Page 136 - bneIntelliNews monthly country report Russia May 2024

social media sites, as well as the politically sensitive news aggregation service (previously owned by Yandex), and VK’s video platform, which in the Kremlin’s eyes should eventually replace YouTube in Russia.
● Ozon
On Thursday (April 25), Ozon reported its 1Q24 results. GMV grew by 88% y/y to RUB 570bn, of which the marketplace accounted for 85%. The group's adjusted EBITDA amounted to RUB 9.3bn. (+16%), which corresponds to 1.6% of GMV. The volume of cash at the end of the quarter amounted to 165.7bn rubles, of which 81.4bn rubles. related to fintech. Overall, we consider the results positive and note the following: GMV dynamics in the 1st quarter provide a good basis for meeting the company’s annual forecast (+70%); The marketplace's effective commission increased to 8.9% (4Q23: 7.8%) due to changes in tariffs and a decrease in promotional activity, which had a positive impact on gross margin (3.9% in 1Q24 vs. 2.1% in 4Q23); Ozon has provided a segment breakdown detailing fintech performance for the first time. The fintech's revenue grew by 225% to RUB 14.6bn, and adjusted EBITDA (equivalent to operating profit before depreciation and amortisation) amounted to RUB 5.9bn. The number of active fintech clients grew by 70% y/y to 20.2mn. Net cash flow used in operating activities amounted to RUB 1.0bn. in 1Q24, and capital expenditures amounted to RUB 11bn. The total area of Ozon warehouse space increased by 75% to 2.6mn square meters. m.
Russia’s second-largest e-commerce operator Ozon Holdings announced that investment holding company Vostok Investments bought about 28% of Ozon's shares from Baring Vostok Private Equity Funds.
As closely followed by bne IntelliNews, Russia’s most famous fund manager Michael Calvey and several of his colleagues from Baring Vostok Capital Partners were arrested in February 2019. Calvey was accused of embezzling RUB2.5bn ($37.5mn), and only in 2022 was his house arrest suspended.
After Russia's full-scale invasion of Ukraine, BV had already started exiting some of its assets. With the final exit deal involving 12 major assets, Baring Vostok split the business between the international and Russian teams – Baring Private Equity and Vostok Investments, respectively.
A team led by Elena Ivashentseva, chairman of Ozon's board of directors and former senior partner at Baring Vostok, owns and controls Vostok Investments Holding. As a result of the transaction, Vostok Investments acquired 59,830,028 ordinary shares and 1 Class A share, representing approximately 28% of Ozon’s total shares.
Sources previously told RBC business portal that the buyers received authorisation for the Ozon deal with a "special condition", under which Vostok Investments is obliged to sell Ozon to a Russian structure, most notably,
136 RUSSIA Country Report May 2024 www.intellinews.com