Revenue in the third quarter amounted to 13.6 billion rubles, which is 39.1 per cent higher than a year earlier
Moscow. 27 Oct. INTERFAX – Revenue Mail.ru Group in the third quarter amounted to 13.6 billion rubles, which is 39.1 per cent higher than a year earlier, it said in a statement. As indicated in the company’s record over the past five years revenue growth.
“As before, we believe that, thanks to our position, ongoing structural changes in the advertising market have a positive impact on our revenues. Also we are pleased with results of our games. We remain confident that our initiatives in the field of e-commerce huge potential,” – said in a statement.
EBITDA for the accounting period increased by 1.1% to 4.3 billion rubles. The EBITDA margin decreased to 31.4% from 43.2% a year earlier. Net profit decreased by 0.5%, to 2.9 billion rubles
Revenue Mail.ru Group has exceeded the expectations of analysts polled by “Interfax”. Analysts had expected revenue to grow by 34.5 percent, to 13.14 billion rubles. However, EBITDA was slightly below the forecast of analysts, who had expected his level to 4.73 billion rubles in EBITDA of 36%. Analysts estimated net profit Mail.ru at an average of 3.13 billion rubles.
The main part of the company’s revenues traditionally provided advertising. The revenue of this segment grew by 32.5% compared to the same period last year and amounted to 5.8 billion rubles. As before, the most actively growing revenues from advertising in the news feeds of social networking, video and mobile advertising. The redistribution of advertising budgets in favor of online advertising, especially mobile, continues the group shows.
Revenue from MMO games increased by 82,8%, to 4.4 billion rubles. The company notes that the share of foreign revenue provides about 56% of the total segment revenue. The company has planned a series of launches for the fourth quarter and is preparing a busy schedule of releases in 2018.
The segment’s IVAS (user fees for social services) shows a positive trend, after several years of stagnacy. Revenues in this segment increased by 6.7%, to 2.9 billion rubles. However, the company indicates that despite the opportunities in the field of new mobile products, the proportion of IVAS in total revenue will decline.
In the third quarter of the potential of the business generating positive cash flow remained at the same level, and cash flow in line with expectations, says the company. The net cash balance at the end of September amounted to 9.7 billion rubles.
“In the past year, we made a number of acquisitions. They all fit into our core strategy and the range of mobile products, but also have great potential. As the financial position of the company remains stable and cash flow is stable, we will continue to explore further acquisitions of such scale”, – noted in the company.