Telegram: Financial Future of Company in Question, According to Financial Times

In March, Durov told the FT that he had rejected offers from potential investors who valued the company at more than $30 billion and that plans to list it on the stock exchange were moving forward.

However, experts cited by the newspaper warn that a potential listing will be difficult if advertisers avoid the platform due to the alleged presence of child sexual abuse material on it.

Durov was initially charged with France a number of charges related to an alleged failure to respond to criminal material on Telegram, with one of the charges carrying a penalty of up to 10 years in prison.

The development is disastrous for Dubai-based Telegram, which has been ramping up efforts to monetise its content by introducing subscription plans and advertising offers as it aims to become “financially self-sufficient” ahead of a possible stock market listing by 2026.

Telegram's 2023 financial statements, seen by the FT and previously unreleased, show the company generated $342 million in revenue last year, with an operating loss of $108 million. Total losses came to about $173 million after tax.

Telegram is wholly owned by Durov, who has a multibillion-dollar fortune, but the company has raised about $2.4 billion by selling bonds that mature in 2026. Telegram’s bond price has fallen nearly 10 percent since Durov’s arrest at an airport outside Paris.

The FT writes that it is unclear whether Durov will be able to continue to run Telegram, or whether this task will fall to a small group of loyal subordinates, noting that the company has a very centralized management. Durov said in the interview with the newspaper that the company employs only about 50 people, including 30 strictly vetted engineers, and that he chose the team himself, organizing programming competitions.

The source quoted by the FT describes Telegram employees as typically “super young” people from Eastern Europe who receive annual salaries of half a million dollars and soon post photos of their new Porsches on social media.

– There is virtually no turnover. Employees share the same values ​​and believe in the company's mission – Durov told the FT.

As the newspaper emphasizes, it is key in decision-making and despite the fact that Telegram has almost a billion users, Durov compares the method of operation to a start-up.

“I don't like to see myself as a co-CEO or an owner or anything. I like to see myself as a product leader. No feature launches without my deep involvement,” he explained.

The centralized leadership style raises questions about “whether Telegram can exist without Paul,” said Aleksandra Urman, a researcher at the University of Zurich and an expert on social media.

Following Durov's arrest, the company said he had “nothing to hide” and that “it is absurd to claim that the platform or its owner is responsible for abuses on the platform” and that its moderation is “in line with industry standards.”