Page 166 - RusRPTApr21

(RUB13.5bn) at the beginning of February, the FAS announced that it would review the deal. Specifically, the regulator wanted to check whether the acquisition complied with Russia’s antimonopoly legislation and whether the deal required FAS approval. Along with yesterday’s announcement, the FAS mentioned that as part of the amendments to the current antimonopoly legislation that it has prepared (“fifth antimonopoly package”), companies will have to seek FAS approval for deals worth more than RUB7bn.
Yandex announced the official launch of its Yandex.Pay service. Yandex.Pay is a payment tool that allows a customer to use his bank card (linked to the service) to pay on partner third-party websites without re-entering card details. Yandex believes this tool will make online payments more convenient and safer. The service currently only works on desktop, though future plans include expansion into mobile apps and offline.
Russian Internet company Yandex is doing due diligence of bank Acropol of Yevgeny Davydovich, general director of group Svyaznoy, and could sign an acquisition deal soon, The Bell reported late on March 12 quoting sources. “We’re interested in obtaining a banking license. We’re considering all possible variants,” a Yandex spokesperson said. Two sources said the Internet company studied different banks, but picked Acropol. A source said Yandex is not buying a bank as is, but a banking license and the company has no plans to open branches or lend cash. Established in 1994, Acropol offers a whole range of banking services.
AliExpress Russia has purchased a 30% stake in the regional online marketplace KazanExpress. A partnership between China’s Alibaba, Megafon, Mail.ru Group, and the Russian Direct Investment Fund, AliExpress Russia is vying to become Russia’s top e-commerce player in a crowded field of competitors. The latest data show that AliExpress holds about 8% of Russia’s fast-growing online retail market, making it the country’s No. 2 e- commerce firm.
Mail.ru's 4Q20 financial results (under management accounts) came in 8% above consensus on the top line and 2% higher on EBITDA.
The company's FY21 top line guidance of RUB 127-130bn also implies upside risks to consensus. We highlight the strong recovery in advertising revenues, the company's expectations of a notable improvement in the profitability of the Games segment in 2021 and the strong growth of Mail.ru's EdTech exposure, which could help the stock's re-rating, in our view. Overall, we think that the business outlook remains favourable, while the company's valuation is undemanding, as Mail.ru trades at large double-digit discounts to its peers on 2021-22F EV/EBITDA multiples of 10-12x. Our 12-month Target Price of USD 45 implies an ETR of 65%: Buy reiterated.
4Q20 results: overall positive. Mail.ru's 4Q20 revenues increased 29%
166 RUSSIA Country Report April 2021 www.intellinews.com