Central Federal District of the Russian Federation
Grishin Dmitry Sergeyevich
Mail.Ru Group - till September, 2010 - Digital Sky Technologies, DST. The Russian investment company working at the market of Internet services.
For January, 2020 company assets are among:
Business in B2B segment
Main article: Financial performance of Mail.ru Group
2018: Growth of revenue by 32.5% to 75 billion rubles
The Mail.ru Group Internet holding published on March 1, 2019 the audited reporting according to IFRS and segment financial data for 2018. Consolidated segment revenues of the company grew by 32.5% in comparison with 2017 to 75,260 million rubles, and the cumulative segment indicator of EBITDA increased by 13.9% to 22,222 million rubles, representatives of Mail.ru Group reported TAdviser.
Taking into account single non-monetary write-off in the amount of 1,698 million rubles in the second quarter 2018, the comprehensive net profit of the company for the reporting period grew by 6.4% in comparison with 2017 and was 14,099 million rubles. Without this expense net profit grew by 19.2%.
Balance in cash on accounts as of December 31, 2018. made 11,723 million rubles. As specified in the company, key indicators are provided according to the cumulative segment financial data Mail.ru Group and differ from the reporting under IFRS.
Revenue of VKontakte social network in four years (since 2014) grew four times, having made 18,431 million rubles at the end of 2018. By estimates of holding, VKontakte has considerable potential of further development and will be able to double once again revenue in the next 3-4 years.
In the fourth quarter 2018 revenue from MMO games grew by 37% and made 7,104 million rubles. In a year this indicator increased by 34% — to 23,290 million rubles. At the end of 2018 the share of the international revenue from games in a total amount of revenue of the company makes about 20%. The marginality of game business in the fourth quarter reached 33%, and in a year — 17%.
Mail.ru Group also noted growth of mobile IVAS products (from engl. Integrated Value Added Services), including musical subscriptions where the quantity of active paid and trial subscriptions on platforms of holding and in the BOOM application in December, 2018 reached 2.1 million. According to the company, for February, 2019 it is the largest service on a subscription to content in Russia. In 2019 Mail.ru Group intends to invest about 0.5 billion rubles in development of the content services in addition.
In the fourth quarter revenue of Delivery Club grew by 71% in comparison with the same period of 2017 and reached 646 million rubles, and growth for all 2018 was 48%.
| ||In 2018 communication and the Mail.ru Group social platforms continued growth, and their revenue outstripped the forecast. Expanding the game direction in global markets, we successfully started a number of the international game projects. We continued to implement the strategy of Mail.ru Group consistently. We still consider social networks and communications as the center of an ecosystem which new services are built in. We own some of such services completely, others — together with partners — Boris Dobrodeyev, the CEO of Mail.ru Group commented on results of 2018. — In advertizing in 2019 we will concentrate the efforts on increase in advertizing efficiency due to continuous improvement of advertizing technologies and advertizing products, expansion of our advertizing network and attraction on the platform of new types of advertisers — small and medium business and offline - retailers. In games we will continue our international development. The international revenue makes already 63% of the total game sales, or 20% of total sales of Mail.ru Group.|| |
According to Boris Dobrodeyev, in 2019 the holding will support even more actively the innovation technology projects, especially in the field of artificial intelligence, recognition of a voice and images and also in the field of development of new experimental communication products.
According to forecasts of Mail.ru Group, in 2019 revenue on a comparable basis will increase by 18-22% and will reach 85-88 billion rubles.
Absorption and asset sale
Main article: Absorption and asset sale of Mail.ru Group
2018: The cost of IT infrastructure of Mail.ru Group grew by 3.3 times in 5 years
The total cost of servers and computers which are owned by Mail.ru Group from December, 2013 to December, 2018 grew by 3.3 times, to 4.195 billion rubles, follows from the annual report of the company.
It is about net book value less the accumulated depreciation charges. The cost of servers and computers including depreciation charges in 2018 was 13.146 billion rubles that is about 4.4 times higher than a similar indicator of 2013.
All Mail.ru Group uses 11 data centers. Part of them belongs to it, and a part is rented. Two data centers of the company are located in the Netherlands and the USA for customer service in Europe and North America.
According to the report, in 2018 in data centers of Mail.ru Group in the general there were about 57.7 thousand servers from which 1.4 thousand - in foreign data centers. In comparison with the 2017th year the total number of servers which are used by the company decreased: then they were more than 67 thousand.
In 2018 Mail.ru Group optimized a server framework therefore the number of the servers used by it was reduced by 15%, said in the annual report of the company. At the same time the company replaced old computing systems with new more high density that allowed to increase the total cumulative power of servers and to cut down operating expenses, Mail.ru Group claims.
According to Mail.ru Group, in 2018 the peak volume of network traffic increased and reached 5.86 terabits/sec., and the total amount of outgoing data reached 10.856 petabyte. In 2017 similar values were 5.24 terabits/sec. and 10.249 petabyte respectively.
The main part of investments into fixed assets fell on servers and infrastructure of social networks in 2018. In total the volume of such investments grew by 70.9%. Mail.ru Group explains their growth with need to correspond to last modifications of the Russian legislation. The total amount of capital costs of Mail.ru Group in 2018 grew by 51.7%, to 6.648 billion rubles.
Among the new services provided based on computing infrastructure of Mail.ru Group since 2018 - PaaS service for the analysis of Big Data, a number of SaaS of services, cloud computing based on GPU Nvidia.
For comparison - the aggregate value of IT infrastructure of "Yandex" in 2018 was 49.57 billion rubles, having increased by 45%. This amount includes the cost of servers and network infrastructure less the accumulated depreciation charges. Read more here.
Input in the three of the most earning developers of mobile applications in Europe
Mail.ru Group was included into the three of the most earning developers of mobile applications in Europe at the end of 2019. It is said in the research conducted by App Annie analytical company. Data are published on January 17, 2020. Read more here.
