Last year, Twitter (NYSE:TWTR) employees in UK, witnessed a rise in their earnings after a massive £14 million shares fortune corresponded with doubling of revenues and profits of the social media website in this region.
The pre-tax profit of the company, based in San Francisco, was £3.2 million in UK last year. This was almost double of the £1.7 million figure reported in the year 2013. In the United Kingdom, Twitter currently employs 126 people in the city of London. Its earnings rose from 24 million pounds to 58 million pounds between 2013 and 2014.
Twitter UK Office
The UK office of Twitter opened in the year 2011. It is currently located very close to Regent Street. However, there is a general belief that a major chunk of the earnings generated all across Britain are officially diverted through the Dublin office of Twitter. This means a declaration with the parent company (Companies House) is not required for Twitter.
According to Laurence O'Brien, finance officer, Twitter (Dublin), majority of the revenue is generated through advertising. Factors such as a fall in advertising expenditure, lack of advertisers and so on have the potential to negatively impact the business, said O'Brien.
She further added that various other macro-level risks like sudden changes in the regulatory policies, local economic and political environment, foreign currency rate fluctuations and tariff changes also have a significant impact on the company’s revenue generation.
According to a document released by the Companies House, Twitter has been investing an increasing sum of money in employing people in Britain. The staff expenditure has increased from £7.4 million (2013) to £12.5 million (2014).
Dorsey to be the Twitter CEO
Twitter recently made an announcement that Jack Dorsey, co-founder of the company, will be appointed as CEO. He had served as the Twitter CEO for two years (2006-2008).
The new leader’s announcement was followed by the launch of an exciting new feature-‘Moments’. This feature has been developed for helping Twitter users to find important things which possibly get buried somewhere in the feeds. These things could also be missed when particular accounts are not being followed by the users.
Meanwhile, the Organization for Economic Co-operation and Development (OECD) has spelt out plans which are likely to pressurize the Southern San Francisco Bay Area behemoths, as well as, others to disclose all financial activities in an attempt to abolish tax avoidance.