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Press releases | Archive 2013

RBC releases financial and operating results for Q1 2013

Key financial and operating results:

  • RBC's aggregate revenue climbs 21% year-on-year to RUB 1.2bn1;
  • Rbc.ru portal commands a strong lead in the Liveinternet.ru ranking of the largest websites in the News and Media category;
  • RBC launches new versions of Autonews.ru and Realty.rbc.ru websites in line with its program to upgrade online business resources;
  • RBC channel launches a new programming grid and opens a news bureau in New York;
  • The company adjusts the editorial policy of RBC daily newspaper and RBC magazine, and also redesigns RBC magazine;
  • RBC ranks third among media companies in the Forbes list of Russia's top 30 Internet companies.

Moscow, May 30, 2013 — RBC OJSC (MICEX-RTS: RBCM) hereby reports preliminary unaudited financial results and discloses operating performance in the first quarter of 2013.

"In the first quarter, RBC continued to strengthen its leadership as the largest business information media in Russia. During the first three months of the year the company launched new versions of several online business resources, upgraded RBC channel's programming grid, and improved the concept of its business print titles. These changes had a positive impact on audience ratings, as the core media resources expanded their outreach. RBC is carrying out a series of initiatives in line with a plan to improve online traffic quality and reposition RBC's entertainment online services. The key launches under this plan are scheduled for the second half of the year.

RBC's financial performance in the first quarter, with its traditionally low sales, fell just short of the 2013 budget. RBC management is confident that by carrying out an ambitious plan to improve its media projects, boost advertising sales efficiency, and develop additional monetization opportunities, including online services, the company will be able to deliver on its annual revenue growth and EBITDA targets," RBC's CEO Sergey Lavrukhin pointed out.

The company's financial results in Q1 2013

Million rubles Q1 2013 Q1 2012 Change
Revenue 1,201 994 21%
Internet 489 533 -8%
Advertising 395 435 -9%
Services 94 98 -4%
Domains and hosting 383 119 222%
Television 150 153 -2%
Print media 179 189 -5%
Business publications 65 69 -6%
Salon Press Publishing House 115 120 -4%
Operating expenses 1,273 1,075 18%
EBITDA -72 -81 11%

Revenue and EBITDA. RBC's total revenue rose 21% in the first quarter of 2013 compared to the same period of 2012, reaching RUB 1.201bn. Higher revenue is attributable to the domain registration and hosting division. Unlike RBC's media assets, which are subject to a seasonal factor in the advertising business, the business of Hosting Community group is stable throughout the year.

RBC's EBITDA increased 18% year-on-year to minus RUB 72m.

Internet. Internet revenue fell 8% in the first quarter of 2013 to RUB 489m. Revenue declined because key advertisers at RBC, who are focused on business audience, shifted their advertising campaigns from the beginning of the year to March and April due to low business activity of the target audience. RBC's business online resources, which are part of Rbc.ru portal and which were redesigned (RBC.Sport, RBC.Style, RBC.Nedvizhimost, and Autonews.ru), saw a rise in sales. RBC intends to re-launch several online resources by September, including the main page of Rbc.ru portal and thus complete a large-scale project aimed at overhauling its online business resources. A small reduction in Internet services revenue (by 4% to RUB 94m) resulted from work to upgrade the quality of traffic of RBC's non-business resources as part of their restructuring.

RBC's aggregate Russian audience totaled 20.3m unique users2 as of the end of March. The audience of Rbc.ru portal amounted to 10.5m users, up 5% year-on-year. RBC is the undisputed leader among news and business mass media in Russia3.

Domains and hosting. The revenue of Hosting Community surged 222% in Q1 to RUB 383m due to the consolidation of RU-CENTER and organic growth.

The company remained committed to launching new products, expanding its operations in the Russian regions, and participating in industry events during the reporting period. Specifically, RU-CENTER rolled out the placement of DNS records in cloud platforms in order to improve the reliability of servers during peak load situations and protect clients from DDoS attacks.

Television. RBC channel's revenue edged down 2% to RUB 150m in the first quarter of the year, due to the postponement of several advertising campaigns from the beginning of the year until April.

During the reporting period, the programming grid was supplemented with new analytical programs that cover key events in the world of corporate and business news (Stroeva.Business program), key financial news (Babich.Trend), most important social and political news (Vittel.Review) and top international news (Tamantsev.Highlights). In March, the channel also opened its own news bureau in New York, which provided RBC's viewers with real-time coverage of key events in the U.S. in relation to the situation in Russia. Consequently, RBC channel today is the most dynamic channel in Russia in terms of covering and analyzing economic, social and political news.

The channel's average monthly reach stood at 23.8m viewers in March (up 6% year-on-year), including 3.8m viewers in Moscow.

Print media. The revenue of RBC's print publications slid 5% to RUB 179m as a result of low advertising sales in RBC magazines in the months of January and February, and those losses were not recovered by rising sales in March.

In the reporting period, the frequency of industry-specific topical supplements to RBC daily newspaper was increased. The publication also launched a Lifestyle supplement on Fridays, as well as regular sports and real estate sections. There was also a change in the newspaper's editorial policy, which now places stronger emphasis on the newspaper's online version. As a result of such activity, the average daily readership of the print edition climbed 35% to 108,000 readers4 year-on-year, and the daily average audience of the online edition jumped 46% to 258,900 readers across Russia in March 2013. Thus, the print edition of RBC daily ranks second on the market and tops the rating list among online business newspapers.

In the first quarter, the company redesigned RBC magazine and changed its editorial policy. In Moscow, the average issue readership (AIR) went up 20% to 433,000 readers year-on-year. This increase allowed RBC magazine to strengthen its position as the market leader among the capital's business publications.

1 Financial results included in the press release are in line with RBC's management report.

2 According to TNS data.

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