Thursday, February 26, 2015

Mail.ru Group expects to increase mobile and video advertising – Bulletin

Sales Mail.ru Group increased by 14.8% in 2014 to 35.8 billion rubles., EBITDA increased by 13.5% to 18.3 billion rubles., Net profit ?? 11.4% to 12.5 billion rubles., published today follows from the statements of the company. In the annual accounts were fully consolidated financial performance of the social network « In Touch”, control over which the group has received in the autumn of 2014 Revenue « In Touch” in 2014 has grown HB 12.9% to 4.3 billion rubles., EBITDA ?? by 54.9% to 1.6 billion rubles. Revenue growth « in contact” in the IV quarter of 2014 amounted to 22,6% ( 1,3 bln.)

Revenue Mail.ru Group was higher than the forecasts of analysts polled by « Interfax”: they expected it is not the level of 32.4 billion rubles.

In the II half of 2014 Mail.ru Group revenue increased by 10.2% compared to the same period in 2013, says CEO Group Dmitry Grishin. According to him, without taking into account the data « In Touch”, on the basis of the Group’s revenues would have grown by 15%.

« During the year, our revenue from MMO-games, and user fees for social services ( Community IVAS) still remained largely within budget, quoted in Mail.ru Group Grishina words. However, the economic and geopolitical situation continued to affect the size of our revenues from advertising and the company’s business HeadHunter. As in the first half of the year, these factors have a negative impact on our revenues from advertising, especially from the media, where we observed a decrease in the fourth quarter, as in the previous two, “he said.

Earlier Mail.ru Group reports that in II and III quarters of 2014 its revenues from display advertising decreased by 10% on a quarterly basis. In 2015, focus on the development of mobile and video advertising, Grishin promised.

He also said that in 2015 Mail.ru Group began experimenting with monetization myMail ?? mail service running group for a foreign audience. This application, according to Grishin, in the IV quarter of 2014 was the most frequently downloaded an alternative e-mail client on the IOS and Android in the world. MyMail daily audience was more than 1 million users in January 2015, the monthly ?? more than 2.5 million.

Grishin also said that the company HeadHunter remains part of Mail.ru Group. Autumn group reported that sells HeadHunter Fund « Elbrus Capital” for 10 billion rubles. However, according to Grishin, the deal has not yet been completed and the « with respect to its closure there is uncertainty.” The problem he did not disclose.

Grishin recognizes that market conditions remain challenging, making it difficult to forecast. « With this in mind, we do not expect an increase in demand for media advertising and improvements to the business HeadHunter in the short and medium term. However, we see opportunities in mobile advertising and video advertising, as well as in our gaming business, “he said.

« Taking into account the market situation and the possibility of forecasting at the moment, we expect revenue growth at the end of 2015, including ?? In touch ?? HeadHunter and on a comparable basis, 7% -12%, “said Grishin. He expects the decline in profitability in 2015 to 46-47% due to high foreign exchange risk.

Net debt Mail.ru on December 31, 2014 amounted to 16.9 billion rubles. ( not including interest receivable in the amount of 147 million rubles.).

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