Trump-Owned Media Company Loses IDR 260.94 Billion In The Second Quarter Of 2024

Trump Media reported a net loss of more than 16.37 million US dollars, equivalent to Rp260.94 billion (exchange rate of Rp15,940 per US dollar) in the second quarter of 2024. This is because the revenue fell 30 percent to 836,900 US dollars equivalent to Rp13.34 million.

The social media company, whose majority shareholder is former US President Donald Trump, has the Truth Social application. Where, the application is often used by Trump.

Trump Media's share price, which is trading under the DJT code, has fallen sharply from its highest price of more than $71 per share shortly after it began public trading at the end of March. This follows a merger with so-called special-purpose acquisition companies.

Trump Media shares closed at a price of 26.21 US dollars per share on Friday afternoon, down 0.49 percent.

The company has a market cap of nearly $5 billion, a very high valuation given its very low sales.

In a 10-Q report on Friday, August 9, Trump Media reported a loss of USD 16.37 million for the second quarter ending June 30. The loss shrank compared to a loss of USD 22.8 million for the second quarter of 2023.

About half of the losses for the last quarter were due to legal costs related to Trump Media's merger with Digital World Acquisition Corp.

"In addition, the Company spent IT consultation fees and software licenses of US$3.1 million, mainly related to its software licensing agreement to support its new TV streaming service," Trump Media said in a press release.

Pendapatan untuk kuartal terakhir sebesar 839.000 dolar AS dibandingkan dengan 1.2 juta dolar AS untuk kuartal yang sama tahun lalu.

Most of the declines were caused by changes in revenue sharing with one of our advertising partners, in connection with agreements meant to improve the Company's short-term financial position before the Merger of Business, Trump Media said.

"In addition, revenue varies because we selectively test new advertising initiatives on the Company's Truth Social platform," the company said.

Trump Media said they ended the quarter with cash and cash equivalents worth 344 million US dollars without debt.

"The company believes that a strong balance sheet will allow the expansion and refinement of its new TV streaming platform Truth+, which was launched in August 2024 on the content delivery network ('CDN') specially created by the Company," Trump Media said in a press release.

"With a strong balance sheet and zero debt burden, the Company believes it has sufficient working capital to fund operations in the future," the company said.

Donald Trump, who is a Republican presidential candidate, and his partner Senator JD Vance of Ohio will face candidates from the Democratic Party, Vice President Kamala Harris, and Minnesota Governor Tim Walz in the November general election.