Twitter makes first ever profit in 12-year history


FE Team | Published: February 09, 2018 12:51:37 | Updated: February 11, 2018 17:36:42


Twitter makes first ever profit

Twitter has reported its first quarterly net profit in its nearly 12-year history, helped by a rise in video advertising sales.

The news gave a massive boost to Twitter's shares which closed 12 per cent up on the day.

That was despite the number of people using the social network coming in below expectations, reports BBC.

Twitter's previous failure to make a profit had confounded investors given its widespread use and popularity among celebrities and politicians.

Net profit was $91.1m (£65m) in the fourth quarter of 2017, compared with a loss of $167.1m for the same period a year ago.

Twitter, which has posted consistent losses since it became a public company in 2013, said it expected to be profitable for the full year of 2018 as well.

The company has found success with video and other changes, deepening the experiences on offer, James Erkine, director at marketing firm The Social Circle, told the BBC.

"It's now about taking that scalable model and using it to reach new user groups to increase their user base," he said.

"Hopefully now they've made a profit once, they should be able to do it next quarter and carry on doing it."

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