Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Entity File Number | 001-40986 |
Entity Registrant Name | Cian PLC |
Entity Incorporation, State or Country Code | G4 |
Entity Address, Address Line One | 64 Agiou Georgiou Makri |
Entity Address, Adress Line Two | Anna Maria Lena Court, Flat 201 |
Entity Address, City or Town | Larnaca |
Entity Address, Postal Zip Code | 6037 |
Entity Address, Country | CY |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Central Index Key | 0001867752 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Auditor Name | AO Deloitte & Touche CIS |
Auditor Firm ID | 1341 |
Auditor Location | Moscow, Russia |
Ordinary Shares | |
Document Information [Line Items] | |
Title of 12(b) Security | Ordinary Shares |
No Trading Symbol Flag | true |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 69,871,511 |
ADS | |
Document Information [Line Items] | |
Title of 12(b) Security | American Depositary Shares |
Trading Symbol | CIAN |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 69,871,511 |
Business Contact | |
Document Information [Line Items] | |
Entity Address, Address Line One | 64 Agiou Georgiou Makri |
Entity Address, Adress Line Two | Anna Maria Lena Court, Flat 201 |
Entity Address, City or Town | Larnaca |
Entity Address, Postal Zip Code | 6037 |
Entity Address, Country | CY |
Contact Personnel Name | Maksim Melnikov |
City Area Code | 357 |
Local Phone Number | 22 418 200 |
CONSOLIDATED STATEMENTS OF PROF
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | |||
Revenue | ₽ 6,033 | ₽ 3,972 | ₽ 3,607 |
Operating expenses: | |||
Marketing expenses | (2,253) | (1,697) | (2,159) |
Employee-related expenses | (5,062) | (2,208) | (1,385) |
IT expenses | (527) | (264) | (289) |
Depreciation and amortization | (279) | (200) | (169) |
Other operating expenses | (726) | (180) | (217) |
Goodwill impairment | (256) | ||
Total operating expenses | (8,847) | (4,549) | (4,475) |
Operating loss | (2,814) | (577) | (868) |
Finance costs | (61) | (72) | (38) |
Finance income | 19 | 11 | 7 |
Foreign currency exchange gain / (loss), net | 53 | (1) | (3) |
Other income | 6 | ||
Loss before income tax | (2,797) | (639) | (902) |
Income tax (expense) / benefit | (60) | 12 | 96 |
Loss for the year | (2,857) | (627) | (806) |
Total comprehensive loss for the year | ₽ (2,857) | ₽ (627) | ₽ (806) |
Loss per share, in RUB | |||
Basic loss per share attributable to ordinary equity holders of the parent | ₽ (44) | ₽ (11) | ₽ (14) |
Diluted loss per share attributable to ordinary equity holders of the parent | ₽ (44) | ₽ (11) | ₽ (14) |
Basic weighted average number of ordinary shares | 65,092,557 | 59,433,100 | 59,433,100 |
Diluted weighted average number of ordinary shares | 65,092,557 | 59,433,100 | 59,433,100 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Non-current assets | ||
Property and equipment | ₽ 49 | ₽ 31 |
Right-of-use assets | 98 | 125 |
Goodwill | 785 | |
Intangible assets | 1,197 | 257 |
Deferred tax assets | 226 | 237 |
Other non-current assets | 15 | 9 |
Total non-current assets | 2,370 | 659 |
Current assets | ||
Inventories | 108 | |
Advances paid and prepaid expenses | 93 | 88 |
Trade and other receivables | 408 | 154 |
Prepaid income tax | 4 | |
Cash and cash equivalents | 2,419 | 449 |
Other current assets | 198 | 20 |
Total current assets | 3,230 | 711 |
Total assets | 5,600 | 1,370 |
Equity | ||
Share capital | 2 | |
Share premium | 7,614 | 125 |
Equity-settled employee benefits reserves | 110 | |
Accumulated losses | (3,854) | (997) |
Total equity | 3,872 | (872) |
Non-current liabilities | ||
Employee share-based payment liability | 636 | |
Lease liabilities | 48 | 77 |
Deferred tax liabilities | 135 | 28 |
Deferred income | 125 | |
Total non-current liabilities | 308 | 741 |
Current liabilities | ||
Borrowings | 728 | |
Contract liabilities | 425 | 332 |
Trade and other payables | 619 | 316 |
Income tax payable | 59 | 15 |
Other taxes payable | 241 | 74 |
Lease liabilities | 43 | 36 |
Deferred income | 33 | |
Total current liabilities | 1,420 | 1,501 |
Total liabilities | 1,728 | 2,242 |
Total liabilities and equity | ₽ 5,600 | ₽ 1,370 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - RUB (₽) ₽ in Millions | Share capital | Share premium | Equity-settled employee benefits reserves | Retained earnings/ (Accumulated losses) | Total |
Balance at beginning at Dec. 31, 2018 | ₽ 7 | ₽ 437 | ₽ 444 | ||
Loss and total comprehensive loss for the year | (806) | (806) | |||
Contribution from shareholders | 118 | 118 | |||
Other payments to shareholders | (1) | (1) | |||
Balance at ending at Dec. 31, 2019 | 125 | (370) | (245) | ||
Loss and total comprehensive loss for the year | (627) | (627) | |||
Balance at ending at Dec. 31, 2020 | ₽ 0 | 125 | (997) | (872) | |
Loss and total comprehensive loss for the year | (2,857) | (2,857) | |||
Effect arising from the share split | 2 | 2 | |||
Issue of ordinary shares, net of transaction costs | 7,489 | 7,489 | |||
Share-based payments | ₽ 110 | 110 | |||
Balance at ending at Dec. 31, 2021 | ₽ 2 | ₽ 7,614 | ₽ 110 | ₽ (3,854) | ₽ 3,872 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | |||
Loss before income tax | ₽ (2,797) | ₽ (639) | ₽ (902) |
Adjusted for: | |||
Depreciation and amortization | 279 | 200 | 169 |
Goodwill impairment | 256 | ||
Employee share-based payment expense | 2,549 | 558 | 67 |
Finance income | (19) | (11) | (7) |
Finance costs | 61 | 72 | 38 |
Foreign currency exchange (gain) / loss, net | (53) | 1 | 3 |
Allowance for expected credit losses | 16 | ||
Working capital changes: | |||
Increase in trade and other receivables | (238) | (61) | (14) |
(Increase) / decrease in advances paid and prepaid expenses | (9) | (32) | 139 |
(Increase) / decrease in other assets | (232) | (13) | 2 |
Increase / (decrease) in trade and other payables | 235 | (4) | (61) |
Increase in contract liabilities and deferred income | 230 | 148 | 2 |
(Decrease) / Increase in other liabilities | (2,017) | 98 | (24) |
Cash (used in) / generated from operating activities | (1,995) | 317 | (332) |
Income tax paid | (26) | (28) | |
Interest received | 16 | 11 | 6 |
Interest paid | (59) | (70) | (35) |
Net cash (used in) / generated from operating activities | (2,064) | 230 | (361) |
Cash flows from investing activities | |||
Acquisition of a subsidiary, net of cash acquired | (1,651) | ||
Purchase of property and equipment | (52) | (21) | (24) |
Purchase of intangible assets | (89) | (90) | (104) |
Loan issued to a related party | (25) | ||
Loans issued to employees | (2) | ||
Loans collected from employees | 2 | ||
Net cash used in investing activities | (1,817) | (109) | (130) |
Cash flows from financing activities | |||
Proceeds from the issue of ordinary shares | 6,520 | ||
Contribution from shareholders | 118 | ||
Proceeds from borrowings | 320 | 672 | |
Repayment of borrowings | (728) | (71) | (197) |
Payment of principal portion of lease liabilities | (38) | (67) | (53) |
Other payments to shareholders | (1) | ||
Net cash generated from financing activities | 5,754 | 182 | 539 |
Net increase in cash and cash equivalents | 1,873 | 303 | 48 |
Cash and cash equivalents at the beginning of the year | 449 | 148 | 103 |
Effect of exchange rate changes on cash and cash equivalents | 111 | (2) | (3) |
Effect of an allowance for expected credit losses | (14) | ||
Cash and cash equivalents at the end of the year | ₽ 2,419 | ₽ 449 | ₽ 148 |
GENERAL INFORMATION
GENERAL INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
GENERAL INFORMATION | |
GENERAL INFORMATION | 1. GENERAL INFORMATION The consolidated financial statements of Cian PLC and its subsidiaries (collectively, the “Cian Group” or the “Group”) as of and for the year ended December 31, 2021 were authorized for issue in accordance with a resolution of the Board of directors on March 30, 2022. Cian PLC (formerly Solaredge Holdings Limited) (the “Company” or the “Parent”) is a public liability company incorporated and domiciled in Cyprus. The registered office is located at Agiou Georgiou Makri, 64, Anna Maria Lena Court, flat/office 201, 6037, Larnaca, Cyprus. The Group’s principal place of business is Elektrozavodskaya street 27/8, premise I, floor 5, Moscow, 107023, Russian Federation . The Group is principally engaged in online real estate classifieds business within the Russian Federation through the Group’s websites and mobile application. Subsidiaries of the Company, all of which have been included in these consolidated financial statements, are as follows: % equity interest Principal activity / Country December 31, December 31, Subsidiary of incorporation 2021 2020 iRealtor LLC Online real estate classifieds (Russia) 100 % 100 % N1.ru LLC Online real estate classifieds (Russia) 100 % — MLSN LLC Online real estate classifieds (Russia) 100 % — N1 Technologies LLC IT services and development (Russia) 100 % — Financial Platform JSC Financial platform operator (Russia) 9 %* — Fastrunner Investment Limited Holding (Cyprus) 100 % 100 % Mimons Investments Limited Holding (Cyprus) 100 % 100 % * On November 9, 2021, the Company completed an initial public offering (“IPO”) of 4,042,400 newly issued American Depositary Shares (“ADSs”), each representing one ordinary share of the Company, on the New York Stock Exchange (“NYSE”). The ultimate controlling party of the Group are Elbrus Capital Fund II L.P., Elbrus Capital Fund II B L.P. and Elbrus Capital Fund III A S.C.Sp. (together “Elbrus Capital”) which own an aggregate of 45.1% of the Group’s ordinary shares as of December 31, 2021. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
SIGNIFICANT ACCOUNTING POLICIES | Z:\cons_traditional\2022Data\Client_DTS\Cian PLC\20211231\Edits_C4.2\JMS 2.1 The Group’s consolidated financial statements and the accompanying notes have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements have been prepared on a historical cost basis, except for share-based payment reserves (Note 18) which are measured at the grant date fair value for the equity-settled employee benefits reserves and at fair value on each reporting date for the cash-settled share-based payment liability. The consolidated financial statements have been prepared on the assumption that the Group is a going concern and will continue in operation for the foreseeable future (Note 23). 2.2 The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as of December 31, 2021 and 2020, respectively. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, the Group has: ● power over the investee; ● exposure, or rights, to variable returns from its involvement with the investee; and ● the ability to use its power to affect its returns. The Group reassesses whether or not it controls an investee if any facts and circumstances indicate that there are changes to one or more of the three elements of control listed above. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary acquired or disposed of during the year, are included in the consolidated financial statements from the date the Group gains control over the subsidiary until the date the Group ceases to control the subsidiary. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intragroup assets and liabilities, equity, income, expenses and cash flows relating to the transactions between members of the Group are eliminated in full on consolidation. If the Group loses control over a subsidiary, it derecognizes the related assets (including goodwill), liabilities, non-controlling interest and other components of equity, while any resultant gain or loss is recognized in profit or loss. Any investment retained is recognized at fair value. 2.3 The Group applied for the first-time all standards, interpretations and amendments, relevant for its operations, which are effective for annual periods beginning on or after January 1, 2021. These standards, interpretations and amendments do not have a material impact on the Group’s consolidated financial statements. ● Interest Rate Benchmark Reform – Phase 2: Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16. ● Covid-19-Related Rent Concessions beyond June 30, 2021 (Amendments to IFRS 16). The Group has not early adopted any standards, interpretations or amendments that have been issued but are not yet effective. The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective. The following amended standards and interpretations are not expected to have a material impact on the Group’s consolidated financial statements: ● IFRS 17 Insurance Contracts (effective date – January 1, 2023). ● Amendments to IAS 1: Classification of Liabilities as Current or Non-current (effective date – January 1, 2023). ● Reference to the Conceptual Framework – Amendments to IFRS 3 (effective date - January 1, 2022). ● Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16 (effective date – January 1, 2022). ● Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37 (effective date – January 1, 2022). ● IFRS 1 First-time Adoption of International Financial Reporting Standards – Subsidiary as a first-time adopter (effective date – January 1, 2022). ● IFRS 9 Financial Instruments – Fees in the ‘10 per cent’ test for derecognition of financial liabilities (effective date – January 1, 2022). ● IAS 41 Agriculture – Taxation in fair value measurements (effective date – January 1, 2022). ● Definition of Accounting Estimates – Amendments to IAS 8 (effective date – January 1, 2023). ● Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2 (effective date – January 1, 2023). 2.4 Summary of significant accounting policies a) Business combinations and goodwill Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred. The Group determines that it has acquired a business when the acquired set of activities and assets includes an input and a substantive process that together significantly contribute to the ability to create outputs. The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs acquired include an organized workforce with the necessary skills, knowledge, or experience to perform that process or it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability to continue producing outputs. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is not amortized, but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units (or groups of cash-generating units) that are expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized for goodwill is not reversed in a subsequent period. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (which cannot exceed one year from the acquisition date), or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date. b) Foreign currencies The Group’s consolidated financial statements are presented in Russian Rubles (“RUB”), which is also the Company’s functional currency. For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The functional currency of all of the Company’s subsidiaries is the RUB. Transactions in foreign currencies are initially recorded by the Group’s subsidiaries in their functional currency at exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into functional currency at exchange rates prevailing at the reporting date. Differences arising on settlement or translation of monetary items are recognized within “Foreign currency exchange gain / (loss), net”, in the consolidated statement of profit and loss and other comprehensive income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The RUB is not a fully convertible currency outside Russia. Within the Russian Federation, official exchange rates are determined by the Central Bank of the Russian Federation. c) Revenue from contracts with customers Revenue from contracts with customers is recognized when control of products or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those products or services. i. Listing revenue Listing revenue is derived from offering online listings and related value-added services, such as different listing promotion options, to the Group’s customers on its websites and mobile applications based on a cost per time basis. Customers can purchase either individual listings and value-added services, listing packages or subscriptions, which combine a number of listings and value-added services. The cash collected from the sale of online listings and related value-added services (both under the pay-per-listing, listing package model or the subscription model) is initially recorded as contract liability (deferred revenue) in the consolidated statement of financial position and subsequently recognized as revenue over time as customers receive and consume the benefits of the access to online listings and related value-added services over the contractual period. The average time period between receipt of payment from the customer and delivery of online listings is 30 days. ii. Lead generation revenue Lead generation revenue represents fees charged to real estate developers for establishing and referring contacts (or leads) based on the number of qualified calls (validated user connections) received from primary real-estate listing posted primarily through Group’s platform (as part of the “Core Business” segment) or through our partner bank’s site (as part of the “Mortgage Marketplace” segment). Performance obligation is satisfied at a point in time of occurrence of each qualified call. Payment is received after the delivery of validated connections. Payment is generally due within 20 to 30 days from providing these services. iii. Display advertising revenue The Group’s advertising services allow third parties to place advertisements in particular areas of the Group’s websites and mobile application. Advertising revenue is recognized over time based on upfront monthly fees agreed in media plans, which also include targeted number of views or clicks during the period of advertisement. Payment is generally due within 20 to 30 days from providing advertising services. iv. Loyalty program The Group has a loyalty points program which allows listing revenue customers to accumulate points that can be redeemed against future purchases. The loyalty points give rise to a separate performance obligation as they provide a material right to acquire additional services at a discount to the customer, that it would not receive without entering into that contract. A portion of transaction price is allocated to the loyalty points awarded to customers based on a stand-alone selling price of points and recognized as deferred revenue (contract liability) in the consolidated statement of financial position. Deferred revenue is recognized as revenue when loyalty points are redeemed, expire or the likelihood of the customer redeeming the points becomes remote. When estimating stand-alone selling price of the loyalty points, the Group considers the likelihood that the customer will redeem the points. v. Other revenue The Group explores new ways of monetization of its website and mobile application traffic and content database and develops new business initiatives, primarily Mortgage Marketplace, Data Analytics Services and Home Swap Services. Mortgage Marketplace revenue comprises commission fees charged to banks for selling their mortgage products to the Group’s websites and mobile application users. Upon sale, the Group charges the banks a fixed rate commission fee based on the mortgage amount (“Marketplace commission”). The Group’s performance obligation with respect to these transactions is to arrange the transaction through its websites or mobile application. Marketplace commission is recognized on a net basis at the point of signing the mortgage agreement between the bank and the individual user. Payment is generally due within 20 to 30 days from providing these services. Data Analytics Services revenue represents fees derived from the Group’s customers for providing access to the Group’s database of real estate content. The access can be provided either in the form of an individual report or on a subscription basis. The cash collected from the sales of subscription is initially recorded as deferred revenue in the consolidated statement of financial position and subsequently recognized as revenue over the subscription period. Revenue from sales of individual reports is recognized at the point of delivery of the report to the customer. Payment is generally due within 20 to 30 days from providing an individual report or a prepayment basis in a case of subscription. Home Swap services revenue is derived from resale of properties. Revenue is recognized at the time of the closing of the property sale when title to and possession of the property are transferred to the buyer. The amount of revenue recognized for each property sale is equal to the full sales price of the property and does not reflect real estate agent commissions, closing or other costs associated with the transaction. d) Operating expenses Operating expenses consist primarily of advertising and marketing costs, employee-related expenses including payroll, IT expenses including hosting, technical support and telecommunication services, depreciation and amortization expenses and other expenses such as office maintenance, consulting and other general corporate expenses. Operating expenses are expensed as incurred. e) Income taxes Current income tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Income taxes are computed in accordance with the laws of the Company’s and its subsidiaries’ jurisdictions. Taxable income of the Group’s companies incorporated in Russia and Cyprus is subject to local income tax at rates of 20.0% (N1 Technologies LLC – 3.0%) and 12.5%, respectively. Deferred tax Deferred income taxes are accounted for under the balance sheet method and reflect the tax effect of temporary differences between the tax basis of assets and liabilities and their carrying amounts in the accompanying consolidated financial statements. Deferred tax liabilities are recognized for all taxable temporary differences, except: ● when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; ● in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except: ● when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; ● in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Deferred tax assets are derecognized when it is no longer probable that sufficient taxable profit will be available against which the deductible temporary differences can be recognized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. f) Property and equipment Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. The cost of an item of property and equipment is recognized as an asset if it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Costs of minor repairs and day-to-day maintenance are expensed when incurred. Cost of replacing major parts or components of property and equipment items that extend the useful lives of assets or increase their revenue-generating capacities are capitalized and the replaced part is retired. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Useful lives in years Office equipment 1–5 An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of profit or loss when the asset is derecognized. Property and equipment are also subject to impairment. Refer to the accounting policies in section (i) Impairment of non-financial assets excluding goodwill. g) Leases Right-of-use assets The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term as follows: Lease term in years Offices 3 – 4 Right-of use assets are also subject to impairment. Refer to the accounting policies in section (i) Impairment of non-financial assets excluding goodwill. Lease liabilities At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Presentation in the consolidated statement of cash flows The Group classifies cash payments for the principal portion of lease liabilities within financing activities and cash payments for the interest portion of the lease liabilities within operating activities. h) Intangible assets Intangible assets acquired separately are measured upon initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangibles, excluding capitalized development costs, are not capitalized and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred. Research costs are expensed as incurred. Development expenditures on an individual project are recognized as an intangible asset when the Group can demonstrate: ● the technical feasibility of completing the intangible asset so that the asset will be available for use or sale; ● its intention to complete and its ability and intention to use or sell the asset; ● how the asset will generate future economic benefits; ● the availability of resources to complete the asset; and ● the ability to measure reliably the expenditure during development. Intangible assets are amortized over their useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period for an intangible asset is reviewed at least at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. The amortization of intangible assets is recorded in depreciation and amortization within the consolidated statements of profit or loss and other comprehensive income. Amortization is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Useful lives in years Trademarks 7-9 Customer base 15-18 Computer software 1-3 Video and audio rights 1 Development costs 5 An intangible asset is derecognized upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss. i) Impairment of non-financial assets excluding goodwill At each reporting date, the Group reviews the carrying amounts of its property and equipment, right-of-use assets and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss, if any. Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. In determining fair value less costs of disposal, valuation multiples and the Company’s share price are taken into account. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. i) Inventories Inventories are comprised of properties acquired through Home Swap service and are stated at the lower of cost or net realizable value. Properties are removed from inventories based on a specific identification of individual costs when they are resold. These costs comprise the purchase price and state duties. The Group reviews the value of properties held in inventories for indicators that net realizable value is lower than cost at the end of each reporting period. When evidence exists that the net realizable value of inventories is lower than its cost, the difference is recognized in other operating expenses. j) Cash and cash equivalents Cash and cash equivalents in the consolidated statement of financial position comprise cash at banks and on hand and short-term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts. k) Share-based payments Equity-settled transactions The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. That cost is recognized in employee-related expenses, together with a corresponding increase in equity (equity-settled employee benefits reserves), over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of profit or loss and other comprehensive income for a period represents the movement in cumulative expense recognized as at the beginning and end of that period. Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognized is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. An additional expense, measured as at the date of modification, is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss. Cash-settled transactions Certain senior level employees of the Group have received remuneration in the form of share-based payments (“phantom shares”), which are settled in cash (cash-settled transactions). For cash-settled share-based payments, a liability is recognized initially at the fair value. At each reporting date until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognized in employee-related expenses. l) Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount |
SIGNIFICANT ACCOUNTING JUDGMENT
SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS | 12 Months Ended |
Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS | |
SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS | 3. SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS The preparation of the Group’s consolidated financial statements requires management to make judgments; estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities; and the accompanying disclosures. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods. Judgments In the process of applying the Group’s accounting policies, no judgments were made by management, which had a material effect on the amounts recognized in the consolidated financial statements. Estimates and assumptions The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Group based its assumptions and estimates on the parameters available at the time of consolidated financial statements preparation. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Group. Such changes are reflected in the assumptions when they occur. Useful lives of intangible assets The estimation of the useful lives of intangible assets acquired through business combinations or generated internally is a matter of judgment based on the experience with similar assets. The future economic benefits embodied in the assets are consumed principally through their use. However, other factors related to the economic environment and market situation often result in the diminution of the economic benefits embodied in the assets. Management assesses the remaining useful lives in accordance with the current market conditions of the assets and the estimated period during which the assets are expected to earn benefits for the Group. Compliance with tax legislation The taxation system in the Russian Federation continues to evolve and is characterized by frequent changes in legislation, official pronouncements and court decisions, which are sometimes contradictory and subject to varying interpretation by different tax authorities. Taxes are subject to review and investigation by a number of authorities, which have the authority to impose severe fines, penalties and interest charges. A tax year generally remains open for review by the tax authorities during the three subsequent calendar years. However, under certain circumstances a tax year may remain open longer. This may potentially impact the Group’s tax position and create additional tax risks. This legislation and practice of its application is still evolving and the impact of legislative changes should be considered based on the actual circumstances. Management believes that it has adequately provided for tax liabilities based on its interpretations of applicable Russian tax legislation, official pronouncements and court decisions. However, the interpretations of the tax authorities and courts, especially due to the reform of the supreme courts that are resolving tax disputes, could differ and the effect on these consolidated financial statements, if the authorities were successful in enforcing their interpretations, could be significant. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS. | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | 4. REVENUE FROM CONTRACTS WITH CUSTOMERS 4.1 Disaggregated revenue information Set out below is the disaggregation of the Group’s revenue from contracts with customers by type and timing of revenue recognition: For the year ended December 31, 2021 At a point in Total time Over time revenue Listing revenue — 3,699 3,699 Lead generation revenue 1,332 — 1,332 Display advertising revenue — 601 601 Other revenue 353 48 401 Total revenue 1,685 4,348 6,033 For the year ended December 31, 2020 At a point in Total time Over time revenue Listing revenue — 2,383 2,383 Lead generation revenue 994 — 994 Display advertising revenue — 456 456 Other revenue 101 38 139 Total revenue 1,095 2,877 3,972 For the year ended December 31, 2019 At a point in Total time Over time revenue Listing revenue — 2,481 2,481 Lead generation revenue 623 — 623 Display advertising revenue — 452 452 Other revenue 30 21 51 Total revenue 653 2,954 3,607 Listing, lead generation and display advertising revenues relate to the “Core Business” operating segment, while other revenue represents operating segments “Mortgage Marketplace”, “Valuation and Analytics”, “C2C Rental” and “End-to-End Offerings” (Note 5). 4.2 Contract balances The following table provides information about the Group’s trade receivables and contract liabilities from contracts with customers: December 31, December 31, 2021 2020 Trade receivables (Note 14) 225 145 Contract liabilities (including 37 of loyalty points (2020: 27)) (425) (332) Contract liabilities represent the transaction price allocated to unsatisfied performance obligations, advances received from customers before the Group transfers the related products or services and loyalty points not redeemed. Contract liabilities are recognized as revenue when the Group transfers control over the related products or services to the customer. The outstanding balances of contract liabilities increased in 2021 due to the continuous increase in the Group’s customer base. The total amount of contract liabilities as of each year end has been or to be recognized as revenue in the subsequent year. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION | |
SEGMENT INFORMATION | 5. SEGMENT INFORMATION Since the IPO, the chief operating decision-maker (CODM) of the Group are the Board of Directors and the Chief Executive Officer. The CODM reviews the Group’s internal reporting based on the management accounts in order to assess performance and allocate resources. Management has determined the operating segments based on these reports. In evaluating the performance of the Group’s operating segments and allocating resources, the CODM reviews selected items of each segment’s statement of profit or loss and other comprehensive income including revenue and Adjusted EBITDA (an operating loss for the period before depreciation and amortization and other adjustments described in the table “Reconciliation of Adjusted EBITDA to Loss before income tax”). All other financial information is presented on a consolidated basis. Assets and liabilities are not allocated to the different operating segments for internal reporting purposes. The Group identifies its operating segments based on how the CODM manages the business, allocates resources, makes operating decisions and evaluates operating performance. The Group has identified the following operating segments on this basis, as these segments are analyzed separately by management: - Core Business; - Mortgage Marketplace; - Valuation and Analytics; - C2C Rental; and - End-to-End Offerings. The “Core Business” segment represents the mature main service line of real estate online classifieds and related advertising services provided on the Group’s platform (websites cian.ru, n1.ru, mlsn.ru and emls.ru and mobile applications). This segment relates to the online real estate classified platform, where clients like real estate agencies and agents, developers and individual property owners place their property listings and related advertising materials. Each of the other operating segments represents the Group’s new offerings focused on developing different transactional business models: ● Mortgage Marketplace represents a platform for mortgage price comparison, mortgage pre-approval and origination, where the Group earns commissions from its partner banks for distributing their mortgage products; ● Valuation and Analytics – services where the Group earns fees derived from the customers for providing access to the Group’s proprietary real estate market research, data analytics and market intelligence services; ● C2C Rental – a service to facilitate seamless rental transactions, where the Group earns revenue for providing an end-to-end solution in property rentals. The Group decided to cease development of this service in the fourth quarter of 2021 due to a combination of factors, such as insufficient market perspectives and lower than planned performance; ● End-to-End Offerings – a new operating segment which emerged in 2021, which comprises the following services. The CODM does not review the service offerings individually and thus End-to-End represents an operating segment: o Howe Swap service – a service, where the Group acquires and resells properties. This service was launched in the fourth quarter of 2021 as part of the pilot project, and o Online Transaction Services – a service, that enables online execution of real estate transactions (including document checking, verification, signing and storage, notary services, registration and tax refunds) and facilitates simultaneous sales and purchases for our customers and users. Revenue in all periods presented in the financial statements is derived from third parties and there is no inter-segment revenue. The Group operates only in Russia. Revenue and costs are directly attributed to the Group’s segments when possible. However, due to the integrated structure of the Group’s business, certain costs incurred by one segment may benefit the other segments. These costs primarily include headcount-related expenses, marketing and advertising costs, product development, IT expenses (including hosting and technical support expenses and telecommunication services), office maintenance expenses and other general corporate expenses such as finance, accounting, legal, human resources, recruiting and facilities costs. These costs are allocated to each segment based on the estimated benefit each segment receives from such expenses, using specific allocation drivers representing this benefit. Substantially all assets and liabilities relate to the “Core Business” operating segment. Management reporting is different from IFRS, the differences are IFRS adjustments listed below, which are not analyzed by the CODM in assessing the operating performance of the business: - Reclassification of lease related amortization and interest – for the purposes of CODM’s assessment of operating performance rental expenses are considered operating expenses included in Adjusted EBITDA, rather than depreciation and interest expense, thus, IFRS 16 ‘Leases’ is not applied in internal reporting; - Reclassification of operating expense related to software licenses to amortization – for the purposes of CODM’s assessment of operating performance expenses related to software licenses are considered operating expenses included in Adjusted EBITDA, rather than amortization of intangible assets; - Capitalized development costs – for the purposes of CODM’s assessment of operating performance expenses none of the expenses are capitalized; - Share-based payments – for the purposes of CODM’s assessment of operating performance the fair value adjustments related to remeasurement of share-based payments liability are not analyzed; and - Income from the depositary – for the purposes of CODM’s assessment of operating performance income from the depository is not analyzed, as this is not an operating income stream and it relates purely to the Group’s public status and its ADSs program; as well as non-recurring items, such as IPO costs, that occur from time to time and are evaluated for adjustment as and when they occur. Information on each of the reportable and other segments and reconciliation to Loss before income tax is as follows: For the year ended December 31, 2021 Valuation Core Mortgage and End-to-End Business Marketplace Analytics C2C Rental Offerings Total Revenue, including: 5,641 295 45 3 49 6,033 Listing revenue 3,699 — — — — 3,699 Lead generation revenue 1,329 3 — — — 1,332 Display advertising revenue 596 5 — — — 601 Other revenue 17 287 45 3 49 401 Adjusted EBITDA 1,139 (482) (72) (148) (224) 213 Reconciliation of Adjusted EBITDA to Loss before income tax Adjusted EBITDA 213 Depreciation and amortization (279) Finance expenses, net (42) Foreign currency exchange gain, net 53 IPO-related costs (304) Income from the depositary 6 Reclassification of lease related amortization and interest 60 Reclassification of operating expense related to software licenses to amortization 45 Share-based payments (2,549) Loss before income tax (2,797) For the year ended December 31, 2020 Valuation Core Mortgage and Business Marketplace Analytics C2C Rental Total Revenue, including: 3,822 110 39 1 3,972 Listing revenue 2,383 — — — 2,383 Lead generation revenue 991 3 — — 994 Display advertising revenue 439 17 — — 456 Other revenue 9 90 39 1 139 Adjusted EBITDA 532 (254) (119) (126) 33 Reconciliation of Adjusted EBITDA to Loss before income tax Adjusted EBITDA 33 Depreciation and amortization (200) Finance expenses, net (61) Foreign currency exchange loss, net (1) Capitalized development costs 43 Reclassification of lease related amortization and interest 74 Reclassification of operating expense related to software licenses to amortization 31 Share-based payments (558) Loss before income tax (639) For the year ended December 31, 2019 Valuation Core Mortgage and Business Marketplace Analytics C2C Rental Total Revenue, including: 3,555 34 18 — 3,607 Listing revenue 2,481 — — — 2,481 Lead generation revenue 622 1 — — 623 Display advertising revenue 440 12 — — 452 Other revenue 12 21 18 — 51 Adjusted EBITDA (193) (153) (81) (65) (492) Reconciliation of Adjusted EBITDA to Loss before income tax Adjusted EBITDA (492) Depreciation and amortization (169) Finance expenses, net (31) Foreign currency exchange loss, net (3) Capitalized development costs 22 Reclassification of lease related amortization and interest 71 Reclassification of operating expense related to software licenses to amortization 23 Share-based payments (67) Goodwill impairment (256) Loss before income tax (902) |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2021 | |
