yndx_Current_Folio_6K

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington,  D.C. 20549 

 

 

FORM 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

 

 

July 26, 2018

 

 

YANDEX N.V.

 

Schiphol Boulevard 165

1118 BG Schiphol

Netherlands

+31 (0)20 206 6970

(Address, Including ZIP Code, and Telephone Number,

Including Area Code, of Registrant's Principal Executive Offices)

 

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

 

Form 20-F  X Form 40-F   ___

 

 

 

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ____

 

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ____

1


 

Furnished as Exhibit 99.1 to this Report on Form 6-K is a press release of Yandex N.V. dated July 26, 2018, announcing the Company’s results for the second quarter ended June 30, 2018.

 

 

 

 

2


 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

YANDEX N.V.

 

 

 

 

Date: July 26, 2018By:

     Greg Abovsky

     Chief Financial Officer and

Chief Operating Officer

 

 

3


 

INDEX TO EXHIBITS

 

Number 

Description

99.1

Press Release of Yandex N.V. dated July 26, 2018, announcing the Company’s results for the second quarter ended June 30, 2018

 

 

4


yndx_Current_Folio_6K_Ex99_1

Exhibit 99.1

Yandex Announces Second Quarter 2018 Financial Results

 

MOSCOW and AMSTERDAM, the Netherlands, July 26, 2018 -- Yandex (NASDAQ: YNDX), one of Europe's largest internet companies and the leading search provider in Russia, today announced its unaudited financial results for the second quarter ended June 30, 2018.

 

Deconsolidation of Yandex.Market

 

On April 27, 2018, Yandex and Sberbank formed a joint venture based on the Yandex.Market platform. Since that date, each of Yandex and Sberbank hold an equal number of the outstanding shares in Yandex.Market, with up to 10% of outstanding shares allocated to management and an equity incentive pool. Accordingly, starting April 27, 2018, we deconsolidated Yandex.Market from Yandex’s consolidated financial results and, under the equity method of accounting, we record our share of Yandex.Market’s financial results within the other income/(loss), net line in the consolidated statements of income. Therefore, this financial release presents:

 

Consolidated financial results for the three months ended June 30, 2018, which include the results of Yandex.Market for 27 days in Q2 2018 and its results for the full quarter Q2 2017. 

Consolidated financial results for the six months ended June 30, 2018, which include the results of Yandex.Market for the full quarter Q1 2018 and 27 days in Q2 2018 and its results for the full H1 2017.

Financial results excluding Yandex.Market, which exclude the results of Yandex.Market, gain from deconsolidation and Yandex's share of Yandex.Market’s net income after the deconsolidation from the three and six months periods ended June 30, 2017 and 2018.

Financial results of Yandex.Market on a like-for-like basis, which present the standalone financial results of Yandex.Market on a full-quarter basis for Q2 2018.

 

Q2 2018 Financial Highlights(1)(2)

 

Q2 2018 consolidated financial results

 

·

Revenues of RUB 29.7 billion ($472.8 million), up 34% compared with Q2 2017

·

Net income of RUB 33.3 billion ($531.1 million), up 857% compared with Q2 2017, mainly due to effect of deconsolidation of Yandex.Market in the amount of RUB 28 billion; net income margin of 112.3%

·

Adjusted net income of RUB 5.1 billion ($80.9 million), up 27% compared with Q2 2017; adjusted net income margin of 17.1%

·

Adjusted EBITDA of RUB 8.8 billion ($140.9 million), up 23% compared with Q2 2017; adjusted EBITDA margin of 29.8%

 

Q2 2018 financial results excluding Yandex.Market in 2017 and 2018

·

Revenues excluding Yandex.Market of RUB 29.4 billion ($467.7 million), up 39% compared with Q2 2017

·

Net income excluding Yandex.Market of RUB 5.3 billion ($84.4 million), up 67% compared with Q2 2017

·

Adjusted net income excluding Yandex.Market of RUB 5.3 billion ($84.1 million), up 44% compared with Q2 2017; adjusted net income margin excluding Yandex.Market of 18.0%

·

Adjusted EBITDA excluding Yandex.Market of RUB 8.9 billion ($142.5 million), up 32% compared with Q2 2017; adjusted EBITDA margin excluding Yandex.Market of 30.5%

 

·

Cash, cash equivalents and term deposits as of June 30, 2018:

o

RUB 97.0 billion ($1,546.4 million) on a consolidated basis

o

Of which RUB 27.2 billion ($433.0 million) related to Taxi segment 

o

RUB 32.1 billion ($511.8 million) related to Yandex.Market and not included in Yandex N.V. consolidated balance sheet

 

 

Q2 2018 Operational and Corporate Highlights

 

·

Share of Russian search market, including mobile, averaged 56.2% in Q2 2018, up from 54.3% in Q2 2017 and down slightly from 56.5% in Q1 2018, according to Yandex.Radar

 


 

·

Search share on Android in Russia was 47.8% in Q2 2018, up from 46.3% in Q1 2018 and 38.2% in Q2 2017

