Leading messaging app, Telegram, held $400 million in digital assets as of the end of last year, according to its 2023 financial statement. This latest development comes amid its founder, Pavel Durov, facing arrest in Paris.
Incorporated in the British Virgin Islands and operating a major subsidiary out of the United Arab Emirates, Telegram reported $342.5 million in revenue for 2023. However, the company also faced an operating loss of $108 million.
Notably, about 40% of Telegram’s revenue was generated through activities related to digital assets. Majority of the revenue from digital assets came from its “integrated wallet” services and the sale of digital collectables.
The app provides an “integrated wallet” feature that allows users to store, send, receive, and trade cryptocurrencies, which contributes significantly to its revenue. Additionally, Telegram sells various collectibles, including usernames and virtual phone numbers. The company facilitates these transactions and earns fees, making digital assets a core component of its business model.
In 2022, the company introduced a feature in which Telegram users can send TON coins directly within Telegram chats without transaction fees to any users. Toncoin is a cryptocurrency created by Telegram in 2018.
As per a Financial Times report, Telegram’s approach to accounting for these digital assets follows the guidelines under IAS 38—Intangible Assets. These assets are initially recorded at cost and are subsequently measured at fair value less any accumulated impairment losses. In cases where the fair value exceeds the cost, the gains are recorded as ‘Revaluation surplus’ within equity, while losses beyond the cost are reported as profit or loss.
The platform’s financial statement revealed that Telegram’s premium subscription service has been growing steadily. As of the end of 2023, the app had approximately four million premium users, a number that has since increased to over five million. Early data from 2024 shows that Telegram recorded in-app revenue of $11.66 million within the first two months, contributing to the app’s overall revenue stream, which has raised over $4 billion since its inception.
Pavel Durvo, allegedly faces charges of terrorism, trafficking, conspiracy, fraud, and money laundering among others. He was taken to court from custody on August 28. Earlier this week, a court in Paris charged him with being complicit in the spread of images of child sexual abuse, along with other alleged violations on the Telegram app.
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