Page 145 - RusRPTMar21

Ozon Holdings published strong preliminary 4Q20 operating results on February 18. Sberbank CIB said in a note: Gross merchandise value (GMV) including services exceeded RUB74bn, with growth accelerating to over 140% y/y (versus 127% growth in 3Q20), above our forecast of 115% growth to RUB66bn.
For comparison, Yandex.Market posted 71% GMV growth in the quarter (127% for Yandex's total e-commerce GMV), while Wildberries registered 83% growth to R152bn.
The number of orders jumped 137% y/y to 29.6mn, also above our forecasts (we expected 97% y/y growth to 24.6mn). The marketplace's 3P GMV reached 52% of GMV including services, doubling y/y and about flat q/q. This was the only number that came in slightly below our estimate (we expected 54.3%). For comparison, Yandex.Market's 3P GMV reached 64% of the total. Ozon's platform continued to show strong positive OCF dynamics, in line with our forecast.
For 2020, GMV including services increased by over 140% y/y to R195bn (we expected 132% y/y growth to R187.5bn). For comparison, Yandex.Market's GMV increased 126% to R42.3bn (while its total e-commerce GMV rose 200% to R56bn) and Wildberries posted 96% GMV growth to R437bn.
The number of orders climbed 132% y/y to 73.9mn (we expected 116% growth to 69mn). The marketplace's 3P GMV reached 48% of GMV including services, up from 17% in 2019, in line with our forecast.
The operating results were solid and above our expectations, helped by favorable seasonality due to holiday gift-giving, as well as events such as Singles Day and Black Friday.
Management had a conference call on February 18 on 4Q20 operating update. It also touched upon reasons to issue convertible bonds and strategic approach.
Ozon 4Q20 operating results conference call confirmed that solid growth continues, with no major impact from competition at this point, and that the company has solid cash cushion to accelerate investments if it makes strategic sense.
Purpose of issue of convertible bonds – Financial flexibility is needed to speed-up logistics roll-out (depending on pace of rivals expansion), growth in service verticals, including fintech
Fintech – Ozon will keep developing services in digital payments and
145 RUSSIA Country Report March 2021 www.intellinews.com