Kinopoisk

Performance indicators

2023: Revenue growth doubled to RUB 31.29 billion

The online cinema "Kinopoisk" doubled its revenue in 2023 - from 15.24 billion to 31.29 billion rubles. Net profit in 2023 reached 10.3 billion rubles, while a year earlier there was a loss of 3.86 billion rubles. Such data are given in the company's RAS reports, published in April 2024.

According to Interfax, citing financial documents from Kinopoisk LLC, the gross profit of Yandex's subsidiary in 2023 reached 16.4 billion rubles, while a year earlier gross losses were registered at 1.33 billion rubles. Profit from sales in 2023 turned out to be equal to 11 billion rubles.

Unsplash

According to Kommersant, Kinopoisk, in the second quarter of 2023, first reached a payback. By that time, the monthly audience of the service was measured at 9.1 million users.

This is not the first time Russian online cinemas have announced profitability, said Dmitry Kolesov, director of the new technologies department at J'son & Partners Consulting. But this applies only to operating results, the issue of return on investment remains open, he clarifies.

Experts interviewed by the publication consider it logical for Kinopoisk to break even, and as the reasons for this they call the reduction in costs for foreign libraries, as well as the development of digital ecosystems, the arrival of new content suppliers and the production of original projects.

According to the Yandex report for 2023, the revenue of the Plus and Entertainment Services business group increased by 110% compared to the previous year and amounted to 66.9 billion rubles. One of the main drivers of the Plus subscription is Kinopoisk. The adjusted EBITDA of this unit in 2023 amounted to 2.94 billion rubles against a loss of 7.85 billion rubles a year earlier.^[1]

2021: Revenue growth 2.4 times to 7.16 billion rubles

At the end of 2021, the Kinopoisk HD online cinema, part of the Yandex ecosystem of services, earned 7.16 billion rubles in revenue, which is 2.4 times more than in 2020 (2.95 billion rubles). Net loss amounted to 4.85 billion rubles against 3.48 billion rubles of loss in 2020, according to the company's financial statements.

According to Interfax, citing a report by Kinopoisk LLC, in 2021 the loss from the company's sales amounted to 4.08 billion rubles, which is twice the same loss a year ago at 2.1 billion rubles. The company's long-term liabilities on an annualized basis increased by 94.5% and reached 4.6 billion rubles. Short-term liabilities increased by about the same amount - up to 13.78 billion rubles.

The revenue of the online cinema "Kinopoisk" for the year increased 2.4 times

According to the analytical company TMT Consulting, in the second half of 2021, Kinopoisk HD became the largest video service in Russia in terms of the number of subscribers with a share of 14.4% and subscription income. According to a study by TelecomDaily, the total revenue of video services in Russia in 2021 increased by 41%, reaching 54.96 billion rubles.

The top 20 most popular films and TV series on Kinopoisk for 2021 included:

1. "Justice League" by Zack Snyder

2. "The Wrath of Man"

3. "Major Thunder: Plague Doctor"

4. "Humpbacked Horse"

5. "Major. Film "

6. "Catering Unit"

7. "Rick and Morty"

8. "Topi"

9. "Fire"

10. "Raya and the Last Dragon"

11. "Unprincipled"

12. "Soul"

13. "Cruella"

14. "Blasphemous. Beginning "

15. "Tom and Jerry"

16. «I'm not kidding»

17. "Argument"

18. Project "Anna Nikolaevna"

19. "Nastya, get ready!"

20. "Act of Chaos"

When calculating, only views by subscription model (SVOD) were taken into account, excluding the advertising model (AVOD) and the model for buying or renting titles (TVOD). The rating is compiled by the number of subscribers who watched a film, series or cartoon in the first four weeks from the date of its premiere on the service.^[2]

History

2023

Map of service popularity by country

As of October 2023

Breaking even

Online cinemas in Russia first broke even, which became known at the end of July 2023. According to Kommersant, Kinopoisk's business began to pay off in the second quarter of 2023. The ivi service also became profitable.

Start and Wink announced profitability even before the start of the special operation in Ukraine, but experts interviewed by the newspaper note that it was about operational performance, not return on investment.

Online cinemas in Russia first broke even

The general director of the Internet Video Association, Alexei Byrdin, considers the exit to the payback of Kinopoisk and ivi logical, since these are market leaders who were among the first to invest in original series. The improvement in analytics dynamics is also associated with the development of digital ecosystems, the arrival of new foreign content suppliers, as well as the growth of original projects and the rejection of ineffective transactions on original projects.

At the end of July 2023, Kinopoisk reported that the monthly audience of the platform reached 9.1 million people. According to the Yandex report for the second quarter of 2023, the revenue of the Plus and Entertainment Services business group increased by 152% and reached 15.5 billion rubles. The representative of the company clarified that one of the main drivers of the Plus subscription is Kinopoisk.

Jean Prosyanov, editor-in-chief of Kino-Teatr.Ru, development director of the CHILL web cinema, called the cost reduction "the most obvious reason" for the profits.

This may include the reduction of the library, the rejection of ineffective transactions on original projects, "he explained.

According to the expert, ivi "rode the Turkish wave" - received on exclusive terms many projects that come out with a slight margin from the prime minister. In addition, the platform began to share the costs of content production with NTV, Prosyanov added.^[3]

Fine 1 million rubles for showing films with LGBT people

On July 4, 2023, the Zamoskvoretsky Court of Moscow found the Kinopoisk online cinema guilty of demonstrating LGBT relations among minors and fined him 1 million rubles. The company was found guilty of committing an administrative offense under Part 2 of Art. 6.21.2 of the Administrative Code of the Russian Federation (dissemination among minors using the Internet of information demonstrating unconventional sexual relations).

We are talking about the films "Perfect Strangers," "Bridget Jones. Edges of Reason, "" English Barber, "" Three More Weddings, "" Greed, "" Hotel Number 6 "and" Dylda. "

Kinopoisk found guilty of demonstrating LGBT relations among minors

The press service of Kinopoisk said that "the law and regulations in their current form do not provide sufficient objective criteria for determining the demonstration." They added that they changed the marking in these films to "18 +," "as soon as Roskomnadzor recognized them as a demonstration of non-traditional relations."

We hope that the current practice of fines in relation to online cinemas will be revised towards warnings, and fines will be applied only for failure to comply with requirements from government agencies, "Kinopoisk emphasized.

According to TASS July 4, 2023, Kinopoisk is among the top 25 most visited online cinemas on the Runet. The monthly audience of the service is more than 20 million people. This is not the first administrative protocol against Russian online cinemas for demonstrating LGBT people with an incorrect age limit. Earlier, services were fined for such a violation, Start Premier Megafon-TV.

The law on the complete prohibition of gay propaganda (6.21.2 Administrative Code) entered into force from the end of 2022. It prohibits the promotion of "non-traditional sexual relations" among all citizens, regardless of age. Such materials cannot be placed in the media, Internet, advertising, literature and cinema.^[4]

Notes