BUSINESS COMBINATION | |
BUSINESS COMBINATION | 6. BUSINESS COMBINATION On February 5, 2021, the Group completed its acquisition of 100% of N1.ru LLC (together with its subsidiaries, the “N1 Group”), a real estate-focused classifieds business that primarily operates in regional cities in Russia, such as Novosibirsk, Ekaterinburg and Omsk, for a total cash consideration of 1,785. The primary reason for the business combination was to enhance the Group’s position in Russia’s regions outside Moscow and Saint-Petersburg. The acquisition has been accounted for using the acquisition method. The Group’s consolidated financial statements include the results of the N1 Group from February 5, 2021 until December 31, 2021. The purchase price has been allocated based on the fair values assigned to the assets acquired and liabilities assumed as of February 5, 2021, as follows: February 5, 2021 Assets Customer base 753 Trademarks 254 Other intangible assets 39 Right-of-use assets 18 Property and equipment 7 Cash and cash equivalents 134 Other assets 49 Total assets 1,254 Liabilities Contract liabilities (21) Trade and other payables (51) Lease liabilities (18) Deferred tax liabilities (130) Other liabilities (34) Total liabilities (254) Total identifiable net assets at fair value 1,000 Goodwill arising from the acquisition 785 Purchase consideration transferred 1,785 Analysis of cash flows from the acquisition: Net cash acquired with the subsidiary (included in cash flows from investing activities) 134 Cash paid (1,785) Net cash flow from the acquisition (1,651) As of the acquisition date, the fair value of trade receivables was 5. Trade receivables comprised gross contractual amounts of 17, of which 12 was expected to be uncollectable as of the acquisition date. Deferred tax liabilities represent the tax effect of temporary differences arising on identifiable assets recognized at their fair values. If the acquisition of the N1 Group had taken place on January 1, 2021, consolidated revenue for the year ended December 31, 2021 would have been 6,066 and consolidated loss for the same period would have been 2,892. The goodwill recognized is primarily attributed to the expected synergies from combining the activities of the N1 Group with those of the Cian Group. The goodwill is not deductible for income tax purposes. The Group incurred acquisition-related costs of 16 relating to external legal fees and due diligence costs. These costs have been included in other operating expenses in the consolidated statement of profit or loss and other comprehensive income for the year ended December 31, 2020. Planned acquisition of SmartDeal On December 27, 2021, the Group entered into a binding preliminary agreement for acquisition of 100% in SmartDeal (Praktika Uspekha LLC), a company which provides e-registration and adjacent services for various types of property deals. Completion of the acquisition is subject to customary closing conditions and among other things, regulatory clearance by the Government Commission on Monitoring Foreign Investment. The acquisition was not completed by the date of these financial statements. |
MARKETING EXPENSES
MARKETING EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
MARKETING EXPENSES | |
MARKETING EXPENSES | 7. MARKETING EXPENSES 2021 2020 2019 Online marketing (1,631) (1,498) (1,134) Offline marketing (556) (139) (959) Other marketing expenses (66) (60) (66) Total marketing expenses (2,253) (1,697) (2,159) Marketing expenses are only purchased advertising exclusive of any employee-related expenses. |
EMPLOYEE-RELATED EXPENSES
EMPLOYEE-RELATED EXPENSES | 12 Months Ended |
Dec. 31, 2021 | |
EMPLOYEE-RELATED EXPENSES | |
EMPLOYEE-RELATED EXPENSES | 8. EMPLOYEE-RELATED EXPENSES 2021 2020 2019 Wages, salaries and related taxes (2,394) (1,610) (1,246) Share-based payment expense (Note 18) (2,549) (558) (67) Other employee-related expenses (119) (40) (72) Total employee-related expenses (5,062) (2,208) (1,385) |
GOODWILL IMPAIRMENT
GOODWILL IMPAIRMENT | 12 Months Ended |
Dec. 31, 2021 | |
GOODWILL IMPAIRMENT | |
GOODWILL IMPAIRMENT | 9. GOODWILL IMPAIRMENT Goodwill of 256 was recognized in 2014 as a result of an acquisition of EMLS Group (“EMLS”), a leading online real estate classifieds website in Saint-Petersburg and Leningrad region. Goodwill was allocated to the cash-generating unit (CGU) of EMLS. In December 2019, management of the Group decided to gradually cease the operations of the website “emls.ru” during the next two years and transfer its customer base to the Group’s main website “cian.ru” and Cian mobile application, and, accordingly, goodwill was written off in full as of December 31, 2019. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAX | |
INCOME TAX | 10. INCOME TAX The major components of income tax (expense) / benefit for the years ended December 31, 2021, 2020 and 2019 are: 2021 2020 2019 Current income tax expense (71) (18) — Adjustments in respect of current income tax of previous years — (1) — Deferred tax benefit 11 31 96 Income tax (expense) / benefit (60) 12 96 The major part of the Group’s pre-tax losses and income tax expenses / benefits is generated in Russia. Pre-tax gains or losses of the Group’s companies in Cyprus mainly relate to foreign exchange gains and losses and other items which are generally non-taxable (non-deductible) in that jurisdiction. These items affect pre-tax loss but do not have any impact on income tax expense / benefit. Below is a reconciliation of theoretical income tax based on the Russian statutory income tax rate of 20% to the actual tax recorded in the consolidated statement of profit or loss and other comprehensive income: 2021 2020 2019 Loss before income tax (2,797) (639) (902) Income tax benefit calculated at Russia’s statutory income tax rate 559 128 180 Goodwill impairment — — (51) Effect of a lower tax rate in a subsidiary (4) — — Adjustments in respect of current income tax of previous years — (1) — Share-based payments (510) (112) (13) Other non-deductible expenses (105) (3) (20) Income tax (expense) / benefit for the year (60) 12 96 Set out below is the summary of deferred tax assets and liabilities as of December 31, 2021 and 2020: Consolidated statement of financial position Consolidated statement of as of December 31, profit or loss 2021 2020 2021 2020 Deferred tax assets arising from: Tax losses carried forward 113 149 (36) (17) Revenue recognition 71 59 12 27 Lease liabilities 17 23 (6) 3 Employee benefits 24 24 — 5 Intangible assets 23 15 8 13 Trade receivables 2 1 1 — Total deferred tax assets before set-off 250 271 (21) 31 Set-off of tax (24) (34) — — Net deferred tax assets 226 237 — — Deferred tax liabilities arising from: Intangible assets (138) (33) 24 3 Right-of-use assets (18) (25) 7 (3) Property and equipment (2) (2) — 1 Other items (1) (2) 1 (1) Total deferred tax liabilities before set-off (159) (62) 32 — Set-off of tax 24 34 — — Net deferred tax liabilities (135) (28) — — Net deferred tax asset 91 209 — — Deferred tax benefit — — 11 31 The Group has accumulated tax losses of 565 (2020: 745) that are available indefinitely for offsetting against future taxable profits of the companies in which the losses arose. The losses have arisen in the key Russian operating subsidiary of the Group. The Group recognized deferred tax assets in respect of these losses as they are fully recoverable in the foreseeable future according to the management’s forecast. In such assessment management took into account differences between Russian Tax Law and IFRS, historical deviations from the budget and actual offset of 180 from the balance of accumulated losses against taxable profit of the subsidiary in 2021. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
LEASES | |
LEASES | 11. LEASES The Group leases several office buildings to provide employees with comfortable working conditions. Set out below are the carrying amounts of the Group’s right-of-use assets and lease liabilities and the movements during the period: Right-of-use Lease assets liabilities As of January 1, 2020 111 (100) Additions — — Remeasurement / modification 81 (80) Depreciation expense (67) — Interest expense — (7) Payments — 74 As of December 31, 2020 125 (113) Additions — — Acquisition of a subsidiary (Note 6) 18 (18) Depreciation expense (45) — Interest expense — (9) Set-off — 2 Payments — 47 As of December 31, 2021 98 (91) The maturity analysis of lease liabilities based on contractual undiscounted payments is disclosed in Note 22. |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSETS AND GOODWILL. | |
INTANGIBLE ASSETS AND GOODWILL | 12. INTANGIBLE ASSETS AND GOODWILL Customer Computer Video/ Development Trademarks base software audio rights costs Goodwill Total Cost At January 1, 2020 76 186 74 104 26 — 466 Additions — — 37 14 43 — 94 Disposals — — — — — — — At December 31, 2020 76 186 111 118 69 — 560 At January 1, 2021 76 186 111 118 69 — 560 Additions — — 51 38 — — 89 Acquisition of a subsidiary (Note 6) 254 753 39 — — 785 1,831 Disposals — — — (109) — — (109) At December 31, 2021 330 939 201 47 69 785 2,371 Amortization and impairment At January 1, 2020 (39) (53) (50) (51) (1) — (194) Amortization charge (18) (10) (31) (47) (3) — (109) Disposals — — — — — — — At December 31, 2020 (57) (63) (81) (98) (4) — (303) At January 1, 2021 (57) (63) (81) (98) (4) — (303) Amortization charge (44) (56) (52) (32) (11) — (195) Disposals — — — 109 — — 109 At December 31, 2021 (101) (119) (133) (21) (15) — (389) Carrying amounts At December 31, 2020 19 123 30 20 65 — 257 At December 31, 2021 229 820 68 26 54 785 1,982 Impairment test The Group’s non-current assets are fully attributable to the “Core Business” cash-generating unit (CGU). The “Core Business” CGU represents the main service line of real estate classifieds and related advertising services provided on the Group’s platforms (websites and mobile applications). “Mortgage Marketplace”, “Valuation and Analytics”, “C2C Rental” and “End-to-End Offerings” each represent a separate CGU; however, the Group did not recognize any assets related to these CGUs as of December 31, 2021 and 2020, as there was no convincing evidence available that these services would generate future economic benefits. Goodwill recognized as a result of the N1 Group’s acquisition has been fully allocated to the “Core Business” CGU. At December 31, 2021 management estimated the recoverable amount of the “Core Business” CGU based on its fair value less costs of disposal on the basis of quoted prices of Company’s ordinary shares (Level 1) on the estimated portion attributable to the “Core Business” CGU. At December 31, 2021 the estimated recoverable amount of the “Core Business” CGU exceeded its carrying amount. No reasonably possible change in the fair value less costs of disposal of the “Core Business” CGU would result in the impairment. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2021 | |
INVENTORIES | |
INVENTORIES | 13. INVENTORIES The Group is planning to launch Home Swap service in order to provide an alternative way to finance a real estate purchase by facilitating simultaneous sales and purchases of properties. The Home Swap service is currently in its testing phase, where the Group checks different consumer hypotheses to find the best product market fit. Within the testing period, the Group purchases some properties for the Group’s own account to support the development of this service. The total amount of such purchases amounted to 141 in 2021. In 2021, inventories of 33 (2020: nil ) were recognized as an expense during the year, in which the related revenue was recognized, and included in other operating expenses. |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2021 | |
TRADE AND OTHER RECEIVABLES. | |
TRADE AND OTHER RECEIVABLES | 14. TRADE AND OTHER RECEIVABLES December 31, December 31, 2021 2020 Trade receivables from third parties 233 151 Other receivables from third parties 183 9 Allowance for expected credit losses (8) (6) Total trade and other receivables 408 154 Other receivables mainly represent consideration receivable from a depositary (Note 20). Trade and other receivables are non-interest bearing and are generally on terms of 20 Set out below is the movement in the allowance for expected credit losses of accounts receivable: 2021 2020 Balance at the beginning of the year (6) (6) Allowance for expected credit losses (2) — Balance at the end of the year (8) (6) Information about the Group’s exposure to credit and market risks is presented in Note 22. |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2021 | |
CASH AND CASH EQUIVALENTS. | |
CASH AND CASH EQUIVALENTS | 15. CASH AND CASH EQUIVALENTS December 31, December 31, 2021 2020 Cash at banks and on hand 1,998 43 Short-term deposits 435 406 Allowance for expected credit losses (14) — Total cash and cash equivalents 2,419 449 Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Group, and earn interest at the respective market short-term deposit rates. Information about the credit risk over cash and cash equivalents is presented in Note 22. |
SHARE CAPITAL
SHARE CAPITAL | 12 Months Ended |
Dec. 31, 2021 | |
SHARE CAPITAL. | |
SHARE CAPITAL | 16. SHARE CAPITAL In August 2021, pursuant to a special resolution at a general meeting of its shareholders, the Company: - made a 1-for- 2,500 split of its ordinary shares; - increased the authorized share capital by the creation of additional 121,625,000 ordinary shares of EUR 0.0004 each; and - issued and allotted 56,797,500 fully paid ordinary shares of EUR 0.0004 each to its existing shareholders on a pro rata basis. All shares, per share amounts and related information in these consolidated financial statements have been retroactively adjusted, where applicable, to reflect the impact of the share split and pro rata allotment of ordinary shares issued (collectively, the “share split”). The retroactive adjustment was first applied within the prior year consolidated financial statements. Authorized Issued and fully paid December 31, December 31, December 31, December 31, Number of shares 2021 2020 2021 2020 Ordinary shares of EUR 0.0004 each 130,000,000 66,366,961 69,871,511 59,433,100 130,000,000 66,366,961 69,871,511 59,433,100 Number of Share Share ordinary shares capital premium At January 1, 2020 59,433,100 — 125 At December 31, 2020 59,433,100 — 125 Issue of shares in the private placement 5,566,900 — 2,291 Issue of shares in the IPO 4,042,400 — 4,624 Issue of shares under the phantom share program (Note 18) 829,111 — 966 Effect arising from the share split — 2 — Transaction costs — — (392) At December 31, 2021 69,871,511 2 7,614 In February 2021, the Company issued 5,566,900 ordinary shares to the existing and new shareholders and received 2,265 in cash. In November 2021, the Company issued 4,042,400 ordinary shares, represented by the ADSs, in the IPO on the NYSE. The Company received 4,255 in net proceeds from the IPO after deducting underwriting fees and other transaction costs. |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2021 | |
BORROWINGS. | |
BORROWINGS. | 17. BORROWINGS Amount, incl. accrued interest December 31, December 31, Interest rate Currency Maturity 2021 2020 Bank loan CBR key rate+3.35 % RUB 2021-2022 — 429 Bank loan CBR key rate+3.8 % RUB 2021-2024 — 299 Total — 728 In December 2021, the Group fully repaid all bank loans. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2021 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 18. SHARE-BASED COMPENSATION Phantom Share Program In 2018, the Group’s Board of Directors approved a long-term incentive program for certain senior level employees. Under this program, in 2018, 2019 and 2021 the Group granted an aggregate of 4,923,042 shares (“phantom shares”) to employees that entitled them to a cash payment after one five years 1. Liquidity event payments . Participants of the program were entitled to a cash payment upon occurrence of some liquidity events such as an initial public offering (“IPO”) or an acquisition of control over the Group by a third party. 2. Non-liquidity event payments . Participants of the program were entitled to a cash payment after the termination of the service period if the net debt (calculated as borrowings less cash and cash equivalents) does not exceed three times the lowest between EBITDA (calculated as operating profit plus amortization and depreciation) and Adjusted EBITDA (calculated as described in Note 5) as of the date of the notice sent by the participants to the Company. In connection with the IPO, the Group amended the terms of this long-term incentive program, such that the employees could choose to receive payment for vested phantom shares in cash or in ordinary shares upon the completion of the IPO. As a result of this amendment, the Group issued an aggregate of 829,111 ordinary shares to its employees to satisfy its outstanding obligations under this long-term incentive program. Set out below are the movements in the Group’s share-based payment liabilities during 2021 and 2020: 2021 2020 Share-based payment liabilities at the beginning of the year 636 78 New awards granted 512 — Remeasurement during the year 1,927 558 Cash payments to employees (2,169) — Conversion from cash-settled to equity-settled share-based payments (948) — Foreign currency exchange loss 42 — Share-based payment liabilities at the end of the year — 636 The fair value of the awards was estimated, at the grant date and at the end of each reporting period until completion of the IPO, using the Option pricing model, taking into account the terms and conditions on which the award was granted. The fair value of the awards at the date of the IPO was estimated based on the initial public offering price of USD 16 per ordinary share. The phantom share program was terminated upon completion of the IPO. 2021 Restricted Stock Units Plan (equity-settled) The Group adopted a new long-term incentive plan (the “2021 Plan”), effective from December 1, 2021. In accordance with the 2021 Plan, the Group may grant the restricted stock units (the “RSU”) to its employees, officers, directors and contractors. The 2021 Plan expires on December 31, 2031, previously granted awards not exercised by the expiration date will be forfeited in accordance with their terms. Awards under the 2021 Plan will vest over a four-year period, subject to the participant’s continued employment with (and/or servicing to) the Group, with 1/4 1/4 The Group may grant the RSUs under the 2021 Plan for up to a maximum number of ordinary shares equal to 6.5% of the aggregate number of Group’s ordinary shares issued and outstanding (by number) as of the date of adoption of the 2021 Plan. Each RSU represents the right to receive one ordinary share upon satisfaction of the applicable vesting conditions. The following table illustrates movements in the number of RSUs during the year ended December 31, 2021: Weighted average grant date fair Number of value per award, RSUs RUB Outstanding at the beginning of the period — — Granted during the period 1,427,226 932 Forfeited during the period — — Exercised during the period — — Outstanding at the end of the period 1,427,226 932 Exercisable at the end of the period 105,215 1,043 The fair value of the RSUs is estimated at the grant date on the basis of quoted prices of Company’s ordinary shares at the grant date, taking into account the terms and conditions on which the RSUs were granted. As the RSUs granted to directors have a three-year lock up period, the fair value is adjusted for the discount for lack of marketability using the Stillian Ghaidarov Average-Strike Asian Put Option Model. The following table lists the inputs to the model used for the 2021 Plan for the year ended December 31, 2021: 2021 Plan (Directors' RSUs) Fair value of the RSUs at the grant date, USD 14.89 Share price at the grant date, USD 17.62 Exercise price, USD Nil Expected annual volatility, % 50.9 % Expected term, years 2.38 Dividend yield, % Nil Expected volatility. Expected term Dividend yield. The total expense recognized for the year ended December 31, 2021 arising from equity-settled share-based payment transactions amounted to 110. |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2021 | |
TRADE AND OTHER PAYABLES | |
