MTS acquired two Russian ticket operators – Ticketland.ru and Ponominalu.ru. These services control a quarter of the sales of theater and concert tickets in Russia, so that MTS becomes the leader of the segment.
PJSC “MTS” announced the acquisition of two ticket operators: one of the participants of the Russian cellular “Big Four” became the owner of 100% of LLC “Moscow Directorate of Theater and Concert and Sports and Entertainment Tickets” (MDTZK, operates under the ticketland.ru brand) and 78 , 2% of the company Cubichall – 100 percent owner of LLC “Cultural Service” (brand – Ponominalu.ru). This is stated in the operator’s report (RBC has it).
MDTZK was estimated at 3.25 billion rubles., Sellers made a “number of investors”, including Sergei Solonin and ITech Capital. As explained by RBC Solonin, the initiator of the transaction was MTS. Ticketland.ru, according to this company, is one of the largest ticket operators in Russia in the segments of performances, concerts, musicals and festivals, as well as one of the leaders in Russia in ticket sales to theaters.
The share of 78.2% in the company Cubichall, the only member of the LLC “Cultural Service”, was estimated based on the total business value of 495 million rubles. Earlier this structure was owned by the founders of the project – Yuri Sosnitsky and Vikenty Korsunsky, as well as the Buran Venture Capital. As noted in the message, MTS has an option to increase the share to 100% by the end of 2020.
“By acquiring assets that control a quarter of the sales of theater and concert tickets in Russia, we are entering a steadily growing market with the prospect of becoming a leading player in it,” the company’s vice-president of marketing Vyacheslav Nikolayev said in a statement. “In addition to consolidating the new business and increasing the sales of tickets among MTS subscribers by integrating our services and expertise of big data, we also receive additional tools for marketing activities, interaction with customers and partners.”
For the first time, the interest of MTS to Ticketland at the end of 2017 was reported by Reuters. According to Ticketland Director General Vitaliy Vinogradov, after purchasing Ticketland and Ponominalu.ru, MTS can become the largest participant in the ticket sales market in Russia. Prior to the transaction, the leading position in terms of sales was occupied by the operator Kassir.ru, followed by Ticketland. “The further development of the market depends on a number of factors, such as financial support by the state of culture, growth of incomes of the population and the general political situation in the country,” Vinogradov said.
According to the portal Statista, in 2017 in Russia, the proceeds from the sale of electronic tickets to the cinema, to music and sports events was $ 505 million. In 2018, this figure should grow to $ 620 million, and by 2022 – to $ 1.11 billion. This is the largest segment in Russia for the sale of tickets for musical events.
The volume of the world’s largest ticket market, American, amounted to $ 10.6 billion in 2017, by 2022 it is projected to increase to $ 16.76 billion.
For MTS this is not the first attempt to diversify the business. In October 2017, the operator announced that it was entering the market of additional education and would offer courses to its corporate university to other companies. As the source of RBC, close to MTS, the company expected to earn on training “hundreds of millions of rubles a year.”
According to the analyst of Raiffeisenbank Sergey Libin, the acquisition of MTS ticket projects once again confirms the trend of diversification in the telecommunications market. “Now all operators are trying to earn extra services, especially in the Internet. For example, MTS recently acquired the gambling club Gambit Esports, “MegaFon” bought Mail.Ru Group, “Libin said. The growth rate of the segment of traditional telecom services is slowing, and every company is trying to go beyond it, he added.
Ticketland in 2017 took the 20th place in the ranking of the largest Internet companies in Russia magazine Forbes with a cost of $ 84.2 million. The project site is used by 10 million users a year. Mail.Ru Group ranks second in this rating, the value of the company is estimated at $ 4 billion. MegaFon in early 2017 acquired 15.2% of the ordinary (63.8% of voting) shares of Mail.Ru Group for $ 740 million.
“The transaction is unlikely to have a significant impact on the MTS, but rather it is important in terms of developing its own” ecosystem “of various services and increasing the company’s business outside the telecommunications market,” said Alexander Ventranovich, an analyst with Otkritie Capital. “Perhaps the purchase will have a positive impact on Ticketland and Ponominalu.ru, but only if MTS allows them to maintain their autonomy.”
According to the results of the third quarter of 2017 (the latest data), MTS revenue increased by 2.1% compared to the same period of 2016 and reached RUB 114.6 billion. According to the forecast of MTS, for the full year 2017 the rate of revenue growth will be 0-2%.
Author: Evgenia Balenko, Ivan Kuranov.
Original in Russian: RBC Daily