·

Search queries in Russia grew 11% compared with Q2 2017

·

Paid clicks on Yandex’s and its partners’ websites, in aggregate, increased 10% compared with Q2 2017

·

Average cost per click grew 6% compared with Q2 2017

·

Number of rides in the Taxi segment grew 207% year-on-year compared with Q2 2017; this includes the full quarter of Uber rides in Q2 2018

·

Yandex introduced Yandex.Station, our smart speaker designed for the Russian market

·

Yandex launched a subscription service, Yandex.Plus, providing users with a bundled offering of multiple Yandex services

·

On April 27, 2018, Yandex and Sberbank completed the formation of Yandex.Market joint venture, which was followed by deconsolidation of Yandex.Market from Yandex group financial results

·

Yandex announced a share repurchase program of up to $100 million of Class A shares, which will be in effect for up to twelve months

 

“I am pleased to report a strong second quarter, with accelerating revenue growth and significant product introductions,” said Arkady Volozh, Chief Executive Officer of Yandex. “We extended beyond traditional computing platforms with the introduction of Yandex.Station, the first smart speaker developed for the Russian market, and we launched Yandex.Plus, a subscription-based membership program that provides access to a bundle of Yandex services.” 

 

“We delivered 39% year-over-year revenue growth, excluding the results of recently deconsolidated Yandex.Market from both periods,” said Greg Abovsky, Chief Operating Officer and Chief Financial Officer of Yandex. “We are particularly excited by the strength of our core business, driven by rapid revenue growth of search and other Yandex properties.”

 

 

The following table provides a summary of our key consolidated financial results for the three and six months ended June 30, 2017 and 2018, which includes Yandex.Market financial results through April 27, 2018:

 

 

 

 

 

 

 

 

In RUB millions

Three months ended June 30, 

Six months ended June 30, 

 

2017

2018

Change

2017

2018

Change

Revenues

22,104
29,672
34%
42,756
56,245
32%

Ex-TAC revenues2

17,888
24,948
39%
34,605
47,204
36%

Income from operations

2,997
4,348
45%
6,372
7,507
18%

Adjusted EBITDA2

7,213
8,842
23%
14,087
16,546
17%

Net income

3,484
33,331
857%
4,303
35,182
718%

Adjusted net income2

3,990
5,080
27%
7,739
9,089
17%

 

The table below provides a summary of our key financial results excluding Yandex.Market for the three and six months ended June 30, 2017 and 2018.

 

 

 

 

 

 

 

 

In RUB millions, excluding Yandex.Market

Three months ended June 30, 

Six months ended June 30, 

 

2017

2018

Change

2017

2018

Change

Revenues ex. Yandex.Market

21,140

29,350

39%

40,685

55,018

35%

Ex-TAC revenues2  ex. Yandex.Market

16,966

24,633

45%

32,659

46,011

41%

Income from operations ex. Yandex.Market

2,596

4,463

72%

5,443

7,826

44%

Adjusted EBITDA2  ex. Yandex.Market

6,768

8,943

32%

13,082

16,809

28%

Net income ex. Yandex.Market

3,174

5,294

67%

3,563

7,296

105%

Adjusted net income2  ex. Yandex.Market

3,652

5,276

44%

6,954

9,400

35%

 

(1)

Pursuant to SEC rules regarding convenience translations, Russian ruble (RUB) amounts have been translated into U.S. dollars at a rate of RUB 62.7565 to $1.00, the official exchange rate quoted as of June 30, 2018 by the Central Bank of the Russian Federation.

 

(2)

The following measures presented in this release are “non-GAAP financial measures”: ex-TAC revenues; adjusted EBITDA; adjusted EBITDA margin; adjusted ex-TAC EBITDA margin; adjusted net income; adjusted net income

 


 

margin and adjusted ex-TAC net income margin. Please see the section headed “Use of Non-GAAP Financial Measures” below for a discussion of how we define these measures, as well as reconciliations at the end of this release of each of these measures to the most directly comparable U.S. GAAP measures.

 

Consolidated revenues breakdown

 

 

 

 

 

 

 

 

In RUB millions

Three months ended June 30, 

Six months ended June 30, 

 

2017

2018

Change

2017

2018

Change

Online advertising revenues:

 

 

 

 

 

 

              Yandex properties

15,531

18,863

21%

29,887

36,338

22%

              Advertising network

5,403

5,619

4%

10,562

10,984

4%

Total online advertising revenues

20,934

24,482

17%

40,449

47,322

17%

Other

1,170

5,190

344%

2,307

8,923

287%

Total revenues

22,104

29,672

34%

42,756

56,245

32%

 

Online advertising revenues grew 17% in Q2 2018 compared with Q2 2017 and generated 83% of total revenues. Online advertising revenues include revenues derived from performance and brand advertising on Yandex properties and in our advertising network. Excluding revenues of Yandex.Market from Q2 of 2017 and 2018, online advertising revenues grew 21% in Q2 2018 compared with Q2 2017.

