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By Anna Rzhevkina
MOSCOW Oct 28 (Reuters) - Russian internet group VK
downgraded its full-year revenue guidance to 124-127
billion roubles ($1.75-1.80 billion) on Thursday, citing slowing
growth after a surge in pandemic demand.
Its previous 2021 revenue forecast was for growth of 18-21%
to 127-130 billion roubles.
The company, which owns the popular Vkontakte and
Odnoklassniki social networking websites, expanded its
e-commerce services and games division last year as the pandemic
boosted demand for online purchases and entertainment.
VK shares were down 0.2% in London at 0716 GMT.
Known as Mail.Ru Group before a rebranding this month, VK
reported a 19% rise in third-quarter consolidated revenue to
30.4 billion roubles, which it said was supported by appetite
for online advertising and education technology.
The company said it was bullish on the growth prospects of
its games unit My.Games, which delivered 2.3% year-on-year
growth in the quarter, but said growth in the segment's earnings
before interest, tax, depreciation and amortisation (EBITDA) was
the focus this year.
Revenue from edtech jumped 56% year-on-year to 2.5 billon
roubles, supported by expanded course offering, which VK said
helps drive paying user growth.
The net loss, including joint ventures, widened to 1.37
billion roubles, compared with a loss of 415 million roubles a
year ago.
Russia's top internet company Yandex on Wednesday
reported an 82% year-on-year drop in third-quarter adjusted net
income, in part due to e-commerce investments, but raised its
full-year group revenue forecast.
"Today's results are in line with expectations, albeit the
full-year guidance downgrade should impact the share price,"
analysts at Jefferies said in a note.
($1 = 70.6750 roubles)
(Reporting by Anna Rzhevkina and Alexander Marrow; Editing by
Jason Neely and Mike Harrison)