MTS acquires two event ticketing companies, aims for market leadership

Last week MTS, a leading Russian mobile operator, announced the acquisition of a 100% share in Ticketland.ru and a 78.2% share in Ponominalu.ru, two leading event ticket operators in the Russian market.

MTS says it expects to establish itself as a leading ticket operator in Russia. The deal “will allow the company to broaden its suite of digital services and integrate a key new product into its existing loyalty program and mobile app ecosystem,” says the company’s press release.

“Buying a ticket to a live event – whether it is a concert or a theater production– should absolutely be done through a smartphone. The convenience is too great not to bring these types of services to our customers, and it is obvious that MTS – with its size, scale and scope – should be at the forefront, driving growth in a significant market throughout Russia,“ commented Vyacheslav Nikolaev, Vice President for marketing at MTS.

By integrating the two companies in its operations, MTS intends “to soon be in a leading position in this intriguing, developing market,” said Nikolaev.

The operator sees online ticketing “as a natural complement to its efforts to expand its core digital services under its 3D strategy.”

MTS aims to develop products that lie outside the traditional telecom sector. The operator offers more than 25 mobile applications (MTS Taxi, MTS Music, MTS Books, etc.), B2B cloud solutions, data analysis based on Big Data, cybersecurity systems and telemedicine services.

In a separate move last month, MTS announced the acquisition of Gambit Esports, an important international eSports club, for an undisclosed amount. Gambit Esports has four teams participating in the most popular cyber game disciplines.

 

Two major players in a competitive field

A top company in the Russian event ticketing market, Ticketland.ru is the owner of the largest distribution network in Moscow and benefits from active website and mobile app sales channels. It has been fully acquired for 3.25 billion rubles ($56 million at the current exchange rate), including net debt, according to the press release.

Meanwhile, Ponominalu.ru was valued at 495 million rubles ($8.5 million at the current exchange rate), including net debt. Mikhail Minin, the founder and CEO of Ponominalu.ru, will remain with the company and retain a 21.8% stake with an option to sell it to MTS expiring in 2020.

With nearly 1.5 million monthly users, Ponominalu.ru sells tickets to over 5,000 entertainment events annually. Besides, the company provides event organizers with an IT platform for ticket management and a range of online marketing tools to attract new audience.

Ponominalu has reportedly shown constant growth for the past five years. It is among top five leading companies selling tickets to entertainment events in Russia and the concert market leader in Moscow, says Buran Venture Capital, a venture fund with Russian roots, which has sold its stake to MTS.

Among the competitors of Ponominalu and Ticketland is service Kassir.ru. In 2016, the Russian online ticket service acquired Belarusian Kvitki.by and Lithuanian Bilietai.lt. The latter transaction amounted to €5.5 million.

 

Sources: MTS, Buran Venture Capital

 

 

Topics: Corporate, Corporate investment, Corporate venturing, Digital services & Apps, Finance, M&A, Mobile & Telecom, News, Online ticketing, Operators & Networks, Venture / Private equity
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