Key Figures

2015 Financial Highlights

Total revenues from continuing operations were US$ 21.4 million (2014 US$ 63.3), down by 66.2% due to company’s business restructuring as well as excessive ruble exchange rate volatility. In local currency terms (LCY) total revenues decreased by 48.7%.

Online revenues were US$ 11.5 million (2014 US$ 25.2), down by 54.4%, and in local currency terms decreased by 30.8%.

Total group Adjusted EBITDA was US$ (5.6) million (2014: US$ (1.5)), down by 273.3%.

We define Adjusted EBITDA as net profit from continuing operations before financial income, financial expense, income tax (expense)/benefit, depreciation and amortization, provision for doubtful receivables and other receivables, impairment charges and certain other non-recurring gains and losses and Adjusted EBITDA margin as the ratio of Adjusted EBITDA to revenues.

We define Operations EBITDA (or operating profit before certain expenses) as Adjusted EBITDA before management service expenses or corporate costs, and Operations EBITDA margin as the ratio of Operations EBITDA to revenues.

Consolidated Revenues

The revenues were lower versus 2014 due to company’s business restructuring that involved franchising out of printing operations in Russia, sale and/or liquidation of the company’s regional offices as well economic reasons that included significant deterioration of the economic environment in Russia, Kazakhstan and Belarus, significant devaluation of local currencies versus US dollar in 2015
(Russian ruble depreciated by 58.5% in 2015). Mergers or liquidation in loss making print entities are ongoing.

The decrease in offline revenues was US$ 28.2 million or 74.0%, from US$ 38.1 million in 2014 down to US$ 9.9 million. Moscow includes Pronto Media Holding, and Impress Media Marketing.

The decrease in online revenues was US$ 13.7 million or 54.4% from US$ 25.2 million in 2014 down to US$ 11.5 million. In LCY the decrease comprised 30.8%.

Adjusted EBITDA and Operations EBITDA

Operations EBITDA decreased from US$ (0.5) million in 2014 to US$ (5.2) million in 2015, by 940.0% while total group Adjusted EBITDA fell from US$ (1.5) million in 2014 to US$ (5.6) million in 2015, by 273.3%.

Offline Adjusted EBITDA increased from US$ (1.4) million in 2014 to US$ (0.3) million in 2015, by 78.6%.
In Moscow Adjusted EBITDA increased by 27.0% due to decline in Revenues by 54.9%, cost saving comprised 41.9%. In Russian Regions, Adjusted EBITDA decreased by 64.7% in a climate where the revenues fell 83.2%, whereas cost saving was 87.3%.

Online Adjusted EBITDA decreased from US$ (0.1) million in 2014 to US$ (5.3) million in 2015.

Share of online revenues amounted to 53.7% of total revenues in 2015. It has increased compared to
the share of online revenues of 39.8% in 2014.



Financial Highlights (continuing operations)