Yandex Lifts Full-Year Sales-Growth Target as Advertising Grows

Yandex NV, the owner of Russia’s largest Internet search engine, raised the bottom end of its 2014 sales-growth forecast after attracting more text-based and display advertising in the third quarter.

Yandex is targeting an increase in revenue of 27 percent to 30 percent, compared to a forecast of 25 percent to 30 percent expansion previously. Third-quarter sales rose 28 percent to 13.1 billion rubles ($314 million), while adjusted earnings before interest, taxes, depreciation and amortization widened to 45 percent of revenue, the Moscow-based company said in a statement.

“The company beat expectations both on sales and Ebitda, showing tight control over costs,” said Konstantin Belov, a Moscow-based analyst at UralSib Capital. Yandex reported growth in text-based advertising, and also in display ads, a segment where rival Group Ltd posted a drop.

Yandex, led by billionaire Chief Executive Officer Arkady Volozh, generates most of its sales from search query-related advertising on the Web. As growth in new users in Russia’s Internet market slows, Yandex is expanding beyond search into areas ranging from e-commerce to online videos and classifieds.

Before it's here, it's on the Bloomberg Terminal.