Page 144 - RusRPTNov20

revenue growth was 1% y/y).
Search & Portal, which accounts for most advertising revenues, saw its top line increasing 2% y/y to RUB31.2bn. The segment's EBITDA rose 7% y/y to RUB16.7bn, with the EBITDA margin reaching 52.6% vs. 49.6% in 3Q19 and 44.0% in 2Q20. We believe that the focus on higher-margin traffic was among the key reasons for this margin expansion. We also believe that this profitability expansion helped Yandex outperform the consensus in 3Q20.
The Taxi segment featured a new structure, with car sharing added and the selfdriving cars removed. Its revenues increased 58% y/y to RUB18.6bn, driven by business expansion and a technical effect from the rising share of revenues being reflected on a gross basis (B2B services in ride hailing, Yandex.Lavka).
The segment's adjusted EBITDA stood at RUB1.7bn in 3Q20 vs. RUB0.1bn in 3Q19. The EBITDA margin was 9.4% vs. 1.1%, with the improvement largely driven by the ride hailing business as well as better profitability from Yandex.Eats and the positive EBITDA margin of the newly added Yandex.Drive in 3Q20.
Yandex.Market contributed RUB5.2bn of revenues and a RUB1bn of EBITDA loss to the consolidated numbers in 3Q20. Its total quarterly revenues stood at RUB6.9bn (up 55% y/y) and the EBITDA loss was RUB1.2bn (vs. the loss of RUB1.8bn in 3Q19).
Yandex continued refraining from providing FY20 guidance, contending that lingering uncertainties remain.
Interfax published an interview with Yandex.Market CEO Maxim Grishakov on 12 October.
Strategy remains intact. As part of its strategy until 2023, Yandex.Market seeks to (1) start generating a positive adjusted EBITDA; (2) become one of Russia’s top three e-commerce players; and (3) expand its assortment to 5mn SKUs. As a reminder, this strategy was announced in late June as part of YNDX’s purchase of SBER’s stake in Yandex.Market, and the e-commerce platform will be fully consolidated in YNDX’s Q3 financials starting from 23 July.
Faster decision-making. According to Mr. Grishakov, Yandex.Market’s decision-making has become faster and less bureaucratic following the separation from SBER. Prior to cutting ties with SBER, Yandex.Market had its own BoD representing both YNDX and SBER that approved key decisions on a quarterly basis. At present, YNDX’s executives
144 ​RUSSIA Country Report​ November 2020 www.intellinews.com