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BUSINESS Saturday 25 July 2020
A world in isolation, a surge of new users for Twitter

By KELVIN CHAN ed questions on another
LONDON (AP) — The global challenge: a social media
pandemic and U.S. protests ad boycott running for at
are forcing a pullback by least the month of July, and
advertisers on Twitter, but therefore not counted in
it's also led to an unprec- the second quarter. Face-
edented surge of users. book is the primary target
Average daily user growth of the boycott by hundreds
spiked 34% in the second of advertisers over its poli-
quarter, the company said cies and actions on hate
Thursday, the largest jump speech and misinforma-
in users ever recorded by tion. Its effect on Twitter is
the company. less clear, with some ad-
In an earnings call, CEO vertisers pausing ads on all
Jack Dorsey addressed an social media, though some
embarrassing hacking inci- analysts believe some ad
dent last week that com- dollars could be redirected
promised the accounts of away from Facebook to
high profile users, saying he Twitter.q
felt "terrible" about it.
Shares of San Francisco-
based Twitter bounced 4%
higher in Thursday trading.
But the company took a This April 26, 2017, file photo shows the Twitter app icon on a mobile phone in Philadelphia.
huge tax hit to earnings, Associated Press
posting a net loss of $1.2
billion, or $1.56 per share, in to COVID and civil unrest," more normal routines. this year.
the April-June period, com- Dorsey said. Investors have been wait- The earnings were over-
pared with profit of $1.1 bil- Ad revenue fell 15% in the ing for Twitter to explore shadowed by the con-
lion, or $1.43 per share, a last three weeks of June, new revenue options — tinuing fallout from a hack
year earlier. which was better than the and offering paid subscrip- last week that targeted
Revenue fell by about a 27% decline in the final tions is one long-floated 130 accounts, including
fifth to $683 million, far short three weeks of March, with idea. Dorsey said the com- world leaders, celebrities
of the $702 million Wall advertiser demand return- pany is exploring this and and tech moguls, that ap-
Street had expected, ac- ing as the protests subsid- other options, although he peared designed to lure
cording to a survey of ana- ed, Chief Financial Officer said the process is in the their Twitter followers into
lysts by FactSet. Ned Segal said in the earn- "very very early stages." sending money to an anon-
Twitter's advertising busi- ings call. "Most importantly we want ymous Bitcoin account. The
ness was hit harder than New users have been flock- to make sure that any new company revealed more
its larger rivals Google and ing to the platform as they line of revenue is comple- details Wednesday, say-
Facebook, and analysts isolate, with the number of mentary to our advertising ing hackers accessed the
had expected the bleed- daily active users jumping business. We do think there direct message inboxes of
ing to continue in the sec- to 186 million. is a world where subscrip- 36 accounts, including an
ond quarter. The company "Twitter's strength as a news tion is complementary," he elected Dutch official. It
said ad revenue made a and entertainment source said in a conference call didn't identify the official
"gradual, moderate re- has helped buoy engage- with analysts, according but Dutch anti-Islam law-
covery" relative to levels in ment during the pandemic to a transcript. "We think maker Geert Wilders said it
March but many brands as housebound consumers there's a world where com- was him.
then slowed or paused use the platform for real- merce is complementary. "Last week was a really
their spending in late May time news and informa- You can imagine work tough week for all of us at
to mid-June, following the tion," said eMarketer ana- around helping people Twitter," Dorsey said. "We
outbreak of Black Lives lyst Jasmine Enberg. But manage payrolls as well feel terrible about the secu-
Matter protests in the U.S. she does not expect this to that we believe is comple- rity incident that negatively
"We continue to see head- continue as stay-at-home mentary." affected the people we
winds from lower global restrictions begin to lift and He said Twitter will likely be- serve and their trust in us."
advertising demand due people start returning to gin testing these new ideas Twitter executives deflect-
McDonald's to require masks at all U.S. restaurant locations

NEW YORK (AP) — McDon- parade of companies issu- of its restaurants are in ship Alliance. The iconic fast
ald's says it will be requiring ing mask mandates for its states or localities that re- food chain also said that
customers to wear face customers in the last week quire facial coverings for in cases where customers
coverings when entering or so and includes Walmart, both crew and customers. decline to wear masks, it
its U.S. restaurants as the Target, and Kohl's. Star- But it said it is "important will "put in place additional
number of new virus cases bucks also recently issued a we protect the safety of all procedures to take care of
continue to surge in many mask mandate for custom- employees and customers, them in a friendly, expedit-
states. ers who visit its company- " according to a joint state- ed way."
The move, announced Fri- owned café locations in ment from McDonald's USA McDonald's said it will de-
day, will be in effect on the U.S. President Joe Erlinger and lay the re-opening of its
Aug. 1. McDonald's, based in Oak Mark Salebra, chair of the dining rooms for another 30
McDonald's Corp. joins a Brook, Illinois, said that 82% National Franchise Leader- days.q