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Yandex Boosts Sales Forecast on Advertising Revenue

July 25 (Bloomberg) -- Yandex NV, Russia’s largest Internet search engine, increased its full-year sales forecast after second-quarter profit jumped 47 percent on higher advertising revenue.

Revenue will grow 34 percent to 38 percent this year, Yandex, based in The Hague, said today in a statement. It had previously projected growth of 30 percent to 35 percent. Net income rose to 2.92 billion rubles ($89 million) from 1.98 billion rubles a year earlier.

Yandex, whose market share in Russia is twice that of Google Inc.’s, is benefiting from rising demand for Internet advertising in the country. Online advertising is set to grow an average 26 percent annually through 2015, according to ZenithOptimedia data.

Revenue last quarter rose 35 percent to 9.2 billion rubles. Analysts predicted sales of 9.02 billion rubles, according to the average of seven estimates compiled by Bloomberg.

The company said today co-founder and Chief Technology Officer Ilya Segalovich, 48, is on life support after falling into a coma, with no sign of brain activity. Segalovich owns about 2.5 percent of the company.

“Mr. Segalovich had been diagnosed with a treatable form of cancer and was responding well to treatment and working a full schedule,” the Russian company said in an earlier statement at 10:55 a.m. Moscow time.

Yandex shares have advanced 47 percent this year in New York, valuing the company at $10.4 billion. The stock jumped as much as 7.4 percent and traded up 2.5 percent at $31.64 at 11:48 a.m. in New York, heading for the highest closing price since Aug. 4, 2011, as trading volume exceeded an average daily level for the past three months by 19 percent, data compiled by Bloomberg show.

To contact the reporters on this story: Ville Heiskanen in Helsinki at vheiskanen@bloomberg.net; Ilya Khrennikov in Moscow at ikhrennikov@bloomberg.net

To contact the editor responsible for this story: Kenneth Wong at kwong11@bloomberg.net

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