Twitter India's earnings plummet 90% to Rs 3 crore

The fiscal year 2024 has not treated X Corp well, despite the platform still being recognized and optimized as Twitter India. With revenues dropping significantly, it’s clear that Elon Musk’s vision of turning the platform into a profitable venture is still a work in progress.

According to filings, net profits dropped 90% to just  Rs 3 crore, down from Rs 30 crore the previous year. Revenue also fell by 90%, decreasing to Rs 21 crore from Rs 208 crore. Advertising makes up the majority of Twitter's revenue in India, where it has approximately 25 million users. Despite the initial excitement surrounding Musk’s acquisition, X’s revenue decline in India highlights a more significant problem: the platform’s waning attractiveness to advertisers, which is vital for any social media giant's survival.

What’s driving this plunge?

Let's begin with Musk's strategy or the apparent absence of one. The decision to cut thousands of jobs and push for a subscription-based revenue model with X Premium seems to have alienated advertisers. Additionally, the strong emphasis on free speech has made many brands hesitant about where their ads might be displayed. In India, a burgeoning market for digital advertising, these challenges have become even more pronounced.

The real irony here is that while X India struggles with its bottom line, Musk’s attention seems to be elsewhere namely, the 2024 US elections. With his focus on becoming a significant influence in shaping public discourse during the election, it seems like the Indian market is an afterthought. In the broader context of Musk's vision, India appears to be merely a footnote. However, if revenues keep declining, that footnote may need to catch the attention of its author.