Price dampener after stock market debut
Trump’s media company will make a loss of millions in 2023
April 1, 2024, 8:25 p.m
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The TMTG IPO recently made Donald Trump a lot richer – at least on paper. Last year, however, the company recorded a significant loss with only low sales. This is also due to sluggish advertising revenue from the online network Truth Social.
Former US President Donald Trump’s media company posted a loss of a good $58 million (around 54 million euros today) last year on sales of around $4 million. The figures from the Trump Media & Technology Group (TMTG) at least show an improvement in revenue compared to just under $1.5 million in 2022. At that time, thanks to a tax credit, there was an annual profit of $50.5 million.
The company operates Trump’s social media network Truth Social. The numbers show that the service continues to struggle to generate advertising revenue. The company’s shares nevertheless rose significantly on their stock market debut last week and made Trump several billion richer, at least on paper. The company now warned that it could run out of money due to high losses in its ongoing business. It is a mandatory warning to investors that is common in the USA and is not necessarily followed by bankruptcy.
After the figures were published, the share price temporarily fell by more than a fifth. The share is listed on the stock exchange under the abbreviation DJT – based on Trump’s initials. When it came to entering the stock market, TMTG chose a shortcut by merging with a listed corporate shell. The 77-year-old Trump wants to move into the White House again for the Republicans in November.