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purposes. This new business will be headed by Kirill Gurbanov, who was previously head of digital business at MTS Bank. Kirill expects first products to be launched in the beginning of 2023 and the digital bank personnel to reach 300 people. The main focus of the digital bank will be on creating financial solutions for current and future customers. In the nearest future, Samolet expects to launch such products as – loyalty program, insurance services, investment products for investors in Real Estate as well as an option to buy out apartments while renting.
Etalon released 3Q22 operating results with sales grew q/q both in Moscow and Saint Petersburg, also supported by other regions, which contributed 27% in 3Q22. Besides, YIT projects generated 25% of sales in 3Q22 overall. 9M22 sales are in the red, yet firm pricing trends are supportive.
● Contract sales amounted to 67k sqm in 3Q22 (-31% y/y; +26% q/q) and 210k sqm for 9M22 (-34% y/y) with rising contribution from regional sales – 18k sqm (27% of sales) in 3Q22 and 22.5k sqm (11% of sales) in 9M22. Monthly dynamics revealed growth in August to 26.3k sqm from 17.0thsd sqm in July and a deceleration in September to 23.6k sqm, given the slowdown in demand, according to the press-release.
● Contract sales in money terms were also down y/y, while up q/q to Rb13.3bn (-28% y/y; +38% q/q) in 3Q22 with average selling price increasing to Rb199k/sqm in 3Q22 (+4% y/y; +9% q/q), while average price for apartments went up to Rb250k/sqm (+2% y/y; -15% q/q we attribute to rising regional sales). 9M22 contract sales amounted to Rb42.6bn (-28% y/y) with Rb43.8bn cash collections (-27% y/y).
● The share of mortgages increased to 37% overall in 3Q22 from 25% in 2Q22 and remained flat at 55% for apartments, yet below 39% and 66% levels in 3Q21 respectively.
● The management slightly downgraded 2022 guidance on launches to 686k sqm from 700k sqm previously.
9.2.5 Retail corporate news
• X5 Group
The combined sales of Russian retailer X5 Group increased by 19.5% to 647.39bn rubles in July–September, the company said in a statement on Monday. In January–September, the figure grew by 19% on the year to 1.898 trillion rubles. Revenue grew by 19.7% to 1.548 trillion rubles. Offline sales increased by 18.4% to 1.849 trillion rubles.
X5 reported 3Q22 IFRS results on October 25. The numbers appeared solid, somewhat above expectations.
● Total revenue grew 19% y/y (to Rb648bn), in line with retail sales
124 RUSSIA Country Report November 2022 www.intellinews.com