NEW YORK: The parent company of Donald Trump‘s social networking site Truth Social lost USD 19.2 million in the last quarter, according to an earnings report released on the same day he won back the presidency. Trump Media and Technology Group reported late Tuesday that much of that loss stemmed from more than USD 12 million in legal fees, along with a decline in revenue, according to the surprise election day earnings report.
Its stock price surged Wednesday but that was more likely due to Trump’s defeat of vice president Kamala Harris to retake the presidency than on its profit prospects.
Trump created the company after he was banned from Twitter and Facebook following the January 6, 2021, Capitol riot.
Revenue for the three-month period that ended on September 30 was just over USD 1 million, down nearly 6 per cent from a year earlier. Trump Media, based in Sarasota, Florida, has lost more than USD 363 million so far this year.
Trump Media said some of its costs related to the launch of its new TV streaming service called Truth+.
CEO and former Republican US Representative Devin Nunes said in a statement the company “continues to explore additional possibilities for growth” such as mergers with other companies that “would benefit from Trump Media technology and branding.”
The company said in a regulatory finding that its success depends in part on “the reputation and popularity of President Donald J. Trump.”