Elon Musk says Twitter’s money circulation nonetheless adverse as advert income drops 50% By Reuters


© Reuters. A promoted tweet on Twitter app is displayed on a cell phone close to a Twitter brand, on this illustration image taken September 8, 2022. REUTERS/Florence Lo/Illustration

By Jahnavi Nidumolu and Krystal Hu

(Reuters) -Twitter’s money circulation stays adverse due to a virtually 50% drop in promoting income and a heavy debt load, Elon Musk mentioned on Saturday, falling wanting his expectation in March that Twitter may attain money circulation optimistic by June.

“Want to achieve optimistic money circulation earlier than we’ve got the posh of the rest,” Musk mentioned in a tweet replying to options on recapitalization.

That is the newest signal that the aggressive cost-cutting measures since Musk acquired Twitter in October alone are usually not sufficient to get Twitter to money circulation optimistic, and suggests Twitter’s advert income might haven’t recovered as quick as Musk prompt in an interview in April with the BBC that almost all advertisers had returned to the positioning.

After shedding hundreds of staff and reducing cloud service payments, Musk had mentioned the corporate decreased its non-debt expenditures to $1.5 billion from a projected $4.5 billion in 2023. Twitter additionally faces annual curiosity funds of about $1.5 billion on account of the debt it took on within the $44 billion deal that turned the corporate non-public.

It’s unclear what time-frame Musk was referring to by the 50% drop in advert income. He has mentioned Twitter was on monitor to put up $3 billion in income in 2023, down from $5.1 billion in 2021.

Twitter has been criticized over lax content material moderation, adopted by an exodus of many advertisers who didn’t need their advertisements showing subsequent to inappropriate content material.

Musk’s hiring of Linda Yaccarino, former advert chief at Comcast (NASDAQ:)’s NBCUniversal as CEO, signaled that advert gross sales are a precedence for Twitter whilst it really works to extend subscription income.

Yaccarino began working at Twitter in early June and has advised traders Twitter plans to deal with video, creator and commerce partnerships and is in early talks with political and leisure figures, funds companies, and information and media publishers.

On Thursday, Twitter mentioned that choose content material creators will likely be eligible to get part of the advert income the corporate earns in an try to attract extra content material creators to the positioning.


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