Updated February 15th, 2024 at 16:38 IST

Yandex’s yearly profit surges 53% after assets spin-off announcement

Yandex NV, registered in the Netherlands, recently announced plans to spin-off certain assets in a transaction valued at $5.2 billion.

Reported by: Business Desk
Yandex | Image:Unsplash
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Yandex’s yearly profit: Russian search engine giant Yandex reported a 53 per cent increase in full-year revenue, reaching 800.1 billion roubles ($8.72 billion). This growth was attributed to organic expansion across various sectors, including search, advertising, e-commerce, and ride-hailing.

Yandex's parent company, Yandex NV, listed on the Nasdaq and registered in the Netherlands, recently announced plans to spin-off certain assets in a transaction valued at $5.2 billion, representing a notable shift from its pre-February 2022 valuation, before Moscow's involvement in Ukraine.

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Amidst a landscape where many Western corporations have exited the Russian market, often at minimal cost, and with Moscow asserting control over foreign-owned enterprises, the completion of this deal brings a sense of relief and accomplishment after 18 months of challenging negotiations, as reported by sources familiar with the discussions.

Yandex disclosed that the transaction received unanimous approval from its board of directors. The company has steadily gained a larger share of Russia's online search and advertising market, particularly following Google's decision to cease online advertising sales in Russia in March 2022.

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Yandex estimates its overall search market share to have averaged 63.8 per cent in the fourth quarter of the reporting period. Revenue growth was evident across all sectors, with increased hiring in search, cloud services, and entertainment contributing to a 26 per cent year-on-year rise in employee numbers, reaching 26,361 in 2023.

While adjusted net income surged by 155 per cent to 27.4 billion roubles, the company reported a net loss of 6.3 billion roubles in the fourth quarter, attributed to a 6.3-billion-rouble impairment of intangible assets and investments in business expansion.

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(With Reuters inputs)

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Published February 15th, 2024 at 16:38 IST