Page 137 - bneIntelliNews monthly country report Russia May 2024

unsanctioned.
RBC's sources also note that state-controlled internet major VK Holding (former Mail.ru) is among those interested in buying the stake in Ozon. However, sanctioned VK is unlikely to be the only buyer, and a consortium of several investors could be created to proceed with the deal.
Ozon Holdings and its peer Wildberries are leading the Russian market in the ongoing e-commerce consolidation, and both have strengthened their supply chain capabilities since 2022.
Ozon's largest shareholder as of April 2023 was AFK Sistema multi-industry investment conglomerate with a 31.76% stake. In November 2020, Ozon held an IPO and went straight to the US NASDAQ, Moscow and St Petersburg stock exchanges, placing 33mn depositary receipts at $30 per DR. The company then raised $990mn and its capitalisation exceeded $7.1bn.
Since the suspension of NASDAQ trading following the full-scale military invasion of Ukraine, Ozon tried to appeal the decision twice, only to finally decide to delist. The company's shares continue to be traded on the Moscow Exchange and the Astana International Exchange (AIX).
● Wildberries
● Other
On April 26 Cian released 4Q23 results. Revenue grew by 37% YoY to RUB 3.3 billion, adj. EBITDA increased by 28% to RUB 749 million. (profitability 22.9% / +1.6 p.p.), net profit amounted to 265 million rubles. Core business revenue grew by 29%, including a 69% increase in lead generation and rather weak dynamics in the ad placement segment (+9%). Revenue from the transaction business increased by 253% to RUB 272 million. Profitability in the 4th quarter was mainly pressured by a high increase in marketing expenses by 81% to RUB 1.1 billion.
In general, revenue and adj. EBITDA for 2023 were 1% and 7% below our forecasts, respectively. Taking into account also the modest dynamics in the ad placement segment, especially in Moscow and the Moscow region (revenue growth in 2023 was 13% versus 25% in the regions and 78% in lead generation), and the potential cooling of demand in the real estate market, we rather negatively assess the results 4 quarter. Our target price implies upside potential of only 6% from current levels.
Qian also said that upon completion of the recently announced restructuring plans, the company will be ready to formulate a dividend policy, which will enable it to make dividend payments to shareholders.
137 RUSSIA Country Report May 2024 www.intellinews.com