VK recorded double losses in their net earnings
VK Reports Significant Growth and Profitability in First Half of 2025
Russian tech giant VK has announced impressive financial results for the first half of 2025, showing a marked increase in revenue, profitability, and user base.
The company's business technologies segment saw the largest growth, expanding by an impressive 48% year-over-year to reach 6.7 billion rubles. This surge was primarily driven by VK Tech, VK's enterprise software business, which saw its revenue increase by 48% to the same figure.
VK Tech's growth was fueled by a 72.4% increase in revenue from large clients and a 25% rise in the number of these customers. The recurring revenue doubled year-on-year, reflecting strong demand for VK's productivity services and business applications. Notable growth was seen in VK WorkSpace, which saw a 3.1 times increase in customer count to 20.4 thousand.
The social platforms and media content segment also showed growth, with "VKontakte" being the main driver. Revenue in this segment increased by 8% year-over-year, amounting to 50.5 billion rubles. "VKontakte" reached an average monthly audience of 92.5 million users, an increase of 5%.
Adjusted EBITDA in both segments grew significantly. In the social platforms and media content segment, it grew by 4.7 times, reaching 10.3 billion rubles. VK's profitability based on adjusted EBITDA was 14%, an increase of 15 percentage points compared to the same period last year.
In line with its strategy for increasing profitability and growth, VK has updated its forecast for adjusted EBITDA for 2025, doubling it to exceed 20 billion rubles.
The holding's revenue for the period grew by 13% year-over-year, reaching 72.6 billion rubles. Revenue came from various sources, with 45.2 billion rubles from online advertising, 11.2 billion rubles from user payments, and 3.8 billion rubles from educational technologies.
VK's net debt decreased to 77 billion rubles, a significant decrease compared to the same period last year. This reduction indicates a strong financial position for the company.
The company's priority for the remainder of 2025 remains the development of long-term growth points and increasing profitability. The focus is on expanding VK Tech, particularly by growing its customer base and emphasizing subscription-based On-Cloud services.
[1] Source: VK's official press release [5] Source: VK's investor presentation for the first half of 2025
- The significant growth and profitability reported by VK in the first half of 2025 was not limited to its social platforms and media content segment; the business technologies segment, bolstered by VK Tech, experienced a 48% year-over-year expansion in revenue, with a particular focus on increasing revenue from large clients and growing the recurring revenue from productivity services and business applications.
- To further maintain and enhance its profitability and long-term growth, VK has prioritized the development of VK Tech, aiming to expand its customer base and emphasize subscription-based On-Cloud services, with a goal of surpassing 20 billion rubles in adjusted EBITDA for the year 2025, as indicated in its updated forecast.
