Mail.Ru Group on August 22 presented an interim financial report for the first half of 2014. Net profit increased by 26.2%. Nevertheless, a significant complication of the economic situation and the geopolitical situation forced her to reduce the forecast revenue growth to 14-18% from 22-24%, which is already a serious blow to stock quotes online giant
Russian Internet giant Mail.Ru Group August 22, presented an interim financial report for the first half of 2014. According to published data, the second quarter 2014 total segment revenue grew by 18.8% compared to the same period last year. In total, during the first half of Mail.Ru Group revenue increased by 21.7% and amounted to 15,143 million rubles.
Net profit on international financial reporting standards (IFRS) for the first half 2014 increased by 26.2% – up to 6.276 billion rubles., a monthly audience of Mail.Ru portal in Russia in June 2014 reached 58.4 million users.
Chairman of the Board and CEO of Mail.Ru Group Dmitry Grishin official comment said that a significant contribution to growth indicators have games and user fees for social services (Community IVAS), which still remain within budget. In addition, Grishin noted the success of the project myMail, launched in November 2013, together with other services under the brand my.com. Most of the audience myMail are from the USA, followed by markets in the UK, France, Germany and Brazil. The product has become the most frequently downloaded an alternative e-mail client on devices running iOS and Android.
However, according to Grishin,
«a significant complication of economic conditions and the geopolitical situation “had a negative impact on revenues from advertising, especially from the media,” which in the second quarter decreased by 10% ».
« Also the macroeconomic situation has a negative impact on the company’s business HeadHunter ( which forms the bulk of other revenues), with the result that it has shown results below expectations, “- said Grishin. In addition, in the second quarter of the size of the revenue from MMO games negatively affected the attack on the game ArcheAge, as a result of which the users were able to get free access to pay bonuses.
The company does not expect an increase in demand for media advertising and improvements to the business HeadHunter soon. “Thus, we expect revenue growth to the end of 2014 will be 14-18%. At the same time, we continue to strictly control costs and intend to do so in the future. Therefore expect that the rate of return on the segmental EBITDA for the current year will be about 53% “, – concluded Grishin. Recall that in April Mail.Ru Group has forecast revenue growth at the level of 22-24%.
After the announcement of the financial results of the company’s quotes on the London Stock Exchange as at 12.00 Moscow collapsed by 11.8%, to $ 28.78 per share, capitalization has shrunk to $ 6.825 billion.
«Media advertising today as a whole is in not too good a position as the advertising market in principle. It is therefore expensive and less effective media advertising has become a victim of budget cuts, “- said” Gazeta.ru “analyst of the Russian Association of Electronic Communications Karen Kazeryan. According to him, the reports for the first quarter Mail.Ru noted a slowdown in advertising revenue, but now this trend has become apparent.
Mail.Ru seriously dependent on advertising revenue, as growth in the sector of online games and services can not replace a drop in advertising revenue. “That’s why the forecast income was changed downwards” – summed up the expert.
Established in 1998, Mail.Ru Group today is a leading player in the Russian segment of the Internet. Major shareholders Mail.Ru Group – structure businessman Alisher Usmanov, a South African holding Naspers and China’s Tencent, totally owning 60.34% of the capital. At the moment, apart from owning 51.99% of shares of “VKontakte”, the Internet giant also owns a 15.04% stake in the service of electronic payments Qiwi, as well as minority stakes in a number of Russian and Ukrainian Internet companies.
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