Press releases | Archive 2013
RBC releases financial and operating results for Q2 and H1 2013Key financial and operating results for the second quarter:
- RBC’s aggregate revenue climbs 5% year-on-year to RUB 1.5bn1;
- EBITDA surges 49% to RUB 109m;
- RBC is preparing to re-launch the main page of Russia’s largest business website Rbc.ru in September;
- RBC launches a new RBC News app for mobile devices and tablets and starts to monetize it;
- RBC phases in a regional version of Rbc.ru in Tatarstan, and is nearing completion of talks with partners in several other regions of Russia;
- RBC launches Relax.ru, a new entertainment online project;
- Hosting Community group of companies becomes a party to the acquisition of Reggi Business (Reggi.ru) domains registrar;
- The company continues its content update of RBC television channel and is bringing it closer to the streaming news broadcasting format;
- 2013 forecast: revenue growth is estimated at approximately 20%.
Moscow, August 16, 2013 – RBC OJSC (Moscow exchange: RBCM) hereby reports preliminary unaudited financial results and discloses operating performance in the second quarter and first half of 2013.
“In Q2, RBC’s financial results improved compared to Q1 in all business segments, both in terms of sales and business profitability. A key factor contributing to RBC’s growth was the projected hike in activity of company-specific advertising clients. Based on our negotiations with clients, we expect a significant increase in demand for advertising starting in September, and, therefore, in autumn we plan to raise the cost of placing advertisements for the most popular advertising formats on our business platforms. Meanwhile, RBC continues working to improve its business efficiency by optimizing operating costs.
In terms of developing media products, we focused our efforts on the new design and structure of Rbc.ru home page and the business portal’s regional expansion, as well as on developing new entertainment Internet projects and mobile applications, and content update of the TV channel. In the domain names registration and hosting division, we continued to expand the client base and the range of value-added services,” RBC’s CEO Sergey Lavrukhin pointed out.
The company's financial results in Q2 and H1 20132
|Million rubles||Q2 2013||Q2 2012||Change|
|Domains and hosting||358||317||13%|
|Salon Press Publishing House||128||132||-3%|
|Million rubles||H1 2013||H1 2012||Change|
|Domains and hosting||741||435||70%|
|Salon Press Publishing House||242||252||-4%|
Revenue and EBITDA. RBC’s total revenue rose 5% in the second quarter of 2013 compared to the same period of 2012, reaching RUB 1.5bn. Higher revenue is attributable primarily to an increase in RBC television channel’s advertising revenue, as well as the organic growth of the domains and hosting division. In the first six months, the company’s total revenue went up 11% year-on-year and reached RUB 2.7bn.
Thanks to successful measures aimed at restricting operating costs as part of the program to boost business efficiency and profitability, EBITDA surged 49% to RUB 109m in Q2 in year-on-year terms. RBC’s EBITDA amounted to RUB 57m in H1.
Internet. The revenue of RBC’s Internet division slid 7% to RUB 654m in the second quarter of 2013. While revenue from online services inched up 3% to RUB 90m in the reporting period, revenue from advertising sales went down 8% to RUB 564m. At the same time, the dynamics of this indicator improved compared to Q1 due to an increase in advertisers’ activity, and it is projected to continue to advance due to higher demand for advertising placement on RBC’s resources in September-December 2013. In the first six months of the year, RBC’s revenue in the Internet segment stood at RUB 1.1bn.
In the reporting period, RBC continued designing a new layout of the main page of Rbc.ru which will be overhauled in September. The company also launched a regional version of its portal in Tatarstan, which features the content of the federal website Rbc.ru along with integrated local news from the company’s partner in the region. Shortly after the launch, the local version of the portal secured a leadership position in the region among online business media. RBC plans to ensure the presence of Rbc.ru in all of Russia’s cities with the population exceeding 1 million residents.
RBC phased in a new mobile application RBC News for smartphones and tablets for iOS and Android platforms. The application ranked among top 10 most popular applications and currently holds a leading position in the News category in App Store. A number of large car makers were among the first advertisers of the revamped application. The company also launched a new application of Loveplanet dating service for iPad during the reporting period. The application is ranked among the most profitable applications in the Social Networks category in App Store.
