Press releases | Archive 2006
Board adopts new strategy for RBC
Directors decided to divest the IT business, approved an Internet expansion strategy and gave the green light to launching the print version of the RBC Daily online newspaper
Moscow, September 12, 2006. - At a meeting last week, the Board of Directors of RBC Information Systems (RTS, MICEX: RBCI) decided to commence the divestment of the IT business operationally and organizationally. In the Board's opinion, this move will enable RBC to concentrate on the execution of its ambitious growth plans in the field of media, the core business of the company.
Directors also adopted a strategy for a wide-scale expansion of RBC's presence on the Internet. Its purpose is to take existing opportunities to access new online audiences and strengthen the company's leading position on the Russian Internet advertising market. In accordance with the approved strategy, RBC will continue making value-enhancing acquisitions and working on new projects in the field of non-business related Internet resources.
The company intends to accelerate growth, using its significant financial resources, advanced technologies and software solutions, unique managerial skills and experience in the implementation of quality Internet projects. For over a 10-year history of successful operations on the Internet market, RBC has formed a team of professionals possessing in-depth industry knowledge and set up a highly efficient sales force.
Commenting on the development of events, RBC Chairman and CEO German Kaplun said: "The Internet has been the most rapidly growing and highly lucrative media segment not only in Russia, but also in all other large countries. This unique medium attracts the most active groups of the population with above-average incomes and presents a significant interest to a vast number of advertisers." He added: "We are pleased with the current development of RBC's media business and confident that our growth initiatives will increase the company's long-term value."
The Board was informed that the existing business was progressing according to the plan and the earlier given guidance to the market was reconfirmed. In 2006, RBC is expected to receive total revenue of about $170 - 178m. This figure will consist of about $90 - 95m from media services (including about $30 - 35m from RBC TV), while revenue from IT services is seen growing to around $75 - 80m (including approximately $40 - 45m from two IT acquisitions). RBC has ample liquidity to finance its ambitious expansion plans.
In addition, the Board approved the launch of the print version of the electronic newspaper RBC Daily within the next month. It is a leading online resource dedicated to business news and analysis, covering a wide range of events in various branches of the Russian economy and providing news about the largest Russian companies. RBC expects the print version to substantially widen the readership of RBC Daily.