Support The Moscow Times!

Odnoklassniki 2009 Profit Rises Tenfold

Social network boosted its profit nearly tenfold in 2009 while revenue grew by just 2.4 times, possibly thanks to new paid services and cost-cutting measures.

The company saw its 2009 net profit jump to 366.4 million rubles ($11.6 million), compared with 39 million rubles a year earlier, according to figures published in Interfax's SPARK database. Revenue for 2009 was 1.54 billion rubles ($48.6 million).

Svetlana Belyayeva, a spokeswoman for the company, declined to comment on the impressive growth.

The market's expectations were more modest, and no one expected the company to more than double its earnings amid the crisis last year, said Finam director Vladislav Kochetkov. The site was actively seeking advertisers, and it had a number of promotional campaigns, he said.

Mobile TeleSystems advertised with the social network in 2009 and was very pleased with the results, said a spokesperson for Russia's largest cell phone operator. Odnoklassniki offered "interesting" terms, the spokesperson said.

Troika Dialog analyst Anna Lepetukhina had a different explanation, however. She cited the many paid services introduced in late 2008, including registration fees and charges to post pictures. The overall advertising market rose just 4 percent in 2009.

Kochetkov said the higher profit could be a result of falling costs. As new registrations drop off, the company's expenses to boost infrastructure would fall, he said.

The network's British-registered parent company is 60 percent owned by Forticom Group, which in turn is 75 percent controlled by the Digital Sky Technologies media holding. Founders Irina and Albert Popkov own the remaining 40 percent of Odnoklassniki.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.


Read more