Twitter’s poor performance leaves shareholders not very chirpy

By our News Team | 2022

Tougher times in the advertising sector and the chaos of the failed Musk takeover have been blamed for below-par Second Quarter results.

Shareholders and executives at Twitter are not too chirpy following the recent release of the social media platform’s Quarter Two financial statements, which reveal disappointing results and a decline in revenue of US$270-million versus the same period last year.

Market analysts had expected a better performance. However, a slowdown in global advertising spending has been blamed, as well as general uncertainty around the collapsed takeover bid by Elon Musk. 

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“As advertising represents around 90% of Twitter’s overall revenue base, that destabilisation has had a significant impact on the company’s bottom line,” the marketing industry news website The Drum reported.

Working to increase audience engagement

Twitter has been working hard to grow the engagement of its existing audience – as opposed to focusing on increasing audience numbers – which would increase its appeal to advertisers. The engagement-growth strategy does appear to be working, although as yet it has not translated into more ad revenue.

“Twitter is now in the unenviable position of convincing advertisers that its ad business is solid, regardless of how its court battle with Musk ends, and its Q2 earnings show that the platform has its work cut it out for it to do that,” Jasmine Enberg, Principal Analyst at research firm Insider Intelligence, is quoted as saying by Reuters news agency.

In another news report, Enberg noted: “One bright spot was engagement. Twitter is a platform that thrives on news and controversy, and there was plenty of that to go around in Q2 … But user growth may not be enough to convince advertisers to spend on Twitter, especially at a time when many advertisers’ budgets are tightened.”

Twitter’s poor Second Quarter financial performance echoes that of Snapchat, the instant-messaging app, which reported last week that advertisers had cut spending on the platform to combat wider economic pressures.

Dr Kin Kariisa

Group CEO - Next Media

Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

  • Other current and previous roles played by Dr Kin Kariisa:
  • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
  • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
  • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
  • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
  • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.