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Armored Warfare and Skyforge are now among our highest revenue generating games and in Q2 Armored Warfare was licensed out for operation in China. However user retention, especially on the international side has been lower than expected.
Ru Group, said: In H1 2016, the Company achieved revenue growth of 11.6% Y-o-Y to RUR 18,834 million with Q2 2016 revenue growth of 11.9% Y-o-Y.
H1 EBITDA margins were 46.1% with H1 EBITDA of RUR 8,691 million mostly due to increased marketing spending.
Additionally we continue to develop further titles, and releases on different platforms, based around our key franchises.
However we expect that the consumer spending will remain under pressure in H2 and hence this will affect games revenue growth.
As a result of lower interest payments on the loan connected to the acquisition of VK, net profit increased 14.0% to RUR 5,737 million.
We continue to be pleased with the growth in advertising revenues which in H1 2016 grew 28.6% Y-o-Y to RUR 8,098 million.
Vinci uses neural networks and artificial intelligence to transform photos into paintings in the style of famous artists or any other artistic pattern.
Artisto is the world’s first app that utilizes similar technology, but for processing short videos.
In H1 2016 VK’s total revenues grew 41.0% to RUR 3,810 million.
We continue to see significant further opportunities for VK with both an expanding user base and an increasing number of features.
We will monitor the progress of these standalone apps and continue to develop internally the underlying technologies that might also be utilized by various communication products of the Company.