Russia's VKontakte owner VK hit by second quarter loss

LONDON – VK, proprietor of Russian social community VKontakte, reported a second-quarter internet lack of 3.4 billion roubles ($56 million) on Thursday, partly as a result of a 14 billion rouble ($231 million) overseas change hit.

The VKontakte community, usually in comparison with Fb, has emerged as a key participant within the race to interchange Western companies within the wake of Russia’s invasion of Ukraine and blocks imposed by Moscow since then on Western social media platforms.

VK’s second quarter end result was adjusted from a 3.6 billion rouble revenue after volatility within the rouble, which recovered from a file low in March to a close to seven-year peak in June.

The corporate stated that whole adjusted EBITDA had fallen 37% yr on yr to 4.2 billion roubles ($69 million).

Russia is pushing for the fast improvement of home digital options and has accelerated efforts to exert management since launching the warfare on Ukraine on Feb. 24. The Kremlin has blocked entry to Twitter, Fb and Instagram, and located Meta Platforms Inc responsible of “extremist actions”.

A shareholder and administration shake-up noticed Gazprom Media purchase a bit of VK’s voting rights in December, including to a rising media empire managed by the state vitality large.

Yandex stated in late April it was promoting its information aggregator platform Yandex Information and content material suggestion service Yandex Zen to VK, however didn't disclose phrases.

($1 = 60.5500 roubles)

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