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Press releases | Archive 2012

RBC reports Q2 and H1 2012 financial results

Key financial and operating results for the second quarter:

  • RBC's total revenue is up 36% in Q2 year-on-year to RUB 1,503m1;
  • Consolidated EBITDA totals RUB 80m;
  • RBC strengthens its position in the online services segment by closing a deal on the acquisition of RU-CENTER and commencing integration with its own hosting business;
  • RBC's combined Internet audience surges 27% year-on-year to 61.2m unique users2;
  • RBC TV launches two new studios at The Ararat Park Hyatt Hotel and Moscow-City;
  • RBC TV's audience climbs 18% to 19.4m viewers in June;
  • RBC confirms its outlook for 2012: consolidated revenue is expected to rise approximately 30%.

Moscow, August 16, 2012 — RBC OJSC (MICEX-RTS: RBCM) hereby announces its unaudited consolidated financial results for the second quarter and the first half of 2012.

"During the second quarter, RBC continued to strengthen its leading positions on the Russian media market. The audience of the holding's key media resources increased. In April, we closed a major strategically important deal on the acquisition of RU-CENTER and launched its consolidation with RBC's hosting business. In the past quarter, RBC's senior management team was strengthened, which serves to improve the quality and increase monetization of our products.

RBC's revenue climbed 36% thanks to the effect of the new asset's integration into the group, as well as to the company's organic growth. EBITDA dynamics was in line with the historic trend and gives us reason to believe that RBC will be able to reach its 2012 profitability growth targets. Based on the results for the first half of the year, we look to the future with optimism and leave our forecast for the full year of 2012 unchanged," RBC's CEO Sergey Lavrukhin said.

RBC's revenue in Q2 2012

Million rubles Q2 2012 Q2 2011 Change
Internet 1,058 740 43%
Advertising 618 558 11%
Services 440 182 142%
including RU-CENTER3 176
Television 209 142 47%
Printed publications 236 225 5%
Business publications4 97 88 10%
Salon Press Publishing House 139 137 1%
Total revenue 1,503 1,107 36%

RBC's revenue in H1 2012

Million rubles H1 2012 H1 2011 Change
Internet 1,730 1,264 37%
Advertising 1,054 904 17%
Services 676 360 88%
including RU-CENTER 176
Television 363 256 42%
Printed publications 417 439 -5%
Business titles 165 173 -5%
Salon Press Publishing House 252 266 -5%
Total revenue 2,510 1,959 28%

Revenue and EBITDA. RBC's consolidated revenue climbed 36% year-on-year to RUB 1,503m in the second quarter of 2012 as compared to the same period in 2011. The increase in revenue is attributable to high advertising sales on RBC's business online resources and RBC TV, as well as to both the acquisition of RU-CENTER and strong organic growth of the company's online services. EBITDA totaled RUB 80m in the second quarter of 2012.

Internet. Internet revenue jumped 43% year-on-year to RUB 1,058m in the second quarter of 2012. The consolidation of RU-CENTER's financial results was the main driver behind the revenue expansion, along with organic growth of RBC's online services and advertising on the company's business resources. Revenue growth from advertising sales on entertainment resources slowed down in the second quarter due to the high base effect seen in Q2 2011. RBC's Internet revenue rose 37% year-on-year to RUB 1,730m in the first six months of 2012.

During the reporting period, RBC reinforced its online services business by acquiring a 100% equity stake in domain name registrar RU-CENTER for RUB 920.4m. RU-CENTER has become part of Hosting Community group of companies, which belongs to RBC. As a result, Hosting Community became the largest player in the Russian hosting industry with a market share of 30%-35% and now operates a major domain name registration business with a market share in the range of 60%-65%. The integration of this new asset into the holding and consolidation of its financial results got under way in the middle of April 2012.

In its online entertainment segment RBC continued to develop social media projects aimed at various consumer categories. For instance, Russia's leading online resource for children and teenagers aged between 8 and 14 years old Tvidi.ru, which is part of RBC group of companies, acquired Children.kulichki.ru website. The management of Tvidi.ru expects the combined monthly audience of the web resource to exceed 3m users by the end of the year, which would make it the largest children's portal on the Russian Internet.

In the course of a program to upgrade and expand content verticals on Rbc.ru business portal, RBC has relaunched a sports news section Sport.rbc.ru with a new design and content. Its monthly audience exceeded 4m users as of the end of June, according to RBC data, having climbed more than 2.5-fold year-on-year. RBC intends to launch several other themed sections on its business portal before the year-end.

RBC's combined monthly audience stood at 61.2m users as of the end of the second quarter, up 27% year-on-year, while the audience of Rbc.ru portal rose 24% to 18.8m users.

Television. RBC TV's revenue climbed 47% year-on-year to RUB 209m in the second quarter on a higher sell-out ratio amid growing audience numbers. For instance, RBC TV's sell-out ratio advanced 28% year-on-year, and the channel's audience expanded 18% to 19.4m viewers as of the end of June. In the first six months of 2012, RBC TV's revenue went up 42% to RUB 363m, up from RUB 256m in January-June 2011.

In order to promptly air commentaries of high-profile Russian businessmen, politicians, and experts, RBC TV has opened two new remote studios in The Ararat Park Hyatt Hotel and Moscow International Business Center (Moscow-City). Gearing up for a new TV season, the channel continues to improve its design and visual representation, and to renew its programming grid.

Printed Publications. Revenue from RBC's printed publications amounted to RUB 236m in the second quarter, up 5% year-on-year. After having slightly contracted in the first quarter, RBC's print business has thus resumed growth, which is expected to spill over into the second half of the year. The upsurge in revenue during the reporting period is mainly attributable to RBC's business magazines. Revenue from printed publications stood at RUB 417m in the first six months of 2012, as compared to RUB 439m in January-June 2011.

According to a TNS survey carried out between December 2011 and April 2012, average issue readership (AIR) of RBC daily newspaper amounted to 78,900 readers, up 9% year-on-year, while RBC magazine has reached an AIR of 976,600 people in Russia, and 344,000 in Moscow, up 1% and 5% respectively year-on-year. These results place RBC daily among the top three most popular business newspapers in Moscow, and rank RBC magazine as Russia's second most popular monthly business title and a leading business publication in Moscow. Idei Vashego Doma and Salon-interior magazines have also retained leadership positions in the interior design segment.

Outlook for 2012. RBC's financial results for the first half of the year give reason for the company to confirm its guidance: consolidated revenue growth is estimated at approximately 30%. Meanwhile, the operating costs are expected to rise at a slower pace.

Disclaimer

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 status 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. rbcholding.com. RBC shall not be responsible for updating any forward-looking information contained in this document.

1 Financial results (revenue and EBITDA) are provided in accordance with management accounts;

2 Hereinafter RBC's audience statistics are based on TNS' data unless another source is provided;


Press and investor contacts:
Egor Timofeev
Tel: +7 (495) 363-1111
Email: pr@rbc.ru
Web: www.rbcholding.com