Twitter Spain increased its revenue by 15% in its 2021 financial year. The subsidiary of the American social network invoiced 5.3 million against 4.6 million a year earlier, according to accounts filed with the commercial register. As with other tech companies, its turnover does not reflect the company’s actual activity in Spain, since it charges all its advertising services from Ireland, which reduces its tax bill.
Twitter Spain, which operates as a provider of marketing, advertising and business development services for its parent company, Twitter International Company, also increased its net profit by 6% to 267,812 euros. The subsidiary paid 125,700 euros in income tax, compared to 94,010 euros in 2020, or nearly 34% more.
As the company reports, as of December 31, the taxes it has been subject to since 2017 were open to tax audit, although according to its sole director and tax advisers, “the possibility of significant outflows of additional resources such as the consequence of the revision is a long way off”.
During the year 2021, the subsidiary increased its operating result (ebit) by 353,282 euros to 405,946. The average number of people employed by the company was 27 people, six more than in 2020, and according to the platform, they did not expect any significant changes in this number. This led to staff costs dropping from 3 million to 3.8.
The social network, which is at a critical moment globally after the takeover bid launched by Elon Musk, founder of Tesla, and its backtracking which led him to sue the tycoon, said in its report that it expects “strong growth for the current year and expects further growth in terms of revenue and profitability. The company added that its strategy in the country remains” increasing the user community” and developing the business” focusing on continuing to provide high quality marketing, media collaborations, business planning and other related services “.
The company, which will report global results for the second quarter of this year on July 22, will face a tough legal battle with Musk unless the parties reach an agreement sooner. For now, while Twitter has asked for an expedited lawsuit to be resolved in September that forces it to buy the company for the $44 trillion they agreed to in April. Musk is asking the court in Delaware, where the lawsuit was filed, not to rush the process. According to American media, the judge in charge of the case, Kathaleen McCormick, has scheduled a hearing for Tuesday in Wilmington (Delaware).
Since the takeover, the social network has fallen sharply on the stock market (also dragged down like other technology companies by the macroeconomic context) and on Monday its price is around 29,200 million dollars. Its shares are at around $38, a far cry from the $54.2 per share offered by Musk. The Tesla founder’s statements that the number of fake accounts on Twitter is around 20% and not 5% as the company says does not help the platform work well.