Page 153 - RusRPTDec21

9.2.7 TMT corporate news
● Yandex
The Eurasian Economic Commission (EEC), the executive body of the Eurasian Economic Union (EAEU), found that YNDX discriminates against its competitors in Russia, according to Vedomosti. However, since the investigation did not find that YNDX has a dominant position in the territories of two or more EAEU members, the EEC does not have the authority to initiate a case against the company, so it falls to Russia’s Federal Antimonopoly Service (FAS) to conduct its own investigation into the matter.
● Ozon
Ozon reported 3Q21 IFRS results on November 16. GMV grew 145% y/y in 3Q21 to Rb108bn – acceleration vs +96% in 2Q21 as the comparison base normalized. This was driven by a 3.4x rise in the number of orders: 87% more active buyers (21mn), 50% higher order frequency LTM (7.5).
o Marketplace (3P) accounted for 67% GMV (up from 51% in 3Q20) and remained the key growth driver, though 1P GMV also grew well (c60%, we estimate) also due to, we believe, express delivery increasing scale.
Revenue rose 85% y/y to Rb41bn, reflecting an increase in GMV but lagging it for accounting reasons (i.e., due to 3P growing faster than 1P).
o Ad revenue was up 150% (at c2% GMV)
o The number of Ozon cards issued grew 60% q/q to 1.6mn (8% active buyers)
Adjusted EBITDA loss expanded 6x y/y to Rb11.3bn, staying at c10% GMV as in 2Q21 – the increase in GMV was more than offset by the jump in logistics costs (+185% y/y) on capacities’ expansion, the increase in marketing spend (172% y/y), and other operating costs. Net loss thus stood at Rb14bn (up 3.6x y/y).
OCF in 9M21 was negative Rb29bn (vs -Rb4bn in 9M20) reflecting the increase in EBITDA loss and the seasonal impact from working capital amplified by increased GMV. FCF was thus hit (-Rb42bn vs -Rb10bn in 9M20); CapEx grew 2.2x (to Rb11bn).
Guidance 2021: for GMV, growth was upped 10pp to a 120% increase; for CapEx, reiterated at Rb20-25bn (up 1.9x-2.6x).
153 RUSSIA Country Report December 2021 www.intellinews.com