Yandex’s Q1 Financial Report: The Company Is Boosting Its Figures
Yandex, the biggest IT company in Russia, has published its Q1 earnings. It is said in the financial report that the company’s revenue grew 51% to $200.3 million, and net income raised 53% to $43 million.
These data exceeded all analysts’ expectations. Upon the average analysts supposed revenues of $194.64 million, earnings per share were expected to be of $0.15 (high $0.16; low $0.13). But at the same time other numbers made investors to scratch their heads: the company’s search engine market share in Russia is currently at 59%, that’s much more from Google’s and others, but 6% less Yandex had previous year.
Until today, Yandex had been selling out because of its worries that rivals (above all Google) were working up the company’s search advertising market share, a sphere where Yandex sometime lead the pack. According to yesterday’s data, Yandex share reached its lowest price.
In its statement Yandex claimed that almost 90% of its revenues are generated by text-based advertisements (5.3 billion rubles, or $181 million). Around 73% of the ads were placed specifically on Yandex’s own platform that now numbers 179,000 advertisers.
Meantime, owing to Rambler that affiliated Yandex last summer this year the company’s revenues up 117 percent. Yandex got only 17 percent of the total Q1 revenues from its own ad network.
Yandex applies intensive force to hold over a leading position in the Russian language market. The market made up of CIS nations is very attractive for such companies as Google. For reference, in European countries Google is almost a sheer leader of the search market. Yandex’s co-founder and CTO Ilya Segalovich in his statement previous week said that 97 percent market share across Europe Google owns is a rather impressive number that makes to ponder about breaking into that region.
It should be noted that Yandex is developing not only the Russian language market but also the market across the seas. This year, for instance, Yandex’s navigation and mapping products were launched in Turkey, where economic model bears relation to the Russian one. Although that business is rather small, it’s constantly growing. Stats show that at present every day Yandex’s sites in Turkey are visited approximately by 390,000 people. That is twice as much it was in January.
Moreover, yesterday Yandex claimed it’s considering the possibility of entering new markets through venture investments.
It also seems that Yandex is going to develop its own mobile search platform. It is said Yandex is holding a parley with Apple now to be the default search provider on iOS and Android devices in Russia. Currently Yandex is the default search engine for Samsung’s bada feature phones and for Windows Phones.