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M of Video Eldorado



Revenue and Net Profit millions Thousand rub

Number of employees
2018 year



+ M of Video Eldorado

M.Video – one of the largest Russian retail networks selling electronics and home appliances. "Video m" performs the activity since 1993. In November, 2007 JSC M.Video Company became the first Russian company in the sector of retail by electronics whose actions are traded on the stock market. Now the stock trading of the company goes on the largest Russian stock exchanges – RTS and MICEX (a ticker: MVID).


For the beginning of 2018 the controlling shareholder of PJSC M.Video is the SAFMAR Group of Mikhail Gutseriev from 57.7% of stocks. 42.3% of stocks, from them, as of December 31, 2017 are in free circulation, 9.4% belonged to the Budushchee pension fund and another 5.8% – to the Doveriye pension fund entering into the SAFMAR Group.


Alexander Tynkovan is the president of M.Video.

Performance Indicators


Growth of net profit by 44.8% to 11,178 million rubles

On March 24, 2020 the M of Video Eldorado company reported to TAdviser the audited consolidated financial results prepared according to the International Financial Reporting Standards (IFRS) in twelve months which ended on December 31, 2019. So, revenue of Group increased by 3.6% year-on-year to 365,216 million rubles in 2019 thanks to opening of additional shops, growth of traffic and online sales of both brands. The corrected net profit of Group on the MSBU 17 standard ('IAS 17') grew by 44.8% year-on-year to 11,178 million rubles ( 9,089 million rubles according to "IFRS 16") in 2019 in comparison with 7,718 million rubles in 2018, as a result of the business performance growth factors described above.

"M of Video Eldorado"

The gross profit of the company grew by 4.8% year-on-year and made 91,015 million rubles, and the gross margin increased by 0.3 items year-on-year to 24.9% in 2019 due to increase in efficiency in purchase management, promotion actions and the range.

The indicator of EBITDA according to the MSBU 17 standard ('IAS 17') grew by 18.1% year-on-year and reached 26,746 million rubles, at the same time the indicator of profitability of EBITDA increased by 0.9 items year-on-year and made 7.3% for 2019. Improvement was caused by growth of a gross profit and effective management of business, general running and administrative expenses, mainly, staff costs which made 23,438 million rubles and decreased as percent from revenue by 0.57 items up to 6.4% in 2019 from 7.0% in 2018. The group reduced staff expenses, including, as a result of integration from Eldorado and synergies received as a result of business process optimization.

In 2019 the Group opened 97 shops, 61 of which fell on the second half of the year owing to what rent expenses according to the MSBU 17 standard ('IAS 17') increased to 21,335 million rubles in 2019 from 19,000 million rubles in 2018 and as percent from revenue grew by 0.45 items up to 5.8%, this dynamics was partially compensated by optimization of rental rates.

Operating profit according to the MSBU 17 standard ('IAS 17') increased by 17.1% year-on-year to 19,699 million rubles in 2019 thanks to growth of an indicator of EBITDA. Depreciation expenses according to the MSBU 17 standard ('IAS 17') were cut down to 7,047 million rubles in 2019 from 7,862 million rubles in 2018 in connection with single non-monetary write-offs of assets and charge of additional depreciation at asset revaluation of Eldorado in 2018. Without this charge, depreciation expenses according to the MSBU 17 standard ('IAS 17') increased up to 7,047 million rubles in 2019 from 5,833 million rubles in 2018 and as percent from revenue increased by 0.3 items year-on-year to 1.9% in 2019. Increase in depreciation expenses was caused, generally by integration and active expansion.

As of December 31, 2019 the total debt of Group made 49,410 million rubles, debt obligations of the company are completely nominated in rubles. For 2019 the total debt of Group was reduced by 17.0%, and the coefficient made a total debt / EBITDA 1.8x as of December 31, 2019, having shown decrease from mark 2.6x for December 31, 2018. The ratio a net debt of EBITDA for December 31, 2019 remains at the comfortable level 1.7x.

The key consolidated financial performance on the M of Video Eldorado Group for 2019

According to "M. of Video Eldorado", implementation of the IFRS 16 standard ('IFRS 16') which became effective since January 1, 2019 had an impact on an indicator of EBITDA, operating profit and the net profit of Group.

So, the indicator of EBITDA of Group is much higher according to the IFRS 16 standard ('IFRS 16') as the main part of the expenses on lease which are earlier recognized as a part of business, general running and administrative expenses is recognized according to "IFRS 16" ('IFRS 16') as debt on balance of the company and also in expenses on percent on the credits in the profit and loss statement.

Rent expenses and utilities were lower according to the IFRS 16 standard ('IFRS 16') for 17,190 million rubles, and expenses on maintenance and other operating expenses before depreciation – are 2,681 million rubles lower in 2019.

Thus, EBITDA of Group on "IFRS 16" ('IFRS 16') grew to 46,617 million rubles in comparison with 26,746 million rubles according to the MSBU 17 standard ('IAS 17') in 2019. Profitability on EBITDA according to "IFRS 16" ('IFRS 16') made 12.8% or that is 5.5 items higher in comparison with profitability on EBITDA equal than 7.3% on MSBU 17 ('IAS 17') in 2019.

Additional expenses in the amount of 15,456 million rubles of depreciation of leasing assets according to the IFRS 16 standard ('IFRS 16') had an impact on the net profit of Group in 2019.

Influence of these additional depreciation expenses was completely compensated by a deduction of expenses on long-term lease from structure of operating expenses as it was mentioned above.

Thus, the net positive effect from operating expenses on net profit according to "IFRS 16" ('IFRS 16') was 4,414 million rubles in 2019. At the same time finance costs increased by 7,214 million rubles according to "IFRS 16" ('IFRS 16') at the expense of additional interest expenses according to leasing obligations in 2019. Implementation of the IFRS 16 standard ('IFRS 16') also led to expense reduction on income tax because of decrease in profit to taxation in 2019.

As a result the corrected net profit of Group on the standard according to "IFRS 16" ('IFRS 16') reached 9,089 million rubles in comparison with 11,178 million rubles of the corrected net profit on MSBU 17 ('IAS 17') in 2019. The corrected net margin according to "IFRS 16" ('IFRS 16') made 2.5% in comparison with 3.1% according to the MSBU 17 standard ('IAS 17') in 2019.

Implementation of the IFRS 16 standard ('IFRS 16') has no impact on pure change of money in the cash flow statement. However the IFRS 16 standard ('IFRS 16') influences submission of the cash flow statement as principal payments are classified by lease as financial activities, prepayment – as investment activities, and interest payments – as the interests paid in operating activities.

the M of Video Eldorado Group against the background of moderate dynamics of the Russian market of consumer electronics showed noticeable high-quality growth of key financial indicators – profitability on EBITDA reached the level of 7.3%, the corrected net profit grew to 11,178 million rubles. Financial success of the company in 2019 is a consequence of what we is successful and in unprecedentedly short terms completed integration of two retail networks after purchase of Eldorado fully. For over a year the command of the M of Video Eldorado Group managed not only to pass to uniform legal entity and the general IT system, but also to rebuild all key business processes from purchases before customer service that gave additional synergies. According to the results of integration in 2018-2019 and the received synergies the company in December, 2019 paid dividends in the amount of 6 billion rubles,


Completion of all integration processes and creation of an effective business model within which each of brands, each function have the role was the main objective of Group in 2019. We completed deployment of key projects – the digital zones m mobile in retail and separate digital boutiques and also mobile application for sellers (RTD). These projects define the current efficiency of Group and formed the basis of our plans for the further growth of business. The group due to digitalization of all business processes and authorization of buyers not only on the website and through mobile application, but also in shops, develops as online and business. Our model is transformed from an omna to ONE RETAIL which cornerstone not only uniform price, service and assortment approach in all contact points of buyers with us is but also analytics of data, personalisation of promo-offers, and in the future – and the prices. Interaction of the buyer happens to the retailer via the smartphone. In 2020, despite the high level of uncertainty of a macroeconomic situation, our main focus remains invariable, and we will continue to do what we do: service our clients, providing necessary technologies and devices for communication and work, cooking, household chores and entertainments,
noted the chief executive officer of the M of Video Eldorado Group Enrique Fernández

The recommendation of Board of Directors to pay dividends in the amount of 33.37 rub for an action

On November 1, 2019 the M of Video Eldorado group, Russian retail and the online company on trade in electronics and home appliances, announced that the Board of Directors recommended for the approval of extraordinary general shareholder meeting on December 3, 2019 dividends based on integration of M.Video and Eldorado for 2018-2019.

