Losses widen at Web Summit to €5.6m despite rising revenue

Newly filed accounts show the tech conference paid €450,000 to media organisation the Ditch.com in 2023

Tue, 19 Nov, 2024 - 18:33

Emer Walsh

Web Summit, the tech conference business co-founded by entrepreneur Paddy Cosgrave, saw its losses widen despite an almost 14% rise in revenue, newly filed accounts show.

Manders Terrace Limited posted a pre-tax loss of €5.6m in 2023, down from a pre-tax profit of €326,489 the year before. However, the company posted record revenue of almost €60m in 2023, despite controversy that led to several companies pulling out before last year's conference in Lisbon.

The company said rising revenue was underpinned by a growing number of attendees and partnerships at Web Summit events, with total attendee numbers surging by 21% to more than 128,000, the company said on Tuesday.

In addition, Web Summit's partnerships rose by 37% to 725, the company said, with the number of start-up exhibitors at its events increasing by 58%, reaching a total of over 6,000.

Last year saw Web Summit host three major events; Web Summit in Lisbon, Collision in Toronto and the inaugural Web Summit Rio in Brazil. It also marked the company's entry into the Middle East with the launch Web Summit for the first time in Doha, Qatar.

Staff costs

Addressing the loss, Web Summit said staffing costs, which rose by €4.5m compared to 2022, was the key driver of its widening losses. In 2023, staff related costs increased by more than 20% to €26.9m, new accounts show.

"This significant increase of investment in staff – a key pillar of future growth – saw the company record earnings before interest, tax, depreciation and amortisation (Ebitda) of €0.3m and a pre-tax loss of €5.6m for 2023," Web Summit said.

"The accounts also show that the foundation for Web Summit’s rapid expansion and powerful performance into 2024 was laid during 2023, as the company invested in its team by adding nearly 50 staff – up 16% – to bring the total headcount to 331," it added.

The company's cost of sales also increased significantly in the year, reaching almost €29m which was up from €21.6m in 2023. Directors remuneration in 2023 also increased, rising by 14% to €4.2m.

Newly filed accounts also show that Manders Terrace Ltd paid news website the Ditch.com €450,000 in the year ended December 31 2023.

In November last year, the new board of Web Summit, formed following the resignation of Paddy Cosgrave as CEO, announced that it cut ties with the media organisation as it moved to focus on its "core mission."

Paddy Cosgrave, who owns 81% of the company, returned to the top role in April, just six months after he resigned following controversial comments he posted on social media about the war in Gaza.

The post, calling out western leaders and Israel's retaliation to the October 7th attacks, gained widespread backlash and led to several Web Summit partners pulling out before its 2023 event in Lisbon.

Despite last year's controversy, Mr Cosgrave said Web Summit managed to reach 128,000 attendees in three continents, with that growing even more in 2024 with the introduction of Web Summit Qatar.

Following a "record investment" in its team throughout 2023, the company said it has laid the foundations for a €4m plus profit forecast for 2024.

"While it took tremendous belief in our business to commit to the increased staffing levels and wages we saw in 2023, our performance during 2024 – for which we are forecasting a profit of €4-5m – makes that decision to aim high worth it," Mr Cosgrave said on Tuesday.

"In 2025 we plan to make significant new investments to lay the foundations for expansion through to 2030, including key hires in new markets."

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