 

Online advertising revenues from Yandex properties increased 21% in Q2 2018 compared with Q2 2017 and accounted for 64% of total revenues. Excluding revenues of Yandex.Market from Q2 of 2017 and 2018, online advertising revenues from Yandex properties increased 28% in Q2 2018 compared with Q2 2017.

 

Online advertising revenues from our advertising network increased 4% in Q2 2018 compared with Q2 2017 and accounted for 19% of total revenues.

 

Other revenues grew 344% in Q2 2018 compared with Q2 2017, and amounted to 17% of total revenues. The growth was mainly driven by increase in Yandex.Taxi revenues.

 

 

Segment revenues

 

 

 

 

 

 

 

 

In RUB millions

Three months ended June 30, 

Six months ended June 30, 

 

2017

2018

Change

2017

2018

Change

Revenues:

 

 

 

 

 

 

Search and Portal

20,166

24,682

22%

38,837

46,967

21%

E-commerce*

1,168

442

-62%

2,463

1,697

-31%

Taxi

772

4,064

426%

1,550

7,180

363%

Classifieds

456

915

101%

823

1,621

97%

Media Services

251

395

57%

495

816

65%

Experiments

65

414

n/m

131

596

355%

Eliminations

(774)

(1,240)

60%

(1,543)

(2,632)

71%

Total revenues

22,104

29,672

34%

42,756

56,245

32%

Total revenues, excluding Yandex.Market*

21,140

29,350

39%

40,685

55,018

35%

 

*Our E-commerce segment revenues include revenues of Yandex.Market through April 27, 2018. Standalone revenues of Yandex.Market, on a like-for-like basis, are provided in the table below.

 

 

 

 

 

 

 

 

 

 

 

In RUB millions

Three months ended June 30, 

Six months ended June 30, 

 

2017

2018

Change

2017

2018

Change

Revenues:

 

 

 

 

 

 

 


 

Yandex.Market, like-for-like

1,168

1,411

21%

2,463

2,666

8%

 

In Q1 2018 we introduced the following changes to our segments structure:

 

·

Search and Portal segment (including Geolocation Services) offers a broad range of services in Russia, Belarus and Kazakhstan (and, for periods prior to the imposition of sanctions on Yandex by the government of Ukraine in May 2017, all our services offered in Ukraine), other than those described below. Since Q1 2018 our Search and Portal segment also includes Search and Portal in Turkey and Yandex Launcher, previously reported in Experiments and Yandex.Travel, previously reported in Classifieds.

·

E-commerce segment includes Yandex.Market service for the period prior to April 27, 2018, the date of the completion of the Yandex.Market joint venture between Yandex and Sberbank;

·

Taxi segment includes our Taxi business (including Yandex.Taxi and Uber in Russia and neighboring countries) and Food Delivery business (including Yandex.EATs and UberEATs);

·

Classifieds segment includes Auto.ru, Yandex.Realty and Yandex.Jobs;

·

Media Services segment includes KinoPoisk, Yandex.Music, Yandex.Afisha and Yandex.TV program; Media Services were broken out from Experiments and now constitute a separate business unit;

·

Experiments segment includes Zen, Yandex.Cloud, Yandex.Health, Yandex.Drive and Yandex Data Factory. Yandex.Cloud and Yandex.Health initiatives previously were a part of our Search and Portal segment. Yandex.Drive is our car sharing service, launched in February 2018.

·

Eliminations represent the elimination of transactions between the reportable segments, primarily related to advertising.

·

Prior periods were restated to conform to the current year presentation.

 

Consolidated Operating Costs and Expenses

 

Yandex’s operating costs and expenses consist of cost of revenues, product development expenses, sales, general and administrative expenses (SG&A) and depreciation and amortization expenses (D&A). Apart from D&A, each of the above expense categories include personnel-related costs and expenses, relevant office space rental, and related share-based compensation expense. Increases across all cost categories reflect investments in overall growth. In Q2 2018 Yandex's headcount increased by 154 full-time employees. The total number of full-time employees was 8,288 as of June 30, 2018, up by 2% compared with March 31, 2018, and up 27% from June 30, 2017. Excluding the impact of the deconsolidation of Yandex.Market, the growth in the number of full-time employees was 12% compared with March 31, 2018 and 40% from June 30, 2017.

 

Cost of revenues, including traffic acquisition costs (TAC)

 

 

 

 

 

 

 

 

In RUB millions

Three months ended June 30, 

Six months ended June 30, 

 

2017

2018

Change

2017

2018

Change

TAC:

 

 

 

 

 

 

Related to the Yandex advertising network

3,148
3,439
9%
6,044
6,607
9%

Related to distribution partners

1,068
1,285
20%
2,107
2,434
16%

Total TAC

4,216
4,724
12%
8,151
9,041
11%

Total TAC as a % of total revenues

19.1%
15.9%

 

19.1%
16.1%

 

Other cost of revenues

1,531
3,528
130%
2,944
5,923
101%

Other cost of revenues as a % of revenues

6.9%
11.9%

 

6.9%
10.5%

 

Total cost of revenues

5,747
8,252
44%
11,095
14,964
35%

Total cost of revenues as a % of revenues

26.0%
27.8%

 

25.9%
26.6%

 

 

TAC grew 12% in Q2 2018 compared with Q2 2017 and represented 15.9% of total revenues, 320 basis points lower than in Q2 2017 and 30 basis points lower compared with Q1 2018 due to revenue mix effect. 