In particular, dividends are recommended for a statement in the amount of 33.37 rubles for one ordinary share of PJSC M.Video.

According to the Russian standard of accounting records the financial result of synergies from integration of the companies for 2018-2019 is reflected in the third quarter 2019. Total amount of dividends can be about 6 billion rubles.

The M of Video Eldorado group this year completed integration of all assets purchased in 2018, not only organizational, but also legal, and technology. As a result, the company was included into ten the largest public retailers in the world in the segment on revenue and in the three by efficiency. The group used own means for all capital costs connected with consolidation of IT systems, increasing at the same time profitability. The group increased EBITDA margin to 6% in 2018 from 5% in 2017, synergies were 6 billion rubles in 2018. The Board of Directors is satisfied with results of consolidation and rates of development of the company and considers that the M of Video Eldorado Group receives the planned financial results and can return to practice of regular annual payments of dividends after a two-year break during which the company built the great base for the further growth of shareholder value, – the chairman of the board of directors of PJSC M.Video Said Gutseriev emphasized.

Sales growth to 193.6 billion rubles (+10.4%)

"Video m" (M of Video Eldorado group), integrated unaudited the proforma * announced on July 18, 2019 indicators of net sales and sales of comparable shops (like-for-like) and also results of development of M.Video and Eldorado networks for the first half of the year, terminated on June 30, 2019.

Sales of Group grew by 10.4% year-on-year to 193.6 billion rubles (including VAT) according to the results of the first half of the year 2019. Growth is caused by active expansion at the end of 2018 and positive dynamics of Internet sales both in M.Video, and in Eldorado. In the first half of the year of sale of M.Video network showed growth by 11.7% year-on-year and reached 130.2 billion rubles (including VAT), Eldorado increased turnover by 8.0% year-on-year to 63.4 billion rubles (including VAT).

Operational indicators of the M of Video Eldorado Group in the 2nd quarter and the 1st half-year 2018 (a proforma *)

Internet sales of M.Video (orders online with home delivery and shipment at own expense from shops) in the first half of the year increased by 19.0% year-on-year to 26.4 billion rubles (including VAT), Eldorado for 14.1% year-on-year to 11.6 billion rubles (including VAT) due to growth of traffic and the average check for both brands. Both networks increased a share online on the general sales to 20.2% in M.Video and 18.3% in Eldorado.

Sales of LFL (sale of comparable shops) on group in total according to the results of the first half of the year increased by 0.4%. Sales of LFL "M.Video" showed growth by 1.0%. LFL of sale of Eldorado decreased by 0.6% that is caused generally by reduction of the average check owing to active promo against the background of the slowing-down market, change of a product mix and growth in sales of goods in a low price segment within the current positioning of a brand.

In the first half of the year 2019 the Group expanded the network on 36 shops, including 15 M.Video, 17 Eldorado and 4 shops under the m_mobile brand. Total number of shops of Group was 977 for June 30, 2019.

* The proforma of the operational reporting under the M of Video Eldorado Group shows the summary reporting as it would look if Eldorado was included into Group not from the moment of acquisition in 2018, and since the beginning of the comparable period, i.e. since the beginning of the first half of the year 2018.

Information technologies

Separate article - Information technologies in M.Video - Eldorado



Collecting for processing of 360 thousand batteries

On June 25, 2020 the M of Video Eldorado group, the Russian retail company on trade in electronics and home appliances, reported results of development of the program for collecting and utilization of batteries from the moment of its start in October, 2018. Visitors of M.Video and Eldorado shops gave 7.5 tons or about 360 thousand pieces of the fulfilled power sources. Specially developed containers Durecell for collecting are installed for June, 2020 in 920 shops in more than in 100 Russian cities and settlements. Until the end of 2020 M.Video and Eldorado will set boxes for collecting of batteries in all shops.

The M of Video Eldorado group in a year brought the program for collecting and processing of the used batteries to federal level. The geography of acceptance contains 920 retail stores. In total visitors of shops gave 7.5 tons of the used batteries to utilization, these are about 30 adult individuals of the Amur tigers.

In shops for collecting of the most popular formats of batteries the retailer placed special containers which meet the necessary requirements of safe storage of this type of waste and contain up to 35 kilograms. The licensed enterprises – the Chelyabinsk plant "Megapolisresource" and the Yaroslavl plant "NEK" are engaged in transportation and processing. Power sources receive the second life and graphite, zinc, manganese dioxide, black scrap and other elements turn into electrolytes for repeated production of batteries.

We continue to expand the program for collecting of the batteries which served term and we urge all to make the contribution to preserving of the environment. Especially relevant the problem of the correct utilization became during self-isolation. It is important not to throw out the accumulated power sources together with other household waste, and to carry them at an opportunity for processing. Our company controls all cycle and guarantees eco-friendly utilization according to industry standards. In parallel with collecting of batteries we develop the program for utilization of the equipment. We take the majority of forms of the equipment from TVs and refrigerators to chargers and control panels. Seven cities where 350 tons of the equipment are already collected are already connected to the project — the head of retail ecological projects of the M of Video Eldorado Group Oksana Platonova notes.

Dismissal of the Chief information officer Sergey Sergeyev

In January, 2020 TAdviser knew that Sergey Sergeyev left M.Video/El Dorado. The company confirmed this information, having reported that it left at the end of December. Read more here.


Interview of TAdviser with the director of information technology, Sergey Sergeyev

In December, 2019 Sergey Sergeyev in an interview of TAdviser told about how there took place integration of M.Video and Eldorado and what technologies play a crucial role in development of the united company. Read more here.

Start of thousand shop

On November 19, 2019 the M of Video Eldorado Group announced start of thousand retail store, the M.Video hypermarket in Omsk in Shopping Center Kvadro became it.

The M of Video Eldorado group for over a year, since June, 2018, after the beginning of integration of Eldorado, opened 160 shops, including 56 rebranded objects Mediamarkt. The general online sales to the company grew by 79% to 91 billion rubles in nine months 2019, the share of the general online of sales in turnover of Group reached 31%.

Within the strategy of ONE RETAIL the Group considers shops as natural continuation of the websites and mobile applications integrated by one IT platform. In M.Video shops consultants use mobile devices with the special application installed on them (RTD, real time dealing or "the transaction in real time") for authorization of clients and personal service. Besides, each shop performs functions of pickup location of the Internet orders made on or

The group develops several formats of retail – hypermarkets of home appliances and electronics under brands of M.Video and Eldorado of 1-1.5 thousand sq.m, m_mobile concept focused on sales of smartphones and other digital electronics, and "Eldorado 600", small shops of the equipment with the most popular range at the minimum prices. The strategy of development of retail allows Group to cover different audiences and to increase a market share.

For the M of Video Eldorado Group as for online business the developed and effective retail network is competitive advantage - it is points of direct contact with buyers, an important component of distributor network and an opportunity for our partners, equipment manufacturers, to "alive" show all technologies. For November, 2019 about 70% of our buyers use the Internet in selection process of the equipment, and only about 5% make out orders without the appeal to shop that speaks about high demand of shops. Moreover, with opening of each next shop we see growth of online traffic and online sales in this region or the city. The strategy of ONE RETAIL is aimed at a full integration online and offline both on the party of the buyer, and in terms of business processes that the Group further as to the online platform will allow grow, relying on effectively working retail,
noted the chief executive officer of the M of Video Eldorado Group Enrique Fernández

Shops of the M of Video Eldorado Group for November, 2019 are provided in 220 Russian localities in all federal districts, their floor space exceeds 1,500 thousand sq.m.

Project startup on permanent collecting and utilization of the old equipment in Moscow and the Moscow region

On September 26, 2019 the M.Video — Eldorado Group reported that together with SKO Electronics Utilization Association and JSC Corporation Ecopolice started the project on permanent collecting and utilization of home appliances and electronics.

