ProfMedia

Assets

In November, 2013 it became known that Gazprom Media agreed with Vladimir Potanin's Interros about purchase of 100% of ProfMedia holding. "Afisha-Rambler", "Cinema-park" and also a minority stake in ProfMedia in Ivi service were not included into the transaction with Gazprom Media.

• Internet: Rambler Media, AdMarket.ru, Afisha.ru, E-xecutive.ru, 101.RU
• Television: MTV, "TB3" and "2×2"
• Radio: Broadcasting Corporation of Professional Media (BCPM), Avtoradio, Energy, Humour of FM and Romantika
• Press: Belarusian Newspaper, Today Press, ID Afisha Industries
• Segodnya-Press (distribution of the periodical press)
• Professional Media Print
• Network of movie theaters "Cinema Park" which halls are located in Moscow, St. Petersburg, Novosibirsk, Tyumen, Chelyabinsk, Naberezhnye Chelny and Ufa.
• Controlling stake of Central Partnership company — the diversified distributor and the producer of TV and cinema products.

Performance Indicators

2012: Growth by 17.7%

Revenue of ProfMedia in 2012 made nearly 20.2 billion rubles — 17.7% more, than the previous year, follows from materials of holding which are at the disposal of Vedomosti (unaudited results, the authenticity of digits was confirmed by the representative of ProfMedia). It is the most impressive growth of revenue of media holding of Vladimir Potanin since 2008. Profitability on EBITDA grew from 19 to 26% (without the Cinema Park movie theater chain displaid in separate business)^[1].

Radio stations and TV channels provided to holding successful year. These businesses of holding grew much quicker than the corresponding segments of the advertizing market of Russia, the president of ProfMedia Olga Paskina specifies (she refused other comments). It occurred for the first time since 2009.

ProfMedia has three TV channels — MTV, "TB3" and "2×2", the holding does not open their indicators separately. Their consolidated revenues last year increased by 26% to 7.1 billion rubles, and EBITDA — almost twice to 1.5 billion rubles. It turns out, revenues of these channels grew almost three times quicker than the market (according to AKAR, advertizing revenues of all TV channels in 2012 increased by 9%). The source in ProfMedia explains it with increase in audience of "TB3" and effective sales of advertizing. Among the Russian TV companies financial performance for last year announced so far only YuTV (channels "Yu" and Disney), its revenue grew by 15% up to 4.45 billion rubles. However, profitability at YuTV is much higher — 34% according to OIBDA.

ProfMedia radio stations overtook the market not many times, but also is considerable. Total income "Broadcasting corporation "ProfMedia" (VKPM, the Avtoradio stations, Energy, Humour of FM and Romantika) increased by 26% to 2.3 billion rubles, and revenue from advertizing — for 37% (there is no absolute digit in materials). All market of radio in 2012 grew by 23%. The representative of ProfMedia explained before rapid growth of income of radio business including transition to broadcasting on time zones using which advertizing opportunities of stations grew.

But the film company "Central partnership" (TsPSh), the most profitable business of holding, in 2012 lowered revenue again: if in 2011 the income of the major decreased by 24%, then in 2012 — for 6% up to 3.7 billion rubles. First of all it is connected with shift of several large projects of the company, explains a source in ProfMedia: Channel One later, than it was planned, will show several big-budget series made by TsPSh, and CTC — the movies of DreamWorks Animation purchased with mediation of this company. On this TsPSh lost 600 million rubles payments which should receive in 2013. And rolling business of TsPSh showed not the best results because of postponement for 2013 of several large premieres of partners (first of all to Paramount studio) and unsuccessful Russian projects — as a result charges of the pictures rolled by TsPSh in 2012 fell more than to a third.

