MILAN, Oct 3 (Class Editori) — TikTok's turnover in Italy is worth 12.8 million euros. According to balance sheet data from the local branch, consulted by milanofinanza.it, the Chinese social network has experienced exponential growth from 143,000 euros in 2020. It must be said that navigating the turnovers and profits of global big tech is often difficult in light of the usual practice of shifting profits from local markets to parent companies located in tax-advantaged countries. TikTok's claim, however, is undeniable in light of two factors: the evident growth of its user base in Italy which, according to market research, has crossed the 15 million mark, and the landing of many politicians on the Chinese platform, ahead of the parliamentary elections.
In Europe, it registered a 447% increase in profits. The ByteDance-owned social media has increased its profits five times in the continent, going from 171.6 million dollars to 990.5 million dollars. The data emerges from the report of British company TikTok Information Technology Limited which consolidates the Group’s European activities and is controlled by Beijing’s headquarters. The business growth, as explained by the company, is due on one hand to the increase of active users and on the other to the launch of new monetization instruments that attract more advertising on the platform.
Having more users required TikTok to spend more money in marketing and to enhance the organic component. The Group must face its competitors, such as Instagram and other apps, which, despite being initially overwhelmed by the arrival of the innovative Chinese app, are now organizing monumental advertisements and recruitment campaigns to win back their lost users. As a result, in 2021 TikTok lost 895 million dollars in Europe, an amount that is not really far off the revenue gained in the year.
(Source:Class Editori)
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