RMG Royal Mail Plc

    


Rambler Media Limited



    RAMBLER MEDIA EXPECTS TO REPORT IMPROVED PROFITABILITY FOR FULL YEAR 2007

    Improving profitability driven by higher user traffic, strong advertising
                  revenue growth and operational restructuring

Rambler Media Ltd. ("Rambler" or the "Group"), the media group operating one of
Russia's most popular internet brands is today issuing the following trading
update ahead of the publication of its 2007 audited full year results.

Rambler expects 2007 full year Group revenue to more than double year-on-year
and reach between US$63-65 million (2006: US$30.6), which is above its previous
guidance set at US$58-64 million and above the growth in the Russian internet
advertising market in the period. Contextual advertising agency Begun,
consolidated since August 2007, is expected to contribute around US$13-15
million (after eliminating inter-company sales) to total Group revenue for 2007.

Rambler also expects to report a significantly improved Group EBITDA margin from
5% in 2006 to between 10% and 15% in 2007. The Group reported a 3% EBITDA margin
for the first six months of 2007, which grew substantially in the second half to
between 13% and 20%. Restructuring measures taken by the new management to
contain costs include the reorganisation of the Group's human resources,
streamlining of Rambler's product lines, focus on four profit generating areas
(Search, Communications, Homepage and Media & Entertainment) and the appointment
of new division managers to drive further user and revenue growth.

Mark Opzoomer, CEO of Rambler Media, commented: "We are very pleased today to
present this encouraging update on Rambler's financial performance for the
second half and full year 2007. It provides some evidence that our efforts since
March are starting to bear fruit. Our improving profitability is the result of
months of internal reorganisation, product integration and financial rigour. We
have been addressing our brand, our products, our values and our people and
changes are still happening. We feel confident that Rambler is now well
positioned in its quest to become Russia's leading daily open gateway to the
web."

Reaching over 35 million Russian speaking users a month

In 2007, Russian internet penetration is estimated to have increased by 12% to
reach 26% of Russia's adult population or 29.4 million people (Source: Public
Opinion Foundation, Fall 2007). In the same period, Rambler's reach has grown
even faster by 43%. Rambler.ru reached 30 million unique users on average each
month in 2007 and 35.1 million unique users in December 2007 (December 2006:
24.4 million unique users).

Rambler users consulted an average of 2.3 billion pages per month in 2007, up
49% from the previous year and 2.6 billion pages in December 2007, up 32% from
2.0 billion pages in December 2006. This clearly shows that internet users are
spending more time online and that, as a leading internet brand, Rambler is well
positioned to attract increasing user traffic.

2008 OUTLOOK

Rambler's vision is to become Russia's favourite daily homepage and an open
gateway to the internet. The group's mission is to build the largest daily
engaged IP-based audience in Russia by providing the best suite of search,
communications, media and entertainment content in one place.

Strategic initiatives include enhancing its search capabilities and extending
the depth of its regional, vertical and media content, where it has a
competitive advantage.

In 2008, Rambler intends to grow its overall share of the Russian internet
advertising market. The Group estimates that internet advertising in Russia will
continue to grow at around 50% per annum to reach around US$400 million in 2008,
with an approximately equal split between text-based and display advertising.

The Group expects to generate sales in the range of US$100 million - US$110
million in 2008 and to further improve profitability.

Rambler and Begun to launch new integrated services

As Begun's leading traffic generator, Rambler intends to maximize the number of
internet users who use its search engine and see adverts generated through Begun
in Rambler's sponsored search results. In parallel, Rambler intends to attract a
growing number of advertisers who wish to benefit from the unique audience reach
that Rambler and Begun can offer together.

Strategic Partnership with Video International's IMHO VI

Through the partnership between Index20, Rambler's advertising agency, and IMHO
VI, a subsidiary of Video International, which is the leading media advertising
group in Russia, the Group intends to gain access to a broader range of
advertisers who are increasingly looking to allocate more of their budget to the
internet, following their audience on-line. Index20 will also benefit from
enhanced sales capabilities, systems and reach through the use of IMHO VI's
sales technology.

Rambler Media intends to report its audited full year 2007 results in April
2008.

For further information, please visit www.ramblermedia.com or contact:

Rambler Media                                     Shared Value Limited
Mark Opzoomer                                     Nicolas Duperrier
Tel. +7 495 500 3826                              Tel. +44 (0) 20 7321 5010
                                                  rambler@sharedvalue.net

ING Wholesale Banking
Daniel Friedman / William Marle
Tel. +44 (0) 20 7767 1000

ABOUT RAMBLER MEDIA

Rambler Media is a media and services group which operates or has interests in
leading Russian language internet brands including the original Russian internet
homepage and search engine 'Rambler.ru', on-line newspaper 'Lenta.ru', product
comparison website 'Price.ru', internet catalogue and navigation system 'Top
100', instant messaging service 'Rambler-ICQ', interactive advertising Group
'Index20' and 'contextual advertising company 'Begun'. Rambler Media's shares
are traded on AIM, the junior equity market of the London Stock Exchange under
the symbol 'RMG'. For more information on Rambler Media, visit our corporate
website at www.ramblermedia.com.

Royal Mail (LSE:RMG)
Historical Stock Chart
Von Jun 2024 bis Jul 2024

Royal Mail (LSE:RMG)
Historical Stock Chart
Von Jul 2023 bis Jul 2024