LinkedIn Ireland’s revenues increase to almost €5bn

Revenues at the main Irish unit of LinkedIn jumped more than 15 per cent to $5.3 billion (€4.97 billion) last year.

New accounts show that LinkedIn Ireland Unlimited Company recorded pretax profits of $99.5 million (€93.4 million), down 43.5 per cent amid higher costs. The business took a corporation tax charge of €21.75 million.

In a post balance sheet event, the firm paid out a dividend of $150 million.

The revenues generated by the Irish-based business would be the equivalent of 38 per cent of LinkedIn’s global revenues of $13.81 billion for the year up to the end of June 2022. The Irish accounts are for the year ended December 31st, 2022.

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Revenue increased “due to increases across all lines of business”, the directors said. Profits fell due to a significant increase in the cost of sales and administrative expenses including higher recurring intercompany charges from group undertakings and higher payroll costs due to a 25 per cent growth in headcount, they added.

LinkedIn has carried out two rounds of job cuts worldwide since May, cutting close to 1,400 jobs worldwide.

Numbers employed rose by 449 from 1,787 to 2,236 as staff costs increased from $294.2 million to $322.54 million.

Wages and salaries along with share-based payments totalled $278 million, showing that average pay to the 2,236 staff totalled $124,349 for the year.

The opening of One Wilton and part of LinkedIn’s regional EMEA+LATAM headquarters in Dublin added to the firm’s cost base last year with occupancy costs for One Wilton for 2022 amounting to $7.7 million.

In another post-balance sheet event, a note states that in April 2023, the Irish Data Protection Commission (DPC) issued a draft decision alleging EU GDPR violation and proposed a fine. In June, Microsoft said it set aside about €400 million for a potential fine.

The note states that LinkedIn’s ultimate parent, Microsoft, has indemnified the company against all potential fines directed by the DPC. The note states: “Accordingly, there is no financial impact on the company.”

The Dublin company’s shareholder funds last year decreased by $5.5 billion mainly as a result of a return of capital of $5.6 billion from the firm to its immediate parent firm, Microsoft Ireland Research UC.

The Irish-based business of LinkedIn manages the company’s operations in Europe, the Middle East and Africa.

The number of LinkedIn members last year increased at record levels rising by 90 million to 900 million across 200 countries in 26 languages.

The directors state: “This was achieved through continued investment on the LinkedIn platform and in marketing and advertising expenses.”

Cost of sales last year increased by 20 per cent from $2.74 billion to $3.28 billion and administrative expenses increased by 17 per cent from $1.7 billion to $2 billion while “other operating expenses” totalled $17.75 million.

The company 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.