MOSCOW, Russia (CelebrityAccess) — Russian telecom giant Mobile TeleSystems (MTS) is now in the event ticketing business after it acquired a controlling stake in two of Russia’s largest ticketing companies — Ticketland.ru and Ponominalu.ru.
MTS says the acquisitions will allow them to enter the burgeoning event ticketing market in Russia, while expanding their suite of digital services, particularly in regards to ticket acquisition via mobile phone.
“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. On the basis of both Ticketland.ru and Ponominalu.ru, we expect to soon be in a leading position in this intriguing, developing market,” MTS marketing boss Vyacheslav Nikolaev said.
The two transactions were valued at 3.25bln rubles, which is roughly $57.5m USD for a 100% stake in Ticketland’s parent company MDTZK LLC, including net debt while Kulturnaya Sluzhba LLC, which operates as Ponominalu.ru, was worth 495 million rubles, or about $8.7m USD. Mikhail Minin, the founder, and CEO of Pomominalu.ru will remain with the company and retains a 21.8% stake with an option to sell said stake to MTS expiring in 2020.
Both ticket operators will continue to operate as separate entities, managed by current management teams, while MTS will coordinate strategy and provide financial support the company said.
According to MTS, the deal has already received all necessary corporate and regulatory approval.