Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Social Media

Twitter tops earnings estimates, lifting shares

Twitter shares rallied 13.6 percent in premarket trade following the results, as the markets overlooked a dip in the number of users of the short-messaging service./AFP

WashingtonUnited States, Oct 25 – Twitter reported Thursday stronger-than-expected profits and revenues in the third quarter, igniting a strong rally in shares of the key social network.

The San Francisco group delivered a $789 million profit, including one-time gains, compared to a net loss of $21 million in the previous year, as revenues grew 29 percent to $758 million.

Twitter shares rallied 13.6 percent in premarket trade following the results, as the markets overlooked a dip in the number of users of the short-messaging service.

Average monthly active users totaled 326 million, down from 335 million in the previous quarter. The company said the drop came from efforts to weed out fake and inauthentic accounts. The recently enacted privacy rules in the European Union also had an effect.

The record profit included one-time gains from tax and asset valuation adjustments. Excluding those items, profits amounted to $163 million.

Twitter said the drop in its user count was a direct result of efforts to improve the “health” of its platform by removing fake and abusive accounts.

“We’re achieving meaningful progress in our efforts to make Twitter a healthier and valuable everyday service,” said chief executive Jack Dorsey.

“We’re doing a better job detecting and removing spammy and suspicious accounts at sign-up… This quarter’s strong results prove we can prioritize the long-term health of Twitter while growing the number of people who participate in public conversation.”

Twitter has managed to swing into profit over the past few quarters after years of losses, but it has struggled to grow its user base beyond a core of celebrities, journalists and political figures.

But it has sought to expand its appeal with new services including live video.

Advertisement. Scroll to continue reading.

Twitter claims its estimate of daily users, which it says reflects engagement, was up nine percent in the past quarter but offers no specific numbers.

Advertising, which makes up the bulk of Twitter revenues, grew 29 percent over the past year to $650 million, according to the earnings report.

Twitter said it had 67 monthly active users in the US in the quarter, and 259 million internationally.

Despite its unique offering of near real-time information, Twitter has lagged behind other social networks such as Facebook and Facebook-owned Instagram.

According to the research firm eMarketer, Twitter’s share of worldwide social network users is expected to drop slightly from 10 percent in 2018 to nine percent in 2022.

In 2018, Twitter will take a 1.8 percent share of display ad revenue worldwide.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...