- RBC revenue up 116% in the first quarter of 2004 as compared to the similar period of 2003 due to the successful implementation of the TV project and an overall growth on the media and IT markets.
- Total revenue in 2004 is projected to reach $71m, including $16m from RBC TV.
- Full-year 2004 net profit (excluding the TV project) is expected at a level of $15.8m. The consolidated net profit forecast is $10.8m in 2004.
||1st quarter 2004
||1st quarter 2003
|TV project revenue
Moscow, June 15, 2004 - Today RBC Information Systems (RTS, MICEX: RBCI) reported its preliminary financial results for the 1st quarter of 2003, demonstrating sustainable growth in the Media sector and increased revenue streams from IT services.
RBC Chairman and CEO German Kaplun said: "Given the fact that the first quarter usually contributes the smallest share of annual revenues, we are extremely satisfied with the achieved results and remain optimistic about the company's further growth. We are continuing to increase our product range both in media and IT, build up our sales force and enhance RBC brand recognition among its core audience, key business leaders and decision makers."
Revenues. Continuing strong growth on the Media and IT markets and RBC TV's success among its target business audience lifted RBC revenues 116% from $6.9 million in the 1st quarter of 2003 to $14.9 million in the period under review. In the total 1Q2004 revenue mix of the company, the core media business and the TV project accounted for 69%, with the rest coming from IT Services.
Media Services. Revenue from the core Media business, represented by online advertising, information services and marketing communications, continued to deliver an impressive growth. It reached $6.8 million in the 1st quarter of 2004, which is 74% more than in the same period of 2003. The main drivers were the strengthening of the RBC brand, the launch of new media products and the growing popularity of RBC's online resources.
RBC TV. The total revenue from RBC TV reached $3.5 million in the 1st quarter of 2004. The channel continued to enhance its signal distribution and reached an agreement with a major television operator in St. Petersburg to cover 85% of the city by the end of 2004.
As of the end of May RBC TV has successfully entered into agreements with various advertisers, who have committed about $12 million in advertising contracts of the planned $16 million revenue in 2004.
IT Services. Revenue from the IT business, consisting of general and offshore programming and system integration, was up 53% from $3 million in the 1st quarter of 2003 to $4.6 million in the same period of 2004. As forecasted earlier, the ending of the election period in the country has had a positive impact on IT decision-making by state organizations, which eventually resulted for RBC in healthy revenues from programming contracts.
Outlook for 2004
This year RBC expects to deliver strong top-line growth at a level of $71m, including $16m from RBC TV. This forecast is given exclusive of potential acquisitions. The full-year 2004 net profit from the core media and IT business (excluding the TV project) is projected to reach $15.8m. On a consolidated basis, the company's net profit is expected to reach $10.8m, with EBITDA being at a level of $20.1m
Cautionary note regarding forward-looking statements
Some of the information in this press release may contain statements of future expectations and other forward-looking statements. These expectations are based on management's current views and assumptions and involve known and unknown risks and uncertainties. It is possible that the company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in these forward-looking statements. For a discussion of some of the risks and important factors that could affect the firm's future results, see "Risk Factors" in the company's IPO Circular on www.rbcinfosystems.com. RBC assumes no obligation to update any forward-looking information contained in this document
Investor contact: Natalia Makeeva
Tel: +7 (095) 363-1111 (ext. 1369), e-mail: firstname.lastname@example.org, Web: www.rbcinfosystems.com