KP Media 2Q07 Results: Sales Up, Products Expanding Into New Regions

KP Media (KPME: N/R) reported 46% yoy growth in 2Q revenues to USD 4.68 mln. While revenues from publishing grew by ~40%, those from Internet projects surged by 115% to USD 0.75 mln. KP hopes for further growth in revenues from the Internet segment in 3Q07, as its bigmir.net web-site has reached a strategic agreement with Google to upgrade its email, search and AdSense advertising placement program. The company also reported regional expansion of its existing titles in 2Q07. This includes the launch of its 15 minutes daily newspaper in Odesa, Donetsk and Kharkiv, and the launch of its Afisha weekly in Zaporizhzhya. KP media reported negative EBITDA of USD 0.8 mln, caused by the release of several new projects (those less than two years old), while the EBITDA margins for the company’s existing projects increased from 11.2% in 2Q06 to 12.8% in 2Q07.