Russia's Yandex beats FY revenue target after Google pulls advertising (updated)

VK

15/02/2023 10:29

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 (Adds detail on search share, quote on 2023 plans)
       MOSCOW, Feb 15 (Reuters) - Russian internet giant Yandex
 YNDX.O  on Wednesday reported a 46% jump in 2022 revenue to
521.7 billion roubles ($7.05 billion), increasing its dominance
in online advertising as major competitor Google pulled out of
the market. 
    Yandex, often referred to as "Russia's Google", said
investments in ad technologies drove a similar revenue jump in
the fourth quarter, but adjusted net income in the quarter slid
72% to 747 million roubles. 
    Alphabet's  GOOGL.O  Google stopped selling online
advertising in Russia last March while keeping some free
services available, opening the door for Yandex to enhance its
market share. Yandex had expected 2022 revenue of around 500
billion roubles. 
    The company estimated its search share on iOS platforms as
of January 2023 was 48.8%. Its total search market share across
platforms in Russia is above 60%. 
    "While solid trends in advertising revenue continued in
January 2023, we expect growth rates to gradually normalise in
the coming months once the effect of last year's changes in the
ad market competitive landscape annualises," Yandex said.
    Nasdaq-listed Yandex has sought to find a balance between
its Western investors on the one side and the Kremlin on the
other. It sold its news feed and homepage to state-controlled
rival VK last year, in part to try to depoliticise its business,
a source close to Yandex said.   
    As part of that deal, Yandex acquired VK's food delivery
service Delivery Club, helping the gross merchandise volume
(GMV) of its e-commerce division    to almost double to 308
billion roubles in 2022, it said. 
    "In 2023, we plan to maintain our focus on financial
discipline and operational efficiency, while also hoping to
increase our emphasis on growth in certain key businesses,
including e-commerce," Yandex said in a letter to shareholders. 
    ($1 = 74.0500 roubles)
 (Reporting by Alexander Marrow and Gleb Stolyarov; editing by
Jason Neely and Mark Potter)
 ((alexander.marrow@thomsonreuters.com))