VK Faces Record Revenues Coupled with Soaring Net Losses in 2024

The Russian technology giant VK reported a staggering net loss of 94.94 billion rubles ($1.12 billion) for 2024—almost three times its loss of 34.29 billion rubles ($405 million) in 2023—even though it attained record-high revenues, according to its annual report released on Thursday.

In 2024, VK’s total revenue reached 147.57 billion rubles ($1.74 billion), marking a notable rise from the 120.3 billion rubles ($1.42 billion) generated the previous year. However, the company did not disclose net loss figures in its press release announcing this revenue achievement.

Nearly two-thirds of VK’s revenue in 2024 came from online advertising.

Following the release of the report, VK’s stock plummeted by more than 6% on the Moscow Stock Exchange (MOEX).

VK runs Russia’s largest social network, VKontakte, along with the Odnoklassniki social platform, the grocery delivery service Delivery Club, and various other online ventures.

The company was placed under state control in 2021 after the Russian energy giant Gazprom acquired a majority ownership stake through a series of transactions involving billionaire Alisher Usmanov.

Analysts from the Moscow-based financial services firm Finam had anticipated that VK would experience considerable net losses despite an increase in revenue. Meanwhile, the Interfax news agency reported that VK’s revenue figures did not meet the consensus expectation of 157.7 billion rubles.