More than 200 retail stores "M.Video", Eldorado and also digital salons m_mobile in Moscow and the Moscow region already began to take the equipment for recycling. Consumers can free of charge and in any time, convenient for themselves to hand over any unnecessary devices: from the refrigerator and the washer to the smartphone, the iron or the TV. For this purpose it is enough to address on a service zone of shop and to sign consent to utilization. The service of export of major appliances with the subsequent utilization on delivery of again purchased goods is also available to clients. In the future export on utilization can be ordered as separate service. Brought together in Moscow within the project of the technician will go to a hi-tech complex on deep processing of electronic waste under control of EKOPOLIS Corporation. In the medium term project participants are aimed at collecting and processing about 4,000 tons of electronic garbage in Moscow and area annually.

The M of Video Eldorado group and SKO-utilization Association already started the pilot program of permanent utilization of the equipment in St. Petersburg, in only two complete months it was succeeded to collect more than 2,000 pieces of equipment. Until the end of the year, in addition to Moscow and the Moscow region, the project will earn in five cities: Kazan, Novokuznetsk, Samara, Yaroslavl, Ulyanovsk. Within two years partners expect to start acceptance of the equipment on utilization in all 220 cities of Group.

All assembled equipment is considered in the IT system of the retailer and transferred to association which is engaged in selection and accreditation of the plants utilizers and also control at a transportation stage from shop to the plant of the utilizer and the subsequent utilization. The economic and legal model of interaction of partners was developed by Deloitte company.

For the first time in Russia we start permanent process of collecting of the old equipment within which we can precisely guarantee that each handed-over device will be effectively utilized without harm to an ecosystem of the city. Hand over the equipment there where you purchased it, very logically, and the developed infrastructure of M.Video and Eldorado, our IT solutions will allow to implement this project in the majority of the cities. More and more people pays attention to how the goods and services consumed by them influence the planet, and it is possible to assume that eventually responsible consumption will become not a fashionable trend, but the standard, regulation, and secondary processing – actively growing economy segment which is closely connected with retail retail
speaks the president of the M of Video Eldorado Group Tynkovan Alexander

The overworking EKOPOLIS Corporations complex consists of three plants which form a full stroke of ecological utilization with efficiency of processing to 95% of the entering volume of electronic waste. Originally the equipment gets on the Ekotekhprom plant where understands on components and is sorted. At the enterprise the unique line of processing of refrigerating appliances equipped with the automatic hermetic system of a closed loop for removal of freon excluding its hit in the atmosphere functions. The line of utilization of monitors and TVs with the cathode ray tube allows to perform neutralization of flasks and to eco-friendly collect a phosphor in sealed containers for the subsequent processing at the enterprises utilizing mercury-containing materials. The case plastics sorted and crushed at the Ekotekhprom plant is transferred for the subsequent ecoprocessing to the Ekoplast plant, and printed circuit boards and non-ferrous metals – to the Aurus plant. Products of a full range of ecological processing of three plants are high-quality secondary plastic granules of ABS, PS, PP, the copper cathode, scrap of ferrous and non-ferrous metals.

In an issue of utilization of electronic waste quality control and depths of processing is extremely important. For September, 2019 in Russia more than 3000 licenses for processing of electronic waste are granted, at the same time the quality of work of the companies utilizers actually is not checked. It leads to the fact that unfair processors take from the equipment only the most valuable components, and all the rest is burned, buried or dumped, doing essential harm to city ecology. Also the issue of the centralized collecting of waste of electronics at the population is not handled. People do not know where to hand over the collected electronic garbage that it was ecologically processed. Production capacities of a complex of the plants "EKOPOLIS Corporations" will allow to close the complete amount of processing of electronic waste on the city of Moscow, and in the long term – and the Moscow region. In Russia there are no similar complex enterprises for processing of electronic waste, and we will do everything possible for fight against electronic garbage. Cooperation with the M of Video Eldorado Group in a question of creation of a complete chain of second-hand utilization of the electronic equipment from a stage of its collecting at the population before deep processing at our plants – the first big step to it. It is sure that this project will become a leader on the way of creation of a system of ecological utilization of an electronic equipment in Russia,
notes the chairman of the board of directors of JSC Corporation EKOPOLIS Vladislav Vladimirovich Sviblov

All equipment assembled in shops by the piece is considered before sending for processing. The utilizer, having received a batch, weighs it and also enters data in the general IT system. Retailers, SKO Electronics Utilization Association and the enterprises for utilization are connected to it that allows to trace a way of each goods. Experts of Association check all cycle of processing for compliance to the Russian and international environmental standards. In addition to the EKOPOLIS Corporations complex the association already cooperates with 10 utilizers in different regions of Russia. These companies underwent input audit according to high to requirements of Association and quarterly confirm accreditation.

Expenses on collecting of the equipment — personnel training, document creation, storage in shops — are undertaken by the M of Video Eldorado Group. Transportation of the equipment to the enterprises utilizers is paid by association.

This large-scale project is a response of responsible business to a request of society and the state regarding formation of economy of a closed loop and increase in level of environmental friendliness in general. The important stimulating factor of this work was an opportunity independent implementation of the expanded responsibility of producers and importers for the fate of the goods which lost the consumer properties, provided in the Federal law of 6/24/1998 No. 89-FZ "About industrial and consumption waste". The Association pays special attention to control of all the partners and their business processes concerning collecting and utilization on compliance to the current legislation and even more deeply, on compliance to the internal regulations, sometimes to more strict, than the law,
emphasizes the president SKO Electronics Utilization Association Alexander Onishchuk

About 10 years the M of Video Eldorado Group regularly carries out short-term marketing actions of collecting of the old equipment within which it issues discounts for new devices. In parallel the retailer tests utilization of any old electronics on a constant and a nonprofit basis. The pilot project started in June, 2019 in 30 M.Video shops in St. Petersburg and Kolpino. Most often on utilization hand over old washers, TVs and irons. From one washer weighing about 50 kg as a result of processing 15 kg of construction mixes, one section of a metal fence in 2.5 m and one plastic garden chair turn out.

Opening of the service centers Apple in regions

On June 24, 2019 the M.Video company (M.Video — Eldorado group) announced expansion of network of the authorized service centers Apple in the shops. In addition to two locations opened a year ago in Moscow the service centers in shops of the retailer in St. Petersburg, Yekaterinburg, Rostov-on-Don and also two more in Moscow will be added.

The first regional authorized service center Apple already opened in M.Video shop in Rostov-on-Don, until the end of September, 2019 the retailer expects to start some more points for service and repair of equipment of Apple in St. Petersburg, Yekaterinburg and Moscow.

Experts of the service centers in M.Video shops will help to set up any equipment of Apple, to make diagnostics or repairs. The centers are equipped with the certified equipment, component parts for carrying out repair receive directly from Apple, and the staff of the centers undergoes special training. Service of the equipment happens to accurate observance of procedures of the producer. All owners of the equipment of Apple can address to the service center in M.Video shop, regardless of where it was purchased.

In our shops more than 120 zones of Apple which, in fact, are shops of a brand — with design, the special calculation and personnel which underwent training and certification work. The service centers — continuation of this ecosystem to repair the equipment where purchased — logically, it gives loyal clients and regular customers. In the second half of the year 2018, after opening of the first authorized service centers in Moscow, sales of the equipment of Apple in these shops grew by 40%. Now the certified equipment, examination and high-quality service will be available to visitors of M.Video shops not only in the capital, but also in other cities — the Head of Department on work with Apple in the M of Video Eldorado Group Sergey Sukhorukov commented on an event.

In Rostov-on-Don the service center is located in the territory of M.Video shop in Shopping Center Zolotoy Vavilon, the service center to St. Petersburg authorized will open in shop in Shopping Center Nova Balkaniya, in Yekaterinburg - in Shopping Center Raduga, and two more will appear in Moscow, in Shopping Center Shchyolkovo and Shopping Center Erevan Plaza.

Start together with "SKO of the Electronic engineer – Utilization" utilization of any equipment and electronics

On June 03, 2019 the M of Video Eldorado Group, the retailer of home appliances and electronics entering PFG SAFMAR of Mikhail Gutseriev, and "The System of Collective Responsibility of the Electronic Engineer — Utilization" Association announced a project startup on permanent acceptance of the equipment which was in the use on utilization and to full control of lifecycle of home appliances and electronics, including processing in secondary resources.

