Facebook shares surge after profit more than doubles

Facebook shares surged more than 12% in after-hours trading after the social media company more than doubled its profits in its fourth quarter.

Faster than expected advertising growth, particularly in mobile, was behind the performance, which pushed net income to $1.56 billion (£1.09 billion) in the three months to December 31, versus £701 million a year earlier.

Revenue was up by 52% at $5.84 billion.

The figures show Facebook has been able to withstand the recent economic turmoil and the strengthening US dollar, both of which have hit other tech firms like Apple and eBay.

Facebook said mobile ads accounted for 80% of its advertising revenue in the fourth quarter, compared with about 78% in the third quarter and 69% a year earlier.

"It's much stronger ad growth than we were expecting," said Ken Sena, an analyst at Evercore ISI.

Its mobile strength helped offset concerns about Facebook's big bets on other services like Whatsapp and virtual reality, divisions that are yet to turn a profit.

Slower growth in operating expenses also pleased shareholders.

The company's shares were $11.45 higher at $105.90 at the end of extended-hours trading.

Additional reporting by Reuters