The operator of Truth Social, Donald Trump’s social media platform, reported a USD 19.2 million loss in its latest quarter, coinciding with his presidential victory announcement.
According to a Wednesday evening report, Trump Media and Technology Group’s losses were primarily attributed to over USD 12 million in legal expenses and decreased revenue, as detailed in the unexpected Election Day financial disclosure.
The company’s shares experienced an uptick on Wednesday, likely influenced by Trump’s victory over Vice President Kamala Harris rather than its financial performance, news agency AP reported.
Following his removal from Twitter and Facebook after the January 6, 2021, Capitol incident, Trump established the company. Operating from Sarasota, Florida, the organisation has faced ongoing financial challenges and revenue generation difficulties.
The company’s revenue reached just over USD 1 million for the quarter ending September 30, showing a nearly 6 per cent reduction compared to the previous year. Trump Media’s total losses for the year have exceeded USD 363 million.
The company attributed part of its expenses to launching Truth+, its new television streaming service.
In an official statement, CEO and former Republican US Representative Devin Nunes indicated the company is “continues to explore additional possibilities for growth”, including potential mergers with organisations that “would benefit from Trump Media technology and branding.”
A regulatory filing by the company acknowledged that its success is partially dependent on “the reputation and popularity of President Donald J Trump.”