Page 135 - RusRPTDec22

and advertising, mobility, e-commerce and others in Russia and international markets) into a separate entity that will retain the Yandex brand, transferring certain elements of governance in this new entity to Yandex’s management.
o The Dutch Yandex N.V. (current publicly traded company) eventually withdrawing from the shareholders of this new entity.
o Development of the international divisions of certain services within Yandex N.V. (including self-driving technologies, cloud computing, data labeling, and ed-tech) independently from Russia.
• _According to Yandex, this process is at a preliminary stage, and such changes will be subject to continued analysis.
• _Such changes would also require shareholder approval, and the company plans to take into account the rights of all minority shareholders (Russian and international).
• _The company plans to update the market as and when it has further information in this regard.
● VK
The revenue of authors and communities of Russia’s VKontakte social network increased by 88% on the year in July–September, and the number of communities rose by 28%, the social network said on November 9 in a statement. The authors’ incomes thanks to service VK Donut tripled on the year in the reporting period. The feed views mounted 45%.
● Ozon
Ozon held a meeting for analysts and investors with CFO on November 18. Ozon keeps expecting strong growth in coming quarters, despite focus on profitability.
Ozon sees two key reasons for GMV growth slowing in 3Q22 (to 74% y/y vs 92% in 2Q22), which are the fire at the fulfilment center in August (5-6pp impact) and a decline in 1P GMV as Ozon seeks to replace volumes from the foreign suppliers that stopped supplying to Russia, while 3P GMV doubled y/y. The former was a one-off, while the latter may take several quarters to tackle.
Ozon has not yet guided on 2023 GMV growth rate, but expects strong growth to continue next year, despite higher focus on profitability.
The penetration of Ozon’s financial services increased to >30% GMV for its payment solutions (mainly Ozon card) and 1/3 of sellers (including direct loans, factoring). Longer-term, the company plans to expand the business beyond Ozon’s marketplace and grow it into a general retail and SME fintech provider.
135 RUSSIA Country Report December 2022 www.intellinews.com