Telegram’s financial success surged to $525 million in revenue during the initial half of 2024, a period marked by the arrest of its creator, Pavel Durov, on allegations linked to illegal activities conducted through the messaging app.
The Financial Times reported that Telegram communicated to its investors that Durov’s capture by authorities in France did not significantly affect the platform’s operations. The company’s financial health was notably supported by an increase in its cryptocurrency assets, which were reported to have escalated to a value of $1.3 billion in the first six months of 2024, a significant rise from the $400 million recorded at the year’s end prior, as per unaudited financial statements. This boost in capital and the profits from the sale of Toncoin contributed to the company’s robust financial standing.
Despite the complications arising in August with Durov’s detainment by French law enforcement on multiple accusations, Telegram assured investors in a report dated October 22 that the incident had not adversely affected the company. The report highlighted a 190% revenue increase to $525 million for the half-year ending in June, with a notable $225 million stemming from a unique agreement with a partner that allowed Toncoin exclusive rights for small businesses purchasing ads on the app.
Even with the volatility in Toncoin’s value post-Durov’s arrest, Telegram managed to maintain its revenue stream from cryptocurrency sales, recording 353 million in transactions and a post-tax profit of 335 million in the first half of 2024, showcasing its financial resilience.
However, experts caution about potential future challenges in ad revenue linked to controversies surrounding the platform’s content. In response, Telegram has acknowledged the importance of enhancing its content moderation systems.
While Durov retains full ownership of Telegram, he has also secured approximately 2.4 billion in debt financing, with a repayment deadline set for 2026. In a strategic move, the company repurchased 124.5 million in bonds this September.
On revenue growth strategies, Durov earlier outlined plans to boost income through advertising and premium subscriptions, a model akin to those of rival platforms. The company witnessed a record 120 million in ad revenue and 119 million from subscriptions in the first half of the year, leveraging favorable market conditions for its crypto assets while focusing on advertising and subscriptions as its core revenue drivers.
Following a $1 billion bond issue in 2021, Telegram raised about $2 billion, as reported by the FT, with speculation about an impending IPO. However, Durov has remained tight-lipped regarding the IPO’s specifics.
Durov’s vision includes expanding Telegram’s ad platform, offering content creators a share of ad revenue, and introducing business accounts and features to connect users locally.
Despite facing legal challenges, including an arrest on August 24 at a Paris airport over moderation issues and non-cooperation with law enforcement, leading to suspicions of his involvement in distributing illicit content and other offenses, Durov was released on a €5 million bail with conditions.
Telegram has since reiterated its commitment to comply with French law, improving its content verification processes and expanding its moderation team. According to De Standaard, this comes as Belgium, having been investigating Telegram since 2020, announced cooperation with French authorities for a joint investigative effort.
