Video-sharing app TikTok makes £88m loss in its first year in the UK
Video-sharing app TikTok made an £88 million loss in its first year in the UK.
The Chinese firm brought in sales of £14.7million in 2019, but spent £80.2million on sales and marketing as it expanded quickly. Administrative expenses came to £12.6million.
The UK business pays a related company in Singapore for supplying marketing and sales services. That company has relationships with the suppliers TikTok uses around the world.
Expensive: The Chinese firm brought in sales of £14.7million in 2019, but spent £80.2million on sales and marketing as it expanded quickly
TikTok launched in the UK with a handful of staff in August 2018. It now has hundreds of employees in its London base.
It is still not known how the business will be structured in the future. In its UK accounts, TikTok said it was looking at ‘a number of strategic options’.
But it said any changes would not impact the UK business. It said the company’s owner, Bytedance, would continue to fund TikTok’s expansion in the UK.
TikTok said: ‘These results reflect an early period of development and investment for TikTok in the UK.’
Donald Trump has tried to ban TikTok in the US because of its Chinese ownership, claiming the company was a threat to national security.