VK’s revenue grew by 36% in the first half of the year – Kommersant

VK’s revenue in the first half of 2023 amounted to RUB 57.3 billion. according to international financial reporting standards (IFRS). It grew by 36% compared to the same period last year. The total loss decreased from 53.5 billion to 8.8 billion rubles, adjusted EBITDA amounted to 3.9 billion rubles.

Results under IFRS are given in press release VK. The company claims that the average daily audience of its services in the second quarter was 76 million users, an increase of 16% compared to the second quarter of 2022. They spent 4% more time in services – an average of 3.3 billion minutes per day.

It is alleged that at the end of June, “Users of VK services make up more than 95% of the monthly audience of Runet.” Separately, it is reported that the average monthly audience of VKontakte grew by 12% (84.6 million users). The audience of the Zen platform, which was acquired in September 2022, amounted to 32 million users. More than 22 million accounts were registered in VK Play, the monthly audience was 11.5 million, the average monthly audience of RuStore was 10 million. 2.2 times more smart devices were sold to end users.

“The company has actively invested in product development and content, as well as in working with authors. In addition, the high demand for educational services and technologies for business from VK remains the most important driver of growth,” the company said in a statement.

The company explains the growth in revenue with online advertising, which increased to 35.1 billion rubles. (+51%). The press release notes that “performance formats” grew by 39% year-on-year, revenues from the medium and small business segment increased by 52%. Profitability in the Educational Technologies and Technologies for Business segments improved by 3.5 and 26.3 percentage points, respectively. Loss reduction is explained, among other things, by the restructuring and optimization of VK assets.

About the change in the top management of VKontakte – in the material “Kommersant” “VKontakte will be handed over on command”.

Leonid Uvarchev