Hand over all types of the equipment, from the smartphone to the refrigerator, it will be possible in any M.Video shop or Eldorado in a service zone of shop. The pilot project is already started in St. Petersburg, until the end of 2019 utilization of the equipment will earn from a permanent basis in M.Video shops in six cities – in Moscow, Kazan, Samara, Ulyanovsk, Chelyabinsk, Yaroslavl. Within two years partners expect to start acceptance of the equipment on utilization in all 220 cities of presence of M.Video and Eldorado. In plans of Group and Association – also to start process of utilization of the large equipment of the house, the client will be able to order export of the equipment through contact center, the website or M.Video and Eldorado shops.

In M.Video and Eldorado short-term actions of collecting of the old equipment regularly take place, and every year they attract more and more people. Buyers, as well as us, concerns what happens to the equipment after it was left in shop. Now, thanks to partnership with "SKO of the Electronic engineer - utilization", we can trace the last a stage of "lifecycle" of any device not only within the actions, but also on a regular basis. We start permanent process of collecting of the old equipment within which we can precisely guarantee that each handed-over device will be unambiguous is utilized, and, the most friendly method for the nature. Hand over the equipment there where you purchased it, very naturally, logically, and the developed infrastructure of M.Video and Eldorado, our IT solutions will allow to implement this project in the majority of the cities,
noted Alexander Tynkovan, the president of the M of Video Eldorado Group

All equipment which is handed over in shops is considered and goes to utilization. The tripartite IT system between retailers, Associations and the enterprises for utilization allows to trace a way of each goods. The SKO of the Electronic Engineer — Utilization association already cooperates with 11 companies on utilization in different regions of the country, these utilizers underwent input audit according to high to requirements of Association and quarterly confirm accreditation. "SKO of the Electronic engineer – utilization" checks all cycle of processing for compliance to the current Russian and international environmental standards. From 50 to 80% of materials of which the home appliances are manufactured allow to use the technical solutions applied in Russia for the second time. On average, from one ton of the equipment which was in the use it is possible to receive 800 kilograms of raw materials for further production – plastic, metal, non-ferrous metals.

Within a pilot project in St. Petersburg through 26 shops within two months partners collected and gave more than 5,000 kg of the equipment which was in the use to utilization. In total within a year after deployment of the project on the majority of the cities expect to collect up to 20 thousand tons.

Expenses on collecting of the equipment – document creation, the organization of storage in each shop, personnel training – are undertaken by the M of Video Eldorado Group. Transportation of the equipment to the enterprises utilizers and all processes of utilization is paid by Association.


Annual online turnover reached 77.3 billion rubles

Annual online turnover "the M of Video Eldorado Groups,, considering results of work, reached 77.3 billion rubles. This TAdviser was announced by representatives "M. of Video Eldorado" on April 10, 2019.

Internet sales of M.Video for 2018 reached 53 billion rubles (including VAT), having increased by 46% in comparison with 2017 that is twice higher, than in general on the market, due to growth of traffic, conversion and growth of a share of purchases of more expensive devices. Eldorado showed growth of Internet sales by 8% to 25 billion rubles (including VAT). At the same time the average bill of Eldorado grew by 37%, it is one of the highest the loudspeaker in the market, at the expense of sales increase of digital categories and transition to omnichannel model, noted in group.

The share online on sales of group in general made 18.3%, a shipment at own expense share — 74.4% for 2018.

The greatest dynamics of online sale of home appliances and electronics in 2018 was shown in Omsk where growth was 50%, the cities which showed sales increase on the Internet about 30% — Krasnoyarsk, Rostov-on-Don, Moscow, Krasnodar, St. Petersburg, Kazan.

The leading positions of the M of Video Eldorado Group on online sales not only in a segment of consumer electronics, but also in the Russian market in general demonstrate that we successfully were beyond shops and became online business. About 70% of our clients anyway use the Internet in the course of purchase. It is convenient to the buyer: he can order on the Internet what already knows, or if it is necessary to look at goods alive, to come for it the shop. It does not mean that shops are closed, on the contrary, we see that even global online players appreciate direct "real" contact with the consumer, at the same time shops if they are effective, become competitive advantage online. Further development of retail will lead to emergence of a format which we in the M of Video Eldorado group call One Retail within which process of purchase will become the most mobile as on client side, and retails, and borders for the buyer between shop, the website, mobile application will be erased finally — the chief executive officer of the M of Video Eldorado group Enrique Fernández emphasized.

Revenue of 321.1 billion rubles (+62%)

  • The consolidated revenue of Group increased in 2018 by 62.0% in comparison with 2017 to 321.1 billion rubles
  • The consolidated gross profit of the company grew by 69.0% and made 78.6 billion rubles, and the gross margin improved on 1.0 percent points year-on-year up to 24.5% in 2018
  • The consolidated indicator of EBITDA on Group showed height of 76.0% year-on-year and reached 20.8 billion rubles, and profitability on an indicator of EBITDA increased by 0.5 percent points year-on-year to 6.5% in 2018
  • Consolidated net income on Group grew by 20.3% year-on-year to 8.4 billion rubles in 2018

Key indicators on the M of Video Eldorado Group for 2018 (integrated a proforma):

  • The integrated proforma revenue on the M of Video Eldorado Group grew by 15.7% year-on-year to 352.5 billion rubles in 2018
  • The integrated proforma a gross profit of the company increased by 19.4% year-on-year and made 86.7 billion rubles, and the gross margin grew by 0.8 percent points year on year up to 24.6% in 2018
  • The indicator of EBITDA integrated a proforma on Group increased by 39.2% year-on-year and reached 21.3 billion rubles, and profitability on an indicator of EBITDA grew by 1.0 percent points year-on-year up to 6.0% in 2018

Collecting of batteries and their transfer on utilization in 72 shops

On November 01, 2018 M.VideoEldorado the - Group, the Russian the retail company in the market electronic engineers and home appliances announced start of the pilot on collecting of batteries with support Duracell and the plant "Megapolisresource". M.Video became large federal retailer, organizing collecting of batteries and their transfer on utilization. Since the beginning of November, 2018 inhabitants Moscow can hand over batteries in 72 M.Video shops. In 2019 the project will be developed almost in all cities of presence of both networks - M.Video and Eldorado. Thus, in 2019 the federal network of collecting of batteries will be replenished with 500 points.

In M.Video shops boxes in the form of the recognizable Duracell battery are set. These are the containers which are specially developed for collecting of batteries which meet all requirements of safe storage. In them visitors of shops can leave the batteries of the most widespread formats which fulfilled term – finger-type (AA) and mizinchikovy (AAA). Each boxing contains up to 35 kg of batteries. Within project implementation of M.Video also provided personnel training to rules of work with waste. After filling of box of the battery will be exported on the Megapolisresource plant, for November, 2018 is the only enterprise in Russia for processing of batteries.

Box for batteries

When burning batteries dioxine and metals which harmful affect health get to air. However at effective processing of batteries from one ton of batteries it is possible to receive 940 kg of secondary raw materials (zinc, manganese, iron and graphite) which is used further in the industry, mechanical engineering, medicine and construction. A wide number of products is made of the processed batteries: from pencils to railway rails.

On group appraisals "M. of Video Eldorado", in 2019 at connection to the project of most shops of network of the company can collect jointly about 100 tons of the fulfilled batteries is about 5 million pieces of finger-type or 10 million pieces of mizinchikovy batteries.

When it comes about important social initiatives, retail has powerful advantage: we constantly communicate with millions of people – in shops, on the website, on social networks. With our help clients can learn more about why it is so important to collect and utilize correctly batteries what threats bear the batteries which are thrown out with household garbage. But it is not enough to tell about it, it is necessary to organize process so that our clients precisely knew where to bring batteries that they were utilized without harm for the environment. Thanks to our partners Duracell and Megapolisresource the question of safe collecting, export and utilization is solved.
Stanislav Gorshenin, the Head of Department on customer service of M.Video company

Assemble the used batteries in the same place where they are sold - it is the most reasonable solution because for collecting the same infrastructure, as for distribution is used. Such structure is optimal for all interested persons: producers, citizens, retail and the state — also answers trends of the ecofocused economy. There is no need to build additional infrastructure, only more effectively to use available.
Vladimir Matsyuk, CEO of Megapolisresus Group

Opening of M.Video shops of m_mobile in network of the district centers ADG group

On October 17, 2018 the M.Video company announced that it agreed about partnership with ADG Group, the developer retail project of Moscow. Separate shops under a subbrand of M.Video m_mobile will open in network of the district centers ADG group during 2019-2020. The tenancy agreement of the areas in seven objects of ADG group is reached: Angara, Prague, Kyrgyzstan, Budapest, Dawn, Sofia and Orion.

