Revenue up, profits down at LinkedIn Ireland
LinkedIn has committed to leases worth €500m for its new Dublin based EMEA campus, according to new accounts filed by the professional social network.
The Microsoft owned company is developing a huge physical presence in Dublin city centre at Iput's Wilton Park scheme, where it has signed a 25-year lease on three buildings due to be completed by 2023 and already occupies a fourth.
Accounts recently filed with the Companies Registration Office show that in the year to the end of December, LinkedIn Ireland Unlimited made a profit after tax of $103m, down 54% on a year earlier.
This is despite revenues increasing by $483m driven by growth across all areas of the business.
In their report, the directors said operating profit decreased by $25m driven by an increase in administrative expenses.
The $122m in profit was also caused by a significant drop in interest income arising from a fall in interest rates and was also due to profit arising on the disposal of intellectual property to Microsoft Operations Puerto Rico, that was recorded in 2019.
The company paid just under $21m in tax for the year, giving an effective tax rate of a little under 17%.
LinkedIn failed to pay any dividend for the period in question, having paid over $200m in 2019.
However, the notes to the account reveal that this year, the firm has since declared a dividend of $250m is to be paid to its parent.
The accounts show that the number of employees rose 199 during the year to 1,810.
The company said it is not clear what the ongoing impact of the Covid-19 pandemic will be.
"The extent to which the Covid-19 pandemic impacts LinkedIn going forward will depend on numerous evolving factors which cannot be reliably predicted including the duration and scope of the pandemic; governmental, business, and individuals' actions in response to the pandemic; and the impact on economic activity including the possibility of recession or financial market instability," the directors said.
"These factors may adversely impact consumer and business spending on our products and services as well as customers' ability to pay on an ongoing basis."
In a statement LinkedIn said it achieved a number of significant milestones in 2020, with work continuing on its expanded Wilton Park development and the addition of nearly 200 staff.
"Our financial performance for the year included a 17% increase in revenue as economies recovered from the impact of the pandemic, with many organisations turning to LinkedIn to attract the best talent; advertisers leveraging our platform as a trusted way to reach business audiences; and members coming to LinkedIn in record numbers for support from their professional community, to acquire new skills, and stay connected," it said.