 

Other cost of revenues in Q2 2018 increased 130% compared with Q2 2017, mainly due to an increase of Taxi related outsourced costs and services provided to Taxi corporate clients, for which revenue and related costs are recorded on a gross basis.

 

 


 

 

Product development

 

 

 

 

 

 

 

 

In RUB millions

Three months ended June 30, 

Six months ended June 30, 

 

2017

2018

Change

2017

2018

Change

Product development

4,473
5,370
20%
8,991
11,173
24%

As a % of revenues

20.2%
18.0%

 

21.0%
20.0%

 

 

Product development expenses grew in line with revenues, driven by the growth of share-based compensation, new hires as well as salary increases in Q2 2018. Excluding Yandex.Market from Q2 of 2017 and 2018, product development expenses grew 28% in Q2 2018 compared with Q2 2017.

 

 

Sales, general and administrative (SG&A)

 

 

 

 

 

 

 

 

In RUB millions

Three months ended June 30, 

Six months ended June 30, 

 

2017

2018

Change

2017

2018

Change

Sales, general and administrative

6,064
8,776
45%
11,012
16,785
52%

As a % of revenues

27.4%
29.6%

 

25.8%
29.8%

 

 

SG&A expenses grew 45% in Q2 2018 compared to Q2 2017. The growth was mainly driven by our continuing investments in advertising and marketing to support our business units and core business, as well as by the growth of personnel costs due to new hires and salary increases.

 

Share-based compensation (SBC) expense

 

SBC expense is included in each of the cost of revenues, product development, and SG&A categories discussed above.

 

 

 

 

 

 

 

 

In RUB millions

Three months ended June 30, 

Six months ended June 30, 

 

2017

2018

Change

2017

2018

Change

SBC expense included in cost of revenues

64
43

-33%

106
79

-25%

SBC expense included in product development

542
1,058
95%
1,118
2,204
97%

SBC expense included in SG&A

359
460
28%
699
911
30%

Total SBC expense

965
1,561
62%
1,923
3,194
66%

As a % of revenues

4.4%
5.3%

 

4.5%
5.7%

 

 

Total SBC expense increased 62% in Q2 2018 compared with Q2 2017. The growth primarily related to new equity-based grants made in 2017 and early 2018.

 

Depreciation and amortization (D&A) expense

 

 

 

 

 

 

 

 

In RUB millions

Three months ended June 30, 

Six months ended June 30, 

 

2017

2018

Change

2017

2018

Change

Depreciation and amortization

2,823
2,926
4%
5,286
5,816
10%

As a % of revenues

12.8%
9.9%

 

12.4%
10.3%

 

 

D&A expense increased 4% in Q2 2018 compared with Q2 2017. D&A expense primarily reflects our investments in servers and data center equipment connected with the launch of our new data center in Vladimir, Russia, in 2017, which was partly offset by expiration of useful lives of part of our equipment and intangible assets.

 

 

Income from operations

 

 

 

 

 

 

 

 

In RUB millions

Three months ended June 30, 

Six months ended June 30, 

 

2017

2018

Change

2017

2018

Change

 


 

Income from operations

2,997
4,348
45%
6,372
7,507
18%

 

Income from operations increased 45% in Q2 2018 compared with Q2 2017.

 

 

Adjusted EBITDA

 

Consolidated adjusted EBITDA

 

 

 

 

 

 

 

 

In RUB millions

Three months ended June 30, 

Six months ended June 30, 

 

2017

2018

Change

2017

2018

Change

Adjusted EBITDA

7,213
8,842
23%
14,087
16,546
17%

 

Adjusted EBITDA increased 23% in Q2 2018 compared with Q2 2017.

 

Adjusted EBITDA by segments

 

 

 

 

 

 

 

 

In RUB millions

Three months ended June 30, 

Six months ended June 30, 

 

2017

2018

Change

2017

2018

Change

Adjusted EBITDA:

 

 

 

 

 

 

Search and Portal

9,057

11,501

27%

16,958

21,868

29%

E-commerce*

445

(101)

n/m

1,005

(263)

n/m

Taxi

(1,966)

(1,882)

-4%

(3,211)

(3,594)

12%

Classifieds

(20)

44

-320%

(17)

(243)

n/m

Media Services

(106)

(260)

145%

(256)

(357)

39%

Experiments

(197)

(460)

134%

(392)

(865)

121%

Total adjusted EBITDA

7,213

8,842

23%

14,087

16,546

17%

Total adjusted EBITDA, excluding Yandex.Market

6,768

8,943

32%

13,082

16,809

28%

 

*Our E-commerce segment adjusted EBITDA includes adjusted EBITDA of Yandex.Market through April 27. Standalone adjusted EBITDA of Yandex.Market, on a like-for-like basis, is provided in the table below.

