Mail.ru Group started making good money on Vkontakte



    The purchase of the Vkontakte social network began to bring money to Mail.ru Group. So, for the first half of 2015, about half of the group’s total revenue came from a social network. For half a year, the revenue of the entire Mail.ru Group increased by 6.9% compared to the same period last year, Vedomosti writes . But the revenue of Vkontakte for the same period increased by 34%. In addition, in the second quarter, revenue growth of the social network was even more active, and amounted to 41.4%. Unfortunately, the quarterly revenue dynamics of the Mail.ru group was not provided.

    According to Otkritie Kapital analyst at Alexander Vengranovich, if not for the social network, then the growth of Mail.ru Group’s total revenue in the first half of the year would not exceed 3%. In fact, the group’s advertising revenue showed the most active growth among all other companies. So, only in the second quarter of this year, revenue grew by 15%, reaching 3.4 billion rubles. And the general market expenses for online advertising in the domestic market grew by only 11% (to 23.7 billion rubles). For comparison, it’s worth showing Yandex’s advertising revenue, which increased by only 13%.



    Analysts at VTB Capital show that the social network has increased EBITDA margin, not just revenue. Now this figure is 47.3% now, while in the first half of the year it was 34.4%. Approximately 50% of the increase was provided by the purchase of a data center from ITSVA LLC, followed by a reduction in costs - previously the company paid a rather high rent. Recall that the data center was purchased from Pavel Durov for 919 million rubles.

    Vengranovich believes that Vkontakte’s revenue growth will continue, as previously this social network was not monetized too actively. The main source of revenue for the company is advertising and user payments.

    According to Mail.ru Group, the total transaction amount for the acquisition of Vkontakte amounted to about $ 2 billion.

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