Russia-based Yandex has reported that revenue at its Classifieds subsidiary grew by 79% year on year (y-o-y) to RUB7.0 billion ($78.5 million U.S.) in Q4 2023. It was the fourth successive quarter in which Yandex reported annual revenue growth of more than 50%.

Yandex Classifieds encompasses Auto.ru, Russia’s leading automotive vertical; No.2 real estate vertical Yandex.Realty; property rental site Yandex Rent and Yandex Travel.

Yandex attributed its strong revenue growth primarily to Auto.ru amid a strong base effect from last year — when Russia’s invasion of Ukraine had a chilling effect on the local economy — the expansion of its dealer base, new projects and improved monetization. Revenue growth was also supported by a strong expansion in primary real estate classifieds.

Adjusted EBITDA rose by 69% to RUB351 million ($3.9 million U.S.) in Q4 2023 as a result of margin improvement of Auto.ru, which was partially offset by continuing investment in such businesses as Yandex Travel and Yandex Realty International, the company said.

As a result, the EBITDA margin of Yandex’s Classifieds subsidiary declined slightly to 5.0% in Q4 2023 from 5.3% in the year-earlier period.

For 2023 as a whole, revenue at Yandex Classifieds almost doubled, increasing by 97% y-o-y to RUB24.2 billion ($270 million U.S.). However, adjusted EBITDA plunged by 62.0% y-o-y to RUB423.0 million ($4.7 million U.S.). As a result, its adjusted EBITDA margin declined from 9.0% in 2022 to just 1.7% in 2023.

EGM scheduled for March 7

On February 5, 2024, Yandex N.V. announced that it had entered into a definitive agreement with a consortium to sell all of the Yandex group’s businesses in Russia and certain international markets. The businesses being sold represented more than 95% of the group’s consolidated revenue in 2023 and approximately 95% of its assets and employees.

The transaction has been unanimously approved by the Board of Directors of Yandex N.V. but it awaiting approval from both and regulators and shareholders, including a separate approval from Class A shareholders.

Both an Extraordinary General Meeting and a Class A Meeting are scheduled for March 7. If the offer is accepted by shareholders, it is expected that the deal will close by the end of Q2, the company said.

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