Signing with Sberbank of binding documents about creation of the platform of O2O-services in the field of transport and food
On November 19, 2019 Sberbank and Mail.ru Group announced that they agreed about strategic cooperation and also signed binding documents about creation of the Russian platform of O2O-services (O2O - reduction from engl. Online-to-Offline, "Online offline" commerce) in the field of transport and food announced on July 25, 2019. Closing of the transaction is expected after receiving antimonopoly approval and accomplishment of conditions suspensive until the end of 2019. Read more here.
Agreement with IBS on joint development and deployment of technologies of management of Big Data
On November 11, 2019 the IBS company reported that together with Mail.ru Group agreed about joint development and deployment of technologies of management of Big Data and also about long-term cooperation in the field of the innovative development and creation of sustainable technical solutions in the Russian market. The agreement was signed by the CEO of IBS Svetlana Balanova and the managing director of Mail.ru Digital Technologies Pavel Gontarev on November 9, 2019.
Mail.Ru Cloud Solutions (MCS) and Arenadata (child structure of IBS) will be engaged in joint development of a cloud platform which solves all problems of business in storage areas and data processings. IBS integrates the Tarantool platform developed by Mail.ru Group which is responsible for data processing in real time into an ecosystem of Arenadata Enterprise Data Platform (EDP). It will expand a set of scenarios of use Arenadata EDP and will give to customers additional competitive advantages on data warehousing.
Arenadata Enterprise Data Platform consists of massive and parallel DBMS Arenadata DB based on Greenplum, Arenadata Streaming message broker (Kafka) and a distribution kit Arenadata Hadoop. The platform is available in a cloud of MCS.
Within the agreement the IBS company becomes the partner in implementation and promotion of the products Mail.ru Group for the corporate sector. The list of products includes an integration framework of data of Tarantool which combines the speed inherent to the systems of caching, and reliability of industrial solutions. Also among them there is a cloud platform of Mail.ru Cloud Solutions including a broad set of infrastructure and platform services for storage of Big Data and effective work with them.
Completion of creation of JV AliExpress Rossiya together with Alibaba Group, MegaFon and RDIF
Alibaba Group companies, MegaFon, Mail.ru Group and the Russian Direct Investment Fund (RDIF) announced on October 9, 2019 completion of the transaction on creation of AliExpress joint venture Russia. The transaction means integration of key Russian consumer Internet platforms and platforms of electronic trading and start of joint venture for social commerce in Russia and the CIS countries which will function in full accordance with the federal legislation in the field of personal data protection. Read more here.
Signing by Sberbank and Mail.ru Group of the agreement on creation of the Russian platform of O2O-services
On July 25, 2019 Sberbank and Mail.ru Group announced plans of creation of the Russian platform of O2O-services (online-to-offline) in the field of food and transport. The joint venture will operate in two largest digital consumer markets of Russia which total volume will exceed 1 trillion rubles on the horizon of 3 years, with the expected annual average growth more than 30%. Participation in the company will be distributed between partners in the ratio 50 / 50 percent. Read more here.
Announcement of the uniform game My.Games brand
On May 30, 2019 Mail.ru Group announced that the game direction of the company for the first time from the moment of the foundation in 2009 carried out large-scale rebranding: reviewed global positioning, changed the name and provided the updated corporate style. All game projects of the company in Russia (leave under the Mail.ru Group brand) and abroad (My.com brand) integrated under one My.Games brand.
According to representatives of Mail.ru Group, the provided name underlines approach of the company to development of the business: My.Games offers users a wide choice of game projects among which — games of different genres and for all popular platforms and also game services and media.
Together with the changed brand name it was provided and the updated logo — it is based on simple and accurate forms. The character emphasizes dynamics and a variety of play experience which My.Games offers the users. The same idea is reflected also in the corporate style of a brand: color palette, textures and corporate font.
| ||For the last few years we strengthened the international presence, considerably having increased a share of the international revenue. With us more than half a billion players from 190 countries of the world to which we daily provide access to various games, services, cybersports tournaments and festivals. Time to provide a global brand for our game business which will integrate under itself(himself) all key directions of our work and will create comfortable conditions for interaction with our products and solutions for players and partners worldwide came — Vasily Maguryan, SEO of My.Games commented on an event|| |
11 internal studios numbering more than 1500 employees from 10 regional offices worldwide will work on the edition and development of games in My.Games. Also the active development will continue investment division of MRGV which in two years of work invested already in 15 game studios and continues order taking from developers from around the world.
In plans of the company — start of the global gaming platform which will allow to provide the existing game projects and diverse infrastructure of division to players and partners worldwide.
Opening of division "Mail.Ru Digital Technologies"
On April 26, 2019 Mail.ru Group announced opening of division "Mail.Ru Digital Technologies" which will continue the strategy of the company on development of the B2B-direction.
Business products from Mail.ru Group are already available to the market: cloud services of Mail.Ru Cloud Solutions, the project in the development area of databases of Tarantool, the solution for corporate socialization and communications. Further the output to business market of the technologies and digital products developed in Mail.ru Group which will be able to help with digitalization to large and medium business will become the main objective. Headed "Mail.Ru Digital Technologies" Pavel Gontarev. Read more here.
| ||The Internet environment became an incubator of innovations in the field of Big Data, e-commerce and Internet of Things. Our mission is in making these technologies available to businesses of the traditional industries which very much want "tsifrovizirovatsya" — Pavel Gontarev, the head of the Mail.Ru Digital technologies direction told. — I am glad to head the new direction in the company and I hope that we will become the technology partner for the Russian companies of any scale".|| |
Creation of the MRG Tech Lab direction
Mail.ru Group announced on March 1, 2019 creation of the MRG Tech Lab direction within which groups of experts from different divisions of the company will work. MRG Tech Lab will make use of the acquired experience for creation of technologies and products which in the future will enter an ecosystem of the company.
According to Boris Dobrodeyev, the CEO of Mail.ru Group, in 2019 the company is going to invest from 1 to 1.5 billion rubles in developments of MRG Tech Lab.
Honor growth of the state on a quarter
In 2018 the staff of Mail.Ru Group was increased on 1.1 thousand people and made 5.773 thousand people, follows from the annual report of the company published in April. Thus, the number of employees of group grew by 23.5%.
