Eldorado Makes 2.5 Times Less Than M.Video in 2016

UrBC, Moscow, July 5, 2017. The electronic goods and household appliances chain Eldorado was less profitable than its rival M.Video in 2016: the former’s EBITDA margin declined to 2.2%, whereas that of the latter rose to 5.6%, Interfax reports.

M.Video’s EBITDA went up from 8.8bn RUR in 2015 to 10.3bn RUR in 2016. That of Eldorado dropped from 5.1bn RUR down to 2.5bn RUR. Both companies’ EBITDA amounted to 13bn RUR last year and their EBITDA margin to 4.4%.

Safmar Group, a business of the Gutzeriev-Shishkhanov family, announced they bought a 57.7% stake in M.Video from the company’s primary beneficiary and president Alexander Tynkovan and his partners in late April. Safmar also offered to buy out the minority shareholders’ stocks; the offer holds through July 10.

In December 2016, Safmar Group also bought M.Video’s primary competitor Eldorado from PPF Group and Emma Capital. The Group also became the owner of yet another electronic goods chain, Technosila, in late 2015.


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