iTech Capital, a Russian PE & VC fund, announced earlier this week that it has invested $10 million in Ticketland, a major Russian event ticketing company.
More than two million tickets for more than 40,000 events are marketed annually via Ticketland outlets and Internet platforms, according to the company. The Russian market of sport and entertainment event ticketing (excluding cinema) is growing at more than 20% annually (CAGR) and exceeds $1 billion.
The Ticketland group includes three major market players in Russia: United Art Tickets – a major provider of tickets for concerts, theater, shows and sports, and a supplier of ERP and e-ticket platforms for venues; MDTZK (Moscow Theater and Shows Ticket Offices Direction) – the oldest and the largest ticket retail chain in Moscow with 130 outlets; and Arena Group – a processing supplier for sports tickets. The joint company employs more than 400 people.
Ticketland, whose turnover is expected to exceed $120 million in 2013, claims to occupy more than 50% of the theater ticketing market available for ticketing agents in Moscow, and from 13% to 28% percent of other segments of the event ticketing market. The company’s sales channels include 130 retail box offices (owned and partners), a web site (for online booking), call-centers and e-tickets. Ticketland’s revenue model includes a service charge of 10% from customers purchasing tickets.
Electronic ticket implementation is a key part of Ticketland’s strategy. The current share of e-tickets in the company’s turnover amounts to 15%, but the company aims to reach the 50% mark for e-tickets.
Ticketland plans to use Big Data technologies to implement new online services and marketing initiatives. The company underscores that data mining on user behavior provides strong marketing value to event organizers.
A nascent, but attractive market
Russia’s electronic ticketing market is in its very early stage. Some market operators do not want to invest in special equipment to enable e-ticketing, while others are simply unaware of the technology. Sector analysts reckon that even in Moscow, the most sophisticated market for performances and other live events in Russia, electronic tickets currently account for no more than 5% of total ticket sales.
Still this market has begun attracting investors’ attention. In March of this year, Moscow-based Ponominalu.ru, a major online provider of show tickets, secured $1.5 million from Russian fund Buran Venture Capital. In June, Radario.ru, a St. Petersburg-based e-ticketing service for music and entertainment events, closed a $1.2 million investment deal with undisclosed investors in its second round of funding.