Dmitry Smyslov, the vice president for personnel and the educational Mail.ru Group projects, reported to TAdviser that taking into account business growth the company employed people in different the directions. First of all it is about the IT specialists and employees entering an IT ecosystem: product managers, marketing specialists, analysts.
According to Smyslov, in 2018 Mail.Ru Group significantly strengthened the direction e-commerce commands. Besides, commands of storage systems and data analysis, cloud services, game division, GeekBrains, VKontakte and other projects of group increased, he says.
In the annual report of Mail.Ru Group it is noted that a considerable part of her workers has the significant experience in the product and technical environment allowing them to generate the new ideas and to make a contribution to development of the existing products. In 2018 divisions of researches and development of the company were generally focused on the e-commerce directions, machine learning, technologies of advertizing, communication products and mobile games.
Mail.Ru Group points to high and the competition for qualified personnel in the Internet of the industry in Russia, and in the annual report the company carries it to one of the business risks.
Organization of Association of participants of the market of Big Data
On October 16, 2018 MegaFon, Mail.Ru Group, oneFactor, Tinkoff Bank, "Yandex" and Sberbank founded Association of participants of the market of Big Data. Anna Serebryanikova, an operational direktor of MegaFon is elected the president of the organization. The board of association was joined by representatives of all founder companies. A main objective of the organization — creation of conditions for development of technologies and products in the field of Big Data in Russia. Read more here.
Denis Anikin is appointed by CIO
On July 25, 2018 Mail.Ru Group announced Denis Anikin's appointment to a position of Chief Information Officer (CIO). As reported TAdviser in Mail.Ru Group, the position of CIO in the company was created for the first time in connection with expansion of the e-commerce direction and emergence of new business challenges (in more detail...).
Start of the Mail.Ru Cloud Solutions direction
Growth of revenue by 34.4% to 57 billion rub
- consolidated segment revenues of the company grew by 34.4% in comparison with last year and were 57,469 million rubles.
- the cumulative segment indicator of EBITDA grew by 14.7% in comparison with last year and made 20,551 million rubles.
- the comprehensive net profit of the company grew by 22.6% in comparison with last year and was 14,244 million rubles.
- The balance in cash on accounts as of December 31, 2017 made 15,371 million rubles.
Most quicker revenue from advertizing grows in news feeds of social networks. Native formats of video advertizing in tapes of social networks become more popular both with media, and with performance-advertisers. Redistribution of advertizing budgets for benefit of online advertizing continues, at the same time in an online segment redistribution happens for benefit of mobile advertizing and, in particular, advertizing in social networks. Traditional offline - brands increase a share of an advertizing budget by promotion on mobile devices, paying special attention to social networks. In 2017 this trend amplified, and we expect that in 2018 it will proceed.
The key direction is mobile advertizing. In 2016 it provided about a third of revenue of advertizing on social networks; in 2017 this share grew and reached a half. In 2017 we were focused on advertizing products and technologies which provide efficiency, transparency and create additional value for our partners, raising ROI. We will continue to work in this direction and in 2018.
Hit under the Ukrainian sanctions
On May 16, 2017 the president of Ukraine Petro Poroshenko the decree enacted the decision of the National Security and Defense Council (NSDC) on sanctions against the Russian companies and their affiliated enterprises in Ukraine. In total in the sanctions list there were 468 legal entities, from them 81 – connected with the IT field. Among the companies which fell under sanctions, appeared also Mail.ru Group and its Ukrainian subsidiary "Ukra§n's Мейл.ру". Read more here.
Mail.Ru Group invests 100 million dollars in the game industry
On April 25, 2017 Mail.Ru Group announced creation of operating investment unit of Mail.Ru Games Ventures. In its framework the company is going to invest within the next two years in the Russian and international projects in the field of games and game development 100 million dollars, from which 10 million are already selected for the next
MegaFon and Sberbank signed the credit agreement for purchase of shares of Mail.Ru Group
MegaFon and Sberbank signed at the beginning of a year the agreement on opening of a credit line of 35 billion rubles and a repayment period in 2024. The obtained credit will be directed to financing of the transaction on acquisition of 15.2% of stocks of authorized capital of Mail.Ru Group which submit 63.8% of voting shares.
Within the agreement conditions of three operating credit lines for the total amount of 97.2 billion rubles received by MegaFon in 2012 and 2016 also change: interest rates decrease and conditions of early repayment are reviewed.
In February MegaFon announced completion of the transaction on acquisition of a controlling stake of Mail.ru Group holding. As sellers the offshore New Media and Technology Investment, New Media Technologies Capital Partners and Ardoe Finance belonging to the controlling shareholder of MegaFon - the USM group of Alisher Usmanov acted.
During the transaction 11.5 million shares of class "A" and 21.9 million class "B" were sold. The stocks Mail.ru Group of class "A" have 25 voices on one security, the class "B" - one voice on one action. In total this packet is 15.2% of the total number of the stocks Mail.ru Group and 63.8% of stocks of voting shares.
At the time of transaction MegaFon paid sellers $640 million. $100 million more will be paid in the first anniversary of transaction, and thus, the total amount of acquisition will be $740 million.
Significant events of year
- Mail.Ru Group is the leading Internet company in Russia with monthly active audience in 77.7 million users (comScore MMX Multi-Platform, Russia, age of 6 years, December, 2016); the monthly active audience of VKontakte reached 95 million users (internal data, December, 2016).
- Mail.Ru Group purchased 100% of Delivery Club – an online service of the order of ready food No. 1 in Russia; from the moment of acquisition the number of orders grew more than by 60%.
- The service of ridesharing BeepCar is started (it is available on iOS, Android and in the web version).
- Our mobile service of free declarations of Yul is updated: a new algorithm of display of a tape of declarations, the recommendations of similar products, the user ratings and subscriptions to sellers are added.
- The active audience of Eula reached 2 million users a day and 9.6 million a month.
- Restart of the Mail.Ru for business project as a single platform of access to all B2B-services of the Company
- "The cloud for business", the B2B-service proposing solutions for "cold" and "hot" data storage and also storage for joint work is started.
