Page 99 - RusRPTMar20

market share; however, the market remains extremely fragmented, with Ozon.ru’s share at only 5%. VTBC forecasts Ozon.ru GMV to grow close to 70% in 2020, but potential for strong upside and maintaining 2019 growth numbers of close to 90% also exists. At the same time, Ozon is still estimated to make an Ebitda loss of RUB300 per order, but could break even on earnings in 2022 due to the economies of scale, higher order density (driving delivery and fulfilment costs lower), and normalisation of marketing (primarily spent on customer acquisition). Seeing Ozon as the “crown jewel” of Sistema’s assets, VTBC on a sum-of-the-parts basis estimates a 12-month RUB 25/share target price for the investment conglomerate (up from RUB 20.5/share), primarily on higher Ozon.ru and MTS mobile operator valuation, making a 35% estimated total return with a Buy recommendation.
Russian internet major​ ​Yandex​ has seen an exodus of managers from its foodtech subsidiaries. ​The founders of Yandex.Food Maxim Firsov and Sergei Polissar, as well as Mikhail Peregudov of Yandex.Chef, who have quit, RBC business portal reported on February 25 citing the announcement of the company. As reported by ​bne IntelliNews,​ Yandex is facing increased competition in the foodtech segment from the ​joint venture of Sberbank and rival internet major Mail.ru​. Yandex noted, however, that the founders of the foodtech services acquired by the internet major will keep consulting the new team of Yandex.Food headed by Dmitry Masyuk.
TCS Group announced on February 7 plans to set up a fintech company in Europe​. Details are fairly sketchy at the moment, but we understand that the venture will focus on Western Europe, likely excluding the UK to begin with, and will not offer credit products. TCS (at the holding company level, not Tinkoff Bank) will commit up to EUR25mn for the first year, and the new venture will be headed by Artem Yamanov (current head of business development) and Alexander Emeshev (new product development), both TCS veterans, who will step down from their current roles and be co-investors, with TCS having a controlling stake.
Mail.ru Group is developing Smotri Mail.ru (Watch Mail.ru), an online video service​, Kommersant reported on February 24. The project is still at the beta test stage, according to the company. The service will offer a variety of content including: musical clips, news, TV shows, video blogs, films and series. Mail.ru Group has not excluded producing its own content. The video service is to be incorporated into various of Mail.ru Group’s media projects such as the new recommendation platform Pulse. Smotri Mail.ru is to be free of charge, but monetised via advertising, according to the company’s comments as cited by Kommersant.
The joint venture of Russia’s largest bank​ ​Sberbank​ and internet major Mail.ru Group​ could acquire a stake in​ ​Samokat​ express delivery service, Forbes and ​Vedomosti d​ aily reported on February 20 citing unnamed sources close to the deal. Samokat is Russia’s largest express-delivery service with a top line of RUB400bn in 2019. Its main shareholders are PIK Innovation (27%, subsidiary of real estate major PIK), and founders Vyacheslav Bocharov (22.7%), Rodion and Kirill Shishkovs (17.2% and 14%). The reports confirm continued cooperation between Sberbank and Mail.ru in the transportation and foodtech segment​. Reportedly, the JV is preparing to buy a 25%-60% stake in Samokat, which is already cooperating with the Mail.ru’s Delivery Club. Notably, ​Vedomosti ​reminds that Mail.ru main rival Yandex previously eyed the asset. As reported by ​bne IntelliNews,​ 2019 saw a major ​fallout between
99​ RUSSIA Country Report​ March 2020 ​ ​www.intellinews.com