Facebook, WhatsApp, and Instagram generated $1.74 billion in gross advertising revenue from select Australian advertisers last year, marking a 19% increase from $1.46 billion in 2024. However, the local subsidiary transferred $1.51 billion of that amount to other Meta-owned entities worldwide for access to ad inventory on these platforms.
Financial Performance and Reseller Model
Financial filings with the corporate regulator indicate net revenue of $223.9 million after the offshore payments. Facebook Australia operates as a reseller: it sells ad space to Australian businesses and then compensates affiliated Meta companies for displaying those ads on its platforms.
Actual earnings from Australia likely exceed these figures, as many advertisers purchase directly from offshore Meta entities. After $81 million in employee expenses and $47.9 million in income tax, the subsidiary recorded a net profit of $61.2 million, a 26% rise from $48.6 million the prior year.
Dividend Payout and Workforce
The company issued its first dividend in at least two years, distributing $120 million to its US parent—exceeding the annual profit and drawing from accumulated retained earnings. Staff numbers stood at 128 employees, up slightly from 125 in 2024, though the local workforce has declined nearly 20% since 2022 amid substantial revenue growth.
The immediate parent company resides in Delaware, known for corporate privacy advantages.
News Media Bargaining Incentive Legislation
Australian officials prepare to introduce draft legislation for the News Media Bargaining Incentive this week. Platforms with over $250 million in annual revenue must pay publishers approximately 1.5% of revenue or face a 2.25% charge. This measure addresses past opt-outs, such as Meta’s decision to end news deals in March 2024, by imposing the charge regardless of content choices.
AI Investments and Earnings Outlook
These disclosures coincide with Meta’s first-quarter US earnings report, alongside major tech peers. Josh Gilbert, eToro’s lead analyst for the Asia-Pacific, highlights the advertising business as crucial for sustaining AI investments. “Meta’s story is the simplest of the five, with its dominant ad business funding its AI future,” Gilbert stated. “Zuckerberg has earned more rope than most on AI spending because the ad business keeps delivering, but the market will want to see AI monetisation compounding, not stalling.”
Meta’s chief technology officer, Andrew Bosworth, announced to staff an expanded internal data collection effort under the “Agent Transformation Accelerator” program. This initiative aims for AI agents to handle most tasks, with employees overseeing improvements.
A related Model Capability Initiative tracks employee interactions—such as dropdown menus, keyboard shortcuts, and screen content—to enhance AI replication of human actions. Meta spokesperson Andy Stone clarified that this data will not influence performance evaluations.
Meta plans to cut 10% of its global workforce starting May 20 to support rising AI expenditures.
