VK International (VKCO) Q2 2025 earnings summary

Executive summary

• Daily audience reached 78 million in H1 2025, with 95% monthly reach in the Russian internet segment and 18% YoY growth in user time spent on services.

• VK maintained leadership in Russia's internet audience, with major platforms like VKontakte, OK, and Dzen showing strong user engagement and growth.

• Report covers six months ended June 30, 2025, prepared under IAS 34 and reviewed by independent auditors with no material misstatements found.

• Net loss of RUB 12,671 million for the period, with negative working capital of RUB 14,571 million as of June 30, 2025.

• Material uncertainty exists regarding the ability to continue as a going concern due to losses and liquidity position.

Financial highlights

• H1 2025 revenue rose 13% YoY to RUB 72.6 bn, driven by VK Tech (+48%), educational services for children (+24%), and online advertising for SMBs (+16%).

• Adjusted EBITDA reached RUB 10.4 bn, up from a loss of RUB 0.5 bn YoY; margin improved by 15 p.p. to 14%.

• Net loss decreased to RUB 12,671 million from RUB 24,617 million year-over-year.

• Cash and cash equivalents stood at RUB 37,745 million as of June 30, 2025.

• Share issue raised RUB 112,100 million, used to repay floating-rate loans and reduce debt burden.

Outlook and guidance

• Updated 2025 forecast expects adjusted EBITDA to exceed RUB 20 bn, subject to macroeconomic and market conditions.

• Management expects to meet obligations through operating activities and available credit resources, despite material uncertainty about going concern.

• Revenue and operating profits are typically higher in the second half of the year due to seasonality in advertising.