VK has set out a plan to re-register its business entities, including filings tied to the British Virgin Islands and related structures in Russia, according to the company’s press office. The move signals a broader strategic adjustment as VK navigates regulatory and market environments across multiple jurisdictions. It mirrors a trend among global digital groups to streamline corporate footprints while remaining compliant with evolving oversight regimes.
The company announced its intention to apply to the UK Financial Conduct Authority and to the London Stock Exchange to terminate the acceptance of Global Depositary Receipts and to delist from the GDR Official FCA List. These receipts had previously traded on the London Stock Exchange Main Market, and the delisting process reflects VK’s shift in its cross-border capital market strategy. The decision aims to simplify the corporate structure and focus investor relations on its core markets and platforms, with clear communications to stakeholders about the implications for liquidity and shareholding options. [Source: VK press office]
VK noted that the London listing of its GDRs is scheduled to end on September 12, 2023. This step marks a transitional phase as the group realigns its investor relations and regulatory footprint in major financial centers. The company has indicated continued emphasis on core digital and social platforms, with an emphasis on sustainable growth in online advertising and user engagement. The move appears to be part of a broader plan to concentrate growth opportunities in regions where VK maintains strong user bases and advertiser demand, while ensuring governance standards and transparency for remaining listings. [Attribution: VK press office]
In the first half of 2023, VK reported growth that surpassed earlier periods, with net income increasing substantially. The company highlighted a notable rise in online advertising revenue, which grew year over year, driven by expanded ad inventory, improved targeting capabilities, and a broader advertiser base. The user base also continued to expand, with daily active users rising compared with the prior year, signaling robust engagement across VK’s platforms. These results reflect a diversified monetization approach that leverages social networking services, messaging, and digital advertising to generate multiple revenue streams. [Source: VK press office]
Market commentary at the time noted that central banks had adjusted key interest rates during the period, influencing liquidity and investment patterns across technology and online media firms. VK emphasized resilience in its business model, benefiting from a diversified revenue mix and a broad ecosystem of services that includes social networking, messaging, and digital advertising products. The emphasis on monetization strategies across the VK ecosystem highlights a strategy of strengthening partnerships with advertisers and expanding user engagement while maintaining platform safety and user experience. [Attribution: VK press office]
Looking ahead, VK outlined a disciplined approach to regulatory compliance, corporate governance, and capital market activities. Leadership indicated plans to pursue strategic initiatives, enhance product offerings, and explore opportunities to strengthen its position in international markets while keeping a sharp focus on user experience and platform safety. The company intends to continue investing in core platforms, expanding advertiser reach, and supporting sustainable growth across its digital services portfolio. [Source: VK press office]