 

 

 

 

 

 

 

 

In RUB millions

Three months ended June 30, 

Six months ended June 30, 

 

2017

2018

Change

2017

2018

Change

Adjusted EBITDA:

 

 

 

 

 

 

Yandex.Market, like-for-like

445

(9)

-102%

1,005

(171)

-117%

 

Adjusted EBITDA excluding Yandex.Market increased 32% in Q2 2018 compared with Q2 2017.

 

Adjusted EBITDA of Taxi was negative RUB 1,882 million in Q2 2018. Adjusted EBITDA loss of Yandex.Taxi includes the full quarter of Uber losses and our investments in Food Delivery business.

 

Interest income    in Q2 2018 was RUB 817 million, up compared with RUB 688 million in Q2 2017.

 

Interest expense in Q2 2018 was RUB 243 million, up from RUB 217 million in Q2 2017.

 

Foreign exchange gain in Q2 2018 was RUB 2,085 million, compared with a foreign exchange gain of RUB 1,273 million in Q2 2017. This gain reflects the depreciation of the Russian ruble during Q2 2018 from RUB 57.2649 to $1.00 on March 31, 2018, to RUB 62.7565 to $1.00 on June 30, 2018. Yandex's Russian operating subsidiaries' functional currency is the Russian ruble, and therefore changes due to exchange rate fluctuations in the ruble value of these subsidiaries' monetary assets and liabilities that are denominated in other currencies are recognized as foreign exchange gains or losses within the Other income/(loss), net line in the condensed consolidated statements of income. Although the U.S. dollar value of Yandex's U.S. dollar-denominated assets and liabilities was not impacted by these currency fluctuations, they resulted in an upward revaluation of the ruble equivalent of these U.S. dollar-denominated monetary assets and liabilities in Q2 2018.

 


 

 

Other income, net in Q2 2018 was RUB 30,668 million, significantly increased compared with RUB 1,389 million in Q2 2017, and included a gain from deconsolidation of Yandex.Market following the formation of the Yandex.Market joint venture between Sberbank and Yandex on April 27, 2018, in the amount of approximately RUB 28 billion. Starting April 27, 2018, the remaining investment in Yandex.Market is accounted under equity method  and Yandex’s share of the results of the investee is recorded within the other income, net line in the consolidated statements of income.

 

Income tax expense for Q2 2018 was RUB 2,259 million, up from RUB 1,373 million in Q2 2017. Our effective tax rate of 6.3% in Q2 2018 was lower than in Q2 2017, primarily due to the gain from deconsolidation of Yandex.Market recognized in Q2 2018 which is non-taxable. Adjusted for this effect, SBC expense and also for deferred tax asset valuation allowances provided on operations of our newly acquired Uber and Food Delivery businesses, our effective tax rate for Q2 2018 was 23.1%, compared with 23.1% for Q2 2017 as also adjusted for SBC expense, provision of certain reserves resulting from sanctions in Ukraine in Q2 2017, partly offset by the effects of certain provisions reversed in Q2 2017 related to the results of prior years' tax audits.

 

Net income was RUB 33.3 billion ($531.1 million) in Q2 2018, up 857% compared with Q2 2017, mainly due to effect of deconsolidation of Yandex.Market. Excluding Yandex.Market, net income increased 67% in Q2 2018 compared to Q2 2017.

 

Adjusted net income in Q2 2018 was RUB 5.1 billion ($80.9 million), a 27% increase from Q2 2017. Excluding Yandex.Market, adjusted net income increased 44% in Q2 2018 compared to Q2 2017.

 

Adjusted net income margin was 17.1% in Q2 2018, compared with 18.1% in Q2 2017.

 

As of June 30, 2018, Yandex had cash, cash equivalents and term deposits of RUB 97.0 billion ($1,546.4 million), including cash, cash equivalents and term deposits of Yandex.Taxi in total amount of RUB 27.2 billion ($433.0 million). Cash, cash equivalents and term deposits of the Yandex.Market joint venture, which are not included in Yandex N.V.  consolidated balance sheet, amounted to RUB 32.1 billion ($511.8 million) as of June 30, 2018.

 

Net cash flow provided by operating activities for Q2 2018 was RUB 6.8 billion ($108.0 million) and capital expenditures were RUB 9.0 billion ($143.5 million).

 

During Q2 2018 there were no repurchases of convertible debt notes. -

 

Redeemable noncontrolling interests presented in our condensed consolidated balance sheets relate to the equity incentive arrangements we have made available to the senior employees of the Taxi, Classifieds and E-commerce segments, pursuant to which such persons are eligible to acquire depositary receipts, or receive options to acquire depositary receipts, which entitle them to economic interests in the respective business unit subsidiaries.

 

The total number of shares issued and outstanding as of June 30, 2018 was 328,402,391 including 290,523,732 Class A shares, 37,878,658 Class B shares, and one Priority share and excluding 1,913,923 Class A shares held in treasury and all Class C shares outstanding solely as a result of the conversion of Class B shares into Class A shares. All such Class C shares will be cancelled.  

