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Elon Musk says Twitter’s advert income has dropped by 50 %

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Twitter continues to be spending extra money than it’s making, in accordance with Elon Musk. Within the early hours of Saturday morning, the billionaire tweeted the corporate was affected by an ongoing unfavorable money movement situation as a result of an roughly 50 % drop in promoting income and heavy debt burden. “Want to achieve constructive money movement earlier than now we have the posh of anything,” Musk mentioned.

We’re nonetheless unfavorable money movement, as a result of ~50% drop in promoting income plus heavy debt load. Want to achieve constructive money movement earlier than now we have the posh of anything.

— Elon Musk (@elonmusk) July 15, 2023

The admission is available in the identical week that Twitter’s ad-revenue sharing program started paying out some creators, together with a handful of far-right influencers. On Friday, Musk additionally claimed the social community may see “all-time excessive gadget person seconds utilization” someday this week. He additionally beforehand mentioned virtually all of the advertisers who had left the platform following his takeover in October had “both come again” or “mentioned they are going to come again.”

In line with an estimate analysis agency Sensor Tower shared with Bloombergpromoting spending fell by 89 % to $7.6 million throughout a two-month interval earlier this yr. Per ReutersTwitter has annual curiosity funds of about $1.5 billion as a result of debt the corporate took on when Musk took it personal for $44 billion. That is the most recent signal the aggressive cost-cutting measures Musk has undertaken within the final yr haven’t been sufficient to place the corporate on stable monetary footing. It additionally suggests the corporate’s newly appointed CEO, Linda Yaccarino, has her work reduce out for her as she works to rebuild Twitter’s promoting base.



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