- The mail service of Mail.Ru provided function of the postponed sending letters.
- In applications of the Cloud of Mail.Ru for iOS and Android there was a photo and video gallery and also the paid rates optimized for storage of media files.
- Mobile application of VK Live for video streaming in real time and also streaming directly in a news feed in VKontakte with an opportunity to comment and send gifts and stickers started.
- In VKontakte (on iOS and Android) there was a function of creation of Stories allowing users to share instantly a photo and video which are available within 24 hours. Viewing Stories is also available in the web version of the website.
- VKontakte offered the expanded API for groups and public pages allowing to create the built-in applications for polls, chats, donations, sale of tickets, armoring, etc.
- In a news feed in Odnoklassniki publications on which the user's friends and also avatars of friends near their Classes commented began to be displayed.
- In the OK Live application additional options for streaming (the animated filters, masks, drawings of streamers), a tape of the best streamers and statistics of streams appeared.
- Mail.Ru Group purchased the license for operating of Warface in North America and Europe.
- In Russia MMORPG Revelation Online is started.
- Start in limited number of territories ("soft launch") of the mobile MOBA game Planet of Heroes on iOS took place.
- New content is added to War Robots and the interface of team game is updated.
- In MAPS.ME information on traffic congestion in real time and compression of these data and also a new algorithm of creation of routes appeared.
- The model of optimization of CPI became available to all clients of myTarget.
- The cross-platform format of video advertizing in a news feed on social networks is provided.
- The monthly scope of the mobile partner myTarget advertizing network reached 82 million active users from more than 2,600 third-party applications — in addition to own platforms Mail.Ru Group.
Sale of a controlling stake to MegaFon
On December 23, 2016 MegaFon announced purchase of a controlling stake of Mail.Ru Group belonging to the companies of the USM group and representing about 63.8% a share of voting shares of Mail.Ru Group.
Under the terms of the planned transaction, MegaFon will acquire 11.5 million class A shares and 21.9 million ordinary shares in the capital of Mail.Ru Group representing about 63.8% of voting shares of Mail.Ru Group at New Media and Technology Investment LP, New Media Technologies Capital Partners Limited and Ardoe Finance Limited entering into the USM group for the approved monetary reward in the amount of $640 million which are subject to payment at the time of closing of the transaction and also payment of deferred payment in the amount of $100 million in a year after closing of the transaction.
The transaction is directed to obtaining essential synergy effects for both companies, including expansion of the range and methods of promotion of digital services of MegaFon, start of a special offer  for users of social network "VKontakte" and other possible initiatives, says MegaFon.
After completion of the transaction MegaFon and Mail.Ru will continue to work completely at market conditions. Commands of management of both companies will be independent and aimed at maintenance of the developed corporate culture and corporate management of each company, ensuring the continuing development and new product developments and also cooperation in strategically and economically mutually advantageous projects. Any possible agreements between the companies will be signed on commercial, completely market conditions. It is not expected that in the primary operating activities to Mail.Ru and a corporate management system there will be significant changes.
The transaction was recommended for approval of Board of Directors of MegaFon by special committee which part nonexecutive and independent directors are. On December 23, 2016 the Board of Directors of the Company approved convocation of an extraordinary meeting of shareholders on January 20, 2017 for the approval of the transaction. The transaction is also subject to approval of Federal Antimonopoly Service of Russia and also depends on a number of the factors which are not depending on MegaFon.
Morgan Stanley acts as the financial advisor of MegaFon, Cleary Gottlieb Steen & Hamilton LLP works as the legal advisor of the company. Bank of America of Merrill Lynch is a financial advisor of special committee of MegaFon and was engaged in preparation of the conclusion about justice of the price, White & Case acts as the legal advisor of special committee of the company.
Cooperation of the companies will focus on two areas:
1) Service offering of mobile communication for users of VKontakte: MegaFon will have an opportunity to use a brand of VKontakte for creation of the new mobile offer. The new service, VK Mobile, will use network and infrastructure of MegaFon/Scartel. It will lead to expansion of a mobile ecosystem of VKontakte and growth of brand recognition, increasing involvement of users of VKontakte.
2) Cooperation in the field of data analysis: the companies will cooperate in the field of predictive analytics of data to improve segmentation of users. The agreement will be useful to both parties: for Mail.Ru Group – for technologies of targeting of advertizing, and for MegaFon — for more effective sale of telecommunication services. Agreements were approved by all uninterested directors of Mail.Ru Group. The beginning of their implementation is planned on the first half of the year 2017. Cooperation in both spheres is performed on commercial market conditions. Separation of income will be made according to the approved commercial formula.
Charge of leakage of 57 million passwords and accounts of users
On May 6, 2016 Mail.Ru Group commented on data on leakage of millions of accounts to services of the company. The Internet holding called "information throw" theft of accounts.
At the beginning of May, 2016 the Hold Security company under the leadership of the expert in cyber security Alex Halden announced that she knows of one Russian hacker at whose disposal 272.3 million accounts of users of Mail.Ru services are Google, Yahoo and Microsoft. In a case with Mail.ru data about 57 million couples of logins and passwords belonging to 64 million users were published.
Mail.Ru Group analyzed information from the stolen base and came to a conclusion that 99.982% of the accounts of Mail.Ru Mail service which entered it are non-valid.
| ||With a high share of probability it (base — a comment of TAdviser) is compiled from fragments of numerous old bases of logins passwords from cracking of different online services where users used the e-mail as the login. It forces to assume that the report — the competent information throw directed to drawing attention to business of Holden in the field of rendering services in cyber security — said in Mail.Ru Group.|| |
According to an output of specialists in information security of Mail.Ru Group, almost every fourth account of Mail.Ru Mail from Alex Halden's base contains never the existing e-mail address, the wrong password has nearly 65% of accounts. A little more than 12% of accounts are carried to suspicious (either were cracked, or are created by the robot) and were blocked.
| ||These 57 million users of Mail.ru could "filter" not only through service of e-mail, but also through other resources — the virus analyst of Avast Michal Salat says. — The problem of all large date leaks is that people often use the same passwords on different resources and do not change them. Therefore such databases as Mail.ru, by Facebook or Amazon can be easily used for the attack and cracking of users of other services. The fact that in base mails and passwords of users of Mail.ru optional were detected means that these combinations are intended for accounts on Mail.ru. These data can be logins and passwords for an input, for example, on Facebook, Vkontat, Twitter, etc.|| |
Sale of HeadHunter for 10 billion rub to Elbrus Capital fund
The transaction was closed on February 25. All amount will be paid by two tranches: the first, in the amount of 5.5 billion rubles, is already received in Mail.Ru Group, the second, in the amount of 4.5 billion rubles, will be received till April 30, 2016.