TRADE AND OTHER PAYABLES | 19. TRADE AND OTHER PAYABLES December 31, December 31, 2021 2020 Trade payables 249 196 Annual bonus provision 119 66 Unused vacation provision 60 53 Other employee benefits 13 — Other payables 178 1 Trade and other payables 619 316 Trade payables are non-interest bearing and are normally settled on 60-day terms. Information about the Group’s exposure to liquidity risk in relation to its trade and other payables is included in Note 22. Other payables increased in 2021 primarily due to payables for directors’ and officers’ insurance in connection with the IPO. |
DEFERRED INCOME
DEFERRED INCOME | 12 Months Ended |
Dec. 31, 2021 | |
DEFERRED INCOME | |
DEFERRED INCOME | 20. DEFERRED INCOME In connection with the IPO, the Group has been entitled to receive consideration from the depositary based on the number of issued ADSs. The Group has recorded this consideration as deferred income in the consolidated statement of financial position, as the Group is obliged to return the unearned portion of the consideration upon termination of the ADS program before the five-year contract term expiration. Income is recognized on a straight-line basis over a five-year contract term and presented as other income in the consolidated statement of income or loss and other comprehensive income. |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTIES | |
RELATED PARTIES | 21. RELATED PARTIES Related parties include shareholders, ultimate owners and members of key management personnel as well as companies which are under legal ownership, significant influence or control of shareholders or ultimate owners of the Group. Transactions with key management personnel Key management comprises the Group’s directors, including the chief executive officer, and the Group’s chief financial officer. The remuneration of key management personnel for the year ended December 31, 2021, 2020 and 2019 amounted to: 2021 2020 2019 Short-term employee benefits (46) (38) (37) Share-based payment expense (1,573) (313) (47) Total key management remuneration (1,619) (351) (84) In August 2021, the Group’s subsidiary, MLSN LLC, entered into a loan agreement with Financial Platform JSC, a company incorporated and then fully owned by the CEO of the Group’s main operating subsidiary, iRealtor LLC. The credit line under the loan agreement was for a total amount of 20 and an interest rate of 6.5%. In October 2021, the Group’s subsidiary, Mimons Investments Limited, issued a loan of 25 to Financial Platform JSC for the purposes of refinancing the loan from MLSN LLC. The outstanding principal amount under the loan from MLSN LLC at the repayment date was 16. In October 2021, Financial Platform JSC fully repaid the outstanding amount of 16 to MLSN LLC. The loan from Mimons Investments Limited to Financial Platform JSC was forgiven pursuant to the agreement between the parties. On December 16, 2021, the Group acquired 9% of the voting rights of Financial Platform JSC. Since then, the Group has concluded that it controls Financial Platform JSC even though it owns less than majority of the voting rights. Consolidation of an entity in which the Group holds less than a majority of voting rights In order to develop and enhance Mortgage marketplace product, the Group is considering obtaining the status of a financial platform operator as stipulated under the recently adopted Federal Law No. 211-FZ “On Performing Financial Transactions Using a Financial Platform” dated July 20, 2020. It is expected that such status will afford access to certain standardized customer information on government-ran electronic systems and databases. Obtaining such status, however, is subject to certain requirements, including a restriction on certain foreign ownership. In order to assist the Group in obtaining access rights to the financial platform operator status, the Group’s Chief Executive Officer has established a company, Financial Platform JSC, which is expected to apply for such financial platform operator status. On December 16, 2021, the Group acquired 9% of the voting rights of Financial Platform JSC for a nominal value of 0.009 from the Group’s Chief Executive Officer. The Group considers that it controls Financial Platform JSC even though it owns less than majority of the voting rights. This is because the Group is significantly involved in determining the scope of decision-making authority of Financial Platform JSC and is able to: ● appoint, reassign or remove members of an investee’s key management personnel who have the ability to direct the relevant activities; ● direct the investee to enter into, or veto any changes to, significant transactions for own benefit; ● exercise other rights specified in the shareholder agreement that give the ability to direct the relevant activities (for example, obtaining funding). Taking into account the terms of the shareholder agreement and the potential voting rights, the existing ownership interest of the Group currently gives the Group access to the returns associated with a 100% ownership interest, thus none of the returns are allocated to the Non-controlling interest. As of December 31, 2021 and for the year then ended, the effect of consolidation of Financial Platform JSC and its operations was not material to the Group. From January 1, 2021 to December 16, 2021, the Group provided technical support services in the amount of 8 to Financial Platform JSC. There were no other transactions or outstanding balances in 2021 with key management personnel, except for disclosed in the table above. During 2020, there were no transactions or outstanding balances with key management personnel, except for disclosed in the table above. No guarantees have been given or received. During 2019, the Group received a loan of 46 from key management personnel which was repaid Transactions with the ultimate controlling party During 2021, the Group received a loan of 1,491 from Elbrus Capital which was further converted into 3,665,041 ordinary shares. During 2020, there were no transactions or outstanding balances with Elbrus Capital, the ultimate controlling party. No guarantees have been given or received. During 2019, the Group received a loan of 148 from Elbrus Capital which was repaid Other related party transactions The following table provides the total amount of transactions that have been entered into with other related parties for the relevant financial year. Purchases Amounts Amounts Sales from owed owed to related related by related to related parties parties parties parties Associate of Elbrus Capital 2021 — 4 — — Associate of Elbrus Capital 2020 — 3 — — Associate of Elbrus Capital 2019 — 4 — — Outstanding balances with related parties at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees given or received. |
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT | 12 Months Ended |
Dec. 31, 2021 | |
FINANCIAL RISK MANAGEMENT | |
FINANCIAL RISK MANAGEMENT | 22. FINANCIAL RISK MANAGEMENT 22.1 Financial assets and financial liabilities The following table shows the carrying amounts of financial assets and financial liabilities. The Group does not hold any financial assets and financial liabilities other than those measured at amortized cost. Management assessed that the carrying values of the Group’s financial assets and financial liabilities measured at amortized cost are a reasonable approximation of their fair values on the basis of short-term nature or calculation of amortised cost using market rates. December 31, December 31, 2021 2020 Financial assets measured at amortized cost Cash and cash equivalents (Note 15) 2,419 449 Trade and other receivables (Note 14) 408 154 Rent security deposits 3 9 Total financial assets 2,830 612 Financial liabilities measured at amortized cost Trade and other payables (Note 19) 427 197 Lease liabilities (Note 11) 91 113 Borrowings (Note 17) — 728 Total financial liabilities 518 1,038 22.2 Financial risk management The Group is exposed to risks that arise from its use of financial instruments. The Group has exposure to the following risks arising from financial instruments: market risk, credit risk and liquidity risk. There have been no substantive changes in the Group’s exposure to financial instrument risks, its objectives, policies and processes for managing those risks or the methods used to measure them from previous periods. 22.2.1 Market risk Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk, which mostly impacts the Group, comprises currency risk. Financial instruments affected by market risk include cash and cash equivalents and trade and other payables. The Group does not enter into any derivative financial instruments to manage its exposure to foreign currency risk. Foreign currency risk Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign exchange rates is currently limited because the Group’s operating activities are mainly carried out in Russian Rubles. Following the commencement of military operations in Ukraine by the Russian Federation in February 2022 and the resulting sanctions imposed by the United States of America, the European Union and the United Kingdom, among others, significant depreciation of the Russian Ruble against other currencies occurred. With all other variables held constant, the Group’s profit before tax is affected through the impact of fluctuation in US dollar and EURO exchange rates, as follows: Change in US dollar, EURO Effect on profit exchange rates before tax Year ended December 31, 2021 Cash and cash equivalents +100%/-100 % 1,600 / (1,600) Trade and other receivables +100%/-100 % 172 / (172) Trade and other payables +100%/-100 % (230) / 230 Year ended December 31, 2020 Cash and cash equivalents +10%/-10 % — Trade and other receivables +10%/-10 % — Trade and other payables +10%/-10 % (2) / 2 22.2.2 Credit risk Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its cash and cash equivalents held with banks. Trade receivables The Group performs an impairment analysis at each reporting date using a provision matrix to measure expected credit losses. The provision rates are based on days past due. The calculation reflects the probability-weighted outcome. Generally, accounts receivables are written-off if past due for more than three years. Set out below is the information about the credit risk exposure on the Group’s trade receivables using a provision matrix: < 30 days 31–60 days 61–90 days > 90 days Total 2021 Expected credit loss rate 0.8 % 4.3 % 8.4 % 72.9 % Total gross carrying amount 216 8 1 8 233 Expected credit loss 2 — — 6 8 < 30 days 31–60 days 61–90 days > 90 days Total 2020 Expected credit loss rate 1.1 % 5.7 % 7.6 % 69.4 % Total gross carrying amount 128 17 — 6 151 Expected credit loss 1 1 — 4 6 Cash and cash equivalents The Group held cash and cash equivalents of 2,419 at December 31, 2021 (2020: 449). As of December 31, 2021, the Group held 22% of its cash and cash equivalents with the Russian banks having external credit ratings of BBB-/BBB (2020: 94%), the remaining cash and cash equivalents were held with a Cypriot bank having external credit rating of B-/B+, based on Standard & Poor’s and Fitch ratings. Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis and reflects the short maturities of the exposures. The Group recognized an impairment allowance of 14 as of December 31, 2021 (2020: nil). Following the commencement of military operations in Ukraine by the Russian Federation in February 2022 and the resulting sanctions imposed by the United States of America, the European Union and the United Kingdom, among others, the external credit ratings of the Russian banks have decreased significantly. However, due to the nature of the restrictions imposed, the Group does not believe that this negative change will affect the ability of the Group to retrieve its cash and cash equivalents denominated in Russian Rubles from these banks. 22.2.3 Liquidity risk Liquidity risk is the risk that the Group will not be able to settle all liabilities as they fall due. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continuously monitoring forecasts and actual cash flows and matching the maturity profiles of financial assets and liabilities. The table below summarizes the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments: Within 1 year 1 to 3 years 3 to 5 years > 5 years Total 2021 Trade and other payables 427 — — — 427 Lease liabilities 50 50 — — 100 Total financial liabilities 477 50 — — 527 Within 1 year 1 to 3 years 3 to 5 years > 5 years Total 2020 Trade and other payables 197 — — — 197 Borrowings 416 340 44 — 800 Lease liabilities 43 76 8 — 127 Total financial liabilities 656 416 52 — 1,124 22.3 Changes in liabilities arising from financing activities The table below details changes in the Group’s liabilities arising from financing activities, including both cash and non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in the Group’s consolidated statements of cash flows as cash flows from financing activities. January 1, Financing Leases December 31, 2021 cash flows (non-cash) Other 2021 Borrowings 728 (728) — — — Lease liabilities 113 (38) 18 (2) 91 841 (766) 18 (2) 91 January 1, Financing Leases December 31, 2020 cash flows (non-cash) Other 2020 Borrowings 477 249 — 2 728 Lease liabilities 100 (67) 80 — 113 577 182 80 2 841 The Group classifies interest paid as cash flows from operating activities. 22.4 Capital management The Group manages its capital to ensure that companies in the Group will be able to continue as a going concern while maximising the return to shareholders through the optimisation of the debt and equity balance. The capital structure of the Group consists of net debt (borrowings offset by cash and cash equivalents) and equity (as detailed in the consolidated statements of financial position). No changes were made in the objectives, policies or processes for managing capital during the years ended December 31, 2021 and 2020. |
CONTINGENCIES
CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
CONTINGENCIES | |
CONTINGENCIES | 23. CONTINGENCIES Legal proceedings During the periods covered by the Group’s consolidated financial statements and in the subsequent period until their approval, the Group has been, and continues to be, subject to legal proceedings and adjudications from time to time, none of which has had, individually or in the aggregate, a material adverse impact on the Group. Management believes that the ultimate liability, if any, arising from such proceedings and adjudications, will not have a material adverse impact on the Group’s financial position or operating results. Russian Federation tax and regulatory environment The taxation system in the Russian Federation continues to evolve and is characterised by frequent changes in legislation, official pronouncements and court decisions, which are sometimes contradictory and subject to varying interpretation by different tax authorities. Management’s interpretation of such legislation as applied to the transactions and activity of the Group may be challenged by a number of authorities, which may impose severe fines, penalties and interest charges. Recent events within the Russian Federation suggest that the tax authorities are taking a more assertive and substance-based position in their interpretation and enforcement of tax legislation and as a result, it is possible that transactions and activities that have not been challenged in the past may be challenged. As such, significant additional taxes, penalties and interest may be assessed. A tax year generally remains open for review by the tax authorities during the three subsequent calendar years, while under certain circumstances reviews may cover longer periods. The Group estimates that possible exposure in relation to the above mentioned tax risks, that are more than remote, but less than probable and, accordingly, for which no liability is required to be recognized, could be up to an aggregate of approximately 53. Operating environment The Group’s operations are concentrated in the Russian Federation. Consequently, the Group is exposed to the economic and financial environment in the Russian Federation, which display the characteristics of an emerging market. The legal, tax and regulatory frameworks continue to develop and are subject to varying interpretations and frequent changes which combined with other legal and fiscal impediments, aggravate the challenges faced by entities operating in the Russian Federation. Over the past several years, Russia has been involved in conflicts, both economic and military, involving neighboring and distant states. On March 2014, following a public referendum, the Crimean Peninsula and the city of Sevastopol were proclaimed as new separate constituents of Russia by the governing authorities of Russia, Crimea and Sevastopol. The events relating to Ukraine and Crimea prompted condemnation by members of the international community and were strongly opposed by the United States and the European Union, with a resulting material negative impact on Russia’s relationship with them. Tensions between Russia and the United States and between Russia and the European Union further increased in subsequent years as a result of the conflict in Syria and a host of other issues. Tensions between Russia and the United States, NATO, the European Union and the United Kingdom with respect to Ukraine further escalated in late 2021. On February 24, 2022, Russian military forces commenced a special military operation in Ukraine and the length, prolonged impact and outcome of this ongoing military conflict remains highly unpredictable. In response to the military conflict in Ukraine, the United States, the United Kingdom, the European Union governments and other countries, have imposed unprecedented sanctions and export-control measures. The imposed sanctions have targeted large parts of the Russian’s economy and include, among others, blocking sanctions on some of the largest state-owned and private Russian financial institutions (and their subsequent removal from SWIFT), Russian businessmen and their businesses, some of which have significant financial and trade ties to the European Union, as well as blocking sanctions against Russian and Belarusian individuals, including the Russian President, other politicians and those with government connections or involved in Russian military activities, the blocking of Russia’s foreign currency reserves, expansion of sectoral sanctions and export and trade restrictions, limitations on investments and access to capital markets and bans on various Russian imports. Given the vast scope of the recent sanctions and other measures in response to the conflict in Ukraine, it is hard to predict their full impact on Russian economy or certain sectors thereof, but it is expected to be significant. Furthermore, the Russian economy is also expected to be significantly affected as result of many U.S. and other multi-national businesses across a variety of industries, including consumer goods and retail, food, energy, finance, media and entertainment, tech, travel and logistics, manufacturing and others, indefinitely suspending their operations and pausing all commercial activities in Russia. These corporate boycotts have resulted in supply chain disruptions and unavailability or scarcity of certain raw materials, technological and medical goods, component elements and various corporate and retail services in Russia, which may in turn have a spillover effect on the Russian economy. Fewer goods amid disruptions in supply chains are likely to affect consumers’ ability to purchase goods and amplify the sharp rise in inflation growth. In addition, suspension of operations by foreign businesses in Russia will likely lead to an increase in unemployment levels. In response to accelerating inflation and a staggering depreciation of the ruble, on February 28, 2022, the Central Bank of the Russian Federation (CBR) increased its key interest rate from to 9.5% to 20.0%. Due to these monetary policy changes and the anticipated decline in the Russian economy, the domestic financial and banking markets may experience periodic shortages of liquidity in the domestic money market. Lower money supply and higher funding costs may cause banks to cut their lending programs and decrease exposure limits and become significantly more risk averse. These factors may negative affect the Russian banking sector as a whole and contribute to the worsening of economic conditions in the corporate sector, as well as lower household spending across various retail sectors of the economy. A high level of inflation could also lead to market instability, reductions in consumer purchasing power and an erosion of consumer confidence. This may adversely affect the Russian real estate market, as reduced disposable income and purchasing power is likely to have an adverse effect on consumers’ ability or willingness to invest in new housing or real estate. The Group also expects the sharp rise in interest rates caused by the CBR’s key interest rate hike to have a materially negative impact on the Russian mortgage market. On February 28, 2022 trading on the Moscow Exchange in all equity securities was suspended, with the suspension later extended through March 24, 2022. Also on February 28, 2022 the New York Stock Exchange halted trading in the Company’s American Depository Shares (“ADSs”). Although, neither the Company nor any of its subsidiaries is subject to any sanctions announced to-date by the United States, the United Kingdom, the European Union or other countries, the impact of these and further developments on future operations and financial position of the Group may be significant, but at this stage is difficult to determine. Current and future risks to the Group include, among others, the deterioration of the Russian economy, the risk of reduced or blocked access to capital markets and ability to obtain financing and the risk of restrictions on the usage of certain software. The impact on the Group of risk that the Russian Ruble will further depreciate against other currencies is currently assessed as limited, as the majority of the Group’s expenses is denominated in Russian Rubles. The Group had approximately 2,800 of cash and cash equivalents as of March 30, 2022. Management is confident, based on their current operating plan, that existing cash and cash equivalents together with the ability to cut a major part of the expenses related to marketing, if necessary, the Group will be able to meet anticipated cash needs for working capital, capital expenditures and general and administrative expenses for at least the next twelve months. The Group’s consolidated financial statements reflect management’s assessment of the impact of the Russian business environment on the operations and the financial position of the Group. The future business environment may differ from management’s assessment. COVID-19 In March 2020, the World Health Organization declared the COVID-19 virus a global pandemic. The highly contagious disease has spread to most of the countries including Russia, creating a negative impact on customers, workforces, and suppliers, disrupting economies and financial markets, and potentially leading to a worldwide economic downturn. The Group aimed to adapt to such adverse changes in conditions by exploring new ways of monetization and promotion of its products and services and cost optimization. As a result, the Group avoided any significant adverse impact on revenue or operating loss. However, the full impact of the COVID-19 outbreak continues to evolve as of the date of issuance of these consolidated financial statements. As such, it is uncertain as to the full magnitude that the pandemic will have on the Group’s financial condition, liquidity, and future results of operations. |
