Home Studies and Forecasts in IT According to 2014 results, games and social services are the main points of revenue growth for Mail.ru Group

According to 2014 results, games and social services are the main points of revenue growth for Mail.ru Group

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Mail.ru Group continues to increase revenue in the games segment and user fees for social services, but revenue from media advertising is on the decline.
Mail.ru total revenue for the last year has grown by 14.8% (to 35, 778 mln rubles), EBITDA – by 13.5% (to 18, 297 mln rubles), total net profit – by 11.4% (to 12, 518 mln rubles). The social network VKontakte increased revenue by 12.9% (to 4, 319 million rubles) and EBITDA by 54.9% in 2014.
VKontakte’s revenue increased by 22.6% (to 1, 348 million rubles) in the fourth quarter of last year. Revenue from online advertising increased by 8.4% year-on-year (to 12.4 billion rubles). Multiplayer games brought in RUB 8.4 billion, up 26.4% year-on-year. Income from user fees for social services (IVAS) increased 16.2% (to 11.8 billion rubles). Other revenue grew by 8.3% to RUB 3 billion.
According to 2014 results, games and social services are the main points of revenue growth for Mail.ru Group
Dmitry Grishin, CEO of Mail.ru Group, noted that revenues from MMO games and user fees for social services generally remained as planned. The current "economic and geopolitical situation" still affects the profits from media advertising, as well as HeadHunter’s revenues. From Q2 to Q4 2014, media advertising revenue fell, but other revenue, including HeadHunter revenue, was up 5.4% in the second half of the year.
According to a Mail.ru Group press release, the stock option program, which was launched after the company went public, has been completed. The board of directors has approved a new long-term incentive program of "restricted stock units" (RSU – restricted stock units). The number of such shares will not exceed 5% of all issued shares. The vesting period is 4 years. The program itself will last until the end of 2022.

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