For the first time since 2000, the state holding VGTRK showed a loss at the end of the year, Vedomosti reports. At the same time, 2014, the publication clarifies, became unprofitable for all three of Russia’s largest television holdings

View of the building of the All-Russian State Television and Radio Broadcasting Company (VGTRK) in Moscow (Photo: RIA Novosti)

The largest state media holding, VGTRK, ended the year with a loss for the first time since 2000, Vedomosti writes , citing data from SPARK-Interfax. The past 2014, the publication clarifies, became unprofitable for all three of Russia's largest television holdings.

As follows from the reporting, VGTRK’s revenue according to RAS in 2014 increased by 2.2%, to 31.9 billion rubles, while the cost of sales, products, goods and services increased by 5.8%, to 52.9 billion rubles .

Other income of the holding, according to the publication, remained at the same level (20.8 billion rubles), as a result, for the first time since 2000, it showed a net loss of 2.8 billion rubles. In 2013, the net profit of VGTRK amounted to 29 million rubles.

Vedomosti notes that at the end of 2014, all three of the largest television holdings in Russia showed losses. The loss of Channel One decreased from 1.77 billion to 938.4 million rubles, revenue increased by 2.9%, to 30.1 billion rubles. Gazprom-Media made a profit of 8.6 billion rubles in 2013, and in 2014 its loss amounted to 2 billion rubles.

The main source of income for TV channels is advertising revenue. In 2014, the television advertising market, according to the Association of Communication Agencies of Russia (ACAR), grew by 2%, its volume exceeded 159.8 billion rubles. At the same time, the head of AKAR, Alexey Kovylov, assessed it as the most successful in the entire history of the advertising market in Russia. “The past year was the most successful in the history of Russian advertising, no matter what. First of all, I would like to note the Winter Olympics in Sochi, the volume of advertising that was placed on the market,” he said.

As RBC previously wrote , compared to the first quarter of 2014, the Russian advertising market in January-March 2015 decreased by 17%. At the same time, the volume of advertising on television decreased by 22%, including on cable and satellite channels by 59%. In total, according to ACAR estimates, advertisers spent 30.1–30.6 billion rubles on advertising on TV in the quarter, while a year earlier - about 39 billion rubles.

The VGTRK holding went to a loss for the first time since the beginning of the century