Last year, TikTok’s European/international business revenue increased significantly, but while its revenue increased significantly, the company’s operating losses also increased significantly.
TikTok UK Information Technology release $4.57 billion The company will have a turnover of $1 billion in 2023, according to its annual accounts filed with Companies House on Tuesday (October 8).
that’s a Annual increase of 74.6% Revenue increases. However, the company’s operating losses increased even more, as US$1.37 billionmore than twice $512.1 million A loss will be recorded in 2022.
The company’s negative operating margin grew to 29.9%from 19.6% the year before.
While revenue is growing rapidly, TikTok UK’s costs are growing even faster. Cost of sales rises significantly Annual growth of 85.6% arrive US$3.38 billion. Administrative costs more than tripled US$1.57 billion from $448 million the year before. Rising personnel costs twenty two%arrive $805 million from $660 million the year before.
This document applies to group companies consisting of a parent company TikTok Information Technology UK Ltd. and its subsidiaries.
TikTok Information Technology UK Ltd. Own TikTok’s global presence European Economic Area (European Economic Area), the United Kingdom and Switzerland.
(The European Economic Area includes all 27 EU member states (such as France and Germany), plus three European Free Trade Association (European Free Trade Association) Countries: Iceland, Liechtenstein and Norway.
Additionally, it collects revenue from: Tik Tok Doing business in South and Central America (only through brazil and mexico) and some other areas.
TikTok Information Technology UK Ltd. It is an independent entity of TikTok’s operating company in the United States. us (TikTok Inc through TikTok LLC), Australia/New Zealand (TikTok Australia Pty Ltd), and Singapore (TikTok Pte Ltd, owns TikTok’s operating entities in India and Southeast Asia).
TikTok’s sister platform in China, Douyinis also individually owned and operated.
In previous years, TikTok UK broke down data by region, including the UK and Europe, but did not do so this year “because the directors believed that doing so would seriously harm the company’s interests.”
TikTok UK attributed its revenue growth to “continued growth in our user base and enhanced monetization tools to improve the advertiser experience and ad performance, including many… new creative, branding and commerce solutions.”
TikTok reported in August that it had 150 million The number of “monthly active recipients” in the EU increased between February and July this year 11.9% from 134 million The same period a year ago.
The company said its losses widened “primarily due to one-time provisions on legal and related matters” and TikTok said its costs were just over US$1 billion.
It noted that TikTok “has been involved in legal proceedings, including regulatory investigations and litigation proceedings.”
In 2023, the Irish Data Protection Commissioner imposed sanctions on TikTok equivalent to US$370 million Breach EU laws on the protection of children’s data. One of the violations was that TikTok profiles of users under 16 years old were public by default.
The company faces further regulatory issues in the European Union this year. In February this year, the European Commission launched an investigation into TikTok, “involving areas such as the protection of minors, broad transparency, access to researcher data, and risk management of addictive design and harmful content.”
A few months later, the European Commission launched another investigation to determine whether the platform’s TikTok Lite rewards program in France and Spain violated the EU’s Digital Services Act. The program rewards TikTok users for performing specific tasks, and the European Commission is concerned that this feature will “stimulate addictive behavior”.
TikTok resolved the investigation in August by agreeing to remove TikTok Lite rewards within the EU.
TikTok UK data as a separate entity will not be counted in TikTok’s ongoing litigation against US “divest or ban” laws, Douyin Companyhandling North American operations.
Under the law, TikTok and its Chinese parent company, Byte bounceTikTok’s U.S. operations must be sold by January 2025, otherwise the app will face an effective ban in the United States.
TikTok has challenged the law, which was led by President Joe Biden In April, in a U.S. federal court, among others, argued it was an unconstitutional infringement of free speech.
Chartmetric is an all-in-one platform for artists and music industry professionals, providing everyone with comprehensive streaming, social and audience data to help them build successful careers in music.global music business
