Twitter's December 2022 earnings down 40% year-on-year

Times have not been easy for Twitter, which has a social network of the same name and was taken over at the end of last year by new owner Elon Musk. In December, revenues almost halved year-on-year.

Here's What We Know

In 2021, almost all of Twitter's revenue came from advertisers. From October to December of that year, revenue at the US company was $1.57 billion. We don't have information on what Twitter's December revenue was, but The Wall Street Journal reports that it was down 40% for the year at once.

The drop in revenue isn't the company's only problem. Twitter recently had to pay off the first part of a $13bn loan, which was arranged for the company by Elon Musk at the time of its purchase last autumn. The interest rate on part of the loan is 15% and the annual payment is over $1bn.

Musk previously said that he had managed to save the company from bankruptcy. He wanted to solve its financial problems by firing employees, cutting rental costs and introducing a paid subscription Twitter Blue, which is already available in more than 30 countries.

To be fair, Twitter's financial problems predate Elon Musk's ownership. The company had been failing to make a profit on an annualised basis for several years.

Source: WSJ