Mail.Ru Group 4Q and FY 19 results - The FY 20e bar set low

Mail.Ru Group reported FY 19 results in line with the consensus and guidance, and provided a somewhat cautious outlook for FY 20e, although longer-term aspirations look more promising. The company also mentioned plans to make a secondary listing on the Moscow Exchange in FY 20e.



The Communications and Social segment revenue grew by 18% yoy in 4Q 19 and by 15% yoy in FY 19, mainly driven by VK, which grew by 27% yoy in 4Q 19 and by 21% yoy in FY 19, accounting for 44% of Communication and Social revenue in FY 19. The growth was mainly due to increasing engagement as the Russian user base grew only modestly by 2% yoy, while time spent per user per day increased by 13% yoy to 36 min. VK has also been actively promoting mini apps with that number reaching 13,300 and MAU at 23 mn in December 19. The segments EBITDA margin stood at 52.3% in 4Q 19 and 54.1% in FY 19, decreasing by 7.1 ppts and 4.5 ppts yoy, respectively. Mail.Ru Group confirmed its target of doubling VK revenue from the FY 18 level within 3-4 years.