"Euromoney", September 2003

A new sign of optimism in the Russian business community has arrived; the launch of Russia's first 24 hour business TV station. RBC TV began broadcasting this summer serving the growing demands of business and investors for up to the minute business and political news.

"There is a growing demand for deep coverage of the latest market events. That is why I consider this event an extremely important achievement/ says Dominic Gaultieri of Alfa Bank, Moscow.

With several dozen million dollars in financing RBC TV, a wholly owned subsidiary of RBC Group, is expected to break even in just two years, with a payback period of a little more than three.

RBC TV is free to air and generates revenues from advertising. Over the last few years the Russian advertising market has grown rapidly and ranks in the top ten largest among European countries. Television advertising has witnessed the most explosive growth. RBC TV's competitive advantage is that it offers clients a uniquely focused platform for companies, particularly those concentrated on B2b and luxury goods, to promote themselves.

Available via satellite and cable, RBC TV will also be watched in all Russia's largest cities via regional broadcasters to an estimated 12 million people including top and middle ranking managers and businessmen, professionals in banking, investing, accounting and consulting as well as state officials and journalists. By the end of the first year the audience should total 7-8 million and will be aged between 25-55. Viewers will have higher educations and earn above average incomes.

RBC Group was established 10 years ago as a business information agency and is now one of the leaders on the Russian media and IT markets. Launching it's own internet server in 1995, RBC became the first online provider of real time trading information on Russian exchanges the following year. In 1998, the RBC portal was Russia's most popular website. In subsequent years RBC has become a leader in the software market, simultaneously developing new information products, launching specialized Internet resources and strengthening its leadership in the domestic Internet advertising market.

In 2002, RBC Information Systems, parent company of the group, became the first Russian company in history to IPO on the domestic market; today the company's capitalization exceeds $125 million.

RBC 's media divisions enjoy the largest business audience in the country and the company's growth has averaged 700% since 2000. RBC is the only Russian business listed on the Deloitte&Touche Tohmatsu 2002 European Technology Fast 500. According to IAS accounts audited by KPMG for 2002 revenues exceeded usd 29 mln, a 58% jump on 2001, while gross profit totaled usd16 million.

RBC has maintained steady growth in the first half of 2003 as well, with revenue up 35% and net income rocketing 68%. Most comes from the company's media divisions, which posted 80% income growth to $11 million. One of RBC 's new media projects is the professional information and analytical terminal 'Quote Total' which manager's predict will significantly increase the average revenue per user in 2003. Other new projects include the online analytical business newspaper, the RBC Daily, with a current readership of 60 000 people, which ranks the edition alongside Russia's other leading business publications.

RBC is confident the demand exists to support a profitable business channel in Russia. "Despite an impressive growth of the domestic financial markets and the economy in general, Russian television channels, as a rule, tend to ignore economic news and devote less than 1 percent of air time to such information," says RBC 's General Director Yury Rovensky. " RBC has ten years of experience on the information market, a famous brand, a well-developed network of correspondents, an impressive client network and, finally, experience in developing profit-making innovative projects. All this makes us feel absolutely confident about RBC TV's success. We have created an important instrument to promote the further economic growth in Russia, and businesses have already evaluated the efficiency of this tool."

The launch of business television is a sign of Russia's ever growing economic development. RBC has managed to use its intellectual and technological potential in full to create a premium niche channel. Time will tell whether Russian businesses are ready to take advantage of the new opportunities RBC TV presents.