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31% of revenues. This was mainly driven by M.Video, which almost doubled its online sales. Last quarter, the company opened five M.Video stores, six MMobile stores and two Eldorado stores in net terms, taking the total store count to 990. Total selling space reached 1,428k m2, up 10.5% y/y.
Russia's second-largest retailer Magnit reported net IFRS profit drop of 57% year-on-year , despite revenues rising by 10.5% y/y in 3Q19. The company's Ebitda declined by 9% y/y, while Ebitda margin declined to 5.8%. But like-for-like sales and traffic continued to decline in 3Q19 by 0.7% and 3.4% y/y, respectively, only partially offset in like-for-like (LFL) basket size growth of 2.8% y/y. BCS Global Markets on October 29 saw the results as negative and weak, maintaining a Sell recommendation for Magnit's depositary receipts at target price of $12 and Hold recommendation for shares at target price of RUB4,000.
X5 Retail Group reported a 3Q19 trading update that saw consolidated revenues up 12.8% y/y to RUB420.7bn (versus 14.4% revenue growth in 2Q19), which was generally in line with expectations. Perekrestok remained the fastest growing format, with an 18.0% y/y increase in revenues (amid 7.6% LFL sales growth in 3Q19) while Pyaterochka's 13.4% revenue growth was slower than in the previous quarter and the lowest level since 2013. However, this is attributable to reduced space growth (15% in 3Q19 versus 21% a year ago). Consolidated LFL sales growth was 3.9% in 3Q19 (below the 5% recorded in 2Q19), although the breakdown has changed. Average traffic grew just 0.5% (versus 3.3% in 2Q19), while the ticket increased 3.4% (versus 1.6% in 2Q19). This is attributable to the cold weather in 3Q19 that prompted a lower number of visits but an increased number of items per ticket. September saw the slowest pace of revenue growth (11.9%), down from 13.5% in July. In net terms, X5 Retail Group opened 492 stores last quarter (versus 507 in 3Q18), taking the total store count to 15,752. Space growth further slowed from 18% in 2018 to 14% in 3Q19, and we foresee a further slowdown to 12% by the end of this year. The company also disclosed the 3Q19 performance of its online platform Perekrestok.ru : revenues totalled R922mn in 3Q19, a threefold increase over the low base of 3Q18. The number of orders was over 300k, up from 93k a year before.
One of Russia's largest retailers O'Key Group posted retail revenue growth of 4.4% year-on-year in 3Q19 , slowing d own from 5.7% y/y seen in 2Q19 and reflecting a wider deceleration in retail in 2H19 Like-for-like sales rose 3% y/y versus 3.3% y/y in 2Q19, slowing down on the back of negative traffic of -0.2% y/y, but compensated by 3.2% y/y growth in average ticket. BCS Global Markets commented on October 21 that the deceleration is slight given the strong market competition. By format, O'Key's best format is the discounters that posted 12% like-for-like growth in the reporting quarter, but also slowed down from 19% seen in 2Q19. Previously in January O’Key unveiled a new strategy , but left investors unimpressed. Following the publication of 2Q19 results, the retailer reiterated the guidance for 2019, with hypermarkets' top line growth expected to be around zero and DA! discounter stores showing double digit growth.
Lenta has released a 3Q19 trading update that showed sales declining 0.4% y/y in 3Q19 to RUB100.4bn . Like-for-like (LFL) was negative 0.5% y/y as traffic outflow was the most significant in the last nine quarters (down 2% y/y) and was not offset by ticket inflation (up 1.5% y/y). Selling space growth was 4% y/y, as net openings slowed (two hypers YTD).The release featured
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