Russ Outdoor bought the advertising operator “Metronome”
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The operator of advertising in the metro of St. Petersburg “Metronome” entered the Russ Outdoor group. The amount of the transaction could be 1.6-2 billion rubles, analysts say. Russ Outdoor already controls all advertising inventory in the Moscow metro. The new acquisition will allow the group to become a leader in the transit advertising market and compete with advertising on television and Internet sites, market participants believe.
The Russ Outdoor group closed the deal to buy the Metronom company, a representative of the holding told Kommersant. As a result, the group will have the right to sell all advertising inventory of the St. Petersburg Metro. Metronome owns more than 2,000 structures at stations — lightboxes, roadside panels, city-format panels, screens, advertising on escalators and in 1,800 railcars, with the ability to place more than 140,000 posters. The amount of the transaction is not disclosed.
In 2021, Russ Outdoor bought 100% of the nebo.digital agency, through which advertising is placed in the Moscow metro. As a result, Russ Outdoor received the right to advertise on all inventory of the Moscow metro (see Kommersant dated October 21, 2021).
Consolidation of transit advertising in Moscow and St. Petersburg under the control of one company will allow the group to significantly increase the reach of the audience and offer advertisers a single standard of placement, said Russ Outdoor Commercial Director Boris Peshnyak. Passenger traffic per day in two subways exceeds 10 million people, the holding added.
According to SPARK-Interfax, prior to the transaction, Metronom LLC was 65% owned by Dmitry Stolov and 25% by Igor Savvi. At the end of 2022, LLC revenue amounted to 478 million rubles, net profit – 23 million rubles. A year earlier, the company’s revenue was at the level of 541 million rubles. with a net profit of 4 million rubles. The revenue of Rus Outdoor LLC in 2022 amounted to 14 billion rubles, net profit – 820 million rubles. In 2021, these figures amounted to 11 billion rubles. and 1.3 billion rubles. respectively.
The revenue of the Prospekt advertising agency, to which Metronom LLC delegated the right to exclusively sell advertising in the St. Andriy Baiduzhiy: “Transactions for the purchase and sale of advertising operators are usually carried out at a price of 8–12 EBITDA. That is, according to international standards, an advertising operator in the St. Petersburg metro could cost 1.6–2 billion rubles.”
However, recently the situation around the sale of advertising in the St. the size of the country’s metro, and connected him with Alexander Nevzorov (recognized by the Ministry of Justice of the Russian Federation as a foreign agent.— “b”)”. In such conditions, the expert believes, the owners of Metronome decided not to wait for the expiration of the contract with the metro in 2027 and sell the profitable asset. According to Baiduzhy, the deal will help Russ Outdoor become the leader in transit advertising.
Now the group has inventory in the second largest city in Russia, the seller is systematically expanding its presence and product line, says Irina Guseva, director of outdoor advertising purchases at NMi Group: “It can be assumed that new formats will be introduced, including digital ones, by analogy with Moscow.
In terms of coverage and cost of contact, such package sales are able to compete with advertising on TV and the largest Internet sites and, of course, will be of interest to the largest advertisers, sums up Mr. Baiduzhiy. According to the RACA expert commission on outdoor advertising, in the first quarter of 2023, digital outdoor advertising occupied 50% of the market for the first time. The Out of Home segment itself grew by 23% year-on-year and amounted to RUB 14.6–14.8 billion. (without VAT).
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