Elon Musk’s X Holdings Corp. From the social media platform supported by the main advertisers to one betting on dollars created from artificial intelligence and subscriptions – a change that appears to have strengthened its revenues recently.
The platform, previously known as the name twitter Revenue of $ 91 million linked to the license of data and subscriptions in February, an increase of 30 % over the previous year, according to joint materials with investors related to bSelling new debts. Advertising revenues also grew, although in a 4 % more modest clip, materials appear.
A representative of X refused to comment.
It is a contradiction when he bought Musk X nearly three years ago. The platform was intenseDependentOn ads from traditional companies for arduous, but this type of revenue witnessed his leadership as billionaire has made severe changes to their business model.
Advertising revenues have been stabilized since then, albeit at a lower level, while revenues have grown from data license and subscriptions, according to joint materials with investors. Meanwhile, MUSK’s decision to combine X with the Xai AI last month did not reshape its concentration.
twitterAdvertising revenues of $ 4.5 billionIn 2021, its full final year as an entity is publicly circulated before the acquisition of Musk. It is expected to generate $ 2.26 billion in global advertising sales this year, an increase of 16.5 %, according to Emarketer, BloombergI mentioned earlier.
However, with X’s revenues on this reform, its costs are sharply less and its leader is closely linked to US President Donald Trump, and investors were more optimistic. Morgan Stanley The sale of Thursday from the final bits of the company’s 2022 debt was launched after a sharp shift in feelings about its horizons.
In its financial disclosure, X boasted by $ 1.5 billion in annual profits before interest, taxes, depreciation and extinguishing, a joint profit scale known as “Ebitda” in Wall Street.
The measures of its improvement for the company allowed the collection of nearly 900 million dollars in a new shares tour of Musk and other investors who estimated the company at $ 44 billion – about the same evaluation it bought in – BloombergI mentioned earlier.
X’s public budget also improves, according to recently shared financial data with investors. The company now owns approximately $ 1.1 billion of money on hand, an increase of $ 120 million to about 320 million dollars it has maintained during the year to January. It expects to use some of these funds to either pay $ 12.5 billion of expensive debts that are still debtor or financing other technical investments and use them for other purposes.
Debt costs
Religion still weighs on Musk.
In March alone, X paid about 200 million dollars of debt service costs related to seizing it, the people familiar with the issue who were not allowed to speak publicly said. They added that the annual interest expenses of the company by the end of 2024 were more than $ 1.3 billion.
On Thursday, the debt -led debt offer aims to re -financing a X -based semi -financing of X, which holds a 14 % interest rate. Banks market debt with a fixed voucher by 9.5 %, which would help reduce the company’s costs. The people said that you expect to reduce the annual interest expenses by $ 43 million.
The heavy debt burden of X was a problem not only for the company, but for banks that helped Musk buy the company. The lenders stuck about $ 12.5 billion of this debt, unable to sell it to investors until January and February this year, when they are Discharge About 11.2 billion dollars He deserves Rough Three sales.
A month ago, muskHe saidXai, starting artificial intelligence in Musk, acquired X.
Common information with investors shows that he created a holding company, which is called Xai Holdings, which owns X and Xai. In previous debt sales, banks and company management promoted the X relationship with the start of Musk as a fileDesalinationTo motivate the interest of the investor.
This story was originally shown on Fortune.com
