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VKontakte net profit down by 94.5%
April 26, 2013, 1:17 pm



Russia’s largest social network VKontakte sees its net profit slump by 94.5 per cent.

The company’s total revenue grew by 44.1 per cent in 2012.

Forty eight per cent of VKontakte shares have recently been purchased by the investment fund United Capital Partners (UCP). Group has 39.99 per cent of the shares and the founder of the network Pavel Durov controls 12 per cent.

The fall of the company’s returns was said to be due to “significant investment in infrastructure and human resources” according to a statement.

In 2011 the return grew to $119.3 million – a 27.2 per cent increase against $93.8 million in 2010.

The net profit, however, remained at just $1 million.

According to VKontakte’s founder Pavel Durov, 60 per cent of the company’s profit in 2012 were made up of advertisement, and another 40 per cent – of online games.

Durov expects the net profit to increase this year as the company is now trying to spend less on servers’ rent and communication channels.

Daria Chernyshova