The HeadHunter company possesses the recruiting hh.ru portal, largest in Runet, and the website Career.ru. In addition HeadHunter managed the recruiting direction of Mail.Ru Group holding — "Rabota@mail.ru" (this portal will remain under control of HeadHunter after separation from Mail.Ru Group, specified the CEO of HeadHunter Mikhail Zhukov in a conversation with RBC).
Mail.Ru tried to sell an asset to Elbrus Capital fund since fall of 2014, however in April, 2015 told investors that the transaction broke. "Elbrus to the Capital" was not succeeded to attract money in the West to investments into the Russian assets in the conditions of the difficult political relations of Russia and the West, told RBC the source close to one of the parties of the transaction a year ago. In the fall of 2014 of the party discussed the potential transaction on HeadHunter for the same 10 billion rubles.
Since fall of 2014, in fact, the structure of a pool of buyers where in addition to "Elbrus of the Capital" the Russian and foreign funds enter was reversed, the managing partner "Elbrus of the Capital" Dmitry Kryukov told RBC. The initial agreement was signed with Mail.Ru Group in November, 2014, and the transaction has to be closed in February the 2015th. However in December, 2014 the ruble sharply fell, and the foreign investors entering into syndicate decided not to participate in purchase of an asset. Nearly a year left at "Elbrus of the Capital" on search of new partners in the transaction. According to Vedomosti, the Goldman Sachs bank became one of investors.
The structure of the ex-CEO of MegaFon and the former board member of Mail.ru Group Ivan Tavrin refused privilege of the redemption HeadHunter in exchange for the right to gain 9% of any income of Highworld Investments Ltd and ELQ Investors VIII, including from sale of shares at the exchange, than and used after IPO HeadHunter which passed later.
Natalia Godzhayeva, the CEO of the competitor of hh.ru — the Superjob.ru portal, considers a total sum of the transaction "quite modest". "But also it is quite clear: an economic situation in the market in general now not for benefit of the seller" — she says.
| ||"HeadHunter is a ruble asset, at them indicators of revenue and EBITDA for those two years practically did not change that negotiations on purchase therefore also the price did not change are conducted" — the managing partner "Elbrus of the Capital" Dmitry Kryukov explains.|| |
HeadHunter revenue in 2015 decreased by 1.5%, up to 3 billion rubles, EBITDA dropped by 2.5%, up to 1.5 billion rubles.
HeadHunter, being a non-core asset within Mail.Ru Group, almost did not develop, the analyst of FC Otcrytiye Alexander Vengranovich notes. For this reason the asset is sold with much smaller coefficient to EBITDA (6.6 to EBITDA for 2015), than at all Mail.Ru Group. The transaction is profitable to both parties: HeadHunter will be able to develop within "Elbrus of the Capital", and Mail.Ru Group will receive enough cash to repay an outstanding debt for VKontakte and at the end of 2016 to begin to pay dividends, Vengranovich specifies.
Mail.Ru Group took the credit from Gazprombank in the amount of 22.2 billion rubles for purchase of 48% of social network "VKontakte" from UCP fund. As of December 31, 2015 the size of an unpaid debt was 6.9 billion rubles, said in the annual report of the company.
Elbrus Capital is connected by the old relations with Mail.Ru Group. In 2007 about 5% of Mail.Ru Group (then it was called Digital Sky Technologies) were purchased by Renaissance Private Equity fund. In 2009 Hooks and his partners redeemed management company of fund from Renaissance. Together with it they received also assets, including Mail.Ru Group. After restructuring of group the share "Elbrus of the Capital" in Mail.Ru was blurred to less than 1%.
Creation of division of Big Data
On January 18, 2016 Mail.Ru Group announced creation of the division which is responsible for rendering services of the analysis of Big Data to third-party customers. It is reported on the website of the Internet company.
Within this direction in Mail.Ru it is going to provide services in creation of predictive mathematical models, carrying out marketing researches, consulting in the field of development of infrastructure and methodology of work with Big Data. Roman Styatyugin is appointed the director of business development of Big Data.
For provision of services on processing of Big Data and project implementation in this Mail.Ru Group area she intends to use as own technologies (for example, the Tarantool databases), and different open source solutions (Apache Hadoop, Apache Spark, etc.). To creation of predictive mathematical models it is going to apply methods of machine learning and also own developments, including, the algorithm of creation of the Multiclass Look-alike models which is development of the PU Learning method.
According to the deputy CEO of Mail.Ru Dmitry Sergeyev, the company is engaged in Big Data almost from the most basis that allowed it to accumulate enough experience for providing such services to third-party customers.
| ||First of all, it is projects which are directed to serious increase in process performance of marketing and sales, optimization of production, logistics, risk management, planning, personnel management and other workflows of different businesses. In this regard the decision to select this work in separate division was made — Dmitry Sergeyev explained.|| |
In Mail.Ru note what in development of competence and training in the field of the analysis of Big Data of the companies cooperates with the lead Russian educational institutions, including with Lomonosov Moscow State University. There in 2014 based on faculty of calculus mathematics and cybernetics the educational project "Mail.Ru Technosphere" within which employees of Mail.Ru teach machine learning and deep data analysis courses was started.
