The leading Russian internet company Mail.ru Group has announced its 2011 full-year financial results. Mail.ru Group reported total revenues of $515 million in 2011, up 59 percent from 2010, EBITDA of $283 million in 2011, up 137 percent from 2010, and net profit of $208 million in 2011, up 157 percent from 2010. Mail.ru Group is more profitable than than Yandex that reported net income of $179 million in 2011. Mail.ru Group profit margin is 40 percent vs. 29 percent profit margin of Yandex.
According to Dmitri Grishin, CEO of Mail.ru Group, its profit margin will grow to 50 percent in 2012. Mail.ru Group had cash of $154 million at the end of 2011. Perhaps, Mail.ru Group will use some of its cash to purchase one of the top Russian web startups to continue grow revenues at the same rates.
In 2011, Mail.ru Group‘s revenue split was as follows: Display advertising (29 percent), Contextual advertising (11 percent), MMO games (25 percent), Community IVAS (25 percent), and Others (recruiment, etc.) (10 percent).
Community IVAS or revenues from paid features and virtual items sold on Odnoklassniki and Moi Mir social networks, dating services and social games, were up 97 percent to $127 million. It’s the fastest-growing revenue segment for Mail.ru Group in 2011.
The monthly audience of Mail.Ru portal reached 30 million Russian users in December 2011, according to TNS Russia. The social network Odnoklassniki had 21 million monthly users, according to TNS Russia. The mobile instant messaging client software Mail.ru Agent had 23 million monthly users last December.
Mail.ru Group holds strategic minority equity stakes in social network VKontakte (39.99%) and instant payment provider Qiwi (21.35%) as well as small minority stakes in Facebook, Zynga and Groupon.
The Russian internet advertising market was valued at $1.4 billion in 2011, up 56 percent from 2010.