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Press releases | Archive 2012

RBC reports financial results for Q1 2012

Key financial and operating results:

  • RBC's total revenue rises 18% in Q1 2012 as compared to Q1 2011 and reaches RUB 1.01bn;
  • RBC TV shows the highest revenue growth rate of 34% reaching RUB 153m;
  • Revenue of RBC's online resources and services surges 28% to RUB 673m;
  • RBC.ru remains absolute leader among business online media in Russia1;
  • Monthly audience of QIP.ru is up 87% to 44.6m users2 in March;
  • RBC acquires a stake in KuponGid, one of the largest coupon aggregators in Russia and Ukraine (www.kupongid.ru);
  • RBC remains actively involved in developing its mobile Internet business by releasing a number of new mobile applications;
  • RBC TV's audience in Russia reaches a new historic high of 22.4m viewers3 in March;
  • RBC enters into an agreement with Mostelecom on expanding RBC TV's technical penetration in Moscow to 100%;
  • RBC's outlook for 2012: consolidated revenue is expected to rise approximately 30%;

  • RBC's Board of Directors resolved to designate Sergey Lavrukhin as the company's new CEO during a meeting on April 13.

Moscow, May 15, 2012 — RBC OJSC (MICEX-RTS: RBCM) hereby announces its unaudited consolidated financial results for the first quarter of 2012.

"During the first quarter RBC remained focused on developing online resources and services, as well as RBC TV. RBC's consolidated revenue climbed 18%, which is a positive result, taking into account seasonality of media market's sales, which is specifically pronounced for business media. Nevertheless, our online business and RBC TV made a good start, and we expect this positive trend to persist throughout the year, provided that favorable conditions on the advertising market and general macroeconomic stability prevail. We expect the company's consolidated revenue to rise some 30% in 2012," RBC's CEO Sergey Lavrukhin said.

"The company intends to launch several new in-house developed projects in its business and mass Internet segments, and also to make a number of minor acquisitions. An important goal will be to complete the deal to merge Russia's largest domain name registrar RU-Center with RBC's hosting business. The company will also continue expanding RBC TV's content and will implement a number of minor improvements in the channel's technological platform," Sergey Lavrukhin added.

RBC's revenue in Q1 2012

Million rubles Q1 20124 Q1 20114 Change (%)
Internet5 673 525 28%
Advertising 435 346 26%
Services 238 179 33%
Television 153 114 34%
Printed publications 181 214 -15%
Business publications6 68 85 -20%
Salon Press Publishing House 113 129 -12%
Total revenue 1,007 853 18%

 

Revenue and EBITDA. RBC's total revenue climbed 18% year-on-year to RUB 1.01bn in the first quarter of 2012. The increase in revenue is attributable to strong demand for advertising on RBC's online resources, higher revenue from the company's online services, and increased monetization of RBC TV due to growing audience ratings. The upturn in revenue was also due to an increase in cost of advertising in all segments in 2011.

 

EBITDA totaled RUB -118m4 in the first quarter. The negative EBITDA is attributable to seasonal fluctuations in the advertising business. The company strives to lower its dependence on seasonal fluctuations of the advertising market and intends to bolster the share of online services in its revenue.

Internet. Internet revenue rose 28% year-on-year to RUB 673m in the first quarter of 2012. The upsurge in revenue was attributable to high advertising sales on both business and entertainment resources of RBC, as well as to a substantial increase in revenue from Internet services.

RBC remains the largest business and news content provider in Runet. According to TNS, monthly audience of RBC.ru reached 19.9m users in March (+9% y-o-y). An entertainment portal QIP.ru continued strengthening its positions on the market, with its audience surging 87% year-on-year to 44.6m users per month as at the end of the first quarter, according to Liveinternet.ru.

RBC rolled out a number of applications for mobile devices in the reporting period. These include RBC Loans Android app, which enables a user by setting the required parameters to choose any type of a bank loan from the offers available on the market at the moment and to calculate the payment schedule on the loan. RBC has also launched Utro.ru news website apps for iPhone and Android and RBC Sport Android app, which provides convenient access to the content of sport.rbc.ru website.

In March, RBC acquired a 33% stake in KuponGid (www.kupongid.ru), which is a leading coupon aggregator in Russia and Ukraine. The value of the deal, including investments in project development, amounted to $0.5m. RBC has an option to increase its ownership in the service to 73% over the course of two years as part of the agreement it concluded. KuponGid has already been integrated into RBC's non-business resources. Additionally, the company will continue developing mobile applications for the service. It has issued KuponGid apps (iSkidki) for iOS, Android, and Bada.

Television. RBC TV's revenue surged 34% to RUB 153m. The growth rate outperformed the average market rate7, which reflects a significant expansion in the viewer base resulting from the sweeping upgrade of RBC TV in 2011. The above-mentioned upgrade program advanced the channel to a new level in terms of audience coverage. RBC TV's monthly audience in Russia stood at above 20m viewers during the first three months of this year. In March, the audience amounted to 22.4m viewers, rising 28% year-on-year, while the number of daily viewers jumped 33% to 3.5m people in the same period. The channel's monthly audience in Moscow rose 24% year-on-year to 5.7m viewers.

To further boost RBC TV's audience in Moscow, which is the most important region in terms of advertising sales, RBC entered into an agreement with Moscow cable television network operator Mostelecom in a bid to expand its penetration in the capital. As a result, RBC TV's penetration in Moscow is set to reach 100% and the channel will become available to over 3m households serviced by Mostelecom.

Printed Publications. Revenue from RBC's printed publications amounted to RUB 181m, down from RUB 214m a year ago. The drop in revenue resulted from low advertising activity of clients and a poor market environment in the printed publication segment in the first quarter. All of RBC's key titles have high audience ratings, which gives reasons to expect an upturn in their revenue during the year.

In particular, RBC daily remains among the top three business newspapers in Moscow, while RBC magazine is No. 2 popular business monthly in Russia and a leader among Moscow business titles. RBC daily is among the top five most quoted newspapers by TV and radio and RBC magazine became the most quoted monthly publication by radio in March. The magazines Idei Vashego Doma (Ideas for Your Home) and Salon-interior also retained their leadership in Russia's interior design publications segment.

Outlook for 2012. RBC expects its consolidated revenue to go up about 30% in 2012. The company's costs are projected to increase at a slower pace than its revenue.

Disclaimer

Some of the information in this press release may contain statements of future expectations and other forward-looking statements. These expectations are based on the management's current views and assumptions, and involve known and unknown risks and uncertainties. It is possible that the company's actual results and financial status may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect the firm's future results, see "Risk Factors" in the company's latest Annual Report on www.rbcholding.com. RBC shall not be responsible for updating any forward-looking information contained in this document.


1 Liveinternet.ru rating of sites, "News & media" category, for the last 31 days, as of May 14, 2012.

2 Liveinternet.ru data

3 TNS data

4 Financial results as calculated in accordance with management accounts.

5 Online advertising, services, and marketing communications.


Press and investor contacts:
Egor Timofeev
Tel: +7 (495) 363-1111
Email: pr@rbc.ru
Web: www.rbcholding.com