Meta’s Irish arm had a turnover of over €1 billion a week in 2021

The pre-tax profit of the Irish arm of the social media giant, which operates Facebook, rose 33 percent last year to 1.184 billion euros on record earnings.

New accounts show that Meta Platforms Ireland Ltd – formerly Facebook Ireland Ltd – enjoyed the profit jump as revenue jumped to €52.3 billion last year from €40.6 billion in 2020.

However, the company’s after-tax profit of €484.83 million was 22 percent lower than in 2020 after a corporate income tax bill of €699.3 million

A large chunk of the corporate tax bill came from Facebook paying €212.3 million to settle tax matters that year.

A note reads: “After the reporting period, the Company agreed to the resolution of certain tax matters with the tax authorities relating to prior tax years.”

“As a result, a tax liability and corresponding income tax expense of €212.3 million was recognized in respect of those years and other prior tax years. “

The company paid out €34.5 million under a similar headline last year.

The €212.3 million paid out this year to settle tax matters comes on top of the €485.89 million corporate tax bill for ordinary activities for 2021.

The financial statements also reveal that the company set aside an additional €1.96 billion to cover compliance matters last year, bringing the total to €3 billion under the heading “Regulatory Compliance Provisions”.

An attached notice states that the provisions “refer to amounts established for administrative penalties resulting from various ongoing investigations into legal compliance or decisions by the relevant data protection supervisory authorities”.

The notice also states that “the amount of the final fines is uncertain and may differ from the amount provided due to a number of uncertainties. If an administrative decision has been made, the final fine may be affected by a possible appeal.”

The note also said that the provisions recognized “represent the best estimate of the expenditure required to meet those obligations and are within a range of reasonably possible outcomes.”

The notice notes that the best estimate is “based on advice from outside counsel, regulatory correspondence received to date, relevant extenuating factors, comparisons to similar matters and other factors.”

After the end of last December, the accounts also show that the company declared and paid $3.4 billion in dividends to its parent company, Facebook International Operations Limited.

Regarding the increase in revenue, Directors state that the increase was due to growth in advertising revenue from third party clients.

The accounts were signed before Meta, led by CEO Mark Zuckerberg, announced global job cuts, with the company telling the government here earlier this month that about 350 jobs would be lost at its Irish operation.

Directors say the company continued to grow in 2021, with the average headcount increasing 9 percent, or 193, from 2,247 to 2,440 in 2021.

The company’s personnel costs rose last year by 12.5% ​​from €377.79 million to €425 million. Personnel costs include salary costs of €276.45 million and share-based payments of €80 million.

The directors shared the remuneration of €1.8 million and an additional €3.6 million in long-term incentive payments.

Net income includes non-cash depreciation of €66.2 million and research and development costs of €131.74 million.

At the end of last year, the company had shareholder assets of €3.46 billion, including accumulated profits of €2.09 billion. The company’s cash and cash equivalents rose from €3.4 billion to €6 billion. Meta’s Irish arm had a turnover of over €1 billion a week in 2021

Fry Electronics Team

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