Yandex Announces Full Year 2006 Financial Results

Net income and revenues more than double

Financial highlights for the year include the following:

• Revenues increased 107% year-on-year to US$72.6 million
• Net profit was up 139% year-on-year to US$29.9 million
• OIBDA* grew 130% year-on-year to US$43.1 million

Yandex’s strong brand and continued development of its successful platform generated robust growth in internet audience and usage, driving strong demand of advertisers.

For the full-year 2006, more than 30,000 advertisers placed search/context advertisements on Yandex search results pages. The total number of Yandex.Direct active advertisers increased by approximately 45% over full-year 2005 levels. More than 11 billion advertisements were displayed at Yandex.Direct – Yandex’s search/context ad placement service. Search/context advertisements represented approximately 80% of revenues and display (banner) advertising represented the remainder. According to LiveInternet.ru, Yandex’s share of the search traffic market remained at 60%. Both categories of advertising revenues more than doubled compared to 2005.

„We are pleased to have doubled our key financial metrics for another year,“ said Arkady Volozh, CEO of Yandex. „Following our successful financial performance for the full-year 2006, we have made several acquisitions thus far in 2007 which we believe will help grow our business. These acquisitions include the social network MoiKrug.ru, the e-payment system Yandex.Money and a team of developers focused on creating mobile applications“.

Yandex’s financial statements have been audited by Deloitte&Touche since 2000.

* OIBDA is a non-GAAP financial measure. We define OIBDA as operating income before depreciation and amortization.

Contacts:
Elena Kolmanovskaya, Chief Editor
Dina Litvinova, Head of Yandex PR
Phone: +7 495 739-70-00
Fax: +7 495 739-70-70
E-mail: [email protected]