Russ Group increased its share in the outdoor advertising market in Sochi to 40%

Party has been operating in the Sochi outdoor advertising market since 2002. The operator’s advertising inventory includes 110 advertising structures of various formats. In the future, part of the inventory will be digitalized.

“Our designs welcome guests of the main Russian resort at the airport. By acquiring Party’s inventory, we will be able to cover additional areas of Greater Sochi and offer advertisers a more diverse and extensive targeted program,” said Alexandra Sinyavskaya, Regional Sales Director of Russ.

Business consultant Vitaly Gerko, an expert in the advertising technology market, comments on the possible cost of the acquisition and notes that it depends on the location of the venues, the terms of the contracts and the advertising format of the party.

“If we focus on digital, long-term contracts and healthy margins (40%+ in EBITDA), then it can cost 8-10 times EBITDA. If not, it will most likely be 5-6 times,” Gerko says.

According to the Kontur.Focus system, Party LLC’s revenue at the end of 2023 amounted to 53.7 million rubles, compared to 41.3 million rubles in 2022. The company’s net profit is 10.6 million rubles.

• In early July, Russ announced the acquisition of the Novosibirsk-based operator Transport Reklama. In the spring of 2024, the group acquired outdoor advertising operators Vostok-Media, Billboard-68 and STA Company. In June, Russ announced its entry into the outdoor advertising market in Kaliningrad.
• Last month, Wildberries announced a merger with outdoor advertising operator Russ. The trading platform’s CEO and founder, Tatyana Bakalchuk, announced that she will lead the merged company.
• On July 4, Wildberries and Russ established a joint venture, RVB LLC, with an authorized capital of 20 million rubles.