Page 117 - RusRPTJul20

recently, on company estimates.
o Despite being a relative newcomer and spending to-date a mere c$50mn, Yandex’s self-driving technology is among the global top. Its cars rode 3.4mn miles autonomously in an urban area (as of end May) – globally, according to publicly available data, only Alphabet’s Waymo achieved more. Potential monetization – early days, but looks naturally synergetic in L-T to all Yandex.Taxi services (ride-hailing, food delivery, logistics), as well as to e-commerce.
o IPO plans for Yandex.Taxi have been shelved for now – due to COVID-19 uncertainty and risks of a second wave.
o Not discussed on the call – Please note that Bloomberg sources said that Yandex may be considering buying out Uber’s 38% stake in Yandex.Taxi. According to Bloomberg, deliberations are at an early stage and may not lead to a transaction and Yandex.Taxi could still pursue an IPO.
o On BCS estimates, 100% Yandex.Taxi equity has around $6-7bn fair value.
Russia’s Alfa-Bank has provided a venture credit to online cinema ​ivi​ for RUB3.7bn ​and has received the right to acquire 2.5% of the company under a warrant agreement, the bank said on June 1 in a statement. “Alfa-Bank gave a 6-year venture credit to the tune of 3.7bn to company ivi for further development and strengthening of the leader positions on the market of online video services,” the bank said. ivi will continue to invest in its business and analyze options of raising additional shareholder financing, including an initial public offering (IPO) in 2021–2022.
Russian food delivery service Delivery Club handled a record high number of orders in May, ​over 5.5mn, excluding delivery of grocery and take-aways, which tripled on May 2019, the company said on June 1 in a statement. “It’s a new record for the company. In comparison to April 2020, Delivery Club grew by 1mn orders, the fastest jump in the service’s history,” the company said. Delivery Club explained the high May results by connection of new restaurants to its platform, demand during the lockdown, and expansion of delivery zones together with taxi hailing service Citymobil, which together with the delivery service are parts of Internet company Mail.ru Group.
Qiwi​ has announced a deal to sell its instalment card project SOVEST to Sovcombank​. We believe that, irrespective of the deal's terms, the sale is strategically important for Qiwi, as it eliminates losses, credit risks and funding costs related to the project. Given our conservative assumptions regarding a profitability turnaround at SOVEST, which we expect to break even as late as 2022, our initial assessment indicates that the deal is broadly neutral for our valuation of Qiwi, which still offers an ETR of 134%: Buy reiterated. Qiwi plans to sell the portfolio of instalment card loans with a gross carrying amount of about RUB 9bn and net amount of about RUB 7.6bn for a cash consideration of RUB 6-6.5bn. According to RBC, the discount to the net amount is partly due to the fact that Qiwi has already received merchant fees as well as client payments for value added services on this loan portfolio. The final value of the claims to be transferred and consideration received is to be determined through a valuation process in about a month from the announcement, when
117​ RUSSIA Country Report​ July 2020 ​ ​www.intellinews.com