RBC, Armada removed from quotation lists on RTS exchange
Due to low trading volumes, common shares in both RBC Information Systems and Armada have been removed from their respective quotation lists on the RTS exchange. Starting today they will trade on the RTS as unquoted securities.
Armada staff reduction in 4Q08 larger than anticipated
Yesterday's report by Vedomosti highlighting staff cuts in Russia's IT sector provided some very stark figures for 4Q08. Among the 25 companies polled:
- 44% implemented staff cuts.
- Only 20% increased their staff.
- 38% reduced wages for existing staff.
Press advertising revenues down 4.5% y-o-y in December
According to figures published by Video International Analytical Center, the deceleration in printed advertising revenues growth seen in 3Q08 has produced its first nominal y-o-y drop in advertising revenues; data based on TNS Media Intelligence monitoring show that spending on press advertising remained flat y-o-y in November 2008 and dropped y-o-y in December 2008. All in all in 4Q08, press advertising revenues grew 7.5% y-o-y in October 2008 to RUB 5.8 bn, followed by just a 0.4% y-o-y gain in November (to RUB 4.9 bn - a decrease of 15.5% m-o-m) and a decrease of 4.5% y-o-y in December (to RUB 4.5 bn - down 8.2% m-o-m).
Rambler Media FY08 trading update commentary
On Friday Rambler published its FY08 unaudited trading update, which highlighted a “halt in profitability improvement in 4Q08 due to adverse macroeconomic conditions.” The trading update revealed a 60% y-o-y increase in consolidated revenue to approximately USD 110 mn, with display and context advertising each contributing about 44% of sales. The company also pointed to a 5% y-o-y drop in sales in 4Q08 and a negative EBITDA margin. The trading update failed to provide operating and net profit.
Controlled RUB devaluation...will 2H09 bring a bounce?
In the face of some USD 130 bn in net capital outflows in 4Q08 and continued pressures in 1Q09, the Central Bank of Russia has finally abandoned its increasingly costly efforts to support the RUB. Over the course of the week, the central bank has permitted further controlled devaluation of the RUB against the dual-currency basket (55% USD and 45% EUR), with the official rate gaining for the fifth time this week (up another 1.5% to RUB 37.3). Both the USD and EUR set new records against the RUB, with the RUB/EUR rate gaining to more than RUB 43.0 and the RUB/USD rate advancing to more than RUB 32.6.
