​Revenue of Gazprombank’s Media-Business segment increased by 14% in January-June 2018

On August 29, Gazprombank published its financial results for January-June 2018 according to the International Financial Reporting Standards (IFRS), in which it cited the key indicators of its Media-Business segment.

The consolidated revenues of the Media-Business segment, in which Gazprom-Media Holding is represented, grew by 14% in the first half of 2018 and reached 46,323,000 rubles. The advertising revenues of the Media-Business segment increased by 16% to 35,365,000 rubles. At the same time, the entire television advertising market grew by 13%, as noted by the Russian Association of Communication Agencies. Non-advertising revenues of the Media-Business segment increased by 9% to 10,958,000 rubles.

Effective advertising sales on all television and special-themed channels of Gazprom-Media helped to ensure growth in advertising revenues of the Media-Business segment. Moreover, 2018 is overflowing with major sporting events, which has a positive effect on the advertisers' interest in all sports media. The advertising revenue of the Gazprom-Media Radio segment showed a level of growth above that of the radio advertising market, which, according to the Russian Association of Communication Agencies, grew by 2%.

Growth in non-advertising revenues in the first half of 2018 came as a result of an increase in revenues from the sale of rights by 19% due to the distribution of Gazprom-Media’s special-themed paid channels, as well as through the sale of rights to the media libraries of NTV and the Holding’s entertainment channels.

The operating profit of the Media-Business segment increased by 76.7% to 3,686,000 rubles in the first half of the year. Gazprom-Media’s television business, including Match! and NTV which achieved an operational profit in the first half of the year, make a major contribution to the positive operational result of the corporation. In the first half of 2018, the sports segment of Gazprom-Media fulfilled its strategic plan to break even ahead of schedule due to the growth of advertising revenues, distribution of special-themed sports channels, as well as the growth of income from the production of sports broadcasts.

The growth of Gazprom-Media’s advertising revenue, growth of non-advertising revenues, and increase in operating profits allowed the Holding to wrap up the first half of 2018 with a net profit of 4,190,000 rubles in contrast to a net loss of 634,000,000 rubles the previous year.