The net profit of TikTok Rus LLC, the main legal entity of the TikTok short video service in the Russian Federation, increased 9.8 times in 2022 compared to 2021. It amounted to 530.3 million rubles.
The company’s revenue for the year fell by 29%, reaching 2.36 billion rubles. At the same time, advertising this amount accounts for 1.4 billion rubles. This is almost 2.5 times less than the previous year. The rest are marketing and consulting services from the parent company. Such data is provided by RBC with reference to the financial statements of TikTok Rus LLC.
The explanatory note of the report states that TikTok is currently unable to place ads that are targeted at the territory and audience of the Russian Federation. This aspect had a negative impact on revenue volumes. To make up for the damage, the company terminated employment relationships with some employees in Russia, thereby cutting costs.
In March of last year, TikTok suspended monetization of creators from Russia, including the placement of country-targeted ads. Furthermore, the platform banned users located in the Russian Federation from posting videos and live streaming.
It was previously reported that the service, including TikTok functionality, will feature MTS. To do this, the company will restart its WASD game streaming project.
Author:
Natalia Gormaleva
Source: RB
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