. | |
In other news: Blackberry's long awaited new smartphones have failed | :09:03. | :09:06. | |
to please investors. Shares fell some 12% yesterday after the | :09:06. | :09:09. | |
company launched two handsets powered by the new Blackberry 10 | :09:09. | :09:14. | |
operating system. There's a lot riding on them - analysts warn they | :09:14. | :09:24. | |
:09:24. | :09:25. | ||
could be the company's last chance to catch up with Apple and Samsung. | :09:25. | :09:28. | |
Most people expected the US economy to slow over the last three months. | :09:28. | :09:32. | |
No one thought it would actually shrink, but it did. By 0.1%. The | :09:32. | :09:35. | |
first contraction since 2009. The fall in output was blamed, in part, | :09:35. | :09:45. | |
:09:45. | :09:45. |