The parent company of a social networking site founded by former President Donald Trump, Truth Social, reported a loss of $19.2 million in the last quarter, as per an earnings report released on the same day Trump won back the presidency. The Trump Media and Technology Group attributed a significant portion of this loss to legal fees exceeding $12 million, coupled with a decrease in revenue. The company's stock price experienced a surge following Trump's election victory, although this was likely influenced more by the political outcome rather than the company's profit outlook.
Trump established the media company after being banned from major social media platforms like Twitter and Facebook in the aftermath of the January 6, 2021, Capitol riot. The revenue for the quarter ending on September 30 was slightly over $1 million, marking a nearly 6% decline compared to the previous year. Trump Media, headquartered in Sarasota, Florida, has incurred losses exceeding $363 million thus far in the current year.
The company cited expenses related to the launch of its new TV streaming service, Truth+, as contributing to its financial challenges. CEO and former Republican U.S. Representative Devin Nunes expressed that the company is actively exploring avenues for growth, including potential mergers with other entities that could leverage Trump Media's technology and brand.
In a regulatory disclosure, the company emphasized that its future success is closely tied to the reputation and popularity of President Donald J. Trump. Trump Media and Technology Group remains focused on navigating its financial landscape and seeking strategic partnerships to enhance its market position.
