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April 26, 2019 www.intellinews.com I Page 4
Net profit of Russia’s internet major Yandex jumps 49% in 1Q19
excluding Yandex.Market) with margin flat y/y at 29%.
The results came in at 2-3% above the Interfax consensus, BCS Global Markets commented on April 25 seeing the update as positive. The com- pany also slightly upgraded the growth guidance, including for search segment, while the taxi division continued to hover around break even.
Yandex announced a slight upgrade both for search revenue growth to 19-21% from previous 18-20%, for total revenue growth to 30-34% vs previous 28-32%.
BCS GM maintains a Buy recommendation on Yandex with a target price of $45, suggesting to focus attention on trends in revenue, profitability, market for search and taxi, performance of smaller segments, any data points regarding own devices, as well as any update on construction costs for the new HQ.
Yandex' good news was contrasted by bad news for Mail.ru, which saw income fall by 47% in the same period.
Yandex 4Q18 US GAAP results, Rb bn
4Q17
1Q18
2Q18
3Q18
4Q18
Y/Y
Q/Q
Revenues
EBITDA margin adj.
Net margin adj.
27.86 26.57
33% 29%
19% 15%
29.67
30%
17%
32.57 38.84
33% 32%
19% 18%
39%
-2ppts
-1ppts
19%
-1ppts
-1ppts
EBITDA adj.
9.29
7.7
8.84
10.73
12.32
33%
15%
Net income adj.
5.25
4.01
5.08
6.1
6.95
32%
14%
Source: Company data, BCS GM; Consensus Ð Interfax