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Yandex and Mail.ru predict declining growth in 2014

0 21 February 2014

Russia’s leading internet companies Yandex and Mail.ru have released their annual reports for 2013. 

Yandex’s revenue grew by 39% last year, while Mail.ru’s income increased by 29.6%. However, both companies predicted a fall in growth rates for 2014, with Yandex anticipating 25-30% growth and Mail.ru forecasting a 22-24% rise. 

Yandex also made a larger total profit in 2013, with a net income of $378 million compared to Mail.ru’s $310 million. However, in spite of these figures the market reacted negatively to the annual reports, with Yandex shares falling by almost 8% in New York and Mail.ru shares dropping by 4% in London. 

Mail.ru Group’s chief financial officer Matthew Hammond also announced that the company plans to list its shares in Moscow in the near future, believing that a Moscow listing can help employees trade stocks and boost liquidity. 

Yandex’s vice-president of investor relations Greg Abovsky also said that the company’s board would be supportive of a Moscow listing, adding that as “a Russian company it makes sense for us to have a secondary dual listing on the Moscow exchange.”

The addition of Yandex and Mail.ru to the Moscow exchange would boost Vladimir Putin’s drive to raise Moscow’s status as a financial centre. 

Source: Reuters

Top image via Shutterstock

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