Telegram’s Revenue Growth and Financial Struggles

Telegram’s financial landscape reveals a stark contrast of soaring revenues and significant losses, largely influenced by the company’s increasing alignment with cryptocurrency, particularly Toncoin. In a dismal turn of events, the messaging giant reported a staggering 65% surge in operating revenue for the first half of 2025, totaling $870 million compared to $525 million in the same timeframe the previous year.

Notably, a substantial portion of this revenue—approximately $300 million—originated from exclusivity deals directly linked to Toncoin, indicating that cryptocurrency-related income is now creeping up on more traditional revenue streams like advertising and subscriptions.

Net Loss Despite Revenue Gains

However, beneath this promising facade lies a troubling reality. Telegram faced a net loss of around $222 million for the reporting period, a sharp decline from a net profit of $334 million in the first half of 2024. This dramatic shift is primarily attributed to a huge write-down in the value of Toncoin, which plummeted about 69% throughout 2025, according to data from CoinGecko.

Despite the net loss, Telegram maintained an operating profit of nearly $400 million, suggesting that the core business itself remains profitable prior to accounting for the crypto-induced losses. This dichotomy underscores the volatile nature of digital currencies and their significant impact on corporate finances.

Toncoin’s Financial Influence

The growing influence of Toncoin on Telegram’s financial framework is evident. Revenue from premium subscriptions reached $223 million in the first half of 2025, while various in-app purchases via Telegram’s Fragment marketplace significantly rely on Toncoin for transactions. Advertisements managed a modest revenue rise, hitting $125 million, as Telegram disclosed it had unloaded over $450 million in Toncoin this year alone—representing about 10% of TON’s total market capitalization, which remains around $4.6 billion.

As of June, Telegram’s total digital asset holdings plummeted to $787 million from $1.3 billion the previous year, driven by aggressive selling and declining token values. At the time of reporting, Toncoin was trading at approximately $1.93, considerably down from its all-time peak of $8.25 but still enjoying a remarkable 60% increase year-over-year.

Financial Complications from Frozen Bonds

Compounding these financial challenges is the plight of Telegram’s bonds, as approximately $500 million worth has been frozen by Russia’s central securities depository stemming from Western sanctions imposed after the Ukrainian crisis. The company has issued several bond offerings, including a notable $1.7 billion issuance in May 2025, primarily aimed at repurchasing existing debts.

While most bonds maturing in 2026 have been repurchased, the frozen securities reveal Telegram’s ongoing vulnerability to Russian financial markets. The company has reassured bondholders of its intent to repay the affected bonds at maturity, delegating the task of payment delivery to intermediaries amidst the geopolitical turbulence.

The Future and IPO Plans

Amid these hurdles, founder Pavel Durov is contemplating a potential initial public offering (IPO), a move complicated by continued legal inquiries in France concerning Telegram’s purported failure to adequately control criminal content on its platform. Durov has been under investigation since 2024, leading to increased scrutiny from authorities regarding the company’s operational practices.

Bondholders are keenly watching as Telegram’s recent debt offerings include options that allow bonds to convert into equities at discounted rates if an IPO proceeds. With over 1 billion monthly users and a jump in paid subscriptions from 4 million to 15 million since late 2023, Telegram’s growth trajectory remains promising despite the labyrinth of financial difficulties it must navigate.

Source: finance.yahoo.com/news/telegram-revenue-surges-65-870m-160000131.html