OREANDA-NEWS. April 26, 2011. Mail.ru Group Limited (LSE: MAIL, hereinafter referred to as “the Company” or “the Group”), the largest Internet company in the Russian-speaking world, today announces its financial and operational results for the year ended 31 December 2010 and provides an update on the revenue performance for the first three months in 2011. The segment financial information presented in this press-release excludes certain IFRS adjustments and differs significantly from the Group’s consolidated financial data presented in accordance with  IFRS. Please refer to Note 5 to Consolidated Financial Statements for further details.

Release of FY 2010 audited results, strong Q1 2011 performance
Group aggregate segment revenue was USD 324.7m for FY 2010 (up 64%)
58% organic revenue growth YoY, excluding the effect of ICQ acquisition completed in July 2010
Group aggregate segment EBITDA was USD 119.4m for FY 2010 (up 77%)
Group aggregate segment Net Income was USD 77.3m for FY 2010 (up 66%)
Net Cash position at the end of the year was USD 118.4m
Monthly audience (TNS Russia) of Mail.Ru portal in December 2010 increased by 22%
Group aggregate segment revenue in the first quarter 2011 was USD 110.6m (up 69% YoY, or 61% excluding the ICQ acquisition effect)

Key Recent Developments
My World introduced revenue sharing with third-party applications on its API platform in February (30% share to My World)
Odnoklassniki move to Mail.ru Group headquarters in Moscow completed in February 2011
5 MMO games and 4 social games launched since the end of 2010
Launched Russian Code Cup, a competition for programmers
Committee for Foreign Investment in the US (CFIUS) approved the acquisition of ICQ
Sang Hun Kim (CEO of NHN Corporation from South Korea) was appointed as the second Independent Non-Executive Director
Ivan Tavrin was appointed as a Director on the Board, replacing Ardavan Moshiri

Key Events in 2010
USD 1 billion raised by selling shareholders and the company from an IPO on the LSE
Stock-option programme introduced - more than 200 employees received options over Mail.Ru Group shares
Integration further advanced, including online advertising sales teams fully integrated across businesses, and technical and product integration advancing expeditiously
Odnoklassniki opened API platform to third-party developers, discontinued its registration fee and stepped up product development effort
Launched a social email service, Open Mail Format (OMF)
Launched 12 MMO games, including “Cross Fire”
Completed construction of own data centre, increased ownership to 100%
Marcos Galperin, CEO of Mercadolibre, joined Mail.Ru Group as an independent non-executive director
Naspers and Tencent became shareholders of Mail.Ru Group
Mail.Ru Group acquired:
additional equity stake in Vkontakte, bringing our total stake from 24.99% to 32.55%, together with an option to increase our stake to 39.99% before the end of October 2011
instant messaging network ICQ from AOL Inc.
all the remaining non-controlling interests in Mail.Ru bringing our ownership to 100%
operational control of Odnoklassniki, Russia’s second largest social network, and increased our ownership to 100%
stakes in Groupon, a social commerce company, and Zynga, the world’s largest social games business

Dmitry Grishin, Mail.ru Group’s Co-Founder and Chief Executive Officer, commented:

“Our business continued to perform strongly in 2010 and in the first quarter of 2011 across all of our products. In the Group’s  online advertising business we continued to benefit from a strong cyclical recovery combined with an ongoing shift to online advertising, which helped us achieve 64% growth (48% organic, i.e. excluding the effect of ICQ acquisition) in Group aggregate segment online advertising revenues compared to 2009. Group aggregate segment Community IVAS revenues in 2010 increased by 67% and aggregate segment MMO revenues increased by 63% compared to 2009, reflecting the strength of our monetization model and our ability to benefit from growing penetration and engagement in the Russian Internet market.

In the first quarter of 2011 the Group continued to follow a strong growth trajectory with  Group aggregate segment revenue increasing by 69% when compared to Q1 2010 (61% organic). Group aggregate segment online advertising revenues grew by 99% (74% organic) and Group aggregate segment community IVAS revenues increased by 69%. Group aggregate segment MMO games revenue increased by 39% and other aggregate segment revenue (primarily consisting of other IVAS and online recruitment services) increased by 83% (80% organic).”