TikTok’s European turnover surged almost six-fold last year

TikTok increased its European turnover six-fold in 2021, however its losses climbed by a third at the same time while the Chinese-owned social media giant attempted to bolster its offering to advertisers and increase its headcount.

The platform‘s turnover reached over $990 million for the calendar year, compared with $172 million in 2020, filings from the UK’s Companies House.

Pre-tax losses were up $896 million, which works out at over a third, driven mainly by an increased about of spend on staffing.

Increased advertising spend as well as improved ad-targeting and the platform’s user base which is thought to be in the billions have driven growth on the platform.

Selling and marketing expenses climbed nearly 90% to $666 million. Administrative expenses grew by almost 30% to $212 million.

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Approximately $532 million of revenue was generated from the EU, compared to $279 million from the UK. This comes as the company’s livestream shopping experiment failed to gain traction in the UK.

The figures the year before were recorded $114 million and $52 million respectively.

Advertising is an important revenue stream for the social media company, with the company recording more than $802 million of its annual turnover in Europe, five times that of the year before.

TikTok launched the ads platform in 2020 as a way of providing “sufficient support to advertisers”.

“The size of TikTok’s user base and the users’ level of engagement are crucial to our business, which continue to be significantly determined by our ability to retain our existing users, keep them engaged and acquire new users in a cost-efficient manner and our ability to attract, cultivate and retain content creators to contribute content,” the company said in the filing.



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