13 Jul 2022 17:25

MTS acquires hotel booking service Bronevik

MOSCOW. July 13 (Interfax) - MTS is the new owner of online hotel booking service Bronevik.com, according to the SPARK-Interfax analytical system.

Wholly-owned MTS subsidiary MTS Travel LLC acquired 99% of Bronevik Company LLC and Bronevik Online LLC on July 11. MTS acquired the other 1% in the companies.

MTS registered its tourism subsidiary MTS Travel in June. The company did not disclose plans for the development of the legal entity at the time. According to SPARK-Interfax, it functions predominantly as a travel agency.

According to a press release, MTS Travel will be separated into a distinct business vertical that will cover booking hotels, accommodation, and flights and tourism, sightseeing, and other services.

The value of the deal has not been disclosed.

"Tourism, the sphere of business trips, and the hotel business in Russia are developing dynamically, and we expect these markets to grow rapidly in the coming years. We're devoting to this a separate business vertical, MTS Travel, that complements other MTS businesses in the ecosystem of our services in order to holistically develop this area on the basis of one of the leaders on the Russian online hotel and accommodation booking market," MTS President Vyacheslav Nikolaev was quoted as saying in the press release.

Bronevik was founded in 2008 and provides booking services for hotels in Russia, Belarus, Georgia, Uzbekistan, and other countries.

According to SPARK-Interfax, Bronevik Online LLC saw revenue of 1.16 billion rubles in 2021, and Bronevik Company LLC's revenue totaled 460 million rubles. Net profit came to 24.7 million rubles and 177.6 million rubles respectively.