MOSCOW, November 10. /TASS/. Revenue of Russian social network VK under IFRS in Q3 increased by 21% year-on-year and amounted to 24.1 bln rubles ($398.2 mln), the company said in a statement on Thursday.

"Q3 2022 revenue was up 21% YoY to RUB 24,119 mn due to higher sales of online advertising, up 29% YoY. The sector’s main drivers were: performance formats, up 71% YoY, advertising revenue from small and medium size businesses (SMBs) grew 128% YoY, video ad revenue increased by 16% YoY," the company said.

The company’s adjusted EBITDA in Q3 rose by 16% year-on-year to 9.8 bln rubles ($161.92 mln). EBITDA margin increased by 3 percentage points year-on-year to 30.6% mostly due to expanding margins in Communications & Social and EdTech segments (+3p.p. and +34 p.p. respectively).

Meanwhile, VK’s total net profit in Q3 reached 41.2 bln rubles ($680.72 mln) compared to total net loss of 2.35 bln rubles in Q3 2021.

"VK’s largest asset, VKontakte continued to strengthen its leadership position among social networks in Russia with daily audience increasing by 7.1% to a record of 49.4 mn, while the social network’s monthly active users grew 6.9% YoY to a record of 76.9 mn. The growth in audience and engagement led VKontakte to increase its adjusted revenue by almost 34% YoY in Q3," the statement said.

The company recalled that on September 12, VK closed the deal to purchase content platforms Dzen and News from Yandex in exchange for a 100% stake in Delivery Club service, and ceased to be a shareholder of O2O Holding. "VK continues to enhance its focus on content services and develop its business based on Company’s core products: social networks, communication services and online education platforms," the statement said.

At the same time, VK has significantly moved forward in restructuring of its convertible bonds. According to the company, "As at the date of this financial report’s publication, VK has bought back ~55% of all Bonds outstanding with a nominal value of ~$220 mn. The Company continues to look at opportunities to purchase the bonds that remain outstanding."