VK International (VKCO) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 16% YoY to RUB 35.5 bn, driven by strong growth in video advertising, tech, and educational services.

• Adjusted EBITDA surged 4.7x YoY to RUB 5 bn, with margin up 11 p.p. to 14%, reflecting operational leverage and improved profitability.

• All operating segments posted positive adjusted EBITDA; company maintains full-year adjusted EBITDA guidance of RUB 10 bn.

• VK remains the leading internet platform in Russia, with a daily audience of 79 mn users and over 95% monthly reach among Russian internet users.

Financial highlights

• Revenue: RUB 35.5 bn in Q1 2025, up 16% YoY; main drivers were video ad revenue (+92%), VK Tech (+64%), and EdTech for children (+28%).

• Adjusted EBITDA: RUB 5 bn, up 4.7x YoY; margin at 14%.

• Social platforms and media content revenue grew 10% YoY to RUB 24.7 bn; adj. EBITDA up 87% YoY to RUB 5.2 bn.

• EdTech revenue up 28% YoY to RUB 2.0 bn; adj. EBITDA up 6.2x YoY to RUB 0.3 bn.

• VK Tech revenue up 64% YoY to RUB 2.7 bn; segment returned to positive adj. EBITDA of RUB 0.3 bn.

Outlook and guidance

• Full-year 2025 adjusted EBITDA expected to reach RUB 10 bn, subject to macroeconomic and market conditions.