Twitter attributed a decline in second-quarter revenues to “uncertainty” surrounding Elon Musk’s on-and-off pursuit of the firm, as well as a decline in digital advertising spending.

The San Francisco-based business is seeking to enforce a $44bn sale to Musk in a Delaware court, following Musk’s effort to withdraw from the agreement earlier this month.

On Friday, when announcing statistics for the three months ending at the end of June, the social networking platform attributed a 1% decline in revenues to the uncertainty around the impending purchase.

Twitter attributed the lacklustre results to “advertising sector challenges associated with the macroenvironment” and “uncertainty due to the impending acquisition of Twitter by an Elon Musk affiliate.”

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According to information gathered by S&P Capital IQ, analysts had anticipated an increase to $1.3 billion. Twitter reported a 2% rise in constant currency income compared to the same time in the prior year.

In addition, costs and expenses have skyrocketed, increasing by 31% to $1.5 billion, with over $33 million spent on issues connected to the Musk acquisition in the second quarter.

During this time period, termination-related expenses totaled around $19 million. In addition to undergoing a restructuring, the company announced it will lay off a third of its talent acquisition staff at the start of this month.

The company’s net loss was $270mn, compared to a net profit of $66mn for the same time in the previous year.