Page 152 - RusRPTSept21

for 2,600sqm for football academy within the project in Moscow region. Investments are not disclosed at this stage. Management explained decision to add such complexes to the projects by saying that over 1/3 of customers like to see sports infrastructure close to their houses. Sports infrastructure will be good for competitive offer of Samolet and supportive for sales.
Press leaked Samolet Group may acquire Inteco Real Estate developer.
The developer is currently owned by Trust Bank. Inteco – 24th largest in Russia and # 6 in Moscow with c100ths sq m of sales (vs SMLT Moscow sales of 198ths sqm) and a 1.4mn sqm land bank in 2020, mostly focused on Moscow and business-class. Inteco IFRS revenue was Rb35.9bn and EBITDA level at Rb9.6bn in 2020. The press leaked a Rb32bn price tag for Inteko. Potential acquisition may imply higher corporate debt level for Samolet with 1.32x corporate Net debt/EBITDA 2020. Yet, the full financial impact will be measured as more details are revealed.
Samolet Group released its 1H21 IFRS results with conference call on September 7 at 1pm MSK. Revenue Rb33.3bn (+47% y/y; -11% h/h) reflects decent sales dynamic (+78% y/y in RUBterms), but we note 11% miss to BCSe. EBITDA Rb8.1bn (+106% y/y; +16% h/h) - 18% miss to BCSe with 24.5% margin (+7.1ppt y/y; +5.7ppt h/h). Company highlights importance of the focus on the efficiency to achieve this result. Net income Rb2.6bn (5x y/y; -3% h/h) - 37% miss to BCSe with 7.9% margin (+5.6ppt y/y; +0.7ppt h/h), yet still strong figures, as margin continue to improve. Yesterday BoD recommended dividends for 1H21 in total amount of Rb2.5bn – Rb41DPS on 2.4% annualized DY, which were fully in-line with dividend policy and our expectations. October 15 defined as record date. That will be a second payment this year – Rb41DPS paid earlier this summer.
9.2.5 Retail corporate news
Russia's largest electronics retailer M.Video-Eldorado reported 24% year on year revenue growth under IFRS for 1H21, in line with expectations. To remind, M.Video has set an ambitious guidance to double its gross merchandise volume (GMV) in five years, from RUB0.5 trillion in 2020 to RUB1 trillion ($13.5bn) by 2025. "The winner is the lion and takes most of the business. You cannot do things halfway," said M.Video-Eldorado Group CEO Alexander Izosimov in an exclusive interview with bne IntelliNews. The growth in the share of OneRetail Strategy customers (from 42% in 2020 to 57% in the middle of 2021 to 85% in the mid-term) should be the key driver behind doubling GMV. However, in the reporting period increased investment and the 33% jump in cost of goods sold led to adjusted EBITDA slip of 2.6% y/y, with
152 RUSSIA Country Report September 2021 www.intellinews.com