Telegram has reported a fourfold increase in revenue to $1.4 billion in 2023, along with its first-ever annual profit of $540 million—an impressive recovery from a $173 million loss the previous year. This financial turnaround comes despite the company’s founder, Pavel Durov, being under house arrest in France, according to a report by the Financial Times referencing a company presentation.
These financial results were shared with potential investors ahead of Telegram’s $1.5 billion bond issuance, the proceeds of which are intended to pay down existing debt. The bond sale is expected to conclude next week. The company’s rise in revenue is attributed not only to growing income from paid subscriber services but also to activities involving its cryptocurrency.
Durov’s legal troubles in France are linked to accusations of failing to address illegal content on the platform. He faces possible imprisonment, but has described the charges as politically motivated. Durov claims French authorities tried to manipulate public opinion during Romania’s recent presidential elections using Telegram, and alleges the legal pressure is a cover for deeper geopolitical interests.
Business Model and Future Prospects
Telegram currently serves over 1 billion monthly active users worldwide, yet operates with a relatively small team of around 60 employees. The bulk of its content moderation is outsourced. CFO John Hyman has indicated that Telegram may consider going public if favorable market conditions arise. The ongoing investigation into Durov might be resolved by the end of this year, potentially removing a major obstacle to an IPO.
To fund further growth, Telegram is issuing convertible bonds that offer a 9% annual coupon and a 20% discount on company shares in the event of a public offering. Last year, around half of the company’s revenue came from affiliate programs. Advertising contributed $250 million, while subscriber services brought in $292 million. Mini-app developers integrated into Telegram’s ecosystem have become key revenue drivers.
Outlook and Strategic Initiatives
Telegram aims to increase revenue by 46% this year, targeting $2 billion, and to grow profits to $720 million in 2025, notes NIX Solutions. As of February, the company had $530 million in available cash, excluding cryptocurrency holdings. Over the past four years, it has issued $2.4 billion in bonds and repurchased $375 million of that debt between September and December last year.
Looking ahead, Telegram is placing strategic emphasis on artificial intelligence. Elon Musk’s xAI chatbot Grok has been integrated into the platform, signaling Telegram’s interest in expanding its AI capabilities. Musk has also offered tacit support for Durov amid the ongoing controversy involving French authorities. Despite official denials from French intelligence services, the situation continues to evolve—and we’ll keep you updated as more developments emerge.