Yandex NV (YNDX), Russia largest search-engine company, dropped the most in 10 months after its fourth-quarter profit missed analyst estimates.
Shares of the Hague, Netherlands-based company declined 9.1 percent to $36.21 at 12:26 p.m. in New York, set for the biggest loss since April 15. Yandex has slid 16 percent this year after doubling in 2013. The Bloomberg Russia-US Equity Index of the most-traded Russian companies in New York fell for a third day, dropping 0.5 percent.
Yandex, which makes most of its revenue from online advertising, said net income in the last three months of 2013 climbed 24 percent from a year earlier to 3.35 billion rubles ($94 million). That fell short of the 3.7 billion-ruble average of four analyst estimates compiled by Bloomberg. Russia’s economy grew at less than half the previous year’s pace in 2013, missing economist forecasts, the Moscow-based Federal Statistics Service said Jan. 31.
“Yandex is probably going to suffer from the general slowdown in the market of contextual advertising, which won’t grow so fast because the economy in general is slowing down,” Sergey Libin, an analyst at ZAO Raiffeisenbank in Moscow, said by phone today.
Yandex, which has more than double Google Inc.’s market share for Internet searches in Russia, has benefited from booming online advertising in the country. So-called “contextual” marketing, in which ads are targeted to a user’s searches, will help improve sales, according to the company.
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