UPDATE 1-Facebook mobile gains spur revenue growth

* Advertising revenue up 36 percent

* Shares up 7 percent

SAN FRANCISCO, Oct 23 (Reuters) - Facebook Inc posted a better-than-expected 32 percent jump in third-quarter revenue to $1.26 billion, as the company reignited advertising growth with the help of gains in mobile.

The company's shares leapt 7 percent to $20.83 in after-hours trading on Tuesday.

Advertising revenue increased 36 percent year-on-year to $1.09 billion, but revenue from its payments and other businesses increased just 13 percent to $176 million.

The world's No.1 online social network company posted a net loss of $59 million, or 2 cents a share, in the three months ended Sept. 30. It had a profit of $227 million or 10 cents a share a year earlier.

Its third-quarter revenue surpassed the average analyst expectation of $1.23 billion, according to Thomson Reuters I/B/E/S.