Trump media company lost more than $327m in first quarter

Company said its focus is ‘long-term product development, rather than quarterly revenue’

Josh Marcus
San Francisco
Tuesday 21 May 2024 00:37 BST
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Donald Trump’s flagship media company reported a loss of more than $300m in its first quarter as a publicly traded company.

“After an unprecedented, years-long process, we have consummated our merger and dispensed with the vast bulk of merger-related expenses, leaving the Company well-capitalized and supported by a legion of retail shareholders who believe in our mission to provide a free-speech beachhead against Big Tech censorship,” Trump Media and Technology Group (TMTG) Corp CEO Devin Nunes said in a statement.

“At this early stage in the Company’s development, TMTG remains focused on long-term product development, rather than quarterly revenue,” the company added in the statement.

TMTG, the parent company of the former president’s Truth Social social media network, reported a $327.6m loss in its first quarter, as well as $770,500 in revenues.

In March, the company completed its merger with a special-purpose acquisition company called Digital World Acquisition Corporation.

The download screen for Truth Social app is seen on a laptop computer, March 20, 2024, in New York
The download screen for Truth Social app is seen on a laptop computer, March 20, 2024, in New York (AP)

The losses the company reported are in contrast to the firm’s high valuation.

TMTG, based on the price of its shares, is valued at more than $7bn, comparable to a large tech company despite rivals like X having hundreds of times more users.

In April, Truth Social reported it had 113,000 average daily active US users on iOS and Android.

Donald Trump has both benefitted and suffered from his close association with the company.

As the majority owner, the former president earned a roughly $1.8bn stock bonus as a result of the company’s share price performance.

However, Trump Media also experienced a nearly 20 per cent stock price plunge on the first day of Mr Trump’s hush money trial in April.

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