 

There were also employee share options outstanding to purchase up to an additional 3.6 million shares, at a weighted average exercise price of $34.19 per share, 0.6 million of which were fully vested; equity-settled share appreciation rights (SARs) for 0.2 million shares, at a weighted average measurement price of $32.25, all of which, excluding SARs for approximately 1,000 shares, were fully vested; and restricted share units (RSUs) covering 13.5 million shares, of which RSUs to acquire 4.7 million shares were fully vested.

 

Financial outlook

 

Based on our recent performance and taking into account the deconsolidation of Yandex.Market from our consolidated financial results, we now provide revenue outlook for the full year 2018 which excludes Yandex.Market from prior periods. We currently expect our ruble-based revenues  excluding Yandex.Market from 2017 and 2018 results to grow in the range of 30% to 35% for the full year 2018 compared with 2017.

 

 


 

Based on the recent performance of Search and Portal, we narrow our outlook and now expect our Search and Portal ruble-based revenue growth to be in the range of 20% to 22% in the full year 2018 compared with 2017.

 

This outlook reflects our current view, based on the trends that we see at this time, and may change in light of market and economic developments in the business sectors and jurisdictions in which we operate.

 

Conference Call Information

 

Yandex’s management will hold an earnings conference call on July 26, 2018 at 8:00 AM U.S. Eastern Time (3:00 PM Moscow time; 1:00 PM London time).

 

To access the conference call live, please dial:

 

US: +1 929 477 0448

UK/International: +44 (0) 330 336 9411

Russia: 8 10 800 2867 5011

Passcode: 4056605

 

A replay of the call will be available until August 2, 2018. To access the replay, please dial:

 

US: +1 719 457 0820

UK/International: +44 (0) 207 660 0134

Russia: 8 10 800 2702 1012

Passcode: 4056605

 

A live and archived webcast of this conference call will be available at

 

https://edge.media-server.com/m6/p/2f6a6asa 

 

ABOUT YANDEX

 

Yandex (NASDAQ:YNDX) is a technology company that builds intelligent products and services powered by machine learning. Our goal is to help consumers and businesses better navigate the online and offline world. Since 1997, we have delivered world-class, locally relevant search and information services. Additionally, we have developed market-leading on-demand transportation services, navigation products, and other mobile applications for millions of consumers across the globe. Yandex, which has 21 offices worldwide, has been listed on the NASDAQ since 2011.

More information on Yandex can be found at https://yandex.com/company.

 

FORWARD-LOOKING STATEMENTS

 

This press release contains forward-looking statements that involve risks and uncertainties. These include statements regarding our anticipated revenues for full year 2018. Actual results may differ materially from the results predicted or implied by such statements, and our reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from the results predicted or implied by such statements include, among others, macroeconomic and geopolitical developments affecting the Russian economy, competitive pressures, changes in advertising patterns, changes in user preferences, changes in the political, legal and/or regulatory environment, technological developments, and our need to expend capital to accommodate the growth of the business, as well as those risks and uncertainties included under the captions “Risk Factors” and “Operating and Financial Review and Prospects” in our Annual Report on Form 20-F for the year ended December 31, 2017, which is on file with the U.S. Securities and Exchange Commission (SEC) and is available on our investor relations website at http://ir.yandex.com/sec.cfm and on the SEC website at www.sec.gov. All information in this release and in the attachments is as of July 26, 2018, and Yandex undertakes no duty to update this information unless required by law.

 

USE OF NON-GAAP FINANCIAL MEASURES

 

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with U.S. GAAP, we present the following non-GAAP financial measures: ex-TAC revenues, adjusted EBITDA, adjusted

 


 

EBITDA margin, adjusted ex-TAC EBITDA margin, adjusted net income, adjusted net income margin and adjusted ex-TAC net income margin. The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the tables captioned “Reconciliations of non-GAAP financial measures to the nearest comparable U.S. GAAP measures”, included following the accompanying financial tables. We define the various non-GAAP financial measures we use as follows:

 

·

Ex-TAC revenues means U.S. GAAP revenues less total traffic acquisition costs (TAC)

·

Adjusted EBITDA means U.S. GAAP net income plus (1) depreciation and amortization, (2) SBC expense, (3) accrual of expense related to the contingent compensation that may be payable to employees in connection with certain business combinations, (4) interest expense, (5) provision for income taxes, and (6) operating losses resulting from sanctions in Ukraine imposed in May 2017,  less (1) interest income, (2) other (income)/loss, net,

·

Adjusted EBITDA margin means adjusted EBITDA divided by U.S. GAAP revenues

·

Adjusted ex-TAC EBITDA margin means adjusted EBITDA divided by ex-TAC revenues

·

Adjusted net income means U.S. GAAP net income plus (1) SBC expense adjusted for the income tax reduction attributable to SBC expense, (2) accrual of expense related to the contingent compensation that may be payable to certain employees in connection with certain business combinations, (3) losses from repurchases of our convertible notes adjusted for the related reduction in income tax,  (4) amortization of debt discount related to our convertible debt adjusted for the related reduction in income tax and (5) losses resulting from sanctions in Ukraine imposed in May 2017, less (1) foreign exchange (gains)/losses adjusted for increase/(reduction) in income tax attributable to foreign exchange (gains)/losses, (2) effect of deconsolidation of Yandex.Market

·

Adjusted net income margin means adjusted net income divided by U.S. GAAP revenues

·

Adjusted ex-TAC net income margin means adjusted net income divided by ex-TAC revenues

 

These non-GAAP financial measures are used by management for evaluating financial performance as well as decision-making. Management believes that these metrics reflect the organic, core operating performance of the company, and therefore are useful to analysts and investors in providing supplemental information that helps them understand, model and forecast the evolution of our operating business.

