Facebook parent Meta reported a 55 per cent fall in profits for the final quarter of 2022, impacted heavily by A$5.9 billion in severance and restructuring costs.

Net income for the December quarter dropped to A$6.52 billion, from A$14.43 billion a year earlier.

Meta was damaged by a collapse in the digital advertising market, as financial considerations saw company’s roll down their spend.

In the fourth quarter of 2022, ad impressions increased by 23 per cent year-over-year, however the average price per ad decreased by 22 per cent, year-over-year.

The full-year saw an 18 per cent leap in impressions, with the average price per ad decreasing by 16 per cent.

Despite this, Mark Zuckerberg has given a cheery forecast for the first quarter, with revenue expected to land between A$36.5 billion and $40 billion.

“Our community continues to grow and I’m pleased with the strong engagement across our apps. Facebook just reached the milestone of 2 billion daily actives,” said Zuckerberg.

“The progress we’re making on our AI discovery engine and Reels are major drivers of this. Beyond this, our management theme for 2023 is the ‘Year of Efficiency’ and we’re focused on becoming a stronger and more nimble organization.”