In addition to lease of floor spaces partnership provides implementation of joint marketing projects and holding actions. Shops of the M.Video group will open in the district centers ADG group in process of start of objects in the next two years.

The network of the district centers ADG group in bedroom communities is the format of public spaces combining leisure, educational and trade functions. As a result of reconstruction of 39 old Soviet movie theaters will turn into the modern district centers which will provide to tenants and partners direct access to 2.5 million Muscovites who are already living near objects. In the district centers the CJ CGV company which manages network a multiplex movie theaters in South Korea is engaged in development of movie theaters. The company has for October, 2018 more than 400 movie theaters and 3,000 screens in several countries, Russia will become the seventh in the list of the countries of presence of CJ CGV.

Permanent search of modern formats and long-term partnership – some of key priorities of M.Video when planning expansion. The network of the district centers ADG group occupies a free niche — the modern multifunctional centers within walking distance for inhabitants of dormitory areas of Moscow, and we see a potentiality of development of the m mobile shops focused on digital equipment here. Within this concept our shops can become not only the comfortable place of purchase, but also convenient points of issue of online orders — for M.Video it is an organic format within development of omnichannel model. For October, 2018 under brands of M.Video and Eldorado about 850 shops work, we expect to increase network to 1100 shops by 2022.
Andrey Gubanov, managing direktor of m mobile

The m_mobile shop is the last concept of shops of M.Video network. On the area about 200 sq.m. only digital goods – a wide choice of smartphones, accessories to them, the smartwatch, notebooks, tablets, gadgets for the smart house and devices for a geyming are provided. All goods are in the open calculation, any gadget can be taken in hands and to test: listen to music in earphones, try the camera in the smartphone, etc. M_mobile shops also work as pickup locations of the melkogabaritny equipment: order the smartphone, the notebook or earphones on and to take away them on the way home. For those who need to consider purchase coffee zone works.

Opening of game zones in 4 shops of Moscow

On October 12, 2018 the retail network "M.Video" announced opening in Russia of specialized game zones with a good selection for admirers of video games. The M.Game project integrated several thousands of goods – prefixes, notebooks, accessories and games, it is possible to play in shop. For October, 2018 the selected departments for gamers opened in four Moscow shops "M.Video". Until the end of 2018 several tens of additional zones will appear in more than 10 cities.

Thanks to zoning and the increased area of the calculation visitors of shop will gain the most complete idea of the range, exclusive offers, the profitable actions which are carried out by M.Game, and trends of the game industry. In this space several thousands of names of games and digital equipment, including notebooks, consoles and accessories are collected. A wide choice of digital content is in addition provided: in-game currency, digital codes, subscriptions, additions and many other things. Participants of the rewards program of M.Video can spend the saved-up points for each game purchase not only for gaming goods, but also for other categories.

The game zones implemented in the concept by touch-and-play assume cardinally other consumer experience which important component is testing of functions and features of consoles, accessories and games. Visitors of M.Video can plunge into the world of virtual reality or test the skills as the racer of F1 in this racing race car.

The gaming equipment is one of the most demanded and fast-growing categories in the Russian market. According to the results of nine months 2018 of sale of video game consoles saved growth rates – demand in pieces and sales in money grew by 40% of rather same period of 2017. The most noticeable dynamics was shown by home consoles, in particular demand for Nintendo Switch grew more than twice, and by Xbox One – by one and a half times in piece expression. Demand for games for consoles also steadily high thanks to regular releases of cult games – a gain year-on-year exceeded 15%. Interest in a geyming stimulates as well the accompanying categories – M.Video sees increase in demand for gaming accessories (mice, keyboards and headsets), chairs, VR glasses, wheels and gamepads.

We were guided by the best international practices in the field of retail. Such approach to zoning, the calculation and navigation will allow us to satisfy needs of fans of games, to create comfortable space for the choice of the best products at the most beneficial prices. To us the solution on implementation of a demooborudovaniye as it helps the buyer to feel all advantages of the provided goods here and now seems especially perspective.
Oleg Reznikov, Head of Department "Entertainments and photo/video" M of Video Eldorado Groups.

Closing of the transaction with MediaMarktSaturn

On August 31, 2018 the M of Video Eldorado group, the Russian seller of electronics and home appliances entering into the Safmar group of Mikhail Gutseriev announced closing of the transaction within which MediaMarktSaturn acquired 15% of shares of PJSC M.Video at the Safmar group, the largest shareholder of the company, and the M of Video Eldorado group purchased 100% of participation in Media-Saturn-Rusland LLC, the Russian business of MediaMarktSaturn.

As a result of the transaction the M of Video Eldorado group received in management 42 shops Mediamarkt in 22 cities of Russia. The group is going to open on their place about 60 shops under brands of M.Video or Eldorado depending on location, a competitive environment and consumer audience. A part of shops will open this year, the others — in the first half of 2019.

The M of Video Eldorado group is going to integrate completely shops Mediamarkt that will allow to improve, as expected, and in addition to receive their business case to 110 billion rubles of revenue and to 11 billion rubles of EBITDA for the next four years. The group predicts previously consolidated revenues at the end of 2022 at the level of 500 billion rubles and EBITDA at the level of 35 billion rubles.

Shops Mediamarkt are closed on rebranding since September 1, 2018. After the transaction of M.Video also undertakes obligations within the current legislation for exchange, return and warranty repair of equipment, earlier purchased in shops Mediamarkt in all territory of Russia — buyers Mediamarkt can address to any nearest shop "M.Video". The company will also save the bonus points which are saved up according to the loyalty program Mediamarkt and will give an opportunity to exchange the gift cards which are earlier purchased to Mediamarkt for cards of M.Video.

The group filed all necessary documents for registration of shares to Media-Saturn-Rusland LLC in tax authorities according to the existing Russian legislation.

The first results of consolidation of M.Video and Eldorado serve as the proof of efficiency of the business model selected by us based on preserving of two retail networks. Both networks could improve the operational and financial performance, and the group in general showed growth taking into account the first implemented synergies. Acquisition of successfully located shops Mediamarkt allows us to implement earlier conceived plans for development of both networks in short terms — on their place we will open about 60 new hypermarkets "M.Video" and Eldorado. We will use the best efforts for preserving and employee development Mediamarkt — the president of the M of Video Eldorado group Alexander Tynkovan emphasized.

In turn, representatives of MediaMarktSaturn will receive places of the director and the observer in Board of Directors of PJSC M.Video.

For August 31, 2018, after closing of the transaction PJSC M.Video has the following joint-stock structure: The Safmar group controls 38.2% of shares, MediaMarktSaturn possesses 15% of stocks, 46.8% remain in free circulation at the Moscow Exchange.

Opening of the first two service centers Apple in Moscow

In August, 2018 the M.Video network opened the first two service centers Apple in the shops in Moscow in Shopping Center Aviapark and Shopping Center Mebel Grad. As well as it was planned, existence of the service centers directly in shop positively affected consumer experience, having allowed to improve customer service quality, preferring a brand of Apple, noted in the company.

The German MediaMarkt redeemed a share in M.Video from Gutseriev's structures

The German MediaMarktSaturn purchases a 15 percent share in the Russian retailer "M.Video" at the Safmar group and transfers MediaMarkt Russia under control of Safmar. It is said in the statement on the website of the German[1][2].

Between the companies the agreement under which in exchange for a share in M.Video of MediaMarktSaturn will pay Safmara of €258 million is signed. The cost of purchase can be reduced by €86 million depending on achievement of M.Video of the set indicators of EBITDA in 2018 and 2019 and a deduction of taxes, the report says.