In April, RBC launched Relax.ru that incorporates Ziza.qip.ru entertainment website and a resource on gadgets and technology Creep.ru. The project’s key attribute is its focus on personalized content: it aims to adjust to its user by featuring products in accordance with the user’s interests. The company expects to integrate other completely overhauled entertainment resources from Qip.ru portal group in this project by the end of the year. As of the end of June, the aggregate audience of Relax.ru totaled 1.4m users per month. Lexus and Philip Morris were among the first advertisers to enter the project. RBC plans to launch Relax.ru mobile applications in the near future.
RBC’s aggregate audience totaled 45.3m unique users in June3 . RBC is the leader among news and business mass media in Russia4.
Domains and hosting. The revenue of Hosting Community group of companies rose 13% to RUB 358m in Q2 due to the organic growth of revenue from services rendered. RBC’s revenue in the domains and hosting division amounted to RUB 741m in January-June 2013, up 70%.
In the reporting period, the company carried out preparatory work aimed at stipulating an exclusive agreement with My-apps.com, a company that designs mobile applications. As a result of this cooperation, the clients of Russia’s largest domain name registrar RU-CENTER are now able to develop mobile applications for any purposes quickly and without great start-up expenses. Moreover, RU-CENTER’s representative offices were opened in Australia and Germany in late June – early July. Another office is planned to be opened in Asia before the end of the year. As part of its strategy aimed at client base expansion, in early July, Hosting Community announced its participation in the deal on the acquisition of 100% in Reggi Business LLC, which provides services under Reggi.ru trademark. The deal is expected to be completed within a month and will be financed using Hosting Community’s own funds. The company will become the third ICANN accredited registrar within Hosting Community. Following the completion of the deal, the aggregate share of domain names serviced by Hosting Community group companies will reach 48.6% in .RU zone, 54.6% in .РФ zone, and 64.1% in .SU zone. The aggregate share of the hosting business on the Russian market will reach 27.4%.
Television. RBC channel’s revenue climbed 29% to RUB 271m in Q2, due to among other reasons the postponement of some of the advertising budgets from the first until the second quarter. The channel’s revenue reached RUB 422m in the first half of 2013, 16% higher than in the same period of 2012.
In the reporting period, the company pursued its goal of upgrading the channel and bringing it to live news stream broadcasting. Specifically, certain programs and productions were shut down, and a unified news service was established, which allows the company to form content depending on the importance of events and make timely changes to the channel’s programming grid. As a result, RBC channel was able to provide its audience with business news and information in a more efficient manner. The number of guests on live shows went up, and the programming grid was expanded thanks to the launch of new programs: Made in Russia with Nikolay Velichko and Russia’s Transport, as well as ForumDrive and ForumLive during the St. Petersburg economic forum. Among the company’s immediate plans is revamping its day-time program with the view of making it more convenient, for example, for watching in offices without sound. Specifically, RBC plans on introducing more captions and infographics.
The average monthly reach of RBC channel increased 13% to 21.9m viewers in June, and the average daily reach climbed 9% to 2.9m viewers.
Print media. Regardless of the general market trend, the revenue of RBC’s print publications inched up 4% to RUB 238m in the second quarter due to an increase in advertising sales in business print publications, a trend that became apparent in March of this year. It is attributable to the strengthening of RBC daily newspaper and RBC magazine’s positions on the market. The total revenue of RBC’s print publications in H1 amounted to RUB 416m.
As a result, the average issue readership (AIR) of the print version of RBC daily surged 39% to 109,800 readers , and the average daily audience of the online edition (Rbcdaily.ru) jumped to 206,400 readers5 in June 2013. Thus, the print edition of RBC daily strengthened its position as the second on the market among daily publications and it tops the rating list among online business publications. In Moscow, the AIR of RBC magazine went up 24% year-on-year to 425,800 readers, allowing the magazine to retain its leadership among business publications in the capital. The audience of the magazine in Russia reached 1.1m readers (+9% yoy).
2 Financial results do not include the performance of RBK Money payment system (sold in 2012).
3 Audience statistics in the press release are provided in accordance with TNS data.
4 According to Liveinternet.ru as per total audience.
5 The audience of print publications is given for the period December 2012-April 2013.