Russian internet group Yandex reports $110 million net loss in Q1

-Russian internet group Yandex on Wednesday reported an adjusted net loss of 8.1 billion rubles ($110 million) in the first quarter of this year, a week after withdrawing its 2022 financial guidance.

Yandex itself has not been targeted with western sanctions over Russia’s actions in Ukraine, but the Nasdaq-listed firm has faced a range of issues in the past few weeks, from senior management changes to European Union criticism and concerns over servicing its debt. [nL5N2VY3F0]

“We experienced continued stable operations and strong growth across most of our businesses through Feb. 23, 2022,” Yandex said, referring to the day before Russia sent tens of thousands of troops into Ukraine in what it calls a special military operation.

“In the last five weeks of the first quarter, our operations in certain businesses were adversely affected by the impact of geopolitical developments, which is reflected in our results for the full first quarter.”

Yandex said it had continued to invest in its new and existing businesses for the first two months of the quarter before adopting measures to optimize costs in March.

The net loss of 8.1 billion rubles was slightly more than adjusted net income of 8 billion rubles that Yandex made in the entirety of 2021.

When withdrawing its financial guidance last week, the company also said it had scaled back or paused many of its planned investments, both internationally and domestically, but would keep up spending on core areas, including its ride-hailing and e-commerce divisions.

($1 = 73.7170 rubles)

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