Net profit of “Yandex” in the third quarter according to US GAAP fell by 10%

Net profit of “Yandex” in the third quarter according to US GAAP fell by 10%


Revenue Yandex increased by 18% to 15,439 billion RUB 13,057 billion. Revenue minus the reward partners increased by 18%, to 12,157 billion.

MOSCOW, 27 Jan. Adjusted net profit of Russia’s largest Internet company “Yandex” in the third quarter according to US GAAP amounted to $ 3,507 billion rubles, which is 10% less than in the same period of 2014 (3,914 billion rubles), said in a statement.

The result was better than the consensus forecast, based on analysts ‘ expectations (or 3.28 billion).

As explained in the company, the decrease in adjusted net profit due to costs of “Yandex” for advertising campaign services (Auto.ru “Yandex.Browser”), to maintain the salaries of the developers on the competitive level, for the rental of office Moscow (in may 2014 “Yandex” has started to pay rent and additional 18 thousand square meters in the Moscow office, and rent is denominated in dollars).

Unadjusted net income amounted to $ 4,278 billion, which is 2.15% less than in the same period of 2014 (4,372 billion rubles). The message explained that the effect of currency fluctuations in the third quarter amounted to 1,947 billion rubles against 1,824 billion rubles in the same period of 2014.

Revenue Yandex increased by 18% to 15,439 billion RUB 13,057 billion. This is better than the consensus forecast, on which the company’s revenue was expected to 14,723 billion. Revenue minus the reward partners increased by 18%, to 12,157 billion. Revenue from advertising grew 17% to 15,068 billion rubles, including from the context — 18% to 14,24 billion from display advertising decreased by 1% — to 825 million rubles.

In the third quarter also significantly increased revenue in “other” 2.6 — fold, to 371 million rubles. This reflects non-advertising revenues of the services of “Yandex” (“Yandex.Taxi” paid subscription “Yandex.Music”, etc.). A big part is necessary on “Yandex.Taxi”. Operating profit fell by 29% to 3,183 billion. Adjusted EBITDA increased by 2% to 6 billion rubles, profitability fell to 39% from 45.2%.

The share of “Yandex” Russian search market (including mobile devices) in the third quarter averaged 57.1 per cent (according to LiveInternet). The number of search queries (search queries) has increased in comparison with a similar indicator in 2014 to 4%. The number of advertisers exceeded $ 354 thousand, which is 18% more than in the third quarter of 2014, and 1% more than in the second quarter of 2015.

The cost of “Yandex” for the purchase of traffic increased in the third quarter by 19 percent to 3.28 billion rubles. Development costs of products increased by 52% to 3.16 billion rubles. Administrative costs of “Yandex” has grown by 45 percent to 2.61 billion rubles, which is associated with additional advertising and marketing costs, increase in staff costs.