Facebook revenue increases 55% in 2013

Facebook has announced a $2.78 billion (£1.69 billion) increase in revenue in 2013, aided by a surge in daily active users and improved mobile advertising sales.

The social network reported a year-on-year increase of 55 per cent to $7.87 billion (£4.77 billion) in 2013, beating previous expectations.

The final quarter was particularly strong for the California-based company, increasing revenue by 63 per cent and recording profits of $523 million (£316 million) in the final three months of the year.

"It was a great end to the year for Facebook," Mark Zuckerberg, Facebook founder and CEO, said in a statement. "We're looking forward to our next decade and to helping connect the rest of the world."

Over 90 per cent of Facebook's fourth quarter revenue came from advertising, with approximately 53 per cent coming from mobile advertising. "Payments and other fees" made up the rest of the revenue.

Following the news, shares in the social network rose by 10 per cent in after-hours trading.

Related: Mobile advertising helps boost Facebook revenue by 60%

The number of daily active users of the site in December rose by 22 per cent to 757 million, seeming to contradict reports that Facebook's core user base is leaving the social network.

According to a study published last month, teenagers "are turning away in their droves" from Facebook "and adopting other social networks instead".

A different study earlier this month made a similarly bleak prediction for Facebook, suggesting that 80 per cent of users would desert the network by 2017.