EVENTS AFTER THE REPORTING PERI
EVENTS AFTER THE REPORTING PERIOD | 12 Months Ended |
Dec. 31, 2021 | |
EVENTS AFTER THE REPORTING PERIOD | |
EVENTS AFTER THE REPORTING PERIOD | 24. EVENTS AFTER THE REPORTING PERIOD Refer to Note 23 for potential adverse effects of economic instability and sanctions in Russia. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Business combinations and goodwill | a) Business combinations and goodwill Business combinations are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects whether to measure the non-controlling interests in the acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are expensed as incurred. The Group determines that it has acquired a business when the acquired set of activities and assets includes an input and a substantive process that together significantly contribute to the ability to create outputs. The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs acquired include an organized workforce with the necessary skills, knowledge, or experience to perform that process or it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability to continue producing outputs. Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment, the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s previously held interest in the acquiree (if any), the excess is recognized immediately in profit or loss as a bargain purchase gain. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is not amortized, but is reviewed for impairment at least annually. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units (or groups of cash-generating units) that are expected to benefit from the synergies of the combination. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized for goodwill is not reversed in a subsequent period. If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete. Those provisional amounts are adjusted during the measurement period (which cannot exceed one year from the acquisition date), or additional assets or liabilities are recognized, to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the amounts recognized as of that date. |
Foreign currencies | b) Foreign currencies The Group’s consolidated financial statements are presented in Russian Rubles (“RUB”), which is also the Company’s functional currency. For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The functional currency of all of the Company’s subsidiaries is the RUB. Transactions in foreign currencies are initially recorded by the Group’s subsidiaries in their functional currency at exchange rates prevailing at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies are translated into functional currency at exchange rates prevailing at the reporting date. Differences arising on settlement or translation of monetary items are recognized within “Foreign currency exchange gain / (loss), net”, in the consolidated statement of profit and loss and other comprehensive income. Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The RUB is not a fully convertible currency outside Russia. Within the Russian Federation, official exchange rates are determined by the Central Bank of the Russian Federation. |
Revenue from contracts with customers | c) Revenue from contracts with customers Revenue from contracts with customers is recognized when control of products or services are transferred to the customer at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those products or services. i. Listing revenue Listing revenue is derived from offering online listings and related value-added services, such as different listing promotion options, to the Group’s customers on its websites and mobile applications based on a cost per time basis. Customers can purchase either individual listings and value-added services, listing packages or subscriptions, which combine a number of listings and value-added services. The cash collected from the sale of online listings and related value-added services (both under the pay-per-listing, listing package model or the subscription model) is initially recorded as contract liability (deferred revenue) in the consolidated statement of financial position and subsequently recognized as revenue over time as customers receive and consume the benefits of the access to online listings and related value-added services over the contractual period. The average time period between receipt of payment from the customer and delivery of online listings is 30 days. ii. Lead generation revenue Lead generation revenue represents fees charged to real estate developers for establishing and referring contacts (or leads) based on the number of qualified calls (validated user connections) received from primary real-estate listing posted primarily through Group’s platform (as part of the “Core Business” segment) or through our partner bank’s site (as part of the “Mortgage Marketplace” segment). Performance obligation is satisfied at a point in time of occurrence of each qualified call. Payment is received after the delivery of validated connections. Payment is generally due within 20 to 30 days from providing these services. iii. Display advertising revenue The Group’s advertising services allow third parties to place advertisements in particular areas of the Group’s websites and mobile application. Advertising revenue is recognized over time based on upfront monthly fees agreed in media plans, which also include targeted number of views or clicks during the period of advertisement. Payment is generally due within 20 to 30 days from providing advertising services. iv. Loyalty program The Group has a loyalty points program which allows listing revenue customers to accumulate points that can be redeemed against future purchases. The loyalty points give rise to a separate performance obligation as they provide a material right to acquire additional services at a discount to the customer, that it would not receive without entering into that contract. A portion of transaction price is allocated to the loyalty points awarded to customers based on a stand-alone selling price of points and recognized as deferred revenue (contract liability) in the consolidated statement of financial position. Deferred revenue is recognized as revenue when loyalty points are redeemed, expire or the likelihood of the customer redeeming the points becomes remote. When estimating stand-alone selling price of the loyalty points, the Group considers the likelihood that the customer will redeem the points. v. Other revenue The Group explores new ways of monetization of its website and mobile application traffic and content database and develops new business initiatives, primarily Mortgage Marketplace, Data Analytics Services and Home Swap Services. Mortgage Marketplace revenue comprises commission fees charged to banks for selling their mortgage products to the Group’s websites and mobile application users. Upon sale, the Group charges the banks a fixed rate commission fee based on the mortgage amount (“Marketplace commission”). The Group’s performance obligation with respect to these transactions is to arrange the transaction through its websites or mobile application. Marketplace commission is recognized on a net basis at the point of signing the mortgage agreement between the bank and the individual user. Payment is generally due within 20 to 30 days from providing these services. Data Analytics Services revenue represents fees derived from the Group’s customers for providing access to the Group’s database of real estate content. The access can be provided either in the form of an individual report or on a subscription basis. The cash collected from the sales of subscription is initially recorded as deferred revenue in the consolidated statement of financial position and subsequently recognized as revenue over the subscription period. Revenue from sales of individual reports is recognized at the point of delivery of the report to the customer. Payment is generally due within 20 to 30 days from providing an individual report or a prepayment basis in a case of subscription. Home Swap services revenue is derived from resale of properties. Revenue is recognized at the time of the closing of the property sale when title to and possession of the property are transferred to the buyer. The amount of revenue recognized for each property sale is equal to the full sales price of the property and does not reflect real estate agent commissions, closing or other costs associated with the transaction. |
Operating expenses | d) Operating expenses Operating expenses consist primarily of advertising and marketing costs, employee-related expenses including payroll, IT expenses including hosting, technical support and telecommunication services, depreciation and amortization expenses and other expenses such as office maintenance, consulting and other general corporate expenses. Operating expenses are expensed as incurred. |
Income taxes | e) Income taxes Current income tax Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. Income taxes are computed in accordance with the laws of the Company’s and its subsidiaries’ jurisdictions. Taxable income of the Group’s companies incorporated in Russia and Cyprus is subject to local income tax at rates of 20.0% (N1 Technologies LLC – 3.0%) and 12.5%, respectively. Deferred tax Deferred income taxes are accounted for under the balance sheet method and reflect the tax effect of temporary differences between the tax basis of assets and liabilities and their carrying amounts in the accompanying consolidated financial statements. Deferred tax liabilities are recognized for all taxable temporary differences, except: ● when the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; ● in respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future. Deferred tax assets are recognized for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognized to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except: ● when the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss; ● in respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Deferred tax assets are derecognized when it is no longer probable that sufficient taxable profit will be available against which the deductible temporary differences can be recognized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered. |
Property and equipment | f) Property and equipment Property and equipment are stated at cost less accumulated depreciation and accumulated impairment losses, if any. The cost of an item of property and equipment is recognized as an asset if it is probable that future economic benefits associated with the item will flow to the entity and the cost of the item can be measured reliably. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. Costs of minor repairs and day-to-day maintenance are expensed when incurred. Cost of replacing major parts or components of property and equipment items that extend the useful lives of assets or increase their revenue-generating capacities are capitalized and the replaced part is retired. Depreciation is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Useful lives in years Office equipment 1–5 An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the consolidated statement of profit or loss when the asset is derecognized. Property and equipment are also subject to impairment. Refer to the accounting policies in section (i) Impairment of non-financial assets excluding goodwill. |
Leases | g) Leases Right-of-use assets The Group recognizes right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received. Right-of-use assets are depreciated on a straight-line basis over the lease term as follows: Lease term in years Offices 3 – 4 Right-of use assets are also subject to impairment. Refer to the accounting policies in section (i) Impairment of non-financial assets excluding goodwill. Lease liabilities At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating a lease, if the lease term reflects the Group exercising the option to terminate. The variable lease payments that do not depend on an index or a rate are recognized as expense in the period in which the event or condition that triggers the payment occurs. In calculating the present value of lease payments, the Group uses the incremental borrowing rate at the lease commencement date if the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset. Presentation in the consolidated statement of cash flows The Group classifies cash payments for the principal portion of lease liabilities within financing activities and cash payments for the interest portion of the lease liabilities within operating activities. |
Intangible assets | h) Intangible assets Intangible assets acquired separately are measured upon initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses. Internally generated intangibles, excluding capitalized development costs, are not capitalized and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred. Research costs are expensed as incurred. Development expenditures on an individual project are recognized as an intangible asset when the Group can demonstrate: ● the technical feasibility of completing the intangible asset so that the asset will be available for use or sale; ● its intention to complete and its ability and intention to use or sell the asset; ● how the asset will generate future economic benefits; ● the availability of resources to complete the asset; and ● the ability to measure reliably the expenditure during development. Intangible assets are amortized over their useful economic lives and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period for an intangible asset is reviewed at least at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis. The amortization of intangible assets is recorded in depreciation and amortization within the consolidated statements of profit or loss and other comprehensive income. Amortization is calculated on a straight-line basis over the estimated useful lives of the assets, as follows: Useful lives in years Trademarks 7-9 Customer base 15-18 Computer software 1-3 Video and audio rights 1 Development costs 5 An intangible asset is derecognized upon disposal or when no future economic benefits are expected from its use. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit or loss. |
Impairment of non-financial assets excluding goodwill | i) Impairment of non-financial assets excluding goodwill At each reporting date, the Group reviews the carrying amounts of its property and equipment, right-of-use assets and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss, if any. Where the asset does not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified. Recoverable amount is the higher of fair value less costs of disposal and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted. In determining fair value less costs of disposal, valuation multiples and the Company’s share price are taken into account. If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss. |
Inventories | i) Inventories Inventories are comprised of properties acquired through Home Swap service and are stated at the lower of cost or net realizable value. Properties are removed from inventories based on a specific identification of individual costs when they are resold. These costs comprise the purchase price and state duties. The Group reviews the value of properties held in inventories for indicators that net realizable value is lower than cost at the end of each reporting period. When evidence exists that the net realizable value of inventories is lower than its cost, the difference is recognized in other operating expenses. |
Cash and cash equivalents | j) Cash and cash equivalents Cash and cash equivalents in the consolidated statement of financial position comprise cash at banks and on hand and short-term deposits with a maturity of three months or less, which are subject to an insignificant risk of changes in value. For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above, net of outstanding bank overdrafts. |
Share-based payments | k) Share-based payments Equity-settled transactions The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model. That cost is recognized in employee-related expenses, together with a corresponding increase in equity (equity-settled employee benefits reserves), over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The expense or credit in the statement of profit or loss and other comprehensive income for a period represents the movement in cumulative expense recognized as at the beginning and end of that period. Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Group’s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award unless there are also service and/or performance conditions. No expense is recognized for awards that do not ultimately vest because non-market performance and/or service conditions have not been met. Where awards include a market or non-vesting condition, the transactions are treated as vested irrespective of whether the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied. When the terms of an equity-settled award are modified, the minimum expense recognized is the grant date fair value of the unmodified award, provided the original vesting terms of the award are met. An additional expense, measured as at the date of modification, is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee. Where an award is cancelled by the entity or by the counterparty, any remaining element of the fair value of the award is expensed immediately through profit or loss. Cash-settled transactions Certain senior level employees of the Group have received remuneration in the form of share-based payments (“phantom shares”), which are settled in cash (cash-settled transactions). For cash-settled share-based payments, a liability is recognized initially at the fair value. At each reporting date until the liability is settled, and at the date of settlement, the fair value of the liability is remeasured, with any changes in fair value recognized in employee-related expenses. |