M.Video is going to join the European alliance of retailers and to become his third member after MediaMarkt and the French Fnac Darty. After occurrence of M.Video the alliance will become the largest in the sphere with the total cost nearly €34 billion.

MediaMarktSaturn will transfer to addition to the Safmar group the Russian business in the form of MediaMarkt Russia.

"This transaction means that we will save permanent activity in the big, constantly growing Russian market and found a sustainable solution for our activity in Russia" — Pieter Haas told SEO of MediaMarktSaturn.

The companies are going to close the transaction in September of this year.

Opening separately shops under the m_mobile brand

The M.Video company, the Russian seller of electronics and home appliances entering into group Safmar of Mikhail Gutseriev announced on April 13, 2018 opening of m_mobile shops. M_mobile salons of 200-300 square meters are focused only on the digital range — smartphones, notebooks, tablets, gadgets for the smart house, devices for a geyming and the accompanying accessories and services.

The first shop in such format opened in Moscow on the first floor of Afimoll shopping Center.

All goods are in the open calculation, any gadget can be taken in hands and to test: listen to music in earphones, try the camera in the smartphone, etc. Tariff plans of any of four federal telecom operators are available to visitors, and buyers of smartphones will be able to receive the SIM card with a hit from the favourite operator with pre-paid traffic as a gift. The expert of "M. Credit" if necessary will issue payment by installments on purchase. M_mobile shops also work as pickup locations of the melkogabaritny equipment: it is possible to order the smartphone, the notebook or earphones on and to take away them on the way home.

The zones m_mobile in the "shop in shop" format focused on sales of smartphones, related gadgets, accessories and services work in retail of M.Video since the end of 2016. According to M.Video, the project showed good results: m_mobile turnover in 2017 grew by 14%, sales of accessories showed growth by 54%. Revenue share from digital categories in total sales of the company reached 27%.

Piloting of the separate shops focused only on sales of smartphones and gadgets — logical development for m mobile. The brand of M.Video is recognized and is associated with quality, the high level of service, and positioning adds dynamics and expands audience. Within the next several years smartphones will be the driver of the market of the equipment. Separate shops m mobile are a modern open calculation, really wide range. The right place for purchase of electronics — the area director digital equipment of M.Video Andrey Gubanov emphasized.

Purchase of Eldorado for 45.5 billion rubles

Transaction amount will be up to 45.5 billion rubles, not including credit obligations of Eldorado LLC that corresponds to the fair market assessment on the basis of the discounted cash flows which is carried out by the auditor from among "Big Four". Within implementation of the transaction M.Video Management LLC will attract the loan in the amount of about 40 billion rubles and uses own available funds. The loan portfolio of the consolidated company after completion of the transaction is expected at the level of 47 billion rubles. The indicator of a net debt to EBITDA of the consolidated company will be 1.5kh by the end of 2018. By M.Video it is aimed at systematic decrease in a debt load thanks to respect for high financial discipline and the increased cash flow of the joint business and reduction a ratio of a net debt to EBITDA by the end of 2020 to 0.5kh.

Corporate management

The management command headed by the founder of business and the president of M.Video Alexander Tynkovan and the chief executive officer Enrique Fernández will continue to manage the consolidated company and will focus on process of integration and creation based on M.Video of one of the leading players in the market of electronics in the world. Operational business of two companies will be headed by Enrique Fernández. The united company will continue work within best practices of corporate management that will provide transparency and efficiency for the benefit of all shareholders.

It is expected that joint revenue of the company by 2022 will make more than 450 billion rubles that will allow Group to become one of the largest public companies in the sector, and, having increased EBITDA margin indicator to more than 6%, to enter into the three of the best players in the world market of home appliances and electronics by efficiency whose shares are traded at the exchange. The united company is going to create uniform legal entity, having saved at the same time two brands and the competing networks.

Management stakes on substantial increase of operational efficiency of the company due to the joint commercial and non-commercial purchases and shared control by warehouse stocks, simplifications of a corporate management system, optimization of IT infrastructure, reduction of operating costs. By estimates of M.Video, the synergy effect of consolidation of two companies within one legal entity can be up to 18 billion rubles on EBITDA in 2018-2020 at simultaneous doubling of the integrated indicators of EBITDA and net profit in the long term five years.

Redemption of stocks at minority shareholders

According to corporate governance practices of PJSC M.Video submits conditions about acquisition of Eldorado LLC for vote of VOSA which will take place on April 13, 2018. Within the current legislation the minority shareholders not concordant with the transaction or not taken part in vote, have the right to show own actions to the redemption. The price of the redemption is determined by Board of Directors of PJSC M.Video in the amount of 401 rubles on one ordinary share on the basis of the report of the independent appraiser and is close to the weighted average price of closing at the Moscow Exchange for the last 12 months. Requirements of redemption of stocks should be imposed by holders within 45 days from date of VOSA. In case of approval of the transaction by extraordinary general shareholder meeting of M.Video Management LLC company is going to complete all formalities on acquisition of Eldorado LLC during the second quarter 2018. The companies are going to carry out reorganization and creation of one legal entity to the first quarter 2019 that will allow them to implement all planned synergies.


Revenue of 198 billion rubles (+8.2%)

  • Revenue of M.Video grew by 8.2% to 198 billion rubles (excluding VAT) in 2017. Growth was caused both sales increase of comparable shops, and high dynamics of online purchases, 15.7% of revenue fell to the share of the last (12.0% the previous year).
  • The share of the company in the market of home appliances and electronics of Russia reached 17.1%. In reporting period the company could increase considerably a share on online the market to record 14.1% from 11.3% in 2016.
  • The gross profit of M.Video made 46.5 billion rubles at the end of 2017, having increased by 8.4% in comparison with the same period of last year. At the same time gross margin grew by 0.1 percent point up to 23.5%.
  • EBITDA of the company showed significant growth, having increased by 14.0% in comparison with last year to 11.8 billion rubles.
  • Profitability on EBITDA (EBITDA margin) made record 6.0% for the last three years.
  • The net profit of M.Video increased by 25.4% in 2017 to 7 billion rubles. Profitability on net profit made 3.5% in 2017 in comparison with 3.0% the previous year.

In November, 2017 sales of M.Video on the Internet for the first time reached a point of 20.2% of all turnover of the company, having added 8 items since the beginning of year. Rates of a gain online of turnover of M.Video were three times higher than market. So, in 11 months since the beginning of year the Internet of sale of the retailer was added by 37% while the market entirely - only 10%.

Positive dynamics the Internet of sales in M.Video is connected with a package of measures for improvement of the interface of the website, deployment of the updated program crediting online, to expansion of the range, improvement of logistic processes and lifting of restrictions in order placement. Also the company improved process on planning and start of promoaktivnost on the basis of a research of consumer behavior and using different mechanics. As a result, in November traffic increased by 31% year-on-year, and conversion level for 65%. On average in a year these indicators grew for 19% and 10%.

The largest growth of interest to the Internet shows to purchases Siberia, sales in November grew more than twice in comparison with last year. Among leaders there are also a South (+90%), the Center (+84%) and the Urals (+83%). In general by a year online of sale of M.Video in these regions also increased by one and a half times.

More dynamically than others sales on the Internet of smartphones and accessories (+159%), consoles, game content and other goods for gamers (+110%) and major appliances (+22%) in terms of money developed. According to the results of November small appliances, smartphones and video games became the purchases which are the most demanded the Internet.

M.Video and Alibaba began negotiations on partnership

The Chinese Alibaba Group began negotiations with co-owners and top management of M.Video on possible equity participation of the Russian company or creation of joint venture. In November, 2017 told two sources familiar with the course of negotiations[3] about this RBC[4].

One of interlocutors of RBC says that in the nearest future the trip to China of Said Gutseriev (the son of the founder Safmar Mikhail Gutseriev — the current owner of the company) supervising retail business of group for a meeting with top management of Alibaba Group for the purpose of "determination of parameters of possible cooperation" should take place. According to the second source, Chinese Alibaba it is interested in receiving control in M.Video. Whether there is a speech about acquisition only of M.Video or all retail assets of the Safmar group (except M.Video, also the marketplace of owns Eldorado network and also; all platforms should be integrated in Safmar of retail) interlocutors of RBC do not specify.

