Yandex NV (YNDX:US), Russia’s largest search-engine company, reported a 19 percent increase in first-quarter profit on rising demand for Internet advertising.
Net income climbed to 2.68 billion rubles ($75 million), Yandex said today in a statement. Analysts predicted 2.69 billion rubles, the average of estimates (YNDX:US) compiled by Bloomberg. Revenue gained 36 percent to 10.9 billion rubles, compared with the average estimate of 10.5 billion rubles.
Yandex, run by billionaire Chief Executive Officer Arkady Volozh, generates most of its sales from text-based advertising on the Web. As growth in new users Russia’s Internet market slows, Yandex is expanding to businesses such as e-commerce and regions including Turkey.
The search-engine operator, based in the Hague, had 62 percent of the Russian market in the first quarter, compared with global leader Google Inc. (GOOG:US)’s 27 percent, according to Moscow-based researcher LiveInternet.ru.
Yandex said in a regulatory filing (YNDX:US) this month that political and economic sanctions may affect its international customers’ ability to operate in Russia, which would hurt the company’s revenue and profitability. The U.S. joined the European Union in imposing sanctions after Russia annexed Crimea from Ukraine last month.
Shares of Yandex, which doubled in 2013, fell 2.8 percent to $28.26 in U.S. trading yesterday. They’ve lost 35 percent this year.
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