IVI`S RESULTS OF 2017

Income of online movie cinema ivi in 2017 under IFRS amounted to 2.43 billion rubles and showed an increase of 0.86 billion.

Average monthly audience of the service increased by 45% and reached 40 million unique users in December 2017. Along with this, total duration of watching for 2017 was 692 million hours, duration of paid watching increased by 2.5 times, which once again confirms the global trend of growth of paid model.

Average monthly paying audience of the service increased by 136% and amounted to more than 500 thousand users in December 2017. The majority of paying users are subscribers.

The income of paid model in 2017 increased by 0.61 billion rubles and amounted to 1.48 billion rubles, occupying 61% of the total income of the service in 2017. (55% in 2016.). More than half of the income from paid model came from subscription.

Key drivers of paid model include the development of Smart TV market, anti-piracy initiatives and growth of the culture of paid content consumption.

Gross income from advertising model (i.e. advertisers ‘ budgets for advertising on ivi) amounted to 1.5 billion rubles, and among the key changes in advertising model were partnership with GPMD (starting from 2018) and creation of Smart networks.

An important driver for the entire business of online cinemas is the content offer: exclusive digital premieres, own production, deals with TV channels and development of catch-up and catch-forward models (display of content before broadcast or immediately after it), growth of the catalog with an emphasis on serial watching.

At the moment, ivi`s catalogue has more than 62 thousand units of content. In 2017 major transaction with Perviy Kanal, STS and NTV were concluded. As for its own production, premieres of the films “Bride”, “Love in the city of angels”, “Odnoklassnitsi 2” were held in 2017. In February 2018, film “Women vs. men – 2” came out, and in March 2018 – “Schastiya!Zdorovya!” came out. Also in new season, the audience will see the drama “Neproschenniy” with Dmitry Nagiyev in the title role, based on real events of the plane crash over Constance Lake in 2002 and fantastic action “Coma”.

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