VKontakte revenue down, visits soar
N 7 May 2013

VKontakte revenue down, visits soar

Russia's leading social network VKontakte saw a dramatic 94.5% net profit drop in 2012, according to the annual report of the company's major shareholder, Mail.ru Group. VK's gross revenue grew by over 44% to 4.47 bn. rubles (roughly $144 m), as its net profit dropped to 30.5 million rubles.

The decline is thus due to VK's increasing staff and infrastructure expenses. According to Pavel Durov, the company's co-founder and current CEO, said the money had been spent on construction of new servers in South-Western Russia and on extra staff bonuses. He said the investment was crucial, and would help VK save money on renting servers in the years to come. Mr. Durov also said that the recent negative attention in the media meant 'free advertising' for his company, enabling it to conquer a greater share in the market. Recently, VKontakte has had 10 million more visitors a day that its nearest rival, Odnoklassniki, Durov explained.