Telegram’s Financial Struggles and Legal Troubles
Telegram’s Financial Overview
Last month’s arrest of Telegram founder Pavel Durov in France has cast a shadow over his plans to take the messaging platform public within the next two years. Durov had previously mentioned receiving offers that valued the company at $30 billion.
However, financial statements filed in the British Virgin Islands, where Telegram’s legal headquarters are located, reveal that the company generated only $342 million in revenue and incurred a net loss of $259 million in 2023.
These figures suggest that Telegram’s valuation may be far lower than the $30 billion figure previously mentioned.
Key Financial Highlights
Highlights from Telegram’s financials include:
- Revenue: $342,481,000, up from $228,122,000
- A net loss of $259,275,000 after development and operating expenses
- Sales from Telegram’s “integrated wallet” for cryptocurrency: $130,000,000
- Premium subscriptions: $94,093,000
- Advertising revenue: $70,572,000
- “Premium access” to Telegram’s ad platform: $30,000,000
Interestingly, Telegram’s crypto business is its largest revenue stream. The company sells crypto wallets and “collectables” like unique usernames and custom phone numbers in exchange for Toncoin, a cryptocurrency developed by Telegram.
Telegram’s Balance Sheet
On Telegram’s balance sheet, the company lists the following assets:
- Digital assets: $399,196,000
- Cash: $170,850,000
Notably, Telegram’s crypto assets are larger than its cash holdings. The income statement also includes a line item titled “revaluation of digital assets,” which added $502,000 in income. Typically, changes in the value of assets are reflected on the balance sheet rather than the income statement.
The company also recorded an additional gain of $85,996,000 on its digital assets as an item “that will not be reclassified to profit or loss.”
Legal Troubles for Pavel Durov
Durov is currently out on bail in France after being charged with allowing “illicit transactions” on Telegram, as well as permitting the “dissemination in an organized group of images of minors in child pornography,” drug trafficking, fraud, and money laundering.
He potentially faces up to 10 years in prison, according to reports.
Ieteicamā lasāmviela
Mūsu jaunajā īpašajā izdevumā: Volstrītas leģenda piedzīvo radikālas pārmaiņas, stāsts par kriptovalūtas nepareizībām, nepaklausīgo putnu karalisko ģimeni un daudz ko citu.
