Mail.Ru Group reported revenue growth and development of the gaming segment

Mail.Ru Group reported on revenue growth and outstripping development of the gaming segment in 2020.

The total segment revenue of Mail.Ru Group at the end of 2020 grew by 21.2%, to 107 billion rubles, which even exceeds the forecast made at the beginning of 2020 (103-105 billion rubles). But the total net profit for the year fell by a third, to 10 billion rubles. Quotes of the company's receipts on the Moscow Exchange fell by 1.2% while the index fell by 1%.

The decrease in EBITDA in the company is explained by investments, including the gaming direction, the launch of sales of the Capsule smart column, the development of the VK Connect authorization service, the launch of the VK Combo loyalty program, investments in online education projects and other expenses.

The revenue of the social network VKontakte grew by 14.9% over the year, to 25.4 billion rubles, and the entire area of ​​communication and social services brought the company 52.7 billion rubles.

The company emphasizes that the revenue of the gaming division My.Games grew by 30%, to 40.8 billion rubles, providing as much as 38% of the group's revenue. “2020 has been an unprecedented year for our gaming business with a 47% increase in Q2,” the group writes.

According to the group's forecasts, in 2021 revenue will grow by 18-21%, to 127-130 billion rubles.

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In September, Mail.Ru Group announced plans to raise $600 million, or about 10% of its capitalization, to develop the gaming business. We talked about what the company will do with such money here .