Economy Elon Musk
Ad revenue on Twitter plummeted by 50 percent
Status: 04:44 | Reading time: 2 minutes
Elon Musk took over Twitter in autumn 2022
Source: pa/dpa/MAXPPP/Fred Dugit
Twitter is under economic pressure, according to Elon Musk, cash flow is still negative. The reason for this is, among other things, a sharp decline in advertising revenue. Advertisers had already turned away from the platform months ago.
Business at the short message service Twitter is worse than expected. Owner Elon Musk wrote on Twitter on Saturday that cash flow remained negative due to a roughly 50 percent drop in advertising revenue and a high debt burden. It was initially unclear to what period Musk was referring to his statement about a 50 percent drop. In March, Musk said he expected Twitter to be cash flow positive by June.
Musk’s news is the latest sign that the aggressive cost-cutting the billionaire has embarked on since acquiring Twitter in the fall of 2022 isn’t enough to push earnings to desired levels.
In addition, advertising revenue does not seem to have recovered as quickly as Musk indicated in April. In an interview with the BBC at the time, he said most advertisers had returned to the site. Twitter had been accused of not moderating enough content on its site. As a result, many advertisers turned away because they didn’t want their ads to appear alongside inappropriate content.
Here you will find content from Twitter
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Musk wrote Saturday that Twitter needs to be cash flow positive “before we can afford anything else.” He was responding to a tweet about proposals to recapitalize the company. He has previously said Twitter is on track to hit $3 billion in revenue by 2023, up from $5.1 billion in 2021.
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Musk took over Twitter in October 2022 for around $44 billion and then took over the chief post at the company himself. He took the company public and laid off thousands of employees – most of the workforce. The billionaire Musk is also the boss of the electric car supplier Tesla and several other companies.
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