VK paid 104 million rubles in excess profit tax – Kommersant

VK (MOEX: VKCO) at the end of 2023 transferred excess profit tax (windfall tax) in the amount of 104 million rubles, according to (.pdf) company reporting according to IFRS.

“The Group’s management has come to the conclusion that individual companies of the Group are payers of this tax. The group took advantage of the opportunity to reduce the tax amount by making a security deposit,” the report says.

Russian President Vladimir Putin signed the law on excess profits tax in August 2023. First Deputy Prime Minister Andrei Belousov claimedthat the initiator of the tax was the business itself. In January 2024, the Ministry of Finance reportedthat windfall tax revenues from business amounted to 318.8 billion rubles. instead of the 300 billion rubles initially expected by the department.

In 2023, VK increased revenue by almost 40%, to RUB 132.7 billion. The bulk of the revenue, 84.6 billion rubles, came from the segment of social platforms and media content (which includes VKontakte, Odnoklassniki, Zen and Novosti, as well as streaming services under the VK brand), followed by ecosystem services (mail and cloud Mail.ru, RuStore, VK Play). At the same time, VK’s debt burden is growing even faster – by 41.8%, to 139 billion rubles. by the end of the year.

Read more in the Kommersant article. “VK is stuck between debt and income”.

Erdni Kagaltynov