VK swings to IFRS net profit of 41 bln rbl in Jul–Sep from net loss

MOSCOW, Nov 10 (PRIME) -- Russian Internet company VK posted a net profit of 41.197 billion rubles in July–September against a net loss of 2.354 billion rubles a year earlier, as calculated under International Financial Reporting Standards (IFRS), the company said on Thursday in a statement.

Revenue increased 21% on the year to 24.119 billion rubles thanks to a 29% rise of online advertising sales, VK said.

The sector’s main drivers were performance formats, up 71%, advertising revenue from small and medium-sized businesses that grew 128%, and video advertising revenue that rose 16%.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 16% to 9.807 billion rubles, and the EBITDA margin gained 3 percentage points to 30.6% “mostly due to expanding margins in the Communications and Social and EdTech segments.”

(61.0611 rubles – U.S. $1)

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