Provisions | l) Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimate. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed. |
Value added tax | m) Value added tax Expenses and assets are recognized net of the amount of value added tax (“VAT”), except when the VAT incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case the VAT is recognized as part of the cost of acquisition of the asset or as part of the expense item. The net amount of the VAT recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the consolidated statement of financial position. |
Loss per share | n) Loss per share Basic and diluted net loss per ordinary share for all periods presented has been determined in accordance with IAS 33 “Earnings per Share”, by dividing income available to ordinary shareholders of the Group by the weighted average number of ordinary shares outstanding during the period. The Group did not have any dilutive instruments as of December 31, 2021 and 2020. As of December 31, 2021 the Group had equity-settled share-based awards (Note 18) that were antidilutive as of reporting date. Should the Group earn any profit in the future, these equity-settled share-based awards will become dilutive and will be considered in the calculation of the diluted earnings per share. |
Segment reporting | o) Segment reporting An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s other components, and for which discrete financial information is available. The Group’s operating results (Note 5) are reviewed regularly by the Group’s Board of Directors (BOD) and Chief Executive Officer (CEO) to make decisions about resources to be allocated to the segment and assess its performance. Segment results are reported to the BOD and CEO and include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. |
Financial instruments | p) Financial instruments Initial recognition and measurement In accordance with IFRS 9, financial assets are classified, at initial recognition, as amortized cost, fair value through other comprehensive income (OCI), and fair value through profit or loss. In accordance with IFRS 9, financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss and financial liabilities at amortized cost, as appropriate. The Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings, net of directly attributable transaction costs. In order for a financial asset to be classified and measured at amortized cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. The Group’s financial assets include cash and cash equivalents, rent security deposits, trade and other receivables. The Group’s financial liabilities include trade and other payables, lease liabilities and borrowings. Fair value of financial instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using another valuation technique. Fair value of traded financial instruments is determined on each reporting date on the basis of market quotations or dealers’ quotations without transaction costs deduction. For the financial instruments which are not traded on the market, fair value is determined with the use of appropriate valuation methods. These methods include use of market transactions data, use of data on the current fair value of other similar financial instruments, analysis of discounted cash flows or other valuation methods. The Group uses the following structure for determination and disclosure of valuation methods of fair value of financial instruments: Level 1 Level 2 Level 3 Subsequent measurement Financial assets and financial liabilities at amortized cost This category is the most relevant to the Group. The Group measures financial assets at amortized cost if both of the following conditions are met: ● the financial asset is held within a business model with the objective to hold financial assets in order to collect contractual cash flows; and ● the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at amortized cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognized in profit or loss when the asset is derecognized, modified or impaired. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included in interest expense in the consolidated statement of profit or loss and other comprehensive income. Derecognition A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognized (i.e., removed from the Group’s consolidated statement of financial position) when: ● the rights to receive cash flows from the asset have expired; or ● the Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and ● either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset. A financial liability is derecognized when the obligation under the liability is discharged or is cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the consolidated statement of profit or loss and other comprehensive income. Impairment of financial assets The Group recognizes an allowance for expected credit losses (ECLs) for all financial assets measured at amortized cost. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive. ECLs are discounted at the effective interest rate of the financial asset in case of long-term assets. Under IFRS 9, ECLs are measured on either of the following bases: ● 12-month ECLs: these are ECLs that result from possible default events within the 12 months after the reporting date; and ● lifetime ECLs: these are ECLs that result from all possible default events over the expected life of a financial instrument. The Group applies a simplified approach in calculating lifetime ECLs for accounts receivable. Therefore, the Group does not track changes in credit risk, but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment. For all other financial assets, the Group recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. However, if the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECL. When determining whether the credit risk of a financial instrument has increased significantly since initial recognition and when estimating ECLs, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Group’s historical experience and informed credit assessment and including forward-looking information. The Group assumes that the credit risk on a financial instrument has not increased significantly since initial recognition if the financial instrument is determined to have low credit risk at the reporting date. A financial instrument is determined to have low credit risk if: ● the financial instrument has a low risk of default – when the counterparty has an external credit rating of ‘investment grade’ in accordance with the globally understood definition (rating BBB- or higher, based on Standard & Poor’s and Fitch ratings); ● the debtor has a strong capacity to meet its contractual cash flow obligations in the near term. The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows. At each reporting date, the Group assesses whether financial assets carried at amortized cost are credit-impaired. A financial asset is credit-impaired when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Allowances for expected credit losses for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. Offsetting of financial instruments Financial assets and financial liabilities are offset and the net amount is reported in the consolidated statement of financial position if there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities simultaneously. |
GENERAL INFORMATION (Tables)
GENERAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
GENERAL INFORMATION | |
Schedule of subsidiaries equity interest | % equity interest Principal activity / Country December 31, December 31, Subsidiary of incorporation 2021 2020 iRealtor LLC Online real estate classifieds (Russia) 100 % 100 % N1.ru LLC Online real estate classifieds (Russia) 100 % — MLSN LLC Online real estate classifieds (Russia) 100 % — N1 Technologies LLC IT services and development (Russia) 100 % — Financial Platform JSC Financial platform operator (Russia) 9 %* — Fastrunner Investment Limited Holding (Cyprus) 100 % 100 % Mimons Investments Limited Holding (Cyprus) 100 % 100 % |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SIGNIFICANT ACCOUNTING POLICIES | |
Schedule of plant and equipment depreciated on straight-line basis over the estimated useful life | Useful lives in years Office equipment 1–5 |
Schedule of right-of-use assets depreciated on straight-line basis over lease term | Lease term in years Offices 3 – 4 |
Schedule of amortization of intangible assets depreciated on straight-line basis over estimated useful lives. | Useful lives in years Trademarks 7-9 Customer base 15-18 Computer software 1-3 Video and audio rights 1 Development costs 5 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
REVENUE FROM CONTRACTS WITH CUSTOMERS. | |
Summary of disaggregation of the Group's revenue from contracts with customers by type and timing of revenue recognition | For the year ended December 31, 2021 At a point in Total time Over time revenue Listing revenue — 3,699 3,699 Lead generation revenue 1,332 — 1,332 Display advertising revenue — 601 601 Other revenue 353 48 401 Total revenue 1,685 4,348 6,033 For the year ended December 31, 2020 At a point in Total time Over time revenue Listing revenue — 2,383 2,383 Lead generation revenue 994 — 994 Display advertising revenue — 456 456 Other revenue 101 38 139 Total revenue 1,095 2,877 3,972 For the year ended December 31, 2019 At a point in Total time Over time revenue Listing revenue — 2,481 2,481 Lead generation revenue 623 — 623 Display advertising revenue — 452 452 Other revenue 30 21 51 Total revenue 653 2,954 3,607 |
Summary of trade receivables and contract liabilities from contracts with customers | December 31, December 31, 2021 2020 Trade receivables (Note 14) 225 145 Contract liabilities (including 37 of loyalty points (2020: 27)) (425) (332) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SEGMENT INFORMATION | |
Summary of reportable and other segments and reconciliation to Loss before income tax | For the year ended December 31, 2021 Valuation Core Mortgage and End-to-End Business Marketplace Analytics C2C Rental Offerings Total Revenue, including: 5,641 295 45 3 49 6,033 Listing revenue 3,699 — — — — 3,699 Lead generation revenue 1,329 3 — — — 1,332 Display advertising revenue 596 5 — — — 601 Other revenue 17 287 45 3 49 401 Adjusted EBITDA 1,139 (482) (72) (148) (224) 213 Reconciliation of Adjusted EBITDA to Loss before income tax Adjusted EBITDA 213 Depreciation and amortization (279) Finance expenses, net (42) Foreign currency exchange gain, net 53 IPO-related costs (304) Income from the depositary 6 Reclassification of lease related amortization and interest 60 Reclassification of operating expense related to software licenses to amortization 45 Share-based payments (2,549) Loss before income tax (2,797) For the year ended December 31, 2020 Valuation Core Mortgage and Business Marketplace Analytics C2C Rental Total Revenue, including: 3,822 110 39 1 3,972 Listing revenue 2,383 — — — 2,383 Lead generation revenue 991 3 — — 994 Display advertising revenue 439 17 — — 456 Other revenue 9 90 39 1 139 Adjusted EBITDA 532 (254) (119) (126) 33 Reconciliation of Adjusted EBITDA to Loss before income tax Adjusted EBITDA 33 Depreciation and amortization (200) Finance expenses, net (61) Foreign currency exchange loss, net (1) Capitalized development costs 43 Reclassification of lease related amortization and interest 74 Reclassification of operating expense related to software licenses to amortization 31 Share-based payments (558) Loss before income tax (639) For the year ended December 31, 2019 Valuation Core Mortgage and Business Marketplace Analytics C2C Rental Total Revenue, including: 3,555 34 18 — 3,607 Listing revenue 2,481 — — — 2,481 Lead generation revenue 622 1 — — 623 Display advertising revenue 440 12 — — 452 Other revenue 12 21 18 — 51 Adjusted EBITDA (193) (153) (81) (65) (492) Reconciliation of Adjusted EBITDA to Loss before income tax Adjusted EBITDA (492) Depreciation and amortization (169) Finance expenses, net (31) Foreign currency exchange loss, net (3) Capitalized development costs 22 Reclassification of lease related amortization and interest 71 Reclassification of operating expense related to software licenses to amortization 23 Share-based payments (67) Goodwill impairment (256) Loss before income tax (902) |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BUSINESS COMBINATION | |
Schedule of purchase price, fair values assigned to the assets acquired and liabilities assumed | The purchase price has been allocated based on the fair values assigned to the assets acquired and liabilities assumed as of February 5, 2021, as follows: February 5, 2021 Assets Customer base 753 Trademarks 254 Other intangible assets 39 Right-of-use assets 18 Property and equipment 7 Cash and cash equivalents 134 Other assets 49 Total assets 1,254 Liabilities Contract liabilities (21) Trade and other payables (51) Lease liabilities (18) Deferred tax liabilities (130) Other liabilities (34) Total liabilities (254) Total identifiable net assets at fair value 1,000 Goodwill arising from the acquisition 785 Purchase consideration transferred 1,785 Analysis of cash flows from the acquisition: Net cash acquired with the subsidiary (included in cash flows from investing activities) 134 Cash paid (1,785) Net cash flow from the acquisition (1,651) |
MARKETING EXPENSES (Tables)
MARKETING EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
MARKETING EXPENSES | |
Summary of marketing expenses | 2021 2020 2019 Online marketing (1,631) (1,498) (1,134) Offline marketing (556) (139) (959) Other marketing expenses (66) (60) (66) Total marketing expenses (2,253) (1,697) (2,159) |
EMPLOYEE-RELATED EXPENSES (Tabl
EMPLOYEE-RELATED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
EMPLOYEE-RELATED EXPENSES | |
Summary of employee-related expenses | 2021 2020 2019 Wages, salaries and related taxes (2,394) (1,610) (1,246) Share-based payment expense (Note 18) (2,549) (558) (67) Other employee-related expenses (119) (40) (72) Total employee-related expenses (5,062) (2,208) (1,385) |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INCOME TAX | |
Summary of major components of income tax benefit | 2021 2020 2019 Current income tax expense (71) (18) — Adjustments in respect of current income tax of previous years — (1) — Deferred tax benefit 11 31 96 Income tax (expense) / benefit (60) 12 96 |
Summary of reconciliation of theoretical income tax based on the Russian statutory income tax rate | 2021 2020 2019 Loss before income tax (2,797) (639) (902) Income tax benefit calculated at Russia’s statutory income tax rate 559 128 180 Goodwill impairment — — (51) Effect of a lower tax rate in a subsidiary (4) — — Adjustments in respect of current income tax of previous years — (1) — Share-based payments (510) (112) (13) Other non-deductible expenses (105) (3) (20) Income tax (expense) / benefit for the year (60) 12 96 |
Summary of deferred tax assets and liabilities | Consolidated statement of financial position Consolidated statement of as of December 31, profit or loss 2021 2020 2021 2020 Deferred tax assets arising from: Tax losses carried forward 113 149 (36) (17) Revenue recognition 71 59 12 27 Lease liabilities 17 23 (6) 3 Employee benefits 24 24 — 5 Intangible assets 23 15 8 13 Trade receivables 2 1 1 — Total deferred tax assets before set-off 250 271 (21) 31 Set-off of tax (24) (34) — — Net deferred tax assets 226 237 — — Deferred tax liabilities arising from: Intangible assets (138) (33) 24 3 Right-of-use assets (18) (25) 7 (3) Property and equipment (2) (2) — 1 Other items (1) (2) 1 (1) Total deferred tax liabilities before set-off (159) (62) 32 — Set-off of tax 24 34 — — Net deferred tax liabilities (135) (28) — — Net deferred tax asset 91 209 — — Deferred tax benefit — — 11 31 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
LEASES | |
Summary of movements during the period for right-of-use assets and lease liabilities | Right-of-use Lease assets liabilities As of January 1, 2020 111 (100) Additions — — Remeasurement / modification 81 (80) Depreciation expense (67) — Interest expense — (7) Payments — 74 As of December 31, 2020 125 (113) Additions — — Acquisition of a subsidiary (Note 6) 18 (18) Depreciation expense (45) — Interest expense — (9) Set-off — 2 Payments — 47 As of December 31, 2021 98 (91) |
INTANGIBLE ASSETS AND GOODWILL
INTANGIBLE ASSETS AND GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
INTANGIBLE ASSETS AND GOODWILL. | |
Summary of intangible assets | Customer Computer Video/ Development Trademarks base software audio rights costs Goodwill Total Cost At January 1, 2020 76 186 74 104 26 — 466 Additions — — 37 14 43 — 94 Disposals — — — — — — — At December 31, 2020 76 186 111 118 69 — 560 At January 1, 2021 76 186 111 118 69 — 560 Additions — — 51 38 — — 89 Acquisition of a subsidiary (Note 6) 254 753 39 — — 785 1,831 Disposals — — — (109) — — (109) At December 31, 2021 330 939 201 47 69 785 2,371 Amortization and impairment At January 1, 2020 (39) (53) (50) (51) (1) — (194) Amortization charge (18) (10) (31) (47) (3) — (109) Disposals — — — — — — — At December 31, 2020 (57) (63) (81) (98) (4) — (303) At January 1, 2021 (57) (63) (81) (98) (4) — (303) Amortization charge (44) (56) (52) (32) (11) — (195) Disposals — — — 109 — — 109 At December 31, 2021 (101) (119) (133) (21) (15) — (389) Carrying amounts At December 31, 2020 19 123 30 20 65 — 257 At December 31, 2021 229 820 68 26 54 785 1,982 |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
TRADE AND OTHER RECEIVABLES. | |
Summary of trade and other receivables | December 31, December 31, 2021 2020 Trade receivables from third parties 233 151 Other receivables from third parties 183 9 Allowance for expected credit losses (8) (6) Total trade and other receivables 408 154 |
Summary of movement in the allowance for expected credit losses of accounts receivable | 2021 2020 Balance at the beginning of the year (6) (6) Allowance for expected credit losses (2) — Balance at the end of the year (8) (6) |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
CASH AND CASH EQUIVALENTS. | |
Summary of cash and cash equivalents | December 31, December 31, 2021 2020 Cash at banks and on hand 1,998 43 Short-term deposits 435 406 Allowance for expected credit losses (14) — Total cash and cash equivalents 2,419 449 |
SHARE CAPITAL (Tables)
SHARE CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHARE CAPITAL. | |
Summary of share capital | Authorized Issued and fully paid December 31, December 31, December 31, December 31, Number of shares 2021 2020 2021 2020 Ordinary shares of EUR 0.0004 each 130,000,000 66,366,961 69,871,511 59,433,100 130,000,000 66,366,961 69,871,511 59,433,100 Number of Share Share ordinary shares capital premium At January 1, 2020 59,433,100 — 125 At December 31, 2020 59,433,100 — 125 Issue of shares in the private placement 5,566,900 — 2,291 Issue of shares in the IPO 4,042,400 — 4,624 Issue of shares under the phantom share program (Note 18) 829,111 — 966 Effect arising from the share split — 2 — Transaction costs — — (392) At December 31, 2021 69,871,511 2 7,614 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
BORROWINGS. | |
Summary of borrowings | Amount, incl. accrued interest December 31, December 31, Interest rate Currency Maturity 2021 2020 Bank loan CBR key rate+3.35 % RUB 2021-2022 — 429 Bank loan CBR key rate+3.8 % RUB 2021-2024 — 299 Total — 728 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
SHARE-BASED COMPENSATION | |
Summary of movements in the Group's share-based payment liabilities | 2021 2020 Share-based payment liabilities at the beginning of the year 636 78 New awards granted 512 — Remeasurement during the year 1,927 558 Cash payments to employees (2,169) — Conversion from cash-settled to equity-settled share-based payments (948) — Foreign currency exchange loss 42 — Share-based payment liabilities at the end of the year — 636 |
Schedule of movements in the number of RSUs | Weighted average grant date fair Number of value per award, RSUs RUB Outstanding at the beginning of the period — — Granted during the period 1,427,226 932 Forfeited during the period — — Exercised during the period — — Outstanding at the end of the period 1,427,226 932 Exercisable at the end of the period 105,215 1,043 |
Schedule of inputs to the model used for 2021 Plan | 2021 Plan (Directors' RSUs) Fair value of the RSUs at the grant date, USD 14.89 Share price at the grant date, USD 17.62 Exercise price, USD Nil Expected annual volatility, % 50.9 % Expected term, years 2.38 Dividend yield, % Nil |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
