Yandex Raises 2015 Forecast as Quarterly Sales Top Estimatesby
Targets revenue growth of as much as 16% from 13% previously
Yandex has stabilized its share of the Russian search market
Yandex NV, Russia’s largest search engine, raised its 2015 growth target after quarterly sales beat analysts’ estimates driven by growth in Internet advertising.
The company now forecasts revenue growth of 14 percent to 16 percent, Yandex said in a statement Tuesday. In July it targeted expansion of 11 to 13 percent. Third-quarter sales surged 18 percent to 15.4 billion rubles ($242 million) as text-based advertising and paid clicks advanced, Yandex said. That beat Interfax consensus estimates of 14.7 billion rubles.
"The quarterly results came strong as did the guidance update," said Alexander Vengranovich, an analyst ot Otkritie Capital.
Yandex has stabilized its share of the Russian search market at about 57 percent in the third quarter, according to the statement. It also won an antitrust case against Google in Russia and became the default search engine on Windows 10 in several countries.
Earnings before interest, taxes, depreciation and amortization fell to 39 percent of sales compared with 45 percent a year earlier as staff and rent costs rose as the U.S. dollar appreciated, Yandex said. Net income fell 2 percent to 4.28 billion rubles.