Video-sharing app TikTok makes £88m loss in UK
The video sharing app TikTok is making a £ 88m loss in its first year in the UK
The video sharing app TikTok posted a loss of £ 88 million in its first year in the UK.
The Chinese company had sales of £ 14.7 million in 2019 but spent £ 80.2 million on sales and marketing as it expanded rapidly. Administrative costs were £ 12.6 million.
Expensive: The Chinese company had sales of £ 14.7m in 2019 but spent £ 80.2m on sales and marketing as it expanded rapidly
The UK company pays an affiliate in Singapore to provide marketing and sales services. This company maintains relationships with the suppliers that TikTok uses worldwide.
TikTok was launched in the UK in August 2018 with a handful of employees. Hundreds of people are now employed in London.
It is not yet known how the business will be structured in the future. In its UK accounts, TikTok said it was considering “a number of strategic options.”
However, changes would not affect business in the UK. The company’s owner, Bytedance, will continue to fund TikTok’s expansion in the UK.
TikTok said, “These results reflect an early stage of development and investment for TikTok in the UK.”
Donald Trump has tried to ban TikTok in the US because of its Chinese property, claiming the company poses a national security threat.