United States | The losing streak of Trump’s social media company continues, now the turnover also collapsed

Presidential candidate Donald Trump’s the social media company he founded is still making a loss. Now its turnover also collapsed.

Trump Media and Technology Group, which is listed on the stock exchange, will report its interim results for April-June on Friday. The company’s most important holding is its social media service called Truth Social.

Trump Media’s net result was a loss of 16.4 million dollars, or 15.0 million euros. The loss was slightly smaller than at the same time a year earlier, when the loss was 22.8 million dollars, or 20.9 million euros.

According to the company, half of the loss came from legal costs related to the listing. According to it, expenses were also increased by the purchase of IT consulting and software licenses.

Trump Media’s turnover shrank by as much as 30 percent from a year ago and fell below a million dollars. Turnover was only 836,900 dollars, i.e. 766,224 euros. At the same time a year ago, the turnover was 1.2 million dollars.

The company explained the decrease in turnover as partly due to the fact that the distribution of advertising revenue with advertising partners was changed.

To the stock market Last March, Trump’s company merged with the so-called shell company Digital World Aqcuisition, which is already listed on the stock exchange. However, Trump still owns more than half of the company.

So far, Trump Media’s stock market performance has not been commendable. More than half of the share’s value has already evaporated. From the peaks of almost 70 dollars in the spring, the course has now slipped to the level of 26 dollars.

Today, the company’s market value is around five billion dollars, which analysts in the United States still consider surprisingly high considering the size of the company’s business.

Around the world, some analysts have compared it to a meme stock, whose trump card is generating social buzz instead of increasing profitability and turnover.

Trump Media’s result was a loss for the whole of last year as well. At that time, net losses increased to 58.2 million euros, while in 2022 the loss became 50.5 million dollars.