Press releases | Archive 2007
RBC reports audited financial results for 2006
Moscow, September 3, 2007 - Today OAO RBC Information Systems (RTS, MICEX: RBCI), published full-year financial results in accordance with IAS, based on the auditor's report prepared by KPMG for the year ended December 31, 20061.
Consolidated key figures2
|$'000 000||2006||2005||% Change||% of Revenue 2006|
1Including RBC's IT business (presently OAO Armada)
2RBC consolidated financial statements for 2006 and preceding years are available at www.rbcinfosystems.com
The company outperformed its preliminary revenue, EBITDA and net profit figures as compared to the earlier announced preliminary results. Total revenue rose 79% from $119m in 2005 to $213 m in 2006, due to strong underlying growth in the Media and IT segments and contributions from acquisitions in the print media and system integration markets. In 2006, RBC continued enhancing its media market position by effectively offering premium news services to users and multiple advertising channels to clients. The company's top-line growth was also bolstered by the buoyant state of the Russian advertising market amid continued favorable macroeconomic situation in the country throughout 2006.
The company's gross profit doubled from $40m in 2005 to $80m in 2006. EBITDA went up 78% from $32m in 2005 to $57m in the period under review. Consolidated net profit increased 74% from $23m in 2005 to $40m in 2006, as sales continued to expand dynamically.
Full year revenue breakdown
|$'000 000||2006||2005||% Change|
|IT business (presently OAO Armada)||80||32||150|
3Consists of Internet advertising & subscription and marketing communications
Revenue from Media Services was $82m in 2006, which represents an increase of 34% from $61m reported in the previous year, thanks to strong sales in the Internet advertising branch, which was driven by both price and audience increases. Revenue from RBC TV advertising demonstrated a significant growth of 35% from $26m in 2005 to $35m in 2006, driven by continuing dynamic audience growth, expanding client base and increased utilization of advertising time.
In 2006, the company successfully entered the print media market by launching a monthly business magazine RBC and a print version of the daily business newspaper RBC Daily. RBC also acquired 60% in EDI S PRESS Holding, a leader in the design and construction publications niche. Revenue from the Print Publications branch amounted to $16m, including six months of sales from EDI S PRESS Holding.
RBC's IT business (presently OAO Armada) delivered $80m in 2006, an increase of 150% compared to $32m in the previous year, due to strong business expansion, solid synergies with the acquired firms and positive market dynamics.
Outlook for 2007. Based on the strong first quarter results, positive macroeconomic forecasts and ongoing media sector growth in Russia, RBC reiterates its outlook for 2007. Total revenue is estimated to reach about $166-180m. This figure is expected to consist of around $92-100m from Media Services (including $6-7m from new Internet sites and services), about $43-47m from RBC TV, and approximately $31-33m from print publications. EBITDA of the company's existing business is estimated to reach $55-62m (excluding investments in new projects). At a consolidated level, EBITDA is expected to amount to $28-37m (including the impact of investments).
The total revenue generated by OAO Armada is expected to increase to about $100-105m through organic growth in 2007.
Cautionary note regarding forward-looking statements
Some of the information in this press release may contain statements of future expectations and other forward-looking statements. These expectations are based on the management's current views and assumptions, and involve known and unknown risks and uncertainties. It is possible that the company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect the firm's future results, see "Risk Factors" in the company's latest Annual Report on www.rbcinfosystems.com. RBC assumes no obligation to update any forward-looking information contained in this document.