Thanks to owner Elon Musk, Twitter is creating one negative record after another: the number of users leaving the service has never been so high. Now new details about the group’s income have become known.
Ad revenue plunges
According to Elon Musk, Twitter still spends significantly more money than it earns. Now, according to a new tweet from Musk, Twitter is struggling with a roughly 50 percent drop in ad revenue. He did not give exact figures, nor the period in which the decline was recorded.
In 2021, Twitter still had $5.1 billion in revenue. Musk himself forecast sales of $3 billion for this year.
According to the Twitter owner, almost all advertisers who left the platform after its takeover in October “either came back” or “said they would come back”. Currently, however, this does not change anything about the negative numbers.
According to Reuters, Twitter has to make about $1.5 billion in annual interest payments as a result of the $44 billion debt it incurred when Musk acquired it. In addition, numerous dismissed employees have filed a lawsuit because they did not receive anything despite being entitled to a severance payment. It’s about half a billion dollars.
For Linda Yaccarino, who recently became CEO of the company, rebuilding Twitter’s advertising revenue will be a lot of work. As a result, the company continues to suffer from persistent negative cash flow due to the high debt burden. “We need to achieve positive cash flow before we can afford the luxury of anything else,” Musk said.
This admission comes the same week that Twitter’s ad-share program began making payouts, including to criminal and far-right influencers.
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