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Twitter blames Musk, weak ad market for drop in revenue

Twitter blames Musk, weak ad market for drop in revenue

FILE PHOTO: Printed Twitter logos are seen in this picture illustration taken April 28, 2022. REUTERS/Dado Ruvic/Illustration/File Photo

Twitter on Friday (Jul 22) blamed uncertainties related to its US$44 billion acquisition by Elon Musk and a weakening digital ad market for a surprise fall in quarterly revenue.

Twitter, which has sued Musk for dropping his offer to buy the company, said advertising revenue rose just 2 per cent to US$1.08 billion.

It reported second-quarter revenue of US$1.18 billion, compared with US$1.19 billion a year earlier. Analysts were expecting US$1.32 billion, according to Refinitiv IBES data.

Twitter shares were down 3 per cent in trading before the bell.

The company's results come after Snapchat parent Snap posted weak results and declined to make a forecast, citing "incredibly challenging" conditions as advertisers cut back on spending.

Twitter and its peers, including Snap and Alphabet, saw an uptick in revenue last year as brands spent heavily on advertising online, eyeing a recovery from the pandemic.

But inflation pressures and fears of a recession this year have forced brands to rethink their marketing budgets.

At the same time, Gen Z-favorite TikTok and tech giant Apple Inc, which gives users the choice to opt of data tracking, are grabbing market share in the digital ad space.

Source: Reuters/ga

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