 

Although our management uses these non-GAAP financial measures for operational decision-making and considers these financial measures to be useful for analysts and investors, we recognize that there are a number of limitations related to such measures. In particular, it should be noted that several of these measures exclude some recurring costs, particularly share-based compensation. In addition, the components of the costs that we exclude in our calculation of the measures described above may differ from the components that our peer companies exclude when they report their results of operations.

 

Below we describe why we make particular adjustments to certain U.S. GAAP financial measures:

 

TAC

 

We believe that it may be useful for investors and analysts to review certain measures both in accordance with U.S. GAAP and net of the effect of TAC, which we view as comparable to sales commissions but, unlike sales commissions, are not deducted from U.S. GAAP revenues. By presenting revenue, adjusted EBITDA margin and adjusted net income margin net of TAC, we believe that investors and analysts are able to obtain a clearer picture of our business without the impact of the revenues we share with our partners.

 

SBC

 

SBC is a significant expense item, and an important part of our compensation and incentive programs. As it is a non-cash charge, however, and highly dependent on our share price at the time of equity award grants, we believe that it is useful for investors and analysts to see certain financial measures excluding the impact of these charges in order to obtain a clearer picture of our operating performance.

 

Acquisition-related costs

 

We may incur expenses in connection with acquisitions that are not indicative of our recurring core operating performance. In particular, we are required under U.S. GAAP to accrue as expense the contingent compensation that is

 


 

payable to certain employees in connection with certain business combinations. We eliminate these acquisition-related expenses from adjusted EBITDA and adjusted net income to provide management and investors a tool for comparing on a period-to-period basis our operating performance in the ordinary course of operations.

 

Foreign exchange gains

 

Because we hold significant assets and liabilities in currencies other than our Russian ruble operating currency, and because foreign exchange fluctuations are outside of our operational control, we believe that it is useful to present adjusted net income and related margin measures excluding these effects, in order to provide greater clarity regarding our operating performance.

 

Amortization of debt discount

 

We also adjust net income for interest expense representing amortization of the debt discount related to our convertible notes issued in Q4 2013 and Q1 2014.We have eliminated this expense from adjusted net income as it is non-cash in nature and is not indicative of our ongoing operating performance.

 

Gains and losses from repurchases of convertible debt

 

Adjusted net income for Q2 2017 also excludes a loss from the repurchase of $4.0 million in principal of our 1.125% convertible senior notes due 2018 for approximately $3.9 million. We have eliminated this loss from adjusted net income for the three months ended June 30, 2017 as it is not indicative of our ongoing operating performance.

 

Losses resulting from sanctions in Ukraine

 

We also adjusted our net income and EBITDA in 2017 for losses and gains from write-off of assets and liabilities in our Ukrainian legal entities. In May 2017, the government of Ukraine imposed sanctions on our Ukrainian operations. The sanctions resulted in the freezing of the assets held by our Ukrainian legal entities and restricting our services in Ukraine. We believe that it is useful to present adjusted net income and adjusted EBITDA measures excluding the one-off impact of these events, which are not related to our operating activities.

 

Effect of deconsolidation of Yandex.Market

 

Adjusted net income also excludes a gain from deconsolidation of Yandex.Market following the formation of Yandex.Market joint venture by Yandex and Sberbank in April 2018. We believe that it is useful to present adjusted net income and related margin measures excluding the effect of this significant item and to present certain other financial metrics described above in order to provide a clearer picture of our underlying operating performance and to provide meaningful period-to-period comparisons.

 

 

The tables at the end of this release provide detailed reconciliations of each non-GAAP financial measure we use to the most directly comparable U.S. GAAP financial measure.

 

 

 


 

YANDEX N.V.

 

Unaudited Condensed Consolidated Balance Sheets

 

(in millions of Russian rubles and U.S. dollars, except share and per share data)

 

 

 

 

 

 

 

 

 

 

As of

 

 

December 31,

 

June 30, 

 

June 30, 

 

 

2017*

 

2018

 

2018

 

 

RUB

 

RUB

 

$

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

42,662

 

35,930

 

572.5

Term deposits

 

23,040

 

60,121

 

958.0

Accounts receivable, net

 

9,746

 

10,772

 

171.6

Prepaid expenses

 

1,269

 

2,223

 

35.5

Other current assets

 

4,039

 

4,426

 

70.5

Total current assets

 

80,756

 

113,472

 

1,808.1

 

 

 

 

 

 

 

Property and equipment, net

 

21,171

 