TRADE AND OTHER PAYABLES | |
Summary of trade and other payables | December 31, December 31, 2021 2020 Trade payables 249 196 Annual bonus provision 119 66 Unused vacation provision 60 53 Other employee benefits 13 — Other payables 178 1 Trade and other payables 619 316 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
RELATED PARTIES | |
Summary of remuneration of key management personnel | 2021 2020 2019 Short-term employee benefits (46) (38) (37) Share-based payment expense (1,573) (313) (47) Total key management remuneration (1,619) (351) (84) |
Summary of total amount of transactions that have been entered into with other related parties for the relevant financial year and outstanding balances | Purchases Amounts Amounts Sales from owed owed to related related by related to related parties parties parties parties Associate of Elbrus Capital 2021 — 4 — — Associate of Elbrus Capital 2020 — 3 — — Associate of Elbrus Capital 2019 — 4 — — |
FINANCIAL RISK MANAGEMENT (Tabl
FINANCIAL RISK MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
FINANCIAL RISK MANAGEMENT | |
Summary of carrying amounts of financial assets and financial liabilities | December 31, December 31, 2021 2020 Financial assets measured at amortized cost Cash and cash equivalents (Note 15) 2,419 449 Trade and other receivables (Note 14) 408 154 Rent security deposits 3 9 Total financial assets 2,830 612 Financial liabilities measured at amortized cost Trade and other payables (Note 19) 427 197 Lease liabilities (Note 11) 91 113 Borrowings (Note 17) — 728 Total financial liabilities 518 1,038 |
Schedule of foreign currency risk, impact of fluctuation in US dollar and EURO exchange rates in profit before tax | Change in US dollar, EURO Effect on profit exchange rates before tax Year ended December 31, 2021 Cash and cash equivalents +100%/-100 % 1,600 / (1,600) Trade and other receivables +100%/-100 % 172 / (172) Trade and other payables +100%/-100 % (230) / 230 Year ended December 31, 2020 Cash and cash equivalents +10%/-10 % — Trade and other receivables +10%/-10 % — Trade and other payables +10%/-10 % (2) / 2 |
Summary of credit risk exposure on the Group's trade receivables using a provision matrix | < 30 days 31–60 days 61–90 days > 90 days Total 2021 Expected credit loss rate 0.8 % 4.3 % 8.4 % 72.9 % Total gross carrying amount 216 8 1 8 233 Expected credit loss 2 — — 6 8 < 30 days 31–60 days 61–90 days > 90 days Total 2020 Expected credit loss rate 1.1 % 5.7 % 7.6 % 69.4 % Total gross carrying amount 128 17 — 6 151 Expected credit loss 1 1 — 4 6 |
Summary of maturity profile of the Group's financial liabilities based on contractual undiscounted payments | Within 1 year 1 to 3 years 3 to 5 years > 5 years Total 2021 Trade and other payables 427 — — — 427 Lease liabilities 50 50 — — 100 Total financial liabilities 477 50 — — 527 Within 1 year 1 to 3 years 3 to 5 years > 5 years Total 2020 Trade and other payables 197 — — — 197 Borrowings 416 340 44 — 800 Lease liabilities 43 76 8 — 127 Total financial liabilities 656 416 52 — 1,124 |
Summary of changes in the Group's liabilities arising from financing activities, including both cash and non-cash changes | January 1, Financing Leases December 31, 2021 cash flows (non-cash) Other 2021 Borrowings 728 (728) — — — Lease liabilities 113 (38) 18 (2) 91 841 (766) 18 (2) 91 January 1, Financing Leases December 31, 2020 cash flows (non-cash) Other 2020 Borrowings 477 249 — 2 728 Lease liabilities 100 (67) 80 — 113 577 182 80 2 841 |
GENERAL INFORMATION (Details)
GENERAL INFORMATION (Details) - shares | Nov. 09, 2021 | Nov. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
GENERAL INFORMATION | ||||
Number of American Depositary Shares issued | 4,042,400 | 4,042,400 | 4,042,400 | |
Number of ordinary shares representing American Depositary Shares | 1 | |||
iRealtor LLC | ||||
GENERAL INFORMATION | ||||
Percentage of ownership interest | 100.00% | 100.00% | ||
Fastrunner Investment Limited | ||||
GENERAL INFORMATION | ||||
Percentage of ownership interest | 100.00% | 100.00% | ||
Mimons Investments Limited | ||||
GENERAL INFORMATION | ||||
Percentage of ownership interest | 100.00% | 100.00% | ||
Elbrus Capital | ||||
GENERAL INFORMATION | ||||
Percentage of ownership interest | 45.10% | |||
N1.ru LLC | ||||
GENERAL INFORMATION | ||||
Percentage of ownership interest | 100.00% | |||
MLSN LLC | ||||
GENERAL INFORMATION | ||||
Percentage of ownership interest | 100.00% | |||
N1 Technologies LLC | ||||
GENERAL INFORMATION | ||||
Percentage of ownership interest | 100.00% | |||
Financial Platform JSC | ||||
GENERAL INFORMATION | ||||
Percentage of ownership interest | 9.00% |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Revenue from contracts with customers (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Listing revenue | |
Disclosure of initial application of standards or interpretations [line items] | |
Average time period between the payment and delivery of service | 30 days |
Minimum | Lead generation revenue | |
Disclosure of initial application of standards or interpretations [line items] | |
Payment period (in days) | 20 days |
Minimum | Display advertising revenue | |
Disclosure of initial application of standards or interpretations [line items] | |
Payment period (in days) | 20 days |
Minimum | Mortgage Marketplace | |
Disclosure of initial application of standards or interpretations [line items] | |
Payment period (in days) | 20 days |
Minimum | Data Analytics Services | |
Disclosure of initial application of standards or interpretations [line items] | |
Payment period (in days) | 20 days |
Maximum | Lead generation revenue | |
Disclosure of initial application of standards or interpretations [line items] | |
Payment period (in days) | 30 days |
Maximum | Display advertising revenue | |
Disclosure of initial application of standards or interpretations [line items] | |
Payment period (in days) | 30 days |
Maximum | Mortgage Marketplace | |
Disclosure of initial application of standards or interpretations [line items] | |
Payment period (in days) | 30 days |
Maximum | Data Analytics Services | |
Disclosure of initial application of standards or interpretations [line items] | |
Payment period (in days) | 30 days |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Income taxes (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of Income Taxes [Line Items] | |||
Income tax rates | 20.00% | 20.00% | 20.00% |
Russia | |||
Disclosure of Income Taxes [Line Items] | |||
Income tax rates | 20.00% | ||
Cyprus | |||
Disclosure of Income Taxes [Line Items] | |||
Income tax rates | 12.50% | ||
N1 Technologies LLC | |||
Disclosure of Income Taxes [Line Items] | |||
Income tax rates | 3.00% |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Estimated useful lives (Details) - Office equipment [member] | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives in years | 1 year |
Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives in years | 5 years |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES - Right-of-use assets (Details) - Right-of-use assets | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Lease term in years | 3 years |
Maximum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Lease term in years | 4 years |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES - Estimated useful lives of the assets (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Trademarks | Minimum | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives in years | 7 years |
Trademarks | Maximum | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives in years | 9 years |
Customer base | Minimum | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives in years | 15 years |
Customer base | Maximum | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives in years | 18 years |
Computer software | Minimum | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives in years | 1 year |
Computer software | Maximum | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives in years | 3 years |
Video and audio rights | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives in years | 1 year |
Development costs | Minimum | |
Disclosure of detailed information about intangible assets [line items] | |
Useful lives in years | 5 years |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES - Impairment (Details) ₽ in Millions | 12 Months Ended |
Dec. 31, 2021RUB (₽) | |
SIGNIFICANT ACCOUNTING POLICIES | |
Impairment loss | ₽ 0 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS - Disaggregated revenue information (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | ₽ 6,033 | ₽ 3,972 | ₽ 3,607 |
At a point in time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 1,685 | 1,095 | 653 |
Over time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 4,348 | 2,877 | 2,954 |
Listing revenue | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 3,699 | 2,383 | 2,481 |
Listing revenue | Over time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 3,699 | 2,383 | 2,481 |
Lead generation revenue | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 1,332 | 994 | 623 |
Lead generation revenue | At a point in time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 1,332 | 994 | 623 |
Display advertising revenue | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 601 | 456 | 452 |
Display advertising revenue | Over time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 601 | 456 | 452 |
Other revenue | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 401 | 139 | 51 |
Other revenue | At a point in time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | 353 | 101 | 30 |
Other revenue | Over time | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue from contracts with customers | ₽ 48 | ₽ 38 | ₽ 21 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS - Contract balances (Details) ₽ in Millions | Dec. 31, 2021RUB (₽)Point | Dec. 31, 2020RUB (₽)Point |
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Trade receivables | ₽ 225 | ₽ 145 |
Contract liabilities (including 37 of loyalty points (2020: 27)) | ₽ (425) | ₽ (332) |
Loyalty program | ||
Disclosure of disaggregation of revenue from contracts with customers [line items] | ||
Loyalty points included in contract liabilities | Point | (37) | (27) |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of operating segments [line items] | |||
Revenue | ₽ 6,033 | ₽ 3,972 | ₽ 3,607 |
Adjusted EBITDA | 213 | 33 | (492) |
Reconciliation of Adjusted EBITDA to Loss before income tax | |||
Adjusted EBITDA | 213 | 33 | (492) |
Depreciation and amortization | (279) | (200) | (169) |
Finance expenses, net | (42) | (61) | (31) |
Foreign currency exchange gain / (loss), net | 53 | (1) | (3) |
IPO-related costs | (304) | ||
Income from the depositary | 6 | ||
Capitalized development costs | 0 | 43 | 22 |
Reclassification of lease related amortization and interest | 60 | 74 | 71 |
Reclassification of operating expense related to software licenses to amortization | 45 | 31 | 23 |
Share-based payments | (2,549) | (558) | (67) |
Goodwill impairment | (256) | ||
Loss before income tax | (2,797) | (639) | (902) |
Listing revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 3,699 | 2,383 | 2,481 |
Lead generation revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,332 | 994 | 623 |
Display advertising revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 601 | 456 | 452 |
Other revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 401 | 139 | 51 |
Core Business | |||
Disclosure of operating segments [line items] | |||
Revenue | 5,641 | 3,822 | 3,555 |
Adjusted EBITDA | 1,139 | 532 | (193) |
Reconciliation of Adjusted EBITDA to Loss before income tax | |||
Adjusted EBITDA | 1,139 | 532 | (193) |
Core Business | Listing revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 3,699 | 2,383 | 2,481 |
Core Business | Lead generation revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 1,329 | 991 | 622 |
Core Business | Display advertising revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 596 | 439 | 440 |
Core Business | Other revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 17 | 9 | 12 |
Mortgage Marketplace | |||
Disclosure of operating segments [line items] | |||
Revenue | 295 | 110 | 34 |
Adjusted EBITDA | (482) | (254) | (153) |
Reconciliation of Adjusted EBITDA to Loss before income tax | |||
Adjusted EBITDA | (482) | (254) | (153) |
Mortgage Marketplace | Lead generation revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 3 | 3 | 1 |
Mortgage Marketplace | Display advertising revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 5 | 17 | 12 |
Mortgage Marketplace | Other revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 287 | 90 | 21 |
Valuation and Analytics | |||
Disclosure of operating segments [line items] | |||
Revenue | 45 | 39 | 18 |
Adjusted EBITDA | (72) | (119) | (81) |
Reconciliation of Adjusted EBITDA to Loss before income tax | |||
Adjusted EBITDA | (72) | (119) | (81) |
Valuation and Analytics | Other revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 45 | 39 | 18 |
C2C Rental | |||
Disclosure of operating segments [line items] | |||
Revenue | 3 | 1 | |
Adjusted EBITDA | (148) | (126) | (65) |
Reconciliation of Adjusted EBITDA to Loss before income tax | |||
Adjusted EBITDA | (148) | (126) | ₽ (65) |
C2C Rental | Other revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | 3 | ₽ 1 | |
End-to-End Offerings | |||
Disclosure of operating segments [line items] | |||
Revenue | 49 | ||
Adjusted EBITDA | (224) | ||
Reconciliation of Adjusted EBITDA to Loss before income tax | |||
Adjusted EBITDA | (224) | ||
End-to-End Offerings | Other revenue | |||
Disclosure of operating segments [line items] | |||
Revenue | ₽ 49 |
BUSINESS COMBINATION (Details)
BUSINESS COMBINATION (Details) - RUB (₽) ₽ in Millions | Feb. 05, 2021 | Dec. 31, 2021 | Dec. 27, 2021 |
N1.ru LLC | |||
Disclosure of detailed information about business combinations and planned business combinations | |||
Percentage of interest acquired | 100.00% | ||
Total cash consideration | ₽ 1,785 | ||
Fair value of trade receivables | 5 | ||
Gross contractual amounts receivable | 17 | ||
Gross contractual amounts receivable, expected to be uncollectable | 12 | ||
Consolidated revenue if the acquisition had taken place | ₽ 6,066 | ||
Consolidated loss if the acquisition had taken place | ₽ 2,892 | ||
Acquisition-related costs incurred | ₽ 16 | ||
Praktika Uspekha LLC | |||
Disclosure of detailed information about business combinations and planned business combinations | |||
Percentage of voting equity interests to be acquired | 100.00% |
BUSINESS COMBINATION - Purchase
BUSINESS COMBINATION - Purchase price, fair values assigned to the assets acquired and liabilities assumed (Details) - RUB (₽) ₽ in Millions | Feb. 05, 2021 | Dec. 31, 2021 |
Analysis of cash flows from the acquisition: | ||
Acquisition of a subsidiary, net of cash acquired | ₽ (1,651) | |
N1.ru LLC | ||
Assets | ||
Customer base | ₽ 753 | |
Trademarks | 254 | |
Other intangible assets | 39 | |
Right-of-use assets | 18 | |
Property and equipment | 7 | |
Cash and cash equivalents | 134 | |
Other assets | 49 | |
Total assets | 1,254 | |
Liabilities | ||
Contract liabilities | (21) | |
Trade and other payables | (51) | |
Lease liabilities | (18) | |
Deferred tax liabilities | (130) | |
Other liabilities | (34) | |
Total liabilities | (254) | |
Total identifiable net assets at fair value | 1,000 | |
Goodwill arising from the acquisition | 785 | |
Purchase consideration transferred | 1,785 | |
Analysis of cash flows from the acquisition: | ||
Net cash acquired with the subsidiary (included in cash flows from investing activities) | 134 | |
Cash paid | (1,785) | |
Acquisition of a subsidiary, net of cash acquired | ₽ (1,651) |
MARKETING EXPENSES (Details)
MARKETING EXPENSES (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
MARKETING EXPENSES | |||
Online marketing | ₽ (1,631) | ₽ (1,498) | ₽ (1,134) |
Offline marketing | (556) | (139) | (959) |
Other marketing expenses | (66) | (60) | (66) |
Total marketing expenses | ₽ (2,253) | ₽ (1,697) | ₽ (2,159) |
EMPLOYEE-RELATED EXPENSES (Deta
EMPLOYEE-RELATED EXPENSES (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
EMPLOYEE-RELATED EXPENSES | |||
Wages, salaries and related taxes | ₽ (2,394) | ₽ (1,610) | ₽ (1,246) |
Share-based payment expense (Note 18) | (2,549) | (558) | (67) |
Other employee-related expenses | (119) | (40) | (72) |
Total employee-related expenses | ₽ (5,062) | ₽ (2,208) | ₽ (1,385) |
GOODWILL IMPAIRMENT (Details)
GOODWILL IMPAIRMENT (Details) ₽ in Millions | 12 Months Ended |
Dec. 31, 2014RUB (₽) | |
GOODWILL IMPAIRMENT | |
Additional recognition, goodwill | ₽ 256 |
INCOME TAX (Details)
INCOME TAX (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Major components of tax expense (income) | |||
Current income tax expense | ₽ (71) | ₽ (18) | |
Adjustments in respect of current income tax of previous years | (1) | ||
Deferred tax benefit | 11 | 31 | ₽ 96 |
Income tax (expense) / benefit | ₽ (60) | ₽ 12 | ₽ 96 |
INCOME TAX - Reconciliation of
INCOME TAX - Reconciliation of Theoretical Income Tax (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of theoretical income tax based on the Russian statutory income tax rate | |||
Statutory income tax rate | 20.00% | 20.00% | 20.00% |
Loss before income tax | ₽ (2,797) | ₽ (639) | ₽ (902) |
Income tax benefit calculated at Russia's statutory income tax rate | 559 | 128 | 180 |
Goodwill impairment | (51) | ||
Effect of a lower tax rate in a subsidiary | (4) | ||
Adjustments in respect of current income tax of previous years | (1) | ||
Share-based payments | (510) | (112) | (13) |
Other non-deductible expenses | (105) | (3) | (20) |
Income tax (expense) / benefit for the year | ₽ 60 | ₽ (12) | ₽ (96) |
INCOME TAX - Summary Of Deferre
INCOME TAX - Summary Of Deferred Tax Assets and Liabilities (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of deferred tax assets and liabilities | |||
Total deferred tax assets before set-off | ₽ 250 | ₽ 271 | |
Set-off of tax | (24) | (34) | |
Net deferred tax assets | 226 | 237 | |
Total deferred tax liabilities before set-off | (159) | (62) | |
Set-off of tax | 24 | 34 | |
Net deferred tax liabilities | (135) | (28) | |
Net deferred tax asset | 91 | 209 | |
Deferred tax benefit | (21) | 31 | |
Deferred tax expense | 32 | ||
Deferred tax benefit | 11 | 31 | ₽ 96 |
Tax losses carried forward | |||
Disclosure of deferred tax assets and liabilities | |||
Total deferred tax assets before set-off | 113 | 149 | |
Deferred tax benefit | (36) | (17) | |
Revenue recognition | |||
Disclosure of deferred tax assets and liabilities | |||
Total deferred tax assets before set-off | 71 | 59 | |
Deferred tax benefit | 12 | 27 | |
Lease liabilities. | |||
Disclosure of deferred tax assets and liabilities | |||
Total deferred tax assets before set-off | 17 | 23 | |
Deferred tax benefit | (6) | 3 | |
Employee benefits | |||
Disclosure of deferred tax assets and liabilities | |||
Total deferred tax assets before set-off | 24 | 24 | |
Deferred tax benefit | 5 | ||
Intangible assets | |||
Disclosure of deferred tax assets and liabilities | |||
Total deferred tax assets before set-off | 23 | 15 | |
Total deferred tax liabilities before set-off | (138) | (33) | |
Deferred tax benefit | 8 | 13 | |
Deferred tax expense | 24 | 3 | |
Trade receivables | |||
Disclosure of deferred tax assets and liabilities | |||
Total deferred tax assets before set-off | 2 | 1 | |
Deferred tax benefit | 1 | ||
Right-of-use assets | |||
Disclosure of deferred tax assets and liabilities | |||
Total deferred tax liabilities before set-off | (18) | (25) | |
Deferred tax expense | 7 | (3) | |
Property and equipment | |||
Disclosure of deferred tax assets and liabilities | |||
Total deferred tax liabilities before set-off | (2) | (2) | |
Deferred tax expense | 1 | ||
Other items | |||
Disclosure of deferred tax assets and liabilities | |||
Total deferred tax liabilities before set-off | (1) | (2) | |
Deferred tax expense | ₽ 1 | ₽ (1) |
INCOME TAX - Additional Informa
INCOME TAX - Additional Information (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
INCOME TAX | ||
Accumulated tax losses | ₽ 565 | ₽ 745 |
Actual offset from balance of accumulated losses against taxable profit | ₽ 180 |
LEASES (Details)
LEASES (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Right-of-use assets | ||
Balance at the beginning | ₽ 125 | ₽ 111 |
Remeasurement / modification | 81 | |
Acquisition of a subsidiary (Note 6) | 18 | |
Depreciation expense | (45) | (67) |
Balance at the end | 98 | 125 |
