The Federal Antimonopoly Service is considering an application for the purchase of the Gallery operator by the Russ Outdoor group
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The Federal Antimonopoly Service (FAS) has received and is considering a petition from the Russ Outdoor group to buy outdoor advertising operator Gallery, a representative of the service told Kommersant. Russ Outdoor declined to comment.
The fact that the group is going to buy its closest competitor Gallery was reported in January 2022 by RBC.
According to SPARK-Interfax, Gallery Service LLC is 100% owned by businessman Ivan Tavrin through the Media 1 holding. At the end of 2022, LLC revenue amounted to 4.3 billion rubles, net profit – 1.7 billion rubles. A year earlier, the company’s revenue was at the level of 4.4 billion rubles. with a net profit of 464 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.
After the completion of the purchase transaction, Gallery Russ Outdoor will occupy approximately 41% of the Russian Out-of-Home market, says Andrei Baiduzhiy, director of the all-Russian outdoor advertising booking service all-billboards: “Russ Outdoor has a share of 30%, Gallery – 8%, Moscow Metro 2%, Prospekt (advertising operator of the St. Petersburg metro) — 1%.
However, he adds, in Moscow the operator, with the exception of media facades, will control almost 100% of the market.
“On the network format in the whole country — more than 50%, in digital advertising — more than 70%,” says Mr. Baiduzhiy.
He recalled that Russ Outdoor recently completed a deal to acquire the advertising operator of the St. Petersburg metro Metronom, invests in the digitalization of advertising in the capital’s metro, and also acquired the rights to sell advertising at Vnukovo and Sochi airports. All this allowed her to control 90% of the advertising market in transport, the expert sums up.
“After expanding sales on these media during 2023, Russ Outdoor is quite capable of occupying 50–55% of the entire Russian out-of-home advertising market. Taking into account acquisitions and double-digit market growth in 2023, the turnover of the Group will surely exceed 30 billion rubles. (in 2022 it was equal to 19.1 billion rubles),” says Mr. Baiduzhiy.
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