Page 138 - RusRPTAug21

Yandex.Market, the e-commerce platform of Russian internet major Yandex, will not buy Russian apparel e-retailer KupiVIP, RBC business portal reported citing unnamed sources close to the deal. As followed by bne IntelliNews, most recently analysts argued that after having secured its leadership in search and ride hailing, its two largest markets, Yandex is well-poised to emerge as a leader in e-commerce as well. The terms of the deal were not disclosed, but Mikhail Burmistrov of Infoline Analytics told Vedomosti daily previously that the assets might have been valued at around RUB1bn ($14 million at the current exchange rate). KupiVIP is one of the most established e-commerce brands in Russia, founded back in 2008 by German entrepreneur Oskar Hartmann. Reportedly, after performing due diligence, Yandex decided that KupiVIP was not suitable for the acquisition and did not exercise its option to buy into the asset.
Mail.ru reported 2Q21 results – mixed in-line; tough comparison base in games.
On management accounts, revenue grew 17% y/y to Rb29.9 bn – on the back of further growth acceleration in ad revenue (to 39% y/y from 22% in 1Q21), countered by 6% drop in MMO games due to tough comparison base (got boost during lockdowns last year); edtech revenue grew с90% y/y.
EBITDA declined 11% y/y to Rb6.7 bn (22% margin) – it grew slightly in games (+13% despite tough base) and communications&social (+4% - margin declined 7pp y/y to 41%), but this was offset by increased investments in edtech (Rb0.8 bn loss vs Rb0.3 bn +ve in 2Q20) and other new initiatives (loss grew 24% y/y).
Adj. net income declined 33% y/y to Rb2.3 bn (before Rb4,4 bn JVs’ losses – mostly O2O - non-cash) on weaker EBITDA and higher D&A.
JVs: Delivery Club grew gross revenue 42% y/y (orders +30%), Samokat 3.9x (mainly on orders’ growth), Local Kitchen +c50% (also on orders’ growth), Citymobil doubled GMV y/y (low base helped); Aliexpress Russia local GMV grew 2x y/y (no data on total including cross-border)
Guidance 2021 was reiterated – revenue +18-21% (Rb127-130 bn), EBITDA margin to improve y/y.
9.2.10 Utilities & Renewables corporate news
Enel Russia signed an agreement with the Rostov region on the construction of a new wind farm with total investment of c. RUB10 bn, Interfax reported, 6 July. Enel Russia will start to invest in the project if it receives the necessary allocations in renewable energy (RE) capacity auctions that will take place in 2021-2025. Enel Russia plans to outsource the new wind park construction to a firm dedicated to RE projects. The government distributes construction contracts with a guaranteed ROIC in line with the OFZ yield at a premium at RE auctions. The regulator has no announced details on the capacity auctions for 2021-2025. It is assumed that Russia will promote the
138 RUSSIA Country Report August 2021 www.intellinews.com