(telegraph.uk)Shares in Facebook oscillated in Wednesday after-hours trading as mobile advertising continued to drive revenue growth, but it warned over a hit to profitability from growing investment in security.

Revenue for the three months ended Sep 30 was up 47pc on a year earlier to $10.3bn (£7.8bn), thanks to a 49pc increase in advertising revenue. Of this advertising revenue, around 88pc came from mobile adverts, up from 84pc a year earlier.

Earlier this year there had been concerns that Facebook was reaching its limit on how many adverts it could fit into News Feeds without irritating users, but the group has recently been looking into putting adverts into its Messenger application and photo-sharing app Instagram.

Facebook's advertising revenue stream has recently been the subject of a Congressional hearing, with its general counsel over recent days giving evidence on how Russian-backed actors used its platform to disrupt the Presidential election.

Founder and chief executive Mark Zuckerberg said that while the business was "doing well", its focus was on making sure its services weren't being used to drive communities apart.

"We're serious about preventing abuse on our platforms. We're investing so much in security that it will impact our profitability. Protecting our community is more important than maximizing our profits," he said.

On an earnings call, chief financial officer Dave Wehner warned capital expenditure could come in as much as 60pc higher in 2018 than this year.

Norm Johnston, global chief digital officer at WPP's Mindshare, said: “Ironically the Russian scandal may have unwittingly given advertisers even more confidence that Facebook is a great place to influence millions of people.

“Facebook is facing an identity crisis over whether it’s a publisher or platform. What rules does it follow, and do those rules need to be rewritten for a new model that doesn’t fit historical ones?"

Facebook's daily active users kept on rising in the period, up 16pc to 1.37bn in September on a year earlier. Monthly active users were also up 16pc at 2.07bn.

Despite some caution over future profits, shares in Facebook hit record highs in after hours trading, up 1.8pc, although later dropped back to fall 1.8pc. They had been steadily rising ahead of the results.

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