VK increased advertising revenue by 28% in the second quarter

The company’s total revenue increased by 11%, amounting to 32.8 billion rubles. Total adjusted revenue grew by 4% year-on-year to 31.1 billion rubles.

Net profit amounted to 3.6 billion rubles. VK’s adjusted net loss amounted to 3.4 billion rubles, this is due to the effect of currency exchange differences. VK’s Adjusted EBITDA fell 37% year-on-year to RUB 4.2 billion. The company explains the reduction in EBITDA due to an increase in personnel and marketing costs.

“Given the heightened level of macro and geopolitical uncertainty, the company has so far refrained from making forecasts,” the holding company said in a statement.

VK revenue by segments

“Social networks and communication services”: 23% year-on-year growth to RUB 17.4 billion. Adjusted revenue: 22% growth to RUB 17.2 billion. VKontakte provides the main source of income.

VKontakte’s average monthly audience grew by 5.5%, reaching 75.7 million users, the average daily audience grew by 4.5% to 49.1 million users. “VK Video” in the second quarter reached 2.35 billion views per day.

The number of new OK user registrations grew 35% year over year. OK’s average monthly active audience in Russia in the second quarter was 37 million people.

“Games”: revenue decreased by 5%, amounting to 10.4 billion rubles. Adjusted revenue decreased 17% to RUB 9.2 billion.

“Education”: income increased by 30% – up to 2.6 billion rubles. Adjusted revenue grew 4% year over year to RUB 2.3 billion.

“New Initiatives”: adjusted revenue decreased by 9%, amounting to 2.5 billion rubles due to the transfer of accounting from recommendation systems of this segment to social networks and communication services. As part of this segment, VK Play, RuStore, VK Messenger and VK Calls and VK Clips applications were released. Revenue from B2B projects in this segment exceeded one billion rubles, 43% more than in the same period last year.