Telegram's digital asset holdings increased to $1.3 billion in the first half of the year, with revenue increasing by 190% year-on-year

Telegram told investors that the detention of CEO Pavel Durov by French police had no “material impact” on the messaging app’s operations, and financial disclosures show that a surge in the value of its cryptocurrency holdings is increasingly supporting its business. Financial filings show that Telegram’s digital asset holdings grew significantly in value in the first half of 2024, to $1.3 billion from nearly $400 million at the end of last year. That growth, along with gains it made from the sale of its closely associated cryptocurrency Toncoin and another Toncoin-related deal, helped the company create a financial cushion after being hit by Durov’s legal troubles. Telegram had revenue of $525 million in the six months to the end of June, up 190% from the same period in 2023, according to its financial statements. Nearly half of that revenue, or $225 million, came from a one-time deal with an unnamed party. Under the terms of the deal, Telegram “was paid” in exchange for allowing the cryptocurrency Toncoin to be the exclusive way for small businesses to buy ads on the app. The exclusive agreement ended on October 1, the filing said. The company also posted $335 million in after-tax profits for the first half of this year, dwarfing its $173 million loss on $342 million in revenue for the full year 2023, suggesting Telegram was on track to its first annual profit before Durov was detained. (FT)