LinkedIn Irish unit revenues triple to €137.8m

REVENUES AT the main Irish unit of the world’s online largest professional network, LinkedIn, increased more than threefold last year to $166.6 million (€137.8 million).

New figures show that in spite of the sharp increase in revenues from $43 million to $166.6 million, LinkedIn Ireland’s pretax losses increased by 60 per cent from $4.8 million to $7.7 million in the 12 months to the end of December last.

In 2010 the California company established its international headquarters in Dublin and in March of last year announced the creation of a further 100 jobs in addition to the 70 existing jobs in Ireland.

LinkedIn has more than 160 million members in over 200 countries and the Dublin-based company has the non-exclusive licence to operate the LinkedIn business worldwide, excluding the US.

In returns just filed with the Companies Office, the directors’ report states: “We generate revenue from enterprises and professional organisations by selling our hiring solutions and marketing solutions offline through our field sales organisation or online on our website.” The revenues from the Irish unit accounted for 31 per cent of LinkedIn’s worldwide revenues of $522.2 million last year.

According to the directors’ report, “turnover is expected to continue to grow throughout 2012 and the company will continue to expand its operations in Ireland to support that growth”.

The accounts show cost of sales increased from $19.6 million to $73 million with its administrative costs increasing to $97.5 million from $28 million in the prior period of November 11th, 2009, to December 31st, 2010.

The company had a shareholders’ deficit of $2.2 million at the end of December last after accumulated losses of $12.6 million and a capital contribution of $10.3 million are taken into account. The figures show the company spent $875,054 on lease rentals for buildings during the year.

Employment at LinkedIn increased from 11 to 95 last year with 24 engaged in management and administration and 71 in sales, marketing and customer support. Employment costs increased from $1.28 million to $10 million. Directors’ remuneration increased from $160,789 to $228,768 and directors’ loss of office totalling $78,348 with the returns showing Kevin Eyres resigned as director on March 25th last.

The company owns LinkedIn subsidiaries in the UK, Canada, Australia, France, Holland and India and all of the companies are engaged in sales and marketing.

Accounts for a second LinkedIn Irish subsidiary, LinkedIn Technology, show it has made a pre-tax loss of $3 million after its revenues increased from $10.7 million to $41.6 million.

The company derives its income from royalty payments from LinkedIn Ireland and the directors say “turnover is expected to grow in 2012 as the royalty income receivable from LinkedIn Ireland Ltd will increase with the expected increase in LinkedIn Ireland Ltd’s turnover.”

In May of last year, LinkedIn’s share’s opened on the New York Stock Exchange giving the company a market value of $9 billion, with the value now at $10.6 billion.