Privacy fine set-aside dents Facebook's profit

Facebook has said that its profit took a hit from setting aside billions of dollars for an anticipated fine from US regulators, in a quarterly report that sent shares higher.

The leading social network logged a profit of USD 2.4 billion -- down 51 per cent from a year earlier -- on revenue that climbed 26 per cent to USD 15.1 billion in the first three months of this year.

The number of monthly active users of Facebook at the end of March was 2.38 billion, up eight percent from a year ago.

Facebook estimated that it will be hit with a fine of USD 3 billion to USD 5 billion by the US Federal Trade Commission for "user data practices," and factored that into its earnings report.

"The matter remains unresolved, and there can be no assurance as to the timing or the terms of any final outcome," the California-based company said in the release.

Facebook shares rallied more than 7 per cent in after-hours trade following the results. Profits would have topped Wall Street forecasts if not for the money put aside for the expected FTC fine.

"We had a good quarter and our business and community continue to grow," Facebook chief executive and co-founder Mark Zuckerberg said in a statement.

"We are focused on building out our privacy-focused vision for the future of social networking, and working collaboratively to address important issues around the internet."