Russia’s Yandex eyes $6.5 billion revenue in 2022, sharp e-commerce growth – Reuters

The logo of Russian internet group Yandex is pictured at the company’s headquarter in Moscow, Russia October 4, 2018. REUTERS/Shamil Zhumatov/File Photo

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MOSCOW, Feb 15 (Reuters) – Russian internet giant Yandex (YNDX.O) on Tuesday reported a sharp drop in adjusted annual net profit, but said total revenue could surge this year to around $6.5 billion, driven in part by high turnover growth in e-commerce.

Yandex’s core advertising business, which accounted for 47% of total revenue in the fourth quarter of 2021, suffered during the early stages of the COVID-19 pandemic, but surging interest in online transactions allowed its other businesses to flourish.

Revenue, which the company expects to reach 490 billion-500 billion roubles ($6.50 billion-$6.63 billion) in 2022, jumped 54% last year to 356.2 billion roubles compared to 2020, above company guidance of 340 billion-350 billion roubles.

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The logo of Russian internet group Yandex is pictured at the company’s headquarter in Moscow, Russia October 4, 2018. REUTERS/Shamil Zhumatov/File Photo

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MOSCOW, Feb 15 (Reuters) – Russian internet giant Yandex (YNDX.O) on Tuesday reported a sharp drop in adjusted annual net profit, but said total revenue could surge this year to around $6.5 billion, driven in part by high turnover growth in e-commerce.

Yandex’s core advertising business, which accounted for 47% of total revenue in the fourth quarter of 2021, suffered during the early stages of the COVID-19 pandemic, but surging interest in online transactions allowed its other businesses to flourish.

Revenue, which the company expects to reach 490 billion-500 billion roubles ($6.50 billion-$6.63 billion) in 2022, jumped 54% last year to 356.2 billion roubles compared to 2020, above company guidance of 340 billion-350 billion roubles.

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Yandex’s adjusted net income stood at 8 billion roubles in 2021, down 55% on a like-for-like basis including its loss-making Yandex.Market e-commerce venture.

Investments in high-growth segments, such as e-commerce and media services, curbed profit last year, Yandex said.

It expects its total e-commerce gross merchandise volume (GMV) to double in 2022, while GMV in its taxi segment, which includes ride-hailing and car-sharing, should reach 700 billion-720 billion roubles this year.

Yandex spent $600 million on e-commerce initiatives in 2021, $50 million less than its guidance, which CFO Svetlana Demyashkevich said was evidence of disciplined capital allocation.

She said Yandex finished the year with $1.4 billion in cash after paying $1 billion to buy Uber’s (UBER.N) stakes in their joint foodtech, delivery and self-driving businesses. read more

“We remain well capitalized to fund our planned strategic investments,” she said.

Yandex.Market registered a full-year loss of 40.5 billion roubles in adjusted EBITDA, but Yandex was bullish on its e-commerce prospects, expecting its subscription model and logistics infrastructure to help it capitalise.

Yandex’s combined services offering should help it become one of the top three e-commerce players once the fragmented market consolidates in two to three years, TMT analyst at Gazprombank Anna Kupriyanova told Reuters.

Yandex’s Nasdaq-listed shares were up 15.2% after the results, as of 1616 GMT, also driven higher by hopes that a military conflict between Russia and Ukraine may be averted. The shares had slumped almost 13% on Friday during a sell-off in Russian assets over Ukraine concerns. read more

($1 = 75.4250 roubles)

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Reporting by Gleb Stolyarov and Alexander Marrow; additional reporting by Dmitriy Turlyun; Editing by Katya Golubkova, Jan Harvey and Susan Fenton

Our Standards: The Thomson Reuters Trust Principles.

Source: https://www.reuters.com/technology/russias-yandex-eyes-65-bln-annual-revenue-2022-after-fy-profit-slip-2022-02-15/