X has not been faring well in the U.K., which used to be a major source of revenue for the social network prior to Elon Musk’s takeover.
Still named Twitter UK Ltd, revenues and profits for X’s U.K. entity collapsed by over 60% in 2023, according to accounts filed this week with the U.K.’s Companies House.
The company attributed the decline in revenues to lower advertising spending on the platform as a result of concerns over “brand safety and/or content moderation,” reported The Guardian.
Overall revenue dropped 66.3% to £69.1 million ($91.6 million) in 2023 from £205.3 million ($272.3 million) a year earlier. Profit dropped to £1.2 million ($1.6 million) from £5.6 million ($7.4 million) in the same period.
The company said it “continues to take corrective measures to build brand safety tools, invest in platform safety and content moderation, and then educate advertisers about these initiatives,” per the report.
Musk’s arrival also led to a wave of redundancies in the U.K. office, mirroring his cuts to U.S.-based staff. Employee numbers in the U.K. fell to 114 in 2023 from 399 the previous year.
