Financial problems of the social media giant. Millions of losses
Wykop, one of the most popular social networking sites in Poland, is experiencing increasing financial problems. Even though the website is one of the leading Polish social media.
Wykop’s financial situation has deteriorated significantly in recent years. The company generates revenue primarily from advertising, but rising operating costs are weighing heavily on its balance sheet.
Wykop, in the financial year from April 2023 to March 2024, generated revenue of PLN 3.66 million. This is a decrease of 9%. compared to the previous year, when the company had a revenue of PLN 4.02 million. At the same time, operating costs increased by 12.1%, reaching PLN 5.29 million.
However, employee costs decreased from PLN 1.26 million to PLN 1.24 million. In turn, expenditure on social security and other employee benefits decreased from PLN 228.9 thousand. up to 209.2 thousand zloty. The average number of employees in the company decreased by one person, which means that last year Wykop employed nine employees.
Wykop’s loss increased
And even tenfold. It reached PLN 1.2 million, while a year earlier it was PLN 123.3 thousand. zloty. As a result, the company’s equity decreased from PLN 3.47 million to PLN 2.1 million, which is a consequence of two years of negative profitability.
Kick at the forefront of popularity
Despite financial problems, Wykop is still very popular. According to research from August 2024, the website was visited by 2.1 million real users, which gives it the tenth place among the most popular social networking sites in Poland. Platforms such as Facebook, TikTok and Instagram are at the top, which is no surprise.
However, popularity alone is not enough to cover rising operational costs. Wykop earns only from advertising, which, given the current advertising market conditions, may not be enough for the company to overcome the crisis. If the company does not find new sources of revenue, its future does not look bright.