Mail.ru expects 2021 income to succeed in $ 1.75 billion after COVID catalyst, Telecom Information, ET Telecom
Russian web group Mail.ru expects its income to succeed in round $ 1.75 billion in 2021, as demand for on-line companies will increase as a result of COVID-19 pandemic.
Mail.ru on Thursday reported 2020 income of 107.4 billion rubles ($ 1.5 billion), barely greater than the corporate’s forecast. Web revenue fell 32.1% year-on-year to 10.0 billion rubles because it invested closely in video games and companies corresponding to on-line training, meals supply and digital commerce.
Coronavirus well being restrictions protecting folks at residence helped on-line markets in 2020. Mail.ru, which owns the favored social media web sites Vkontakte and Odnoklassniki, generates most of its income from promoting and video games.
Fourth-quarter web revenue fell 68.8% year-on-year to 1.77 billion rubles, whereas revenue earlier than curiosity, taxes, depreciation and amortization (EBITDA) decreased by 25.4 % to 7.31 billion rubles as a result of funding in video games and different models, the London mentioned a listed firm.
It expects its EBITDA margin to extend in 2021 and its turnover to succeed in 127-130 billion rubles.
“We now have invested closely in all consolidated firms to make the most of the acceleration of on-line penetration … the pandemic has performed a serious catalytic function on this regard,” CEO Boris Dobrodeev mentioned in a press release.
Mail.ru’s promoting enterprise recovered from a extreme blow at first of the pandemic, and promoting income rose 10.2% year-on-year within the fourth quarter.
The corporate has expanded its gaming phase. In February, its My.Video games unit agreed to speculate $ 1.5 million in US studio Pizza Membership Video games.
Mail.ru competitor Yandex, Russia’s largest web firm, mentioned in February that it plans to spend $ 400-500 million on an e-commerce marketing campaign this 12 months to assist annual income develop to $ 305 million. 320 billion rubles.