Mail ru : Q1 2021 IFRS results

Mail.ru Group Limited

Interim Condensed

Consolidated Financial Statements

For the three months ended March 31, 2021

Contents
Report on Review of Interim Financial Information....................................................................................................................................................	3
Interim Condensed Consolidated Financial Statements
Interim Condensed Consolidated Statement of Financial Position .........................................................................................................................	4
Interim Condensed Consolidated Statement of Comprehensive Income ..............................................................................................................	5
Interim Condensed Consolidated Statement of Cash Flows .....................................................................................................................................	6
Interim Condensed Consolidated Statement of Changes in Equity.........................................................................................................................	7
Notes to the Interim Condensed Consolidated Financial Statements
1	Corporate information and description of business.....................................................................................................................................	9
2	Basis of preparation ............................................................................................................................................................................................	9
3	Changes in accounting policies and disclosures............................................................................................................................................	9
4	Seasonality of operations ...................................................................................................................................................................................	9
5	Operating segments ............................................................................................................................................................................................	9
6	Business combinations......................................................................................................................................................................................	12
7	Goodwill and other intangible assets.............................................................................................................................................................	13
8	Property and equipment...................................................................................................................................................................................	13
9	Investments in equity accounted associates and joint ventures..............................................................................................................	13
10	Assets held for sale............................................................................................................................................................................................	14
11	Other payables, accrued expenses and contingent consideration liabilities.........................................................................................	14
12	Revenue................................................................................................................................................................................................................	14
13	Income tax............................................................................................................................................................................................................	14
14	Commitments, contingencies and operating risks......................................................................................................................................	15
15	Balances and transactions with related parties ..........................................................................................................................................	17
16	Financial instruments........................................................................................................................................................................................	18
17	Events after the reporting date ......................................................................................................................................................................	21

Mail.Ru Interim Results 2021

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Interim Condensed Consolidated Statement of Financial Position

As of March 31, 2021

(in millions of Russian Roubles)

		As of
		March 31, 2021	As of
	Notes	(unaudited)	December 31, 2020
ASSETS
Non-current assets
Investments in equity accounted associates and joint ventures	9	37,562	41,948
Goodwill		135,670	135,670
Right-of-use assets		16,359	15,618
Other intangible assets	7	19,200	19,623
Property and equipment	8	12,790	11,651
Financial assets at fair value through profit or loss	16	3,566	2,305
Deferred income tax assets		3,292	2,924
Long-term loans receivable	16	506	422
Advance under office lease contract		397	249
Total non-current assets		229,342	230,410
Current assets
Trade accounts receivable	16	14,777	16,707
Prepaid income tax		311	358
Prepaid expenses and advances to suppliers		1,112	853
Loans receivable	16	6,169	2,441
Other current assets		2,091	1,345
Cash and cash equivalents	16	34,552	39,297
Assets held for sale	10	2,248	-
Total current assets		61,260	61,001
Total assets		290,602	291,411
EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Issued capital		-	-
Share premium		77,446	77,101
Treasury shares		(1,044)	(1,071)
Retained earnings		100,638	103,103
Foreign currency translation reserve		1,811	1,195
Total equity attributable to equity holders of the parent		178,851	180,328
Non-controlling interests		1,598	1,663
Total equity		180,449	181,991
Non-current liabilities
Deferred income tax liabilities		990	1,379
Deferred revenue		1,825	1,871
Non-current lease liabilities	16	12,564	11,338
Non-current financial liabilities at fair value through profit or loss	16	2,441	3,506
Long-terminterest-bearing loans and bonds	16	40,454	41,497
Other non-current liabilities		265	265
Total non-current liabilities		58,539	59,856
Current liabilities
Trade accounts payable	16	12,996	10,923
Income tax payable		2,425	2,673
VAT and other taxes payable		3,055	2,259
Deferred revenue and customer advances		17,622	16,912
Short-term portion of long-terminterest-bearing loans	16	4,822	3,718
Current lease liabilities	16	3,902	3,861
Other payables, accrued expenses and contingent consideration liabilities	11	6,040	9,218
Liabilities directly associated with assets held for sale	10	752	-
Total current liabilities		51,614	49,564
Total liabilities		110,153	109,420
Total equity and liabilities		290,602	291,411

Mail.Ru Interim Results 2021

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Interim Condensed Consolidated Statement of Comprehensive Income

For the three months ended March 31, 2021 (in millions of Russian Roubles)

		Three months ended March 31,
		2021	2020
	Notes	(unaudited)	(unaudited)
Online advertising		10,471	8,581
MMO games		9,399	6,825
Community IVAS		4,359	4,521
Other revenue		3,506	1,695
Total revenue	5, 12	27,735	21,622
Net gain/(loss) on venture capital investments	16	5	(41)
Personnel expenses		(7,964)	(5,878)
Agent/partner fees		(7,832)	(5,926)
Marketing expenses		(5,799)	(4,090)
Server hosting expenses		(203)	(167)
Professional services		(343)	(180)
Other operating expenses		(409)	(804)
Total operating expenses		(22,550)	(17,045)
EBITDA		5,190	4,536
Depreciation and amortisation		(4,430)	(3,383)
Share of loss of equity accounted associates and joint ventures	9	(3,289)	(2,823)
Finance income		130	119
Finance expenses		(962)	(611)
Other non-operating loss		(135)	(120)
Goodwill impairment	7	-	(6,430)
Net gain on derivative financial assets and liabilities at fair value through profit or loss	16	1,294	211
Impairment of equity accounted associates		-	(222)
Gain on remeasurement of previously held interest in equity accounted associate		-	46
Net foreign exchange loss		(600)	(342)
Loss before income tax expense		(2,802)	(9,019)
Income tax benefit/(expense)	13	345	(113)
Net loss		(2,457)	(9,132)
Attributable to:
Equity holders of the parent		(2,465)	(9,077)
Non-controlling interest		8	(55)
Other comprehensive income that may be reclassified to profit or loss in subsequent
periods
Exchange differences on translation of foreign operations:
Differences arising during the period		616	131
Total other comprehensive income, net of tax effect of 0		616	131
Total comprehensive loss, net of tax		(1,841)	(9,001)
Attributable to:
Equity holders of the parent		(1,849)	(8,946)
Non-controlling interest		8	(55)
Loss per share, in RUB:
Basic loss per share attributable to ordinary equity holders of the parent		(11)	(42)
Diluted loss per share attributable to ordinary equity holders of the parent		n/a	n/a

Mail.Ru Interim Results 2021

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