Yandex says US GAAP net income jumps to 21.9 bln rbl in Jul–Sep

MOSCOW, Oct 28 (PRIME) -- The net income of Russian Internet company Yandex soared to 21.9 billion rubles in July–September from 4.8 billion in the same period of 2019, as calculated under the U.S. GAAP standards, the company said on Wednesday in a statement.

Revenue increased 30% to 58.3 billion rubles.

Adjusted net income rose 11% to 7.6 billion rubles. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) went up 8% to 15.1 billion rubles. The adjusted EBITDA margin was at 25.9%.

“The third quarter turned out to be better for us than initially expected, with many businesses demonstrating recovery both in terms of revenue growth and profitability,” Deputy Chief Executive Officer Tigran Khudaverdyan said.

“With Yandex.Market back under our full operating control, we have increased our focus on deepening its integration with Yandex to further enhance our customer proposition. One of the key enablers of this integration is our cross-service loyalty program Yandex.Plus, which recently reached 5 million subscribers in Russia. In addition, we are currently actively exploring a number of strategic options to build a FinTech vertical with a particular focus on payments and digital finance services for consumers and SMEs. We believe all of these initiatives will strengthen our ecosystem strategy and support Yandex’s long-term growth potential.”

Chief Operating Officer and Chief Financial Officer Greg Abovsky said, “We have further expanded the list of businesses generating positive adjusted EBITDA beyond advertising and ride-hailing, and we are seeing improved unit economics across many verticals. We plan to maintain a conservative approach to costs and hiring until there is greater clarity on the macroeconomic and pandemic situation, while continuing to invest in a number of strategic opportunities with the support of our strong balance sheet.”

Yandex said that amid the persisting uncertainty around the full economic impact of the coronavirus pandemic and potential further disruptions caused by the emerging second wave it is unable “to reliably predict the pace and the shape of the further recovery for our businesses”.

(76.4556 rubles – U.S. $1)

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