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that the company wants to be in the top three), but he expects there to be two to three huge marketplaces and a number of specialist and niche players.
Deeper integration into YNDX’s ecosystem. There are still areas where Yandex.Market is working with SBER, including SBER’s Spasibo loyalty program and Sberlogistics. On the other fronts, collaboration between Yandex.Market and SBER has significantly narrowed, as YNDX is pursuing the deeper integration of Yandex.Market into its own ecosystem. In particular, there are big plans for integration with Yandex.Plus. Another initiative is offering Yandex.Market’s merchants a single virtual cabinet with streamlined access to all of YNDX’s ecosystem, from Yandex.Direct to Yandex.Zen.
Mr. Grishakov reiterated that the Beru brand will be retired. Both the marketplace and price comparison platform will now operate under the single Yandex.Market banner.
No plans to re-launch cross-border marketplace. Yandex.Market closed its cross-border service Bringly last year and remains skeptical of the segment, which involves long delivery times and customs clearance while showing slowing growth.
Legal structure optimization. After cutting ties with SBER, YNDX has been optimizing the legal entities making up Yandex.Market to reduce the number of intercompany transactions and to simplify processes.
Yandex.Market employs around 1,500 office staff and is hiring new people in logistics.
Yandex.Market IPO off the table. We understand that Yandex.Market now relies on YNDX for financing, and it sees no point in holding an IPO as a separate business.
Valuation and action. We have a HOLD rating on YNDX, which is trading at 2020-21 EV/EBITDAs of 37.2x-25.1x and P/Es of 76.5x-46.0x.
9.2.8 Telecoms corporate news
146 RUSSIA Country Report November 2020 www.intellinews.com
Russia’s Federal Antimonopoly Service (FAS) announced its decision on the case against Tele2 Russia (owned by Rostelecom), 21 October. The regulator confirmed that the company had violated antimonopoly rules by charging unreasonably high prices for its mobile services. The FAS will order that the tariffs that have increased since 12 May be reduced to their previous levels. Tele2 will have 14 days to implement the decision. A Tele2
