I-Free

The company takes part in market development mobile dopuslug.

Activities

i-Free is the Russian company, since 2001 works at the market of the CIS, since 2006 – in international market. Specializes in project implementation in the field of mobile and NFC technologies, electronic finance, digital distribution of content, electronic payment systems and micropayments, application development for smartphones and new network devices and also in promotion of digital products in the B2C-market and implementation of B2B-projects in the field of mobile marketing.

i-Free based in the CIS and Eastern Europe an industry forum – Mobile VAS Conference devoted to topical issues of the industry; carried out annual summer VAS Forum for telecommunication companies, supported numerous conferences and seminars of developers and also the award Russian Mobile VAS Awards handed for the brightest innovation projects.

With active participation of i-Free two leading industry associations are created: The Russian association of providers of mobile services and content (CSPA) and the Russian Association of Electronic Money organized in cooperation with the companies Yandex.Money, WebMoney and Qiwi.

The company is presented at international markets: offices i-Free are located in Kiev (Ukraine), Minsk (Belarus), Almaty (Kazakhstan), Mumbai (India), Beijing (China), São Paulo (Brazil). Products and i-Free services are delivered today more than to 100 countries of the world.

The headquarters of i-Free is in St. Petersburg, representation – in Moscow. In the company more than 750 people work (2013).

i-Free cooperates with the chief mobile operators of Russia and the CIS countries, world vendors of a mobile equipment, banks, transnational brands and trademarks, the largest media holdings, publishing houses and Internet resources.

Performance Indicators

2014

On March 11, 2015 the I-Free company announced results of 2014: the total volume of sales of group as a part of 22 companies and the project in different segments of the IT industry was $130 million, and net-revenue – $92 million.

In 2014 became effective amendments to the Law "About Communication". They changed model of providing mobile additional services and content to the population because of what market size was reduced more than by 60%. As a result of it the total volume of sales of the companies entering into the i-Free group in comparison with 2013 decreased by 48% and was $130 million, and net-revenue was reduced by 29% and made, respectively, $92 million.

Minimizing losses in the i-Free group undertook reforms: closed several directions which lost relevance, carried out internal reorganization of business, optimized business processes and commands therefore the staff of i-Free decreased by 40% and for March 12, 2015 makes about 380 people.

The losses suffered by the companies of group during the period from May to October, 2014 led to emergence of operational debt to several partners. According to the statement of the management of the company, for March 12, 2015 the main part of a debt is re-structured, the companies of group began its repayment.

"Now we is sure we look forward, though we understand that we will need about a year to be calculated with the main creditors and to bring an indicator of own means to necessary level in general on group", – Vasily Kuntsevich, the director of i-Free management company noted.

In April, 2014 in i-Free selected key strategic projects with the greatest perspectives in the market. Then process of reforming of all business of i-Free and conversion of the company and its corporate fund to investment group began.

In March, 2015 process continues and in the company sum up the results on separate businesses and projects. For March 12, 2015:

• Financial performance in three traditional operational activities is stabilized: B2B, cooperation with leading manufacturers of mobile devices, micropayments.
• Growth of consolidated revenues of the companies of group working in the mobile game industry and focused generally on export is mentioned. Today 17% of all revenue of group are the share of this sphere and its further growth is expected.
• The i-Free Ventures venture fund left the Quppi project which new investor was a Finstar company. At the moment the fund discusses several new transactions with strategic and investment partners, and practically all startups financed by it earlier reached profitabilities level.
• Projects in the field of media develop: cooperation with Channel One in the projects "Voice", "Golos-Deti", "Who Wants to Become a Millionaire?", "Field of wonders" continues. Besides, within the direction work on a number of new TV-projects including for SmartTV is begun.
• In September, 2014 business of i-Free began to grow in China again: in January, 2015 the monthly gain of revenue of i-Free China made 38%.
• The CardsMobile company started in Europe the project of contactless NFC payments by means of smartphones on the Android platform, with transport companies. With spring of 2015 travel by land and underground transport in Moscow, the subway in St. Petersburg and Yekaterinburg it will be possible to pay using the Purse application.

2011

The sales volume of the company in 2011 exceeded $160 million.

History

2014

Canceling of Mobile Trends Forum

At the end of August, 2014, the i-Free company announced canceling of the Mobile Trends Forum conference which had to take place in November, for the financial reasons:

The conference always attracted a large number of sponsors, however this year the situation changed. After adoption of the amendments to the law "About Communication" which became effective on May 1, 2014 the market of additional mobile services and mobile content was reduced more than by 50%. Such catastrophic recession extremely negatively affected activity of many companies which gave sponsorship of a conference earlier.

In the current conditions partners of a conference cannot guarantee assignment for sponsorship of a forum. Therefore the i-Free company made the decision not to hold a conference and the competition Russian Mobile Awards (RMA) this year.

The amendments to the law "About Communication" which became effective on May 1, 2014 about which it is said in the statement of i-Free took out from the legal SMS fraud field by a subscription of subscribers of mobile telecom operators to dopuslug (usually so-called "content") without the explicit consent of subscribers.

The analyst of content-review.com Sergey Polovnikov considers that canceling of a conference reflects directly deterioration in a financial status of i-Free:

The autumn forum VAS Conference is cancelled. Organizers complain that "partners of a conference cannot guarantee assignment for sponsorship of a forum". Is not the secret of the Pulcinella that the i-Free company acted as the main sponsor of this conference.

Court with Mail.ru

In October, 2014 the Arbitration court of St. Petersburg accepted to production claim from Мэйл.ру Geymz LLC to Befree LLC (i-Free belongs) about debt collection in 4,553,332 rubles and penalties in 290,116 rubles. Date of preliminary court session is appointed to November 12, 2014.

Мэйл.ру Geymz LLC also asked court to take interim measures in the form of seizure of money of the defendant:

In justification of the stated requirement the claimant referred to duration of non-execution by the defendant of the obligations for payment, absence at the defendant of money, presence of other creditors in this connection, the claimant believes that he at such circumstances can be difficult or impossible execution of the court ruling on this case^[1].

The court refused interim measures:

The arbitration court considers that arguments of the applicant have presumable character, the applicant does not produce the evidence of existence of the bases for acceptance of interim measures [.] There are no data that the defendant intends to hide the property, makes to it preparations.

Later Vladimir Gabriyelyan, the vice president and the technical director of Mail.Ru Group reported:

Now we agreed about claim settlement.

Notes