Mail.ru’s IFRS net profit dives 68.8% to 1.8 bln rbl in Oct–Dec

MOSCOW, Mar 4 (PRIME) -- The aggregate net profit of Russian Internet company Mail.ru Group plunged by 68.8% on the year to 1.768 billion rubles in October–December 2020, as calculated under International Financial Reporting Standards (IFRS), the company said on Thursday in a statement.

The aggregate segment revenue increased by 25% to 32.979 billion rubles. Aggregate segment earnings before interest, taxes, depreciation, and amortization (EBITDA) decreased 25.4% to 7.313 billion rubles.

For the full 2020 year, the aggregate net profit dove by 32.1% to 10.014 billion rubles. Aggregate segment revenue grew by 21.2% to 107.427 billion rubles. Aggregate segment EBITDA fell by 7.3% to 26.974 billion rubles.

Mail.ru Group said its social network VKontakte (VK) remains a key pillar behind its performance with revenues rising 17.2% on the year in October–December against 12.9% in July–September as the number of active advertisers on VK grew 30% on the year in October–December.

“Despite the pandemic and its largely advertising driven business model, VK revenues grew by 14.9% in 2020 to 25.4 billion rubles. Having grown revenues by 5x+ since 2014, it remains on track to double by the end of 2022 when compared to its 2018 revenue base of 18.4 billion rubles,” said Dmitry Grishin, chairman of the board, and Boris Dobrodeev, CEO (Russia).

As to the 2021 guidance, Mail.ru Group expects its revenue to rise by 18 to 21% to 127–130 billion rubles with an improvement in the EBIIDA margin.

(73.5187 rubles – U.S. $1)

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