The Russian general classifieds platform Avito.ru continues to outperform, as analysts call it. We simply call it outrageous.
Vostok New Ventures presented Avito’s Q2 results earlier today. Vostok New Ventures owns 13.3 percent of the platform, which is Russia’s dominant classifieds player.
CEO Per Brilioth (LinkedIn) of Vostok New Ventures was enthusiastic when he presented the results – and it’s easy to understand why:
He said: “Avito continues to roar ahead. In H1 of FY2016 revenue came in 86 percent higher than in the same period last year, and grew 30 percent in Q2 from Q1 in FY2016.
“In H1 of FY2016 revenue amounted to RUB 5,176 million ($80.6 million U.S.), which was up 86 percent from RUB 2,779 million in H1 of FY2015.
“Alone, this revenue growth is impressive compared to pretty much anything out there. Add that the EBITDA margin is roughly 60 percent, and well…
“I was going to say that it is a great example of the strength of online classifieds. But, of course, there is nothing even in that world that compares to Avito.”
Naspers owns 67.9 percent of Avito, but it is Vostok New Ventures, traded on the Swedish Stock Exchange, which gives everyone the chance to enjoy the financial power of Avito by releasing information about its performance.
Per Brilioth explained it like this in his statement:
“That Avito is implicitly trading at some $2 billion U.S. through our share price, is a great opportunity!”
Today Vostok New Ventures presented two separate statements: one for Avito only, and one for Vostok New Ventures.