One more source of RBC close to one of the parties reported that there is no final configuration of possible cooperation" yet, but from the Russian side it is precisely about all retail group — i.e. both about M.Video, and about Eldorado and also about a condition that "all involved investments should go for business development, but not cash-out of shareholders".


Sales of 216.2 billion rub (+13.3%), including 25.9 billion on the Internet

  • Sales grew by 13.3% to 216.2 billion rubles (including VAT);
  • Sales of comparable shops (LfL) showed growth by 10.7%;
  • Sales on the Internet (delivery + shipment at own expense) grew by 26.6%;
  • "Video m" opened 22 new shops, the floor space made 663 thousand sq.m.

Sales of comparable shops (LfL) grew by 10.7%. "Video m" shows positive dynamics of key indicators due to two-digit growth in sales of all commodity categories and continues to increase a presence share in the market of home appliances and electronics.

Internet sales of M.Video (orders online with home delivery and shipment at own expense from shops) for 2016 showed growth by 26.6% to 25.9 billion rubles, including the VAT, with 20.4 billion rubles (including VAT) for 2015.

Fernández releases Tach from a duty of the CEO

On August 9, 2016 announced PJSC M.Video Enrique Fernandez appointment to a position of the chief executive officer (CEO) of M.Video Management LLC. The decision on appointment is approved by Board of Directors of PJSC M.Video on August 9, 2016.

The chief executive officer (CEO) of M.Video is responsible for all operating activities of the company, in its management there are a directorate of retail sales, commercial directorate, directorate on marketing, directorate on supply management, distribution and logistics, to information technologies and projects, financial directorate, directorate on personnel, directorate on development of retail network and others. The CEO of OOO "M.Video Management" submits directly to Alexander Tynkovan – the president and SEO of the M.Video Group.

Michael Tach who was earlier taking this position made the decision to continue work behind perimeter of the M.Video Group.

"The new management model the company implemented at the beginning of this year already managed to prove the efficiency – M.Video strengthened leader positions in the market and successfully pilots or already started a number of the projects aimed at the development of a segment of the connected devices and services (connected services), online sales. I am grateful to Michael for his participation in business development, that dynamics and positive motivation which he managed to introduce. Michael leaves the company, and this decision we made together as our views of methods and rates of implementation of strategic plans of M.Video were different", – the president and SEO of the M.Video Group Alexander Tynkovan noted.

2015: Retail sales of 192 billion rub (-5.5%)

In 2015 retail sales of M.Video network reached 192 billion rubles (including VAT), having decreased by 5.5% in comparison with 2014.

Sales of comparable shops of M.Video network (indicator of like-for-like, LfL) in 2015 decreased by 12.7%.

In the IV quarter 2015 retail sales of M.Video network decreased by 23.1% up to 61 billion rubles (including VAT). The company explains sales reduction with high base of comparison: indicators were higher in the IV quarter in December, 2014 in the conditions of abnormally high sales demand on home electronics in connection with exchange rate fluctuations the previous year and especially.

At the same time practically all 2015 (except for December) sales to the company saved positive dynamics against the background of decrease in sizes of the market of home appliances and electronics in Russia.

Internet sales of M.Video (online orders: home delivery + shipment at own expense from shops) in 2015 grew by 12.5% up to 20.4 billion rubles (including VAT) against 18 billion rubles in 2014, having shown noticeable growth, despite high comparative base of December, 2014.

In 2015 the company opened 20 new hypermarkets, including 13 – in the IV quarter 2015 (within a year 10 shops were closed). For the end of 2015 the total number of M.Video shops was 378 hypermarkets working in 161 cities of the Russian Federation. The floor space of M.Video shops grew to 644.5 thousand sq.m, the general – to 865 thousand sq.m; growth of the areas was 2% in comparison with 2014.

President of M.Video Alexander Tynkovan:
"We remain financially steady enterprise with a high positive cash flow. Our sales on the Internet surely grow and now make about 11% of all turnover of network in comparison with 9% the previous year. We will also continue to open new shops: opening up to 20 new hypermarkets "M.Video" is planned for 2016.


M.Video is going to redeem 100% of Eldorado network

In April, 2013 it became known that in the Russian market of sales of consumer electronics the largest transaction for all its history can take place. As Kommersant became knows[5], M.Video, the market share more than 12%, intends to redeem from the Czech PPF Group of the closest competitor — Eldorado network (8.6%). In 2011 retailers already discussed a possibility of merge, but then in the united company PPF expected to receive control, on the contrary. In April, 2013 the M.Video network sent to the Federal Antimonopoly Service (FAS) the petition on acquisition of 100% of business of Eldorado, told the source of Kommersant familiar with contents of the document.

The Federal Antimonopoly Service of the Russian Federation (FAS Russia) approved the petition of M.Video Management LLC for acquisition of 100% of shares in authorized capital of ELDORADO LLC with simultaneous issue of M.Video Management LLC of the instruction about implementation in the territory of the Russian Federation of the actions aimed at providing the competition.

So, M.Video Management LLC is offered within 6 months after transaction to stop implementation of activity of M.Video Management LLC and (or) ELDORADO LLC on a part of squares of the shopping facilities located in the territory of 35 territorial subjects of the Russian Federation for the purpose of decrease in the markets of retail sale of household goods and also audio-and video equipments in each of these territorial subjects of the Russian Federation of their cumulative share to the level of 35% and providing a possibility of use of the released areas to their competitors.

Including it is necessary to terminate lease agreements and sublicense agreements and also to provide in use to the impartial third parties the shopping facilities which are owned.

The petition FULL FACE for acquisition of 100% of Eldorado

On April 17, 2013 submitted to M.Video the petition FULL FACE for acquisition 100 percent of shares of Eldorado at the Czech PPF Group. The cost of the transaction was not specified.

FAS constrains the transaction on merge to Eldorado

On August 28, 2013 it became known that the company merger selling home appliances and electronics of M.Video and Eldorado broke again.

As the representative of M.Video reported to the Kommersant edition, consultations with PPF Group owning Eldorado "are suspended because of instructions of FAS and lack of consensus under the terms of the transaction". About what terms of transaction there is a speech, M.Video did not begin to explain.

The Federal Antimonopoly Service granted permission for merge of M.Video and Eldorado — two the sellers of electronics and home appliances, largest in Russia — in July, 2013. At the same time, Vedomosti writes, FAS gave the instruction to close shops of one of networks in 35 regions, including in Moscow and the Moscow region, and to give the freed squares to competitors. On expert evaluations, the speech could go about closing of 40 — 60 shops. And, as reported to Kommersant the source familiar with the course of negotiations, the possibility of closing only of Eldorado shops was considered.

2012: Sales growth for 20% to 158 billion rub

Sales of M.Video in 2012 grew practically by 20% to 158 billion rubles (including VAT). Growth of revenue of M.Video was caused by opening of 42 new shops, growth in sales of comparable shops (like-for-like stores) for 9.3%, including sales increase via the Internet for 60%.

The gross profit of M.Video in 2012 grew by 20% to 33 billion rubles (27.5 billion rubles in 2011), gross margin of Group in 2012 reached 24.7% (24.6% in 2011). In 2012 the Group changed a format of the presentation of consolidated financial statements in the part concerning classification of the transportation costs connected with sending goods from the Central Distribution Center to shops of network, having carried them on cost value. In previous periods these expenses were considered regarding business, general running and administrative expenses.

Operating profit of M.Video (EBIT) in 2012 grew to 5.4 billion rubles (4.6 billion rubles in 2011), operating margin (EBIT margin) of Group in 2012 made 4% (4.1% in 2011).

The indicator of EBITDA "M.Video" in reporting period increased to 7.5 billion rubles in comparison with 6.2 billion rubles in 2011. Profitability on EBITDA (EBITDA margin) of Group in 2012 made 5.6%, as well as the previous year.

The net profit of M.Video according to the IFRS standards in 2012 increased by 23% to 4 billion rubles in comparison with 3.4 billion rubles in 2011.


Round-up of the stealing managers

In November, 2011 in the Ministry of Internal Affairs announced detention of managers of M.Video, deception charging to themselves money for bonus cards. The retail network recognizes that their employees periodically sin with it, however claim that none of managers were delayed – such problems are usually solved in the company.

