Press releases | Archive 2005
RBC reports audited financial results for 2004
Moscow, August 12, 2005 - Today OAO RBC Information Systems (RTS, MICEX: RBCI), announced full-year financial results in accordance with IAS, based on the auditor's report prepared by KPMG for the year ended December 31, 2004.1.
Consolidated key figures
|$'000 000||2004||20032||% Change||% of Revenue 2004|
|Profit from operations||10,4||2,4||333||13|
2 - All comparatives as of and for the year ended December 31, 2003 have been recalculated by applying the official rate of the Russian Central Bank as at 31 December 2004.
Total revenue reached $79.7m in 2004, which is 55% percent more as compared to the previous year ($51.5m), driven by continued strong performance in the media and information technology (IT) sectors, successful development of the business television RBC TV and positive market trends. The company has considerably widened its scale of business, delivering total top-line growth of over 50% for the forth year running. As expected, RBC's consolidated net income recovered from the launch of RBC TV and surged 165% percent from $3.9m in 2003 to $10.4m in the period under review.
Revenue from the media business (excluding RBC TV) was $36.7m in 2004, an increase of 29% from $28.5m reported in the previous year, due to new product launches, increasing popularity of RBC's online resources and strong brand recognition. Revenue from TV advertising services demonstrated a significant growth of 186% from $6.0m in 2003 to $17.1m last year, driven by efficient marketing, substantial gains among the target audience and the quality of programs that allowed to attract many new advertisers. IT services delivered $25.9m in 2004, an increase of 53% compared to $17.0m in the previous year, as RBC continued to expand its orderbook, adding new contracts with Russian government institutions and large and medium-size domestic companies. The underlying media services accounted for 46% of the total RBC sales, with IT services bringing 32% and the remaining 22% coming from RBC TV.
The company's gross profit reached $26.4m in 2004, which is 53% more as compared to $17.3m in 2003. Profit from operations rose from $2.4m in 2003 to $10.4m in 2004. EBITDA increased 137% from $8.4m in 2003 to $19.8m in the period under review.
Outlook for 2005 (excluding anticipated acquisitions). RBC reiterates its forecast for 2005 and expects dynamic business expansion to continue based on existing contracts, successful performance of RBC's key brands and new product launches. Total revenue is projected to reach at least $98.0 million, consisting of $42.5 million from the underlying media business, $25.0 million from RBC TV, and $30.5 million from IT services. Consolidated EBITDA will be $29.4 million, and consolidated net profit will hit $22.0 million in 2005, including $2.0 million from RBC TV.
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.