Lease liabilities | ||
Balance at the beginning | (113) | (100) |
Remeasurement / modification | (80) | |
Acquisition of a Subsidiary To Lease Liabilities | (18) | |
Interest expense | (9) | (7) |
Set-off | 2 | |
Payments | 47 | 74 |
Balance at the end | ₽ (91) | ₽ (113) |
INTANGIBLE ASSETS AND GOODWIL_2
INTANGIBLE ASSETS AND GOODWILL (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | ₽ 257 | |
Balance at the end | 1,982 | ₽ 257 |
Cost | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | 560 | 466 |
Additions | 89 | 94 |
Acquisition of a subsidiary | 1,831 | |
Disposals | (109) | |
Balance at the end | 2,371 | 560 |
Accumulated depreciation, amortisation and impairment | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | (303) | (194) |
Amortization charge | (195) | (109) |
Disposals | 109 | |
Balance at the end | (389) | (303) |
Trademarks. | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | 19 | |
Balance at the end | 229 | 19 |
Trademarks. | Cost | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | 76 | 76 |
Acquisition of a subsidiary | 254 | |
Balance at the end | 330 | 76 |
Trademarks. | Accumulated depreciation, amortisation and impairment | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | (57) | (39) |
Amortization charge | (44) | (18) |
Balance at the end | (101) | (57) |
Customer base | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | 123 | |
Balance at the end | 820 | 123 |
Customer base | Cost | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | 186 | 186 |
Acquisition of a subsidiary | 753 | |
Balance at the end | 939 | 186 |
Customer base | Accumulated depreciation, amortisation and impairment | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | (63) | (53) |
Amortization charge | (56) | (10) |
Balance at the end | (119) | (63) |
Computer software | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | 30 | |
Balance at the end | 68 | 30 |
Computer software | Cost | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | 111 | 74 |
Additions | 51 | 37 |
Acquisition of a subsidiary | 39 | |
Balance at the end | 201 | 111 |
Computer software | Accumulated depreciation, amortisation and impairment | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | (81) | (50) |
Amortization charge | (52) | (31) |
Balance at the end | (133) | (81) |
Video/ audio rights | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | 20 | |
Balance at the end | 26 | 20 |
Video/ audio rights | Cost | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | 118 | 104 |
Additions | 38 | 14 |
Disposals | (109) | |
Balance at the end | 47 | 118 |
Video/ audio rights | Accumulated depreciation, amortisation and impairment | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | (98) | (51) |
Amortization charge | (32) | (47) |
Disposals | 109 | |
Balance at the end | (21) | (98) |
Development costs. | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | 65 | |
Balance at the end | 54 | 65 |
Development costs. | Cost | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | 69 | 26 |
Additions | 43 | |
Balance at the end | 69 | 69 |
Development costs. | Accumulated depreciation, amortisation and impairment | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the beginning | (4) | (1) |
Amortization charge | (11) | (3) |
Balance at the end | (15) | ₽ (4) |
Goodwill. | ||
Reconciliation of changes in intangible assets and goodwill | ||
Balance at the end | 785 | |
Goodwill. | Cost | ||
Reconciliation of changes in intangible assets and goodwill | ||
Acquisition of a subsidiary | 785 | |
Balance at the end | ₽ 785 |
INVENTORIES - Additional Inform
INVENTORIES - Additional Information (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
INVENTORIES | ||
Amount of inventories purchased for Home Swap service | ₽ 141 | |
Inventories recognized as expense | ₽ 33 | ₽ 0 |
TRADE AND OTHER RECEIVABLES - S
TRADE AND OTHER RECEIVABLES - Summary of trade and other receivables (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
TRADE AND OTHER RECEIVABLES. | |||
Trade receivables from third parties | ₽ 233 | ₽ 151 | |
Other receivables from third parties | 183 | 9 | |
Allowance for expected credit losses | (8) | (6) | ₽ (6) |
Total trade and other receivables | ₽ 408 | ₽ 154 |
TRADE AND OTHER RECEIVABLES (De
TRADE AND OTHER RECEIVABLES (Details) - Trade receivables | 12 Months Ended |
Dec. 31, 2021 | |
Minimum | |
Disclosure of financial assets [line items] | |
Term of trade and other receivables | 20 days |
Maximum | |
Disclosure of financial assets [line items] | |
Term of trade and other receivables | 30 days |
TRADE AND OTHER RECEIVABLES - M
TRADE AND OTHER RECEIVABLES - Movement in the allowance for expected credit losses of accounts receivable (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in the allowance for expected credit losses of accounts receivable | ||
Balance at the beginning of the year | ₽ (6) | ₽ (6) |
Allowance for expected credit losses | (2) | |
Balance at the end of the year | ₽ (8) | ₽ (6) |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - RUB (₽) ₽ in Millions | Mar. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
CASH AND CASH EQUIVALENTS. | |||||
Cash at banks and on hand | ₽ 1,998 | ₽ 43 | |||
Short-term deposits | 435 | 406 | |||
Allowance for expected credit losses | (14) | ||||
Total cash and cash equivalents | ₽ 2,800 | ₽ 2,419 | ₽ 449 | ₽ 148 | ₽ 103 |
SHARE CAPITAL - Number of share
SHARE CAPITAL - Number of shares (Details) ₽ in Millions | Nov. 09, 2021shares | Nov. 30, 2021shares | Feb. 28, 2021shares | Dec. 31, 2021RUB (₽)shares | Dec. 31, 2021€ / sharesshares | Aug. 31, 2021€ / sharesshares | Dec. 31, 2020shares |
Number of ordinary shares authorized | shares | 130,000,000 | 66,366,961 | |||||
Number of ordinary shares issued and fully paid | shares | 69,871,511 | 56,797,500 | 59,433,100 | ||||
Par value of shares | € / shares | € 0.0004 | € 0.0004 | |||||
Changes in equity | |||||||
Balance at beginning (in shares) | shares | 59,433,100 | ||||||
Balance at beginning | ₽ (872) | ||||||
Issue of shares in the private placement (in shares) | shares | 5,566,900 | 5,566,900 | |||||
Issue of shares in the IPO (in shares) | shares | 4,042,400 | 4,042,400 | 4,042,400 | ||||
Issue of shares under the phantom share program (in shares) | shares | 829,111 | ||||||
Effect arising from the share split | ₽ 2 | ||||||
Balance at ending (in shares) | shares | 69,871,511 | ||||||
Balance at ending | ₽ 3,872 | ||||||
Share capital | |||||||
Changes in equity | |||||||
Balance at beginning | 0 | ||||||
Effect arising from the share split | 2 | ||||||
Balance at ending | 2 | ||||||
Share premium | |||||||
Changes in equity | |||||||
Balance at beginning | 125 | ||||||
Issue of shares in the private placement | 2,291 | ||||||
Issue of shares in the IPO | 4,624 | ||||||
Issue of shares under the phantom share program | 966 | ||||||
Transaction costs | (392) | ||||||
Balance at ending | ₽ 7,614 |
SHARE CAPITAL - Additional Info
SHARE CAPITAL - Additional Information (Details) ₽ in Millions | Nov. 09, 2021shares | Nov. 30, 2021RUB (₽)shares | Aug. 31, 2021€ / sharesshares | Feb. 28, 2021RUB (₽)shares | Dec. 31, 2021RUB (₽)shares | Dec. 31, 2021€ / sharesshares | Dec. 31, 2020shares |
SHARE CAPITAL. | |||||||
Split ratio of ordinary shares | 2,500 | ||||||
Number of Additional Shares Authorized | 121,625,000 | ||||||
Par value of shares | € / shares | € 0.0004 | € 0.0004 | |||||
Number of ordinary shares issued and fully paid | 56,797,500 | 69,871,511 | 59,433,100 | ||||
Issue of shares in the private placement (in shares) | 5,566,900 | 5,566,900 | |||||
Number of American Depositary Shares issued | 4,042,400 | 4,042,400 | 4,042,400 | ||||
Proceeds from issuance of shares | ₽ | ₽ 4,255 | ₽ 2,265 | ₽ 6,520 |
BORROWINGS - Bank Loan (Details
BORROWINGS - Bank Loan (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of detailed information about borrowings [line items] | ||
Amount, incl. accrued interest | ₽ 728 | |
Bank loan, Maturity 2021-2022 | ||
Disclosure of detailed information about borrowings [line items] | ||
Amount, incl. accrued interest | ₽ 429 | |
Bank loan, Maturity 2021-2022 | CBR key rate | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings spread on variable interest rate | 3.35% | 3.35% |
Bank loan, Maturity 2021-2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Amount, incl. accrued interest | ₽ 299 | |
Bank loan, Maturity 2021-2024 | CBR key rate | ||
Disclosure of detailed information about borrowings [line items] | ||
Borrowings spread on variable interest rate | 3.80% | 3.80% |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) ₽ in Millions | Nov. 09, 2021EquityInstruments$ / shares | Dec. 31, 2021RUB (₽)EquityInstruments | Dec. 31, 2018 |
SHARE-BASED COMPENSATION | |||
Initial public offering price per ordinary share | $ / shares | $ 16 | ||
Expense recognized from equity-settled share-based payment transactions | ₽ | ₽ 110 | ||
Phantom shares | |||
SHARE-BASED COMPENSATION | |||
Aggregate number of shares granted | 4,923,042 | ||
Phantom shares | Minimum | |||
SHARE-BASED COMPENSATION | |||
Term of service depending on the participant for entitling cash payment | 1 year | ||
Phantom shares | Maximum | |||
SHARE-BASED COMPENSATION | |||
Term of service depending on the participant for entitling cash payment | 5 years | ||
Restricted Stock Units Plan 2021 [Member] | Directors | |||
SHARE-BASED COMPENSATION | |||
Lock up period of RSUs granted | 3 years | ||
Ordinary Shares | |||
SHARE-BASED COMPENSATION | |||
Number of shares granted | 829,111 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share-based payment liabilities (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
SHARE-BASED COMPENSATION | ||
Share-based payment liabilities at the beginning of the year | ₽ 636 | ₽ 78 |
New awards granted | 512 | |
Remeasurement during the year | 1,927 | 558 |
Cash payments to employees | (2,169) | |
Conversion from cash-settled to equity-settled share-based payments | (948) | |
Foreign currency exchange loss | ₽ 42 | |
Share-based payment liabilities at the end of the year | ₽ 636 |
SHARE-BASED COMPENSATION - Move
SHARE-BASED COMPENSATION - Movements in the number of RSUs (Details) | 12 Months Ended |
Dec. 31, 2021RUB (₽)EquityInstrumentsshares | |
Number RSUs | |
Outstanding at the beginning of the period, Number of RSUs | EquityInstruments | |
Granted during the period, Number of RSUs | EquityInstruments | 1,427,226 |
Outstanding at the end of the period, Number of RSUs | EquityInstruments | 1,427,226 |
Exercisable at the end of the period, Number of RSUs | EquityInstruments | 105,215 |
Weighted average grant date fair value per award, RUB | |
Outstanding at the beginning of the period, Weighted average grant date fair value per award, RUB | ₽ | |
Granted during the period, Weighted average grant date fair value per award, RUB | ₽ | 932 |
Outstanding at the end of the period, Weighted average grant date fair value per award, RUB | ₽ | 932 |
Exercisable at the end of the period, Weighted average grant date fair value per award, RUB | ₽ | ₽ 1,043 |
Restricted Stock Units Plan 2021 [Member] | |
SHARE-BASED COMPENSATION | |
Vesting period of award | 4 years |
Vesting proportion on the first anniversary | 25.00% |
Vesting proportion on each calendar year after first anniversary | 25.00% |
Percentage of maximum number of RSU can grant in respect to aggregate number of ordinary shares issued and outstanding | 6.50% |
Number of ordinary shares for each RSU | shares | 1 |
SHARE-BASED COMPENSATION - Inpu
SHARE-BASED COMPENSATION - Inputs to the model used for 2021 Plan (Details) | Dec. 31, 2021RUB (₽)Y | Dec. 31, 2021USD ($)Y$ / shares | Dec. 31, 2020RUB (₽) |
SHARE-BASED COMPENSATION | |||
Fair value of the RSUs at the grant date, USD | ₽ | ₽ 932 | ||
Restricted Stock Units Plan 2021 [Member] | Directors | |||
SHARE-BASED COMPENSATION | |||
Fair value of the RSUs at the grant date, USD | $ | $ 14.89 | ||
Fair value per ordinary share | $ 17.62 | ||
Exercise price, USD | $ 0 | ||
Expected annual volatility | 50.90% | 50.90% | |
Expected term, years | Y | 2.38 | 2.38 | |
Dividend yield | 0.00% | 0.00% |
TRADE AND OTHER PAYABLES (Detai
TRADE AND OTHER PAYABLES (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
TRADE AND OTHER PAYABLES | ||
Trade payables | ₽ 249 | ₽ 196 |
Annual bonus provision | 119 | 66 |
Unused vacation provision | 60 | 53 |
Other employee benefits | 13 | |
Other payables | 178 | 1 |
Trade and other payables | ₽ 619 | ₽ 316 |
DEFERRED INCOME (Details)
DEFERRED INCOME (Details) | 12 Months Ended |
Dec. 31, 2021 | |
DEFERRED INCOME | |
Contract term | 5 years |
RELATED PARTIES (Details)
RELATED PARTIES (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
RELATED PARTIES | |||
Short-term employee benefits | ₽ (46) | ₽ (38) | ₽ (37) |
Share-based payment expense | (1,573) | (313) | (47) |
Total key management remuneration | ₽ (1,619) | ₽ (351) | ₽ (84) |
RELATED PARTIES - Other related
RELATED PARTIES - Other related party transactions (Details) - RUB (₽) ₽ in Thousands | Dec. 16, 2021 | Oct. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Aug. 31, 2021 |
Disclosure of transactions between related parties [line items] | ||||||
Outstanding principal amount under the loan | ₽ 728,000 | |||||
Prepayment of outstanding loan | ₽ 728,000 | ₽ 71,000 | ₽ 197,000 | |||
Financial Platform JSC | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Percentage of interest acquired | 9.00% | |||||
Nominal value of interest acquired | ₽ 9 | |||||
Percentage ownership interest which group has access to the returns associated, based on shareholder agreement and potential voting rights | 100.00% | |||||
Key management personnel | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Loan proceeds from related party | 46,000 | |||||
Loan repayments to related party | 46,000 | |||||
Financial Platform JSC | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Percentage of interest acquired | 9.00% | |||||
Technical support services provided | 8,000 | |||||
Financial Platform JSC | MLSN LLC | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Credit line, maximum capacity | ₽ 20,000 | |||||
Interest rate | 6.50% | |||||
Amount of loan issued | ₽ 25,000 | |||||
Outstanding principal amount under the loan | 16,000 | |||||
Prepayment of outstanding loan | ₽ 16,000 | |||||
Elbrus Capital. | ||||||
Disclosure of transactions between related parties [line items] | ||||||
Loan proceeds from related party | ₽ 1,491,000 | 148,000 | ||||
Shares issued for conversion of loan | 3,665,041 | |||||
Loan repayments to related party | ₽ 148,000 |
RELATED PARTIES - Related parti
RELATED PARTIES - Related parties (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Associate of Elbrus Capital | |||
Disclosure of transactions between related parties [line items] | |||
Purchases from related parties | ₽ 4 | ₽ 3 | ₽ 4 |
FINANCIAL RISK MANAGEMENT (Deta
FINANCIAL RISK MANAGEMENT (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Financial liabilities measured at amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | ₽ 518 | ₽ 1,038 |
Financial liabilities measured at amortized cost | Trade and other payables (Note 19) | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 427 | 197 |
Financial liabilities measured at amortized cost | Lease liabilities. | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 91 | 113 |
Financial liabilities measured at amortized cost | Borrowings | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial liabilities | 728 | |
Financial assets measured at amortized cost | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 2,830 | 612 |
Financial assets measured at amortized cost | Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 2,419 | 449 |
Financial assets measured at amortized cost | Trade and other receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | 408 | 154 |
Financial assets measured at amortized cost | Rent security deposits | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total financial assets | ₽ 3 | ₽ 9 |
FINANCIAL RISK MANAGEMENT - For
FINANCIAL RISK MANAGEMENT - Foreign currency risk, impact of fluctuation in US dollar and EURO exchange rates in profit before tax (Details) - Currency risk [member] - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Trade and other payables (Note 19) | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Change in US dollar, EURO exchange rates, increase | 100.00% | 10.00% |
Change in US dollar, EURO exchange rates, decrease | 100.00% | 10.00% |
Effect on profit before tax, increase | ₽ (230) | ₽ (2) |
Effect on profit before tax, decrease | ₽ 230 | ₽ 2 |
Cash and cash equivalents. | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Change in US dollar, EURO exchange rates, increase | 100.00% | 10.00% |
Change in US dollar, EURO exchange rates, decrease | 100.00% | 10.00% |
Effect on profit before tax, increase | ₽ 1,600 | |
Effect on profit before tax, decrease | ₽ (1,600) | |
Trade and other receivables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Change in US dollar, EURO exchange rates, increase | 100.00% | 10.00% |
Change in US dollar, EURO exchange rates, decrease | 100.00% | 10.00% |
Effect on profit before tax, increase | ₽ 172 | |
Effect on profit before tax, decrease | ₽ (172) |
FINANCIAL RISK MANAGEMENT - Tra
FINANCIAL RISK MANAGEMENT - Trade receivables (Details) - Trade and other receivables - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of provision matrix [line items] | ||
Total gross carrying amount | ₽ 233 | ₽ 151 |
Expected credit loss | ₽ 8 | ₽ 6 |
Less than 30 days | ||
Disclosure of provision matrix [line items] | ||
Expected credit loss rate | 0.80% | 1.10% |
Total gross carrying amount | ₽ 216 | ₽ 128 |
Expected credit loss | ₽ 2 | ₽ 1 |
31-60 days | ||
Disclosure of provision matrix [line items] | ||
Expected credit loss rate | 4.30% | 5.70% |
Total gross carrying amount | ₽ 8 | ₽ 17 |
Expected credit loss | ₽ 1 | |
61-90 days | ||
Disclosure of provision matrix [line items] | ||
Expected credit loss rate | 8.40% | 7.60% |
Total gross carrying amount | ₽ 1 | |
> 90 days | ||
Disclosure of provision matrix [line items] | ||
Expected credit loss rate | 72.90% | 69.40% |
Total gross carrying amount | ₽ 8 | ₽ 6 |
Expected credit loss | ₽ 6 | ₽ 4 |
FINANCIAL RISK MANAGEMENT - Cas
FINANCIAL RISK MANAGEMENT - Cash and cash equivalents (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Mar. 30, 2022 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of credit risk exposure [line items] | |||||
Cash and cash equivalents | ₽ 2,419 | ₽ 449 | ₽ 2,800 | ₽ 148 | ₽ 103 |
BBB-/BBB | |||||
Disclosure of credit risk exposure [line items] | |||||
Cash and cash equivalents | ₽ 2,419 | ₽ 449 | |||
Percentage of cash and cash equivalents with banks having external credit ratings | 22.00% | 94.00% | |||
Impairment allowance | ₽ 14 | ₽ 0 |
FINANCIAL RISK MANAGEMENT - Liq
FINANCIAL RISK MANAGEMENT - Liquidity risk (Details) - RUB (₽) ₽ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | ₽ 427 | ₽ 197 |
Borrowings | 800 | |
Lease liabilities | 100 | 127 |
Total financial liabilities | 527 | 1,124 |
Within 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Trade and other payables | 427 | 197 |
Borrowings | 416 | |
Lease liabilities | 50 | 43 |
Total financial liabilities | 477 | 656 |
1 to 3 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 340 | |
Lease liabilities | 50 | 76 |
Total financial liabilities | ₽ 50 | 416 |
3 to 5 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Borrowings | 44 | |
Lease liabilities | 8 | |
Total financial liabilities | ₽ 52 |
FINANCIAL RISK MANAGEMENT - Cha
FINANCIAL RISK MANAGEMENT - Changes in liabilities arising from financing activities (Details) - RUB (₽) ₽ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Balance at the beginning | ₽ 841 | ₽ 577 |
Financing cash flows | (766) | 182 |
Leases (non-cash) | 18 | 80 |
Other | (2) | 2 |
Balance at the end | 91 | 841 |
Borrowings | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Balance at the beginning | 728 | 477 |
Financing cash flows | (728) | 249 |
Other | 2 | |
Balance at the end | 728 | |
Lease liabilities. | ||
Disclosure of reconciliation of liabilities arising from financing activities [line items] | ||
Balance at the beginning | 113 | 100 |
Financing cash flows | (38) | (67) |
Leases (non-cash) | 18 | 80 |
Other | (2) | |
Balance at the end | ₽ 91 | ₽ 113 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) - RUB (₽) ₽ in Millions | Mar. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
CONTINGENCIES | |||||
Maximum possible exposure in relation to Russian Federation tax and regulatory environment | ₽ 53 | ||||
Cash and cash equivalents | ₽ 2,800 | ₽ 2,419 | ₽ 449 | ₽ 148 | ₽ 103 |