Significant events of year
- MAPS.ME, the popular service providing offline card and navigation for mobile devices on the basis of data of OpenStreetMap is purchased. Soon after acquisition of the MAPS.ME application became free
- New versions of applications of myMail are optimized for iOS 8 and Android 5 and also support offline action with letters
- Two-factor authentication (the password + the code in the SMS) on the majority of projects of Mail.Ru and in mobile applications is implemented
- In the Mail.Ru Mail the possibility of grouping of letters in chains (threads) appeared
- The Mail.Ru mail provided the convenient tool "Filter Mailings" allowing to sort automatically incoming letters by the special folders "Discounts", "Social networks", "Mailings"
- Viewing files from the archives attached to letters, directly in the browser is implemented
- The cloud of Mail.Ru left the beta testing mode. Besides, service provided a possibility of joint work with folders and updated applications for iOS and Android with the functions directed to increase in security
- The photo editor of VKontakte is updated: the new engine, additional photofilters, the improved possibilities of editing images
- The backend and design of the section of Video of VKontakte are updated
- New Vkontakte applications are optimized for iOS 8 and Android 5 (the design of the interface and a usability is updated)
- In the Android-application and the mobile web version of VKontakte gifts appeared; the section Stickers on all platforms is changed
- Mobile advertizing is let into VKontakte
- OK.RU video service is updated: new browse mode and autoreproduction
- The system of messages in OK.RU is updated: redesign of dialogs, the recommendations of gifts in a reminder on a birthday, paid and free stickers
- In applications of OK.RU for Android, iOS and Windows Phone is implemented an opportunity to leave voice and video messages
- In ICQ for iOS and Android there was advanced search, new push-notifications, the interface of audio-and video calls is updated, sending a photo is accelerated
- The design of the Agent of Mail.Ru for iOS and Android is completely updated; also applications of the messenger began to work significantly quicker. Synchronization of history of messages is implemented, the possibility of sending several photos or video appeared at once
- The closed SkyForge beta testing started
- "Evolution: Fight for the Utopia" was included into lists of the best games of year in Google Play and App Store; updating Heritage of Dominion came to Android and iOS
- There was a large updating of Warface — the transaction "Snow Bastion"
- The application of Horoscopes Mail.Ru was included into the list of the best Android-applications of 2014 according to Google and into the list of the best new applications for iOS according to Apple
- The HTTPS protocol is included by default on all content projects of the Mail.Ru portal
- Project Money. Mail.Ru is sold to QIWI
Usmanov received full control over Mail.ru Group
In July, 2014 Mail.ru Group announced the solution of the major shareholders - USM Holdings of Alisher Usmanov and the southern African holding Naspers - about converting of the share blocks belonging to them.
Naspers converts all stocks of class "A" owned by it - 43.1 million (the holding owns them through offshore MIH Mail Inestment Company) - into ordinary shares. Structures of USM Holdings - New Media and Technology Investment and Ardoe Finance - convert 25.9 million from 37 million stocks of class "A" owned by them.
Naspers, in addition to actions of class "A", had also 17 million ordinary shares, i.e. now at the disposal of holding there will be 60.1 million ordinary shares. One ordinary share Mail.ru Group has one voice, one action of class "A" - 25 voices on one security. Initially actions of class "A" could not be sold: before it they needed to be converted into ordinary shares from coefficient 1:1. But recently shareholders of Mail.ru Group approved the change of the charter permitting free sale of shares of class "A".
At the time of Mail.ru Group exit to IPO stocks of class "A" were distributed between different owners, including early investors of the company and its founders. But gradually they converted and sold the shares, and as a result securities of this type remained only with Naspers and USM Holdings. Thus after each conversion of stocks of class "A" the total number of voices decreased, and the voting shares of these persons increased.
In spite of the fact that Naspers owned the greatest packet of securities of Mail.ru Group (both actions of class "A", and in total actions of all types), Alisher Usmanov became the controlling shareholder of the company. It is connected with the features of the charter of Mail.ru Group prohibiting to one nonresident of Russia to vote more than 35%. As a result the voting share of USM Holdings made 58.1%.
After the current converting the voting Usmanov's share will grow to 64.6%, and the share of the vote of which Naspers can dispose will decrease from 35% to 12%. As a result of Naspers will not be able to block at shareholder meetings of the solution, the requiring approvals of more than 75% of voices, for example, about change of the charter, new share issue, re-election of Board of Directors, etc. Economic shares of both structures will remain the same: 17.9% and 29% respectively.
Mail.ru Group welcomed the performed changes in capital stock.
"Each conversion of stocks of class "A" demanded from us costs for the publication of the respective investment avenues, now we hope that it will be the last converting, - the chief financial officer of the company Matthew Hammond says. - Besides, the general voting share of our minority shareholders increases that is also positive for us".
The managing director of telecommunication and media assets Usmanova Ivan Tavrin assures that the entrepreneur still sees perspectives in Mail.ru Group and intends to remain in the company. The representative of Naspers Mark Sorour also says that the holding sees the big future at Mail.ru Group, but ownership of securities of this company through actions of class "A" did not answer the strategy of holding.
Yury Milner sells a part of shares of the company
On September 21, 2011 it became known that the cofounder of Mail.ru Group Yury Milner gets rid of a part of stocks of the company, Bloomberg reports . Transaction amount can be up to $60.7 million. Proceeding from the current quotations of GDR Mail.ru Group on LSE ($36.24 for the receipt) it is possible to estimate about 0.8% of stocks of the company at $60.7 million.
What packet of Mail.ru Group remains at Milner, it is unknown. Followed from the handout Mail.ru Group which was issued the day before the IPO, passed in November, 2011 that after the IPO three founders of the company — to Milner, Grigory Finger and Mikhail Vinchel — will possess 20,296,000 class A shares making 10.3% of authorized capital and 17.4% of voting shares. From them more than a half (not less than 12,000,000 actions) at Finger.
Milner, one of the largest co-owners of the company, during its public placement in November, 2010 was also one of the most active sellers of actions. Within this IPO and the option for a resubscription of Mail.ru Group and its shareholders received about $1 billion.
From the moment of the IPO and approximately to the middle of summer of 2010 for the shareholders who brought the stocks Mail.ru Group to the exchange prohibition on their sale acted on the market. At the beginning of August of GDR Mail.ru Group on LSE about $35.75 for the receipt were trading, yesterday they cost $36.4.
