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ranking by revenues from Data Insight. Wildberries.ru maintained its leadership (since 2016) with sales revenues nearing $1.8bn in 2018, up 74% from the previous year. The site is also the global leader by traffic – ahead of ASOS, H&M, Zara, Next, Uniqlo and alike, according to SimilarWeb. Forbes Russia recently estimated Wilderries’ value at $1.2bn, making it the fourth most valuable Internet company in Russia after Yandex, Mail.ru Group, and Avito. Wildberries also recently made it into the top three most valuable internet unicorns. In the reporting period of 1H19 the fastest growing product categories were electronics, office equipment, products for pets, food, and tools. Currently Wildberries operates 4,700 own distribution points in Russia, Belarus, Kazakhstan, Armenia, and Kyrgyzstan.
Chinese online booking major Ctrip acquired a minority stake in Russian peer online flight search and booking service Avia Center, Vedomosti daily reported on June 30 citing unnamed representatives of the company and investment bank Aspring Capital. Reportedly, Ctrip acquired a 25% stake in Avia Center for an undisclosed amount, which is estimated at about $5mn- $7.5mn and could potentially consolidate 100% in the Russian company. Data Insight estimates that Russian e-travel market soared 12-fold to RUB850bn in the past eight years and gained 23% in 2018 alone. Avia Center was founded in 2005 by Sergey Bogachev and Alexander Grigoryev, who control 25% and 75% stakes in the company, respectively. The service has b2b partnerships with over 3,000 tour operators in Russia and CIS, while having retail point partnerships with MTS and Tele2 mobile operators and Russian Post branches. Ctrip has capitalisation of $20.5bn and is one of the largest online booking agencies in the world and the largest in China. Ctrip owns Scottish Skyscanner, American-based travel site Tours4fun, travel research site Trip.com and Trip by Skyscanner, among others.
Russian internet major Yandex reported net US GAAP income growth of 16% year-on-year in 2Q19, with revenues up by 40% y/y, and adjusted Ebitda jumping by 50% y/y with a margin of 32%. "The numbers came in strong, ahead of consensus in revenue growth, and to higher extent on Ebitda," BCS Global Markets commented on July 26. Yandex is Russia's most valuable digital company based on search engine Yandex and rapidly expanding in other digital and e-commerce fields. Notably, revenues in the search engine segment in 2Q19 grew by 21%, while surging by 117% in the taxi segment (Yandex.Taxi). Taxi business turned profitable for the first time since 2015, posting positive Ebitda of RUB0.4bn (5% margin). Yandex.Market marketplace weighted on the results in 2Q19. Not accounting for the marketplace, Ebitda margin of Yandex in the reporting quarter would have been 48% instead of 32%, BCS GM estimated.
9.2.8 Telecoms corporate news
Russian state-controlled integrated telecom major Rostelecom could issue up to 20% of new shares, and together with treasury shares swap it for 55% stake in Tele2 mobile operator, Kommersant daily reported on July 5 citing sources in the federal government.
Last month the head of Rostelecom Michael Oseevsky said the takeover of Tele2 is planned by the end of 2019. Oseevsky assured that Tele2 will remain an independent company with the existing management, and the revenues of
106 RUSSIA Country Report August 2019 www.intellinews.com