5th Feb 2008 07:00
RAMBLER MEDIA EXPECTS TO REPORT IMPROVED PROFITABILITY FOR FULL YEAR 2007 Improving profitability driven by higher user traffic, strong advertising revenue growth and operational restructuring Rambler Media Ltd. ("Rambler" or the "Group"), the media group operating one ofRussia's most popular internet brands is today issuing the following tradingupdate ahead of the publication of its 2007 audited full year results. Rambler expects 2007 full year Group revenue to more than double year-on-yearand reach between US$63-65 million (2006: US$30.6), which is above its previousguidance set at US$58-64 million and above the growth in the Russian internetadvertising market in the period. Contextual advertising agency Begun,consolidated since August 2007, is expected to contribute around US$13-15million (after eliminating inter-company sales) to total Group revenue for 2007. Rambler also expects to report a significantly improved Group EBITDA margin from5% in 2006 to between 10% and 15% in 2007. The Group reported a 3% EBITDA marginfor the first six months of 2007, which grew substantially in the second half tobetween 13% and 20%. Restructuring measures taken by the new management tocontain costs include the reorganisation of the Group's human resources,streamlining of Rambler's product lines, focus on four profit generating areas(Search, Communications, Homepage and Media & Entertainment) and the appointmentof new division managers to drive further user and revenue growth. Mark Opzoomer, CEO of Rambler Media, commented: "We are very pleased today topresent this encouraging update on Rambler's financial performance for thesecond half and full year 2007. It provides some evidence that our efforts sinceMarch are starting to bear fruit. Our improving profitability is the result ofmonths of internal reorganisation, product integration and financial rigour. Wehave been addressing our brand, our products, our values and our people andchanges are still happening. We feel confident that Rambler is now wellpositioned in its quest to become Russia's leading daily open gateway to theweb." Reaching over 35 million Russian speaking users a month In 2007, Russian internet penetration is estimated to have increased by 12% toreach 26% of Russia's adult population or 29.4 million people (Source: PublicOpinion Foundation, Fall 2007). In the same period, Rambler's reach has growneven faster by 43%. Rambler.ru reached 30 million unique users on average eachmonth in 2007 and 35.1 million unique users in December 2007 (December 2006:24.4 million unique users). Rambler users consulted an average of 2.3 billion pages per month in 2007, up49% from the previous year and 2.6 billion pages in December 2007, up 32% from2.0 billion pages in December 2006. This clearly shows that internet users arespending more time online and that, as a leading internet brand, Rambler is wellpositioned to attract increasing user traffic. 2008 OUTLOOK Rambler's vision is to become Russia's favourite daily homepage and an opengateway to the internet. The group's mission is to build the largest dailyengaged IP-based audience in Russia by providing the best suite of search,communications, media and entertainment content in one place. Strategic initiatives include enhancing its search capabilities and extendingthe depth of its regional, vertical and media content, where it has acompetitive advantage. In 2008, Rambler intends to grow its overall share of the Russian internetadvertising market. The Group estimates that internet advertising in Russia willcontinue to grow at around 50% per annum to reach around US$400 million in 2008,with an approximately equal split between text-based and display advertising. The Group expects to generate sales in the range of US$100 million - US$110million in 2008 and to further improve profitability. Rambler and Begun to launch new integrated services As Begun's leading traffic generator, Rambler intends to maximize the number ofinternet users who use its search engine and see adverts generated through Begunin Rambler's sponsored search results. In parallel, Rambler intends to attract agrowing number of advertisers who wish to benefit from the unique audience reachthat Rambler and Begun can offer together. Strategic Partnership with Video International's IMHO VI Through the partnership between Index20, Rambler's advertising agency, and IMHOVI, a subsidiary of Video International, which is the leading media advertisinggroup in Russia, the Group intends to gain access to a broader range ofadvertisers who are increasingly looking to allocate more of their budget to theinternet, following their audience on-line. Index20 will also benefit fromenhanced sales capabilities, systems and reach through the use of IMHO VI'ssales technology. Rambler Media intends to report its audited full year 2007 results in April2008. \* TFor further information, please visit www.ramblermedia.com or contact: Rambler Media Shared Value LimitedMark Opzoomer Nicolas DuperrierTel. +7 495 500 3826 Tel. +44 (0) 20 7321 5010 [email protected] ING Wholesale BankingDaniel Friedman / William MarleTel. +44 (0) 20 7767 1000\* T ABOUT RAMBLER MEDIA Rambler Media is a media and services group which operates or has interests inleading Russian language internet brands including the original Russian internethomepage and search engine 'Rambler.ru', on-line newspaper 'Lenta.ru', productcomparison website 'Price.ru', internet catalogue and navigation system 'Top100', instant messaging service 'Rambler-ICQ', interactive advertising Group'Index20' and 'contextual advertising company 'Begun'. Rambler Media's sharesare traded on AIM, the junior equity market of the London Stock Exchange underthe symbol 'RMG'. For more information on Rambler Media, visit our corporatewebsite at www.ramblermedia.com. Copyright Business Wire 2008Related Shares:
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