At last, not the best results showed also Internet and business ProfMedia: its revenue grew only by 1% almost up to 3 billion rubles, and EBITDA dropped by 52% up to 153 million rubles at once. Income of this business was affected by bad results of "Begun", strongly delayed restart of the homepage of Rambler and also redistribution in the IV quarter of advertizing budgets on the Internet for benefit of the largest platforms, first of all "Yandex", tells one more source in ProfMedia. He explains sharp decrease in profitability with the fact that the Rambler / Poster consolidated company in 2012 invested in start of new products, purchase of servers and hiring of employees much.

History

• The holding is founded in 1997.

2005: Sale of Izvestia in Gazprom Media

In June, 2005 Gazprom Media redeemed the Izvestia political newspaper from Professional Media.

At the end of 2005 turnover of the company made $240 million.

2006: Purchase of ID Poster

• In January, 2006 Professional Media redeemed 100% of stocks of Afisha Publishing house from the Sputnik group.

• In October, 2006 Professional Media Rambler the Television network" redeemed from Rambler Media Limited company TV channel ", then film TV channel TB3 was redeemed.

2007: Sale of ID Komsomolskaya Pravda

• In March, 2007 the Komsomolskaya Pravda Publishing house (newspapers Komsomolskaya Pravda, "Express-gazeta", Sovetsky Sport) was sold to UST group.

• In June, 2007 Professional Media  MTV Russia" and "VH1 Russia" acquired 100% of the shares "Wayfarer Media Limited", the holding company of TV channels ".

In June, 2007 Professional Media were sold by ID Komsomolskaya Pravda (60 %) to Media Partner holding.

2009: Delisting of Rambler from the London exchange

In November, 2009 ProfMedia announced results of reverse auction on redemption of stocks of Rambler Media Limited on the London Stock Exchange. During the reverse auction of ProfMedia through the PM Invest Company holding company acquired 3,149,754 shares at the price of $6 for an action for the total amount of $18,898,524 million, having increased the share in Rambler honor up to 75%. The London division of ING Bank N.V. redeemed 2,006,522 shares at the price of $6 or 13.03% of capital stock of Rambler for total amount of $12,039,132 million.

ING and ProfMedia signed a swap agreement as TRS according to which ProfMedia has no share rights of Rambler which were purchased by ING during the auction. However after receiving necessary approvals of ProfMedia relevant organs has the right to perform additional acquisitions, including purchase of the specified stocks. ING also acted as the broker and the consultant for purchase of shares of Rambler.

Revenue of the company according to IFRS in 2009 made 16.1 billion rubles, EBITDA — 5.7 billion rubles ^[2]

2010: Unfortunate IPO of ProfMedia

Vladimir Potanin looks for options of a partial exit from media industry. ProfMedia was going to carry out the IPO by spring of 2010, but refused it because of adverse market conditions. After that the holding discussed with potential buyers of sale of the television, radio broadcast business or TsPSh more than once.

2011: Akopov returned to the president's chair instead of Solovyova

At the end of December, 2011 it became known that the Board of Directors of ProfMedia accepted Yulia Solovyova's resignation and appointed Raphael Akopov's president.

Larisa Zelkova, the deputy CEO Interros is elected the chairman of the board of directors of holding.

2013: Olga Paskina is the president of holding. Asset sale of Gazprom Media

On February 28, 2013 - the Board of Directors of ProfMedia appointed Olga Paskina the president of holding.

In 2013 Vladimir Potanin actually made delayed sale of "Afishi-Rambler" which was also included into ProfMedia. It integrated this Internet company about "Soup of media" of Alexander Mamut, partners received 50% of shares of the united company. Mamut completely undertook management of this business and undertook to redeem Potanin's share in three years if that wants to leave business (for example, it will not accept capitalization).

In November, 2013 it became known that Gazprom Media agreed with Vladimir Potanin's Interros about purchase of 100% of ProfMedia holding. "Afisha-Rambler", "Cinema-park" and also a minority stake in ProfMedia in Ivi service will not be included into the transaction with Gazprom Media, Paskina specified.

Notes