Page 150 - RusRPTSept22

9.2.3 Aviation corporate news
Aeroflot Group's total PAX fell 7% y/y to 4.84mn passengers in July. Its international PAX plunged 52% y/y to 417k passengers, but its domestic PAX edged up 2% to 4.43mn passengers. PAX over 7m22 totaled 22.03mn passengers. Our view: The decline in Aeroflot Group's total PAX continued to ease in July (from 18% in June, 24% in May and 28% in April). Domestic PAX drove this recovery, as it was up y/y in July (+2%) for the first time since the special military operation began (it was down 14% y/y in June, 18% in May and 20% in April). The data is clearly positive for Aeroflot, both because the decline in the group's PAX continued to slow and because the decline was slower than the pace projected for the Russian aviation industry in Russia's latest development strategy for the industry (-9.9%). However, we could see deeper y/y declines in PAX after the high season ends.
Russian national air carrier Aeroflot Group plans to contract 323 brand new domestic jets, namely 73 Sukhoi Superjets, 210 MS-21s and 40 Tu-214s, RBC business portal reports citing an announcement the CEO of the company Sergey Aleksandrovsky made at a meeting with the President Vladimir Putin. As followed by bne IntelliNews, Aeroflot is not expected to get any relief with regard to the Western sanctions for the military invasion of Ukraine. But the national carrier is set to remain the main recipient of state aid. Previous reports already suggested that the national carrier is ready to pre-book over 300 domestically built jets from the United Aircraft Building Corporation (OAK or UAK) controlled by the sanctioned state technology agency Rostec. According to Aleksandrovsky, Aeroflot is synchronising its development programme with that of the transportation industry by 2030, which includes delivery of 142 SSJ-NEW models, 270 MS-21-310 and 70 Tu-214 aircraft. Thus more than half of all planned domestic jets would be acquired by Aeroflot. The group now operates 353 aircraft (Aeroflot carrier - 183 aircraft, Rossiya - 129, Pobeda - 41). Aeroflot already flies the largest fleet of Russia-build jets, with over 120 SSJs and a deal on supplies of 50 MS-21.
9.2.4 Construction & Real estate corporate news
LSR released 1H22 IFRS financials, no 2022G provided and no conference call held.
● Revenue reached Rb65.4bn (+19% y/y; -14% h/h), supported by results in St Petersburg (52% of 1H22 revenue) as well as building materials revenue contributing 18% in 1H22.
● EBITDA reached Rb17.4bn (+41% y/y; -18% h/h), EBITDA margin stayed strong – 27%, while reaching a very high level of 43% in 1H22 vs 33% in 1H21, supported by strong performance in selling prices.
● Net income reached Rb6.4bn (+12% y/y; -39% h/h) with net margin at 150 RUSSIA Country Report September 2022 www.intellinews.com