Twitter continues to spend more money than it earns, according to Elon Musk, where the billionaire tweeted that the company was having a constant negative cash flow problem due to a nearly 50% drop in advertising revenues and a heavy debt burden.
Musk said: “We need to have a positive cash flow before we can be well-being of anything else.”
According to Sensor Tower estimates shared with Bloomberg, advertising spending decreased by 89% to $7.6 million over a two-month period earlier this year.
According to Twitter Reuters, an annual interest payment of about $1.5 billion is due to debt taken by the company when it was acquired by MASK for $44 billion.
This is the most recent sign that Musk’s rigorous cost reduction measures last year were not enough to put the company on a strong financial basis.
