Russian internet major
The revenue growth was supported by acceleration in ad revenue growth (from 10% y/y in 4Q20 to 22% y/y in 1Q21), continued strong growth in MMO games revenue (+34%) and other revenue such as edtech (soaring by 2.9x y/y).
At the same time, profitability lagged revenue growth due to the investment stage for some extra services in social networks (such as Clips, music) and the temporary loss of VAT benefits in community iVAS, BCS Global Markets commented.
Meanwhile, in the games segment the EBITDA margin expanded y/y to 13% (from 7% in 1Q20). The company reiterated its guidance for 2021 of revenue growth of +18-21% (
BCS Global Markets affirmed a Buy rating on the company's shares and suggested focusing on trends in social networks, games, education segments, as well as strategic comments for joint ventures (in e-commerce with Alibaba, in taxi/foodtech with
The regulatory environment should also be monitored, such as lower taxes for IT, pre-installation of Russian apps, BCS GM analysts suggest.
Previously in
Similar to Sberbank ADD,
"However, we note that O2O's performance seems to trail Yandex respective verticals,"
Samokat e-grocery generated
Still,
As followed by bne IntelliNews, in 2020
Financial Highlights | 1Q20 | 2Q20 | 3Q20 | 4Q20 | 1Q21 | Q/Q | Y/Y | BCSe | Act v BCSe | Cons-s | Act v Cons-s |
Revenue, Rb bn | 22.21 | 25.54 | 25.65 | 32.98 | 28.29 | -14% | 27% | 28.01 | 1% | 28.22 | 0% |
EBITDA, Rb bn | 5.62 | 7.44 | 6.58 | 7.32 | 6.07 | -17% | 8% | 6.09 | 0% | 5.93 | 2% |
Adj. net income, Rb bn* | 2.09 | 3.43 | 2.72 | 1.77 | 1.95 | 10% | -7% | 1.67 | 17% | - |
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Net income, Rb bn | 2.09 | 3.43 | 2.72 | 1.77 | -1.80 | - | - | -0.33 | - | - |
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EBITDA margin | 25% | 29% | 26% | 22% | 21% | -1ppts | -4ppts | 22% | - | 21% | - |
Net margin adj. | 9% | 13% | 11% | 5% | 7% | 2ppts | -3ppts | 6% | - | - | - |
Sector Highlights | 1Q20 | 2Q20 | 3Q20 | 4Q20 | 1Q21 | Q/Q | Y/Y | BCSe | BCSe v Act | Cons-s | Cons-s v Act |
Communications and Social revenue, Rb bn | 12.40 | 11.74 | 12.62 | 16.22 | 13.42 | -17% | 8% |
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Communications and Social EBITDA, Rb bn | 6.61 | 5.72 | 5.85 | 6.60 | 5.97 | -10% | -10% |
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Communications and Social EBITDA margin | 53% | 49% | 46% | 41% | 44% | 4ppts | -9ppts |
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Games revenue, Rb bn | 7.70 | 11.02 | 10.67 | 11.08 | 10.95 | -1% | 42% |
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Games EBITDA, Rb bn | 0.54 | 2.36 | 2.01 | 1.45 | 1.44 | 0% | 165% |
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Games EBITDA margin | 7% | 21% | 19% | 13% | 13% | 0ppts | 6ppts |
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* - excludes non-cash loss from JVs, which |
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