Twitter warns for slowdown in ad revenue

News Wireless Global 26 JUL 2016
Twitter warns for slowdown in ad revenue
Twitter reported second-quarter revenues up 20 percent year-on-year to USD 602 million, while its net loss narrowed to USD 107 million from USD 137 million a year ago. Adjusted EBITDA increased 45 percent to USD 175 million, better than the company's outlook. 

Average monthly active users rose 3 percent year-over-year to 313 million and were up from 310 million in the previous quarter. Around 82 percent of the users accessed the service from a mobile device. 

Twitter said advertising revenue rose 18 percent in the quarter but it was seeing a continued trend of less advertiser demand and growing competition from other social networks for ad dollars. Its recent deals to expand in streaming video are expected to help attract more advertisers, and the company is also building more tools to help marketers track their return on investment, especially over mobile, and extend existing ad campaigns to the Twitter audience. 

The weaker market outlook is reflected in the company's outlook for a dip in sales in Q3 to USD 590-610 million, while adjusted EBITDA is estimated at USD 135-150 million. Twitter also trimmed its full-year capex budget, to USD 300-375 million, but now expects to reach the high end of its EBITDA margin target, at 26-27 percent in 2016. 

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Mobile

Companies:

Twitter

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Global

Tags:

Messaging, Financial figures, Advertising services

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