As the source in the Ministry of Internal Affairs told CNews, yesterday on Profsoyuznaya Street in Moscow law enforcement agencies delayed two managers of M.Video on suspicion of fraud. According to him, against them criminal case under the relevant article is brought.

According to a source, using official position, they got bonus cards of shop on which they enlisted bonus means for purchase of nonexistent goods, and then transferred maps to the acquaintances.

Other details of the incident did not want to disclose a source, referring to the fact that now accomplices of fraud are wanted, and any disclosed details can prevent to delay all group of suspects. Interfax reports that the total amount of the bonuses added by swindlers was about 500 thousand rubles.

Under the Criminal Code the Russian Federation, for the fraud committed using official position it is possible to pay with a fine of 100-500 thousand rubles or in the amount of salary or other income of the convict for the period from 1 to 3 years, or imprisonment for a period of up to six years with less large penalty.

M.Video did not disprove the fact of fraud with cards in their shop, however claim that none of their employees were delayed. The network also denies that against someone from employees criminal case about it was brought.

"Perhaps, the third-party people concerning fraud were delayed", - assumed the source close to retail network.

The representative of M.Video Anton Panteleev told CNews[6]that similar cases periodically happen in their network, however are not taken out "from a log hut", and always decide in the company, and nobody addresses to law enforcement agencies. "In similar situations we make internal investigation, service checks on the basis of which we take measures", - he says.

The source in the Ministry of Internal Affairs assumes that M.Video "disowns" from the fact of detention of the employees not to prevent a course of investigation and search of assisting offenders.

Unsuccessful attempt of merge to Eldorado network

In 2011 the Czech company PPF Group owning the Russian network selling home appliances of Eldorado wanted to receive as a result of exchange of shares control in the united company with M.Video. However after the preliminary negotiations lasting about a month it was announced that the transaction will not take place. The sources close to negotiations, then reported that the parties did not manage to agree about the price. PPF estimated M.Video, proceeding from stock quotations of this company, and in M.Video considered that the company is much more expensive.

Sharp growth in sales of readers

Sold "Video m" in the first half of 2010 3000 readers, and in January — June, 2011 — 50,000, the representative of network Anton Panteleev says. During 2010 the average price of the device decreased from 11,700 to 7350 rub, and in the summer of 2011 readers monthly become cheaper for 5-7%, he notes.

2008: Sales growth to 84 billion rub (+37%)

The sales volume of M.Video network in 2008 grew by 37% and was 84.4 billion rubles (including VAT). At the same time net proceeds of M.Video according to the IFRS standards in 2008 grew to 71,486 million rubles in comparison with 52,317 million rubles in 2007. Net retail proceeds of Group (retail sales, including Internet trade revenues) in 2008 increased by 41% to 68,131 million rubles. Growth of indicators of revenue of M.Video in 2008 was caused by increase in number of shops of network and also growth in sales of comparable (like-for-like) shops.

The gross profit of M.Video according to the IFRS standards in 2008 made 17,876 million rubles, having increased by 49% in comparison with 2007. Gross margin (gross margin) of group increased up to 25% against 22.9% Indicators of a gross profit and gross margin for 2007 were specified corrected) in connection with changes of requirements to a reporting preparation according to IFRS. the previous year. Improvement of an indicator of gross margin in 2008 was caused by growth of sales amounts of group and also sales increase of highly profitable goods and services.

The indicator of EBITDA "M.Video" in reporting period grew by 38% and made 3596 million rubles. Profitability on EBITDA (EBITDA margin) increased up to 5.03% in 2008 in comparison with 4.98% in 2007.

The net profit of M.Video according to the IFRS standards in 2008 increased up to 1,256 million rubles, having increased by 94% in comparison with 2007.

The IT passport of projects in M.Video

Описание проектаCrocAxios Assyst, VMware AirWatch, Artificial intelligence (AI, Artificial intelligence, AI)ITSM - Management systems for IT service, Mobile Device Management (MDM), Big Data, Data Mining, Data Quality - Quality of data, Robotics2019
Описание проектаKaspersky Lab, Cohort (before Legal Softwave, Ligal Softveyv) KogortaKaspersky SecurityCybersecurity - Antiviruses, cybersecurity - the Antispam2018
Описание проектаIBS, VTB - VneshtorgbankProjects of IT outsourcingIT outsourcing2018
Описание проектаJet InfosystemsProjects on virtualization, Projects of IT outsourcingVirtualization, IT outsourcing2018
Описание проектаPositive TechnologiesPT Application Inspector (PT AI)Firewall2018
Описание проектаTaymbukAutomated workplace TimebookTime recording2017
Описание проектаSberbank-Technologies (SberTech)Projects based on blockchain technology2017
Описание проектаEPAM SystemsOracle ATG Web CommerceCorporate portals, trade Automation systems2017
Описание проектаTaxcomTaxcom Cash deskTrade automation systems2017
Описание проектаWebSoft (Vebsoft Development)WebTutorHRM, Corporate portals, Systems of distance learning2017
Описание проектаMicrosoft RusWindows 10OS2017
Описание проектаDetectumDetectumBI, SaaS - Software as service2017
Описание проектаNovardis (Novardis Consulting)SAP CRM (SAP Customer Relationship Management)CRM, CRM - Loyalty systems2016
Описание проектаNovardis (Novardis Consulting)VeeRouteTrade automation systems2016
Описание проектаTechnoservAruba InstantSCS2016
Описание проектаTechnoserv ConsultingTSK TSC Loyalty CloudCRM - Loyalty systems, SaaS is the Software as service2016
Описание проектаNovardis (Novardis Consulting), EVOLASAP Workforce Management, SAP for RetailHRM, Time recording, CRM - Loyalty systems, ERP, trade Automation systems2015
Описание проектаNovardis (Novardis Consulting)SAP Supplier Relationship Management (SAP SRM)SRM - Vendor relationship management2015
Описание проектаEVOLASAP NetWeaver BPMBPM2014
Описание проектаEVOLASAP E-RecruitingHRM2014
Описание проектаFlocktoryFlocktory (product)CRM - Loyalty systems2014
Описание проектаCrocDPC Projects of creation and upgradeDPC, Data processing centers are technologies for DPC2014
Описание проектаTechnoserv ConsultingOracle Siebel Loyalty ManagementCRM, CRM - Loyalty systems2014
Описание проектаSapiens solutionsSAP Business Intelligence (SAP BI)BI2014
Описание проектаComparexSoftware Asset Management (SAM)ITSM - Management systems for IT service2014
Описание проектаEVOLASAP Employee Self-Service (SAP ESS)HRM2013
Описание проектаLuxoftCorporate portal - projects of upgradeCorporate portals2013
Описание проектаCrocDPC of CROC CompressorDPC2013
Описание проектаCrocSAP NetWeaver Business Warehouse (SAP BW/4HANA)BI, DBMS, DWH2013
Описание проектаJet InfosystemsSAP HANA (High Performance Analytic Appliance)DBMS2013
Описание проектаCrocHitachi Unified Compute Platform (Hitachi UCP)Cloud Computing, IaaS - Infrastructure as service, Network Health Monitoring - Monitoring of network or management of health performance of IT Infrastructure, PaaS - Platform As A Service - the Business platform as service, Virtualization, Server pla2013
Описание проектаIBS PlatformixProjects of creation of complex IT infrastructureIT outsourcing, Server platforms2012
Описание проектаCiberSAP NetWeaverSOA2012
Описание проектаCiberSAP Supply Chain Management (SAP SCM)SCM2011
Описание проектаCrocCisco TelePresenceVideo conferencing2011
Описание проектаTechnoserv ConsultingOracle Siebel CRMCRM, CRM - Loyalty systems2010
Описание проектаAntorANTOR LogisticsMasterTMS - Control of transport, Logistics information system2010
Описание проектаEVOLASAP Business Intelligence (SAP BI)BI2010
Описание проектаBDO UniconSAP Business SuiteEAM, ERP2009
Описание проектаSybaseSAP Sybase IQBI, OLAP, DBMS2009
Описание проектаCiberSAP Extended Warehouse Management (SAP EWM)WMS2009
Описание проектаRapidSoft2007
Описание проектаWithout involvement of the consultant or not dataMicroStrategy BIBI2007
Описание проектаAkado-Telecom (Comcor)Services of telephony and communication---