Options to Board of Directors for $34 million, Mathew Hammond is the head of SD
In April, 2011 on the website of the London exchange it is announced providing to Board of Directors of Mail.ru Group of options for acquisition on 53.532 actions (each of directors) and 305.132 actions to Yury Milner. Besides at council the managing director exchanged, Matthew Hammond who replaced Alexander Tamas became him. Options can be exercised on a share placing price in 2010 (for $27.7 for paper). At this time market value of papers of Mail.ru Group about $34. Thus, since the IPO, management "award" grew to a little more than $300 thousand and to $1.9 million Yury Milner's award made.
The Board of Directors of Mail.ru Group includes 9 people:
- Marcos Galperin,
- Sang Hun Kim,
- Gregory Finger,
- Vladimir Streshinskiy,
- Hein Pretorius,
- Vasileios Sgourdos,
- Ardavan Moshiri,
- Matthew Hammond и
- Mark Remon Sorour.
The overview of assets for 2011
In 2011 included in number of company assets:
Assets of Mail.ru Group
|Asset||Mail.ru Group share||Type of activity|
|100,00%||Social network "Odnoklassniki"|
|Newton Rose||97,00%||Headhunter.ru HR service|
|39,9%||Social network "VKontakte"|
|21,35%||Terminals of express payment of Qiwi|
|Other assets in Russia|
|B2B||15,00%||The b2b system - online biddings of b2b-center.ru|
|Free-lance||38,00%||Service for search of free - lance - works|
|Internest||20,00%||System developer of demonstration of the online advertizing adviser.ru, soloway.ru|
|30,00%||System online of statistics and li.ru blog-service|
|13,00%||Developer and operator of the online games zzima.ru|
|Sape||27,00%||Exchange of links|
|Subscribe||40,00%||Service of mail subscriptions and marketing|
|Ucoz||30,00%||A hosting and tools for web developer|
|Assets in Ukraine|
|Nadavi||25,00%||Service of a price comparison on goods of nadavi.com.ua|
|Nezabarom||25,00%||Tourist nezabarom.com.ua portal|
Through the subsidiary companies Mail.ru Group other assets also belong, including:
The Chinese Tencent Holdings invests $300 million in DST
In April, 2010 the Chinese Tencent Holdings announced an investment of $300 million in Digital Sky Technologies (DST) fund and the beginning of strategic cooperation between two companies. The Chinese company paid $300 million for DST Ltd additional issue. In exchange for the money Tencent will receive 10.26% of the preferred shares DST and 0.51% of voting shares and also the right to nominate one candidate for Board of Directors of fund.
The transaction with DST is necessary to Tencent to receive benefits from the fast-growing Internet market of Russia, the president of the Chinese company Martin Liu said. In return, DST will be able to make use of technical and operational experience of Tencent for strengthening of the leading positions in Russia, Liu adds. The CEO of DST Yury Milner called Tencent investments "support from the leader of the Chinese Internet market and one of the most successful Internet companies in the world".
From transactions about which appeared openly investment of Tencent into DST can consider the largest investment in Runet. Earlier purchase of 55% of the stocks Rambler Media Group by Prof-Media holding for $250 million in 2006 and acquisition of 30% of the stocks Mail.ru by the southern African holding Naspers for $165 million in 2007 was the most large deals. DST according to the results of the transaction was estimated at $3 billion.
According to Kochetkov, the most obvious option of an investment of the received investments is acquisition Internet mesendzhera ICQ: the owner of the software product, AOL, just offered it for sale, and DST and Tencent are applicants for purchase.
To the transaction with Chinese the structure of property was following: Yury Milner and Grigory Finger have more than 50%, 35% – at New Media Technologies of Alisher Usmanov, 5% – at Renaissance Group, the rest – at Tiger Global Management and Goldman Sachs.
Naspers buys 28.7% in DST
On July 14, 2010 the southern African media holding Naspers Limited and the Russian investment fund Digital Sky Technologies (DST) announced that Myriad International Holdings B.V. fund, the Naspers subsidiary company, will purchase 28.7% of DST.
As it was reported in the press release of Naspers, under the terms of this transaction the holding invests in DST $388 million cash and also will give a share in Mail.ru company in the amount of 39.3%. Share of the Russian shareholders of DST Ltd. after the transaction with Chinese and before emergence of Naspers made more than 75%.
Beginning of preparation for the IPO
On July 29 it became known that DST issued the mandate on the IPO to three banks — Goldman Sachs, Morgan Stanley and JPMorgan, told the sources close to the company and banks. According to them, placement will take place in 2011, probably in the spring, on the London Stock Exchange, from 10 to 25% of shares of DST Russia company will be sold. It will include social network "Odnoklassniki", the Mail.ru portal and the ICQ messenger. The company conducts negotiations on the redemption of shares from minority shareholders of Odnoklassniki. ICQ and Odnoklassniki will be combined with Mail.ru or will become its "daughters", anyway one team of managers will manage them, tells a source, close to these companies.
The source close to DST companies assures that placement can take place also on the main platform LSE. On the main platform the issuer should be ready to sell at least 25% of shares and to provide the audited international reporting at least in three years, the chief of the department of corporate finances of Finam Alexey Kurasov reminds. Generally Russian companies prefer the alterativny platform, but, for example, AFK "Sistema" and Evraz Group bargain on the main.
The manager of one of the Internet companies heard that DST hopes for assessment in $6 billion. In 2011 assessment of DST can quite grow to $5-6 billion due to growth of portfolio companies (in 2009 Odnoklassniki and Mail.ru more than doubled revenue), synergy effect between them and possible new acquisitions, Kurasov says.
According to Marker, all at DST seven directors. Naspers one observer with advisory capacity takes two place in Board of Directors of the company, plus. From Tencent — one observer. As told Marker the source close to the company, according to share capital structure of DST, control over it can never pass from the Russian shareholders to foreign. It is provided including the fact that the company has different types of actions. Let's remind that other leading domestic Internet company — "Yandex" — resolved an issue of the relations with the authorities, having transferred "golden share" to Sberbank. DST could transfer an analog of "golden share" the businessman to which the Russian government trusts not less, than to Sberbank.
