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commission for foreign investment control. The proposed restructuring will undergo further shareholder approval, including separate approval by Class A shareholders. The company aims to present the restructuring proposal to shareholders for approval by the end of the year, as stated in its July–September report.
Digital Development Minister Maksut Shadayev expects to receive materials on the deal's progress at the end of 2023 or the beginning of 2024.
Delitsyn highlighted that a consortium of Russian investors will gain control of Yandex, valuing the company's total business at $5.5 billion. Remarkably, these investors will acquire control by spending only $2.75 billion, a mere tenth of the company's peak value.
Yandex's ordinary shares experienced a 2.2% decline over the week, closing at 2,615.80 rubles on November 3 on the Moscow Exchange. Sinara Investment Bank set a year-end price target of 3,500 rubles per share with a Buy rating.
The Search and Portal segment continues to be a significant profit generator for Yandex, primarily driven by online advertising revenue. The segment's revenue surged by 48% to 90.4 billion rubles, reflecting the company's dominant position in the internet search market.
Yandex's share of the Russian search market rose by 0.6 percentage points to 62.6%. The search share on Android increased by 0.6 percentage points to 62.5%, while on iOS, it edged up by 1.5 percentage points to 49.8%.
The E-commerce, Mobility, and Delivery segment reported substantial growth, with revenue increasing by 69% to 107.2 billion rubles. The gross merchandise value (GMV) of mobility services, including ride-hailing, car-sharing, and scooter rentals, rose by 51% to 299 billion rubles. E-commerce GMV surged by 67% to 121.2 billion rubles, with revenue rocketing by 79% to 42.2 billion rubles.
Yandex's strategic shift towards e-commerce appears to be paying off, with e-commerce showing higher growth rates compared to ride-hailing services. This transition underscores the company's ability to capitalize on evolving technological trends.
● VK
Revenue of Russian Internet company VK increased by 37% on the year to 33bn rubles in July–September, as calculated under International Financial Reporting Standards (IFRS), the company said on November 9 in a statement. In January–September, revenue grew by 37% on the year to
116 RUSSIA Country Report December 2023 www.intellinews.com