Loading the section
VK is the largest Russian internet holding of social networks and services: social platforms, email, music, games, educational projects and services for business. The company traces its history back to a student social network launched in 2006. Its shares trade on the Moscow Exchange under the ticker VKCO.
The main source of income is advertising inside the company's own platforms. The mechanics are simple: the audience spends time in the holding's apps, and the advertiser pays for impressions shown to that audience. The more time a user spends inside and the more precise the targeting, the more expensive the impression.
The second source is paid services: music and video subscriptions, in-game purchases, and services for business. The third, which is growing on its own track, is educational projects and cloud technologies.
The distinctive feature of the holding is a large number of business lines at different stages of maturity under one roof. The profitable advertising core funds those that so far only spend money, and the overall result can be read only when these two circuits are separated.
Social networks, email, video and music — the source of audience and advertising impressions.
Online schools and educational platforms.
Cloud services, corporate communications and development tools.
Game development and publishing, in-app purchases.
Strengths and weaknesses describe the business itself. Opportunities and threats describe what may happen around it.
The holding develops social networks and media services, email, music and video, games, educational platforms and technologies for business. Most of its income comes from advertising on its own platforms.
By selling advertising impressions. Users spend time in the apps free of charge, while advertisers pay to show them an ad. Subscriptions and purchases inside the services bring in additional income.
Because some of the businesses are at the growth stage: educational platforms, cloud services and video require investment long before they pay back. They are funded by the profitable advertising core, and the overall result has to be read segment by segment, not as a single figure.