26,757

 

426.4

Intangible assets, net

 

5,023

 

11,974

 

190.8

Goodwill

 

9,328

 

51,639

 

822.8

Long-term prepaid expenses

 

1,788

 

1,616

 

25.7

Term deposits, non-current

 

5,005

 

998

 

15.9

Investments in non-marketable equity securities

 

2,001

 

36,873

 

587.6

Deferred tax assets

 

2,171

 

2,612

 

41.6

Other non-current assets

 

3,301

 

4,071

 

64.9

TOTAL ASSETS

 

130,544

 

250,012

 

3,983.8

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

11,111

 

13,474

 

214.8

Taxes payable

 

4,213

 

4,256

 

67.8

Deferred revenue

 

2,464

 

2,265

 

36.1

Convertible debt

 

17,834

 

19,809

 

315.6

Total current liabilities

 

35,622

 

39,804

 

634.3

Deferred tax liabilities

 

959

 

1,648

 

26.3

Other accrued liabilities

 

1,316

 

446

 

7.0

Total liabilities

 

37,897

 

41,898

 

667.6

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

Redeemable noncontrolling interests

 

9,821

 

6,639

 

105.8

Shareholders’ equity:

 

 

 

 

 

 

Priority share: €1.00 par value; 1 share authorized, issued and outstanding

 

 

 

Preference shares: €0.01 par value; 1,000,000,001 shares authorized, nil shares issued and outstanding

 

 

 

Ordinary shares: par value (Class A €0.01, Class B €0.10 and Class C €0.09); shares authorized (Class A: 1,000,000,000, Class B: 46,997,887 and Class C: 46,997,887); shares issued (Class A: 289,364,467 and 292,437,655, Class B: 40,692,286 and 37,878,658, and Class C: 4,166,448 and 6,980,076, respectively); shares outstanding (Class A: 285,612,556 and 290,523,732, Class B: 40,692,286 and 37,878,658, and Class C: nil)

 

271

 

264

 

4.2

Treasury shares at cost (Class A: 3,751,911 and 1,913,923, respectively)

 

(3,814)

 

(1,891)

 

(30.1)

Additional paid-in capital

 

16,469

 

67,964

 

1,083.0

Accumulated other comprehensive income

 

1,864

 

5,568

 

88.7

Retained earnings

 

68,036

 

107,570

 

1,714.1

Total equity attributable to Yandex N.V.

 

82,826

 

179,475

 

2,859.9

Noncontrolling interests

 

 -

 

22,000

 

350.5

Total shareholders’ equity

 

82,826

 

201,475

 

3,210.4

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

130,544

 

250,012

 

3,983.8

 

Derived from audited consolidated financial statements

 


 

YANDEX N.V.

 

Unaudited Condensed Consolidated Statements of Income

 

(in millions of Russian rubles and U.S. dollars, except share and per share data)

 

 

 

 

 

 

 

 

 

 

Three months ended June 30, 

 

 

2017

 

2018

 

2018

 

 

RUB

 

RUB

 

$

 

 

 

 

 

 

 

Revenues

 

22,104

 

29,672

 

472.8

Operating costs and expenses:

 

 

 

 

 

 

Cost of revenues(1)

 

5,747

 

8,252

 

131.5

Product development(1)

 

4,473

 

5,370

 

85.6

Sales, general and administrative(1)

 

6,064

 

8,776

 

139.8

Depreciation and amortization

 

2,823

 

2,926

 

46.6

Total operating costs and expenses

 

19,107

 

25,324

 

403.5

Income from operations

 

2,997

 

4,348

 

69.3

Interest income

 

688

 

817

 

13.0

Interest expense

 

(217)

 

(243)

 

(3.9)

Other income, net

 

1,389

 

30,668

 

488.7

Net income before income taxes

 

4,857

 

35,590

 

567.1

Provision for income taxes

 

1,373

 

2,259

 

36.0

Net income

 

3,484

 

33,331

 

531.1

Net loss attributable to noncontrolling interests

 

30

 

715

 

11.4

Net income attributable to Yandex N.V.

 

3,514

 

34,046

 

542.5

Net income per Class A and Class B share:

 

 

 

 

 

 

Basic

 

10.83

 

103.75

 

1.65

Diluted

 

10.65

 

101.25

 

1.61

Weighted average number of Class A and Class B shares outstanding

 

 

 

 

 

 

Basic

 

324,355,605

 

328,163,442

 

328,163,442

Diluted

 

330,036,917

 

336,270,128

 

336,270,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

These balances exclude depreciation and amortization expenses, which are presented separately, and include share-based compensation expenses of:

(2)

 

(3)

 

(4)

 

(5)

 

(6)

 

(7)

 

 

 

 

 

 

 

 

 

Cost of revenues

 

64

 

43

 

0.7

 

Product development

 

542

 

1,058

 

16.9

 

Sales, general and administrative

 

359

 

460

 

7.3

 

 

 


 

YANDEX N.V.

 

Unaudited Condensed Consolidated Statements of Income

 

(in millions of Russian rubles and U.S. dollars, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 

 

 