Renaming into Mail.ru Group
On September 16, 2010 the Digital Sky Technologies (DST) investment fund replaced a name. Now the fund will be called Mail.ru Group. Change of a name is connected "with an operational vector of further development of the company".
Entering of shares of foreign assets into the capital of Mail.ru Group
On October 6, 2010 it became known that in the capital of Mail.ru Group in addition to 100% of Mail.ru, ICQ and Odnoklassniki, minority shares of VKontakte and OE investments 2.4% of the largest social network Facebook, 5% of discount service Groupon and 1.5% of the producer of games for social networks Zynga are entered, told two sources close to participants of placement of Mail.ru Group. The cost of these assets in secondary market is about $1 billion, one of interlocutors of Vedomosti says.
It is confirmed by assessment of capitalization of these companies on the platform for the stock trading of Sharespost.com private companies. Facebook is estimated at $26.28 billion, Zynga — at $4.59 billion; i.e. Mail.ru Group shares in these assets together cost about $700 million. The platform does not give Groupon assessment, but the source, close to this company, says that on 2011 of the IPO planned in the fall shareholders expect Groupon assessment in $5 billion. If so, then 5% of Groupon could cost about $250 million.
It was supposed earlier that Mail.ru Group will receive only an Internet pager of ICQ and the Russian assets of Digital Sky Technologies (DST) of Yury Milner, Grigory Finger and Alisher Usmanov. And foreign — — entirely DST Global will get shares in Facebook, Zynga and Groupon. But as a result it turned out differently. The shares of Facebook, Zynga and Groupon purchased on money of consortium of investors (Usmanov, Naspers, of Tencent, etc.), got to Mail.ru Group, explain sources, close to participants of placement. And the shares in the same companies purchased later on Usmanov's money — in DST Global. Usmanov, according to them — the major shareholder of DST Global. Usmanov's acquaintance says that DST Global is organized by the principle of fund and in it there is no controlling shareholder, but there are main and junior partners. Usmanov's representative does not comment on it.
In DST Global there were 7.6% of Facebook which can cost nearly $2 billion. The size of the shares in Zynga and Groupon belonging to the Russian investors is definitely not known. Purchased about 10% of discount service Groupon DST together with Battery Ventures fund, but DST was the leading investor. The minority share of the producer of games for Zynga social network was purchased together with Institutional Venture Partners, Andreessen Horowitz and Tiger Global Management funds, transaction amount was $180 million, from them about a half was paid by DST.
Stocks of the foreign companies were entered to Mail.ru Group to increase its assessment during the IPO; there is no need more — operationally from them there is nothing to take also any synergy you should not expect, the analyst of Troika Dialog Anna Lepetukhina considers.
Mail.ru Group is going to place up to 25% of the shares on the London Stock Exchange in the fall of 2010. Organizers of placement — banks Goldman Sachs, Morgan Stanley, JPMorgan. Shareholders expect to receive $5-6 billion for the company, told sources, earlier familiar with placement conditions.
In December, 2010 the monthly audience of the Mail.ru Group projects reached 27.2 million unique visitors, having increased by 14% in comparison with June and for 27% in comparison with December, 2009
Verdi Israyeljan becomes Yury Milner's partner in DST
Since summer of 2009 Israyeljan Verdi became Yury Milner's partner in Digital Sky Technologies. Is engaged in management of the Russian assets of DST and is responsible for investment activities of the company in Russia.
Sale of Mail.ru of the developer of the games Astrum Online Entertainment
| ||"DST already for a long time looked for where to attach the game assets, for example, the scenario of the consolidation Astrum Online Entertainment and Mail.ru was considered, - Tatyana Menkova, the analyst of Finam comments. - However Naspers insisted on that the fund compensated possible washing out of a share in the portal. It seems that it was not succeeded to agree, and other decision was made. It can be considered compromise. On the one hand, DST will receive money which it will be able to invest in new projects. On the other hand, the game company will be densely integrated with Mail.ru, having acted as a factor of revenue growth of the portal".|| |
The stocks Astrum are partially paid with the stocks Mail.ru, partially – money. Other details of the transaction of the party are not disclosed. The decision is made that the company will work under the Mail.ru brand. In more detail about the transaction here.
2008: Alexander Tamas manages foreign assets
- Tamas Alexander - manages foreign assets of DST since summer of 2008.
- ↑ , the sdelkiigrovy Mail.Ru Group direction is the leader of the East European market of online entertainments and the largest domestic publisher of mobile and multiplayer client games in Russia and abroad. In a portfolio of the company more than 50 game projects with total audience more than 100 million users worldwide. In 2016 revenue of the company from MMO games on a comparable basis grew by 21.2% in comparison with previous year and reached 11,390 million rubles.
- ↑ of VKmobileVK Mobile was started in 2017. This is the virtual operator working for networks of MegaFon. The social network "VKontakte" belongs to Mail.ru Group holding which controlling shareholder since the end of 2016 is MegaFon. The user of VK Mobile a day received a packet from 4 GB of Internet traffic and 100 minutes of calls on any mobile numbers in the territory of Russia for a subscription fee of 400 rub. Besides unlimited traffic on the website and Vkontakte application (including music) and free calls between users of VK Mobile entered this packet. MegaFon announced closing of virtual mobile operator VK Mobile. The project did not meet the expectations assigned to it.
- ↑ Mail.Ru Group will help the companies to analyze their data
- ↑ Usmanov received full control over Mail.ru Group
- ↑ 5,0 5,1 [http://www.vedomosti.ru/tech/news/1370971/milner_prodaet_chast_paketa_v_mailru_group#ixzz1YYzrUGHq Milner
- ↑ 6,0 6,1 [http://www.vedomosti.ru/newspaper/article/247120/mailru_podlozhili_milliard of#ixzz11eMtL5XA Mail.ru
Stock price dynamics
|Ticker company on the exchange:||LSE:MAIL|
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