TIMES.KY

Cayman Islands, Caribbeanand International News
Tuesday, Feb 07, 2023

OnlyFans profits boom as users spent $4.8bn on platform last year

OnlyFans profits boom as users spent $4.8bn on platform last year

OnlyFans has paid out more than $500m (£433m) to its reclusive owner in the last two years, as the British-based subscriber platform synonymous with pornography reported record profits.
Leonid Radvinsky, the site’s Ukrainian-American 40-year-old owner, is the sole shareholder in a business that has seen its profits boom, as users spent $4.8bn on the site last year.

The financial results mean OnlyFans is one of the most financially successful British tech start-ups in recent years, succeeding where other more mainstream companies have failed. The company’s latest accounts show pre-tax profits rose by 615% to $432m in the 12 months to September 2021.

The site acts as a marketplace for adult performers, who upload their own material and keep 80% of the revenue. The remaining 20% goes to OnlyFans and covers the cost of running the business, handling credit card processing, and providing a very healthy income for Radvinsky. He has been paying himself as much as $45m a month in dividend payments.

Despite OnlyFans’ best efforts to claim that its platform allows celebrities and musicians to monetise their social media following – and investment in its OFTV service – the site’s main attraction remains pornography. OnlyFans has 2.1 million registered “creators” who can sell content and 188 million registered “fans” who can buy videos or pay to message their favourite performers.

The business model cuts out the traditional pornography studios and allows creators to keep the vast majority of the revenue from viewers. However, this also requires them to take responsibility for their own marketing and requires a constant stream of new material for subscribers.

OnlyFans was founded by an Essex family in 2016, with Tim Stokely as chief executive and his ex-banker father Guy as a director. At various points both Tim’s brother and mother were both involved in the business.

The company only really took off after 2018, when they sold the site to Radvinsky, who had past experience of running pornography sites. The Stokelys remained as executives but cut their ties with the company at the end of last year.

OnlyFans’ accounts also show that the company has written down the value of Delivery Code Ltd, a company it bought from the Stokely family for £23.65m, to zero.

Although the vast majority of OnlyFans’ income arrives from customers based in the US, it remains registered in the UK and paid $88m to HMRC in corporation tax last year.

The site, which already requires users to verify they are over 18, could also benefit from UK government proposals to enforce age verification checks on wildly popular free porn sites such as PornHub.

The highly profitable company had just 61 employees last September, although it is expanding rapidly – and attracting scrutiny around the quality of its age checks in the process. Last year the company briefly faced the prospect of removing all porn from its servers after its banks threatened to cut payment processing services.

The banks eventually relented and the adult material survived but this helped prompt a change in leadership, which led to the appointment of former marketing boss Amrapali Gan as chief executive.

She said: “We are empowering creators to monetise their content and have real control over it. Our unwavering commitment to our creators has powered our success over the last 12 months.

“We will continue to invest in the creator economy by enhancing safety, developing original OFTV content, and continuing to grow our community of creators and fans.”
Newsletter

Related Articles

TIMES.KY
Close
0:00
0:00
2 earthquakes in Turkey killed over 2,300 people
Powerful Earthquake Strikes Turkey and Syria, Killing More Than 1,300 People.
Turkish photographer Ugur Gallenkus portrays two different worlds within a single image. Brilliant work
Tennessee Bill Would Imprison People for 3 Years If They 'Lie' About Rape to Get an Abortion.
Charlie Munger, calls for a ban on cryptocurrencies in the US, following China's lead
EU found a way to use frozen Russian funds
First generation unopened iPhone set to fetch more than $50,000 at auction.
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
Tesla reported record profits and record revenues for 2022
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Who’s Threatening Israeli Democracy?
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Tesla slashes prices globally by as much as 20 percent
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
Saudi Arabia set to overtake India as fastest-growing major economy this year 
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
UK chaos: Hong Kong emigrants duped by false prospectus
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Will Canada ever become a real democracy?
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Hong Kong to scrap almost all its Covid rules
EU calls screening of travellers from China unjustified
US imposes Covid testing for visitors from China
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
If a country is denied the right to independence by another, it is not in a union. It is in a dictatorship.
Where is Rishi? Chancellor Jeremy Hunt's excuses about the UK's economic challenges just don't make sense
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
×