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Twitter Communications India, the Indian subsidiary of US-based social media company X Corp. (formerly known as Twitter Inc.,) has posted a profit in the fiscal year ending in March 2023. The Indian arm of the micro-blogging site reported a net profit of Rs 30 crore. This marked a significant turnaround from the previous fiscal year when the company incurred a net loss of Rs 32 crore.
According to the company’s regulatory filings (spotted by The Economic Times), its operational revenue grew by 32% to reach Rs 208 crore.The fiscal revenue went up from last year’s Rs 157 crore. Earlier, in FY21, the company reported a net profit of Rs 8 crore after posting a revenue of Rs 86 crore.
As per Indian accounting standards, X’s India arm recorded a Rs 44 crore loss in FY22. The extra loss was related to share-based compensation costs that the company had to bear. In July 2022, the Ministry of Electronics and Information Technology (MeitY) revealed that X had 23.6 million users in India, making it the platform’s third-largest market. Indian users also constitute 7% of the social media site’s global user base.
What helped X’s India business to turn profitable
The micro-blogging site primarily generates revenue through advertising. However, the Indian unit derives its income from three segments — marketing support services, research and development (R&D) services and user support services.
X earned a revenue of 113 crores from R&D services (which increased by 38%), and Rs 87 crore from marketing support services (which also surged by 32%). Meanwhile, the revenue from user support services went down by 22% to Rs 7 crore.
According to the company’s regulatory filings (spotted by The Economic Times), its operational revenue grew by 32% to reach Rs 208 crore.The fiscal revenue went up from last year’s Rs 157 crore. Earlier, in FY21, the company reported a net profit of Rs 8 crore after posting a revenue of Rs 86 crore.
As per Indian accounting standards, X’s India arm recorded a Rs 44 crore loss in FY22. The extra loss was related to share-based compensation costs that the company had to bear. In July 2022, the Ministry of Electronics and Information Technology (MeitY) revealed that X had 23.6 million users in India, making it the platform’s third-largest market. Indian users also constitute 7% of the social media site’s global user base.
What helped X’s India business to turn profitable
The micro-blogging site primarily generates revenue through advertising. However, the Indian unit derives its income from three segments — marketing support services, research and development (R&D) services and user support services.
X earned a revenue of 113 crores from R&D services (which increased by 38%), and Rs 87 crore from marketing support services (which also surged by 32%). Meanwhile, the revenue from user support services went down by 22% to Rs 7 crore.
In contrast, the company’s global revenue comes from the sale of advertising services, data licensing, and other services. This includes the recently introduced Blue subscription accounts.
Earlier this year, Musk rebranded Twitter as X and introduced an ad revenue-sharing program for content creators. With this program, the company distributed nearly $20 million to the creators on the platform.
Following Musk’s acquisition, the company sacked almost entire staff in India in November 2022. The social media firm also closed its offices in Mumbai and Delhi.
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