VK International (VKCO) Q4 2024 earnings summary

Executive summary

• Revenue grew 23% year-over-year in 2024 to RUB 147.6 bn, driven by online advertising, tech, and EdTech segments.

• Daily audience reached 77 million, with 95% monthly reach in the Russian internet segment.

• Consolidated net loss widened to RUB 94,948 million in 2024, mainly due to goodwill impairment, higher operating expenses, and finance costs.

• Focused investments in product development, especially VK Video, and advanced technologies.

• Material uncertainty exists regarding going concern due to negative working capital, covenant breaches, and high leverage.

Financial highlights

• Revenue rose to RUB 147.6 bn in 2024, up from RUB 120.3 bn in 2023.

• Adjusted EBITDA was negative RUB 4.9 bn in 2024, compared to RUB 0.2 bn in 2023.

• Net loss increased to RUB 94,948 million, mainly due to RUB 11,242 million goodwill impairment and higher costs.

• Cash and cash equivalents decreased to RUB 28,424 million from RUB 51,294 million at year-end 2023.

• Online advertising revenue grew 20% year-over-year.

Outlook and guidance

• 2025 guidance targets adjusted EBITDA above RUB 10 bn.

• Management plans to address liquidity and debt obligations through restructuring, additional financing, and future operating inflows.

• Priorities include long-term growth areas and improved profitability.

• The Group is investing in business growth despite current financial challenges.