Telegram’s income soared to $525 million within the first half of 2024 earlier than its founder, Pavel Durov, was arrested on costs of prison exercise on the platform.
Based on Financial Times, Telegram has informed traders that Durov’s detention by French police has not had a “materials affect” on the app. Monetary studies confirmed the worth of the corporate’s cryptocurrency holdings rising, bolstering the enterprise.
Telegram’s digital belongings rose to $1.3 billion within the first half of 2024, up from practically $400 million on the finish of the earlier yr, in keeping with unaudited monetary studies. The capital enhance and proceeds from the sale of Toncoin (TON).
The scenario worsened in August when the corporate’s founder was detained by French authorities and charged with a sequence of costs.
Nonetheless, in an Oct. 22 investor report, the corporate stated the arrest had not considerably impacted its enterprise, as the costs have been towards its founder alone. Telegram additionally reported income of $525 million for the six months to the top of June, up 190% from the identical interval a yr earlier. Practically half of that, $225 million, got here from a one-time cope with an unnamed accomplice by which Telegram granted Toncoin unique standing for small companies to purchase promoting on the app.
“Below the phrases of the deal, Telegram “acquired remuneration” in change for permitting the cryptocurrency Toncoin to be the unique methodology for small companies to purchase promoting on the app.”
Regardless of some fluctuations within the worth of Toncoin following Durov’s arrest, Telegram has continued to generate income from crypto asset gross sales. Within the first half of 2024, the corporate recorded $353 million in cryptocurrency transactions and reported a revenue after taxes of $335 million, demonstrating its monetary power.
Regardless of the present profitable monetary scenario, consultants warn that the corporate might face difficulties in future promoting income attributable to its hyperlinks to sexual violence and terrorist content material. Telegram has confirmed the necessity to preserve management over content material and enhance its moderation system.
Though Durov wholly owns Telegram, he has additionally raised about $2.4 billion in debt financing, which should be repaid by 2026. This September, the corporate used a few of its proceeds to purchase again $124.5 million in bonds.
How Telegram is rising income by way of promoting and subscriptions
Earlier, Durov spoke about Telegram’s plans to extend income from promoting and subscriptions, just like the enterprise fashions of competing platforms. Within the first half of the yr, promoting income was a file $120 million, whereas premium subscriptions introduced in $119 million.
The sources point out that the corporate profitably collected its crypto belongings utilizing favorable market circumstances, however the major technique stays linked to promoting and paid subscriptions.
Because of the location of $1 billion in bonds in 2021, Telegram raised about $2 billion, writes the FT. The businesses predicted an imminent IPO, however in a dialog with the FT, Durov declined to touch upon the attainable timing and platform for the itemizing. If the location is accomplished earlier than the top of March 2026, bondholders can convert them into shares at a 10-20% low cost.
“Typically talking, we see worth in [an IPO] as a method to democratize entry to Telegram’s worth.”
Durov additionally spoke about plans to develop Telegram’s promoting platform and the intention to supply content material creators 50% of the income from promoting on their channels. The corporate can even introduce enterprise accounts and a brand new characteristic permitting customers to satisfy individuals close by.
Durov’s arrest
Telegram’s earnings is stable regardless of Durov’s current authorized troubles. He was detained on Aug. 24 on the Paris airport attributable to Telegram’s inadequate moderation and refusal to cooperate with authorities, which made him a suspect within the distribution of kid pornography, fraud, and different crimes. The businessman was launched on bail of €5 million and was obligated to report back to the police station twice weekly.
The corporate said in its report that it maintains its content material moderation practices and cooperation with judicial authorities in strict accordance with relevant French legislation, is bettering its content material verification methodology, and is increasing its moderation group.
It was later revealed that Belgium had been investigating Telegram since 2020 and would cooperate with the French authorities.
Based on De Standaard, the international locations have created an investigation group by way of which the competent authorities of each international locations will change the outcomes of their investigations and can be capable to perform joint actions.
