Profit at LinkedIn’s Irish business surged to $427 million (€376 million) as the company added more members and increased its advertising business.
The Irish subsidiary, LinkedIn Ireland Unlimited Company, recorded turnover of $8.9 billion for the 18 months to June 30th, 2024. Cost of sales for the period was $5.7 billion.
The company paid out a dividend of $150 million during the period, as noted on the prior year’s accounts. In addition, post the year end of June 2024, LinkedIn’s Irish unit declared a dividend of $400 million to its immediate parent entity, Microsoft Ireland Research, a company incorporated in the Republic.
The professional networking site has changed its reporting period to bring it in line with that of parent company Microsoft in Ireland. The tech giant bought the platform in 2016, while it continues to operate as a standalone unit.
LinkedIn said the increased revenue seen during the period was due to a rise across all lines of business. The company said it had seen a jump in both user engagement and its user base during 2024, with about 100 million members added to reach 1 billion by June 30th 2024.
That rise in revenue, however, was offset by a “significant increase” in cost of sales and administrative expenses, with recurring intercompany charges from group undertakings and payroll costs both increasing.
Wages and salary expenses were $382.9 million for the 18 months. LinkedIn Ireland employed 2,135 people at the end of June, down from 2,236 in 2022.
Despite increased costs in some areas, expenses were still lower than the 12 months to the end of 2022, with LinkedIn reversing the impairment of its investment in subsidiary LinkedIn Representações do Brasil by $56.1 million.
The company’s tax bill for the year was $62.4 million, with it paying a higher rate than the standard corporation tax rate of 12.5 per cent due to its interest income being taxed at the higher rate of 25 per cent and other items.
“LinkedIn’s growth reflects more members, businesses and advertisers recognising the value of our platform, tools and professional community,” a spokesperson for the company said.
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“In Ireland, we now have over 3.5 million members, one of the most engaged bases globally. Members are turning to LinkedIn in record numbers, for professional community support, job searches, skills development and staying informed.”
The accounts also highlighted the Irish Data Protection Commission (DPC)’s decision to impose a €310 million fine on LinkedIn due to an alleged a violation of data privacy regulations. Microsoft previously said it set aside about €400 million for a potential fine, and has indemnified LinkedIn against all potential fines directed by the DPC.
The Irish-based business of LinkedIn manages the company’s operations in Europe, the Middle East and Africa.
LinkedIn has subsidiaries in Britain, Canada, India, France, Netherlands, Italy, Japan, Germany, Spain, the United Arab Emirates, Hong Kong, Singapore, Sweden, Brazil, Austria, Malaysia and Mexico.
