Twitter‘s Indian subsidiary has submitted its annual financial statements, highlighting the company’s spending in the country, shortly after Twitter’s new owner Elon Musk laid off a large chunk of its local staff. Even though Twitter Communications India Pvt Ltd‘s revenue grew over 82 percent in FY22 the business lost money.
According to the company’s standalone annual financial statement filed with the Registrar of Companies (RoC), Twitter India’s income from operations increased by 81.5% to Rs 156.75 crore in the fiscal year ended March 2022 from Rs 86.36 crore in the previous fiscal year (FY21). It’s important to note, however, that this income only comprises a small portion of Twitter’s ad revenue, which has often represented the majority of the company’s earnings.
The subsidiary serves the holding company (Twitter International Unlimited Company, Ireland) and another subsidiary by providing services to it (Twitter Asia Pacific Pte. Limited, Singapore). Ireland accounted for almost 58% of the overall operational revenue, which increased 2.5 times to Rs 90.5 crore in FY22. Singapore, which accounted for the remaining Rs 66.23 crore during the same time period had a 30% increase in operating revenue.
The EBITDA Margin Of Twitter Decreases
Due to a more than 2X increase in employee benefits costs, the company’s EBITDA margin also declined during FY22, to 12.13%. A rupee of operational income cost the business Rs. 1.16 per unit.
Twitter’s platform activity has increased to an all-time high since the layoffs, which affected more than half of its employees globally. However, marketers are wary of initiatives like the blue tick-for-$8 offering because imposters have already used it to create fake accounts for politicians and brands. The shares of at least one firm, the pharmaceutical corporation Eli Lilly, allegedly fell more than 4% after a fake handle said it would start giving insulin to patients for free, even though these accounts were removed in a matter of hours.
Even though Elon Musk, the new owner will continue to have an “eccentric” influence on the company’s operations in India as well as all of its other key markets, expenses and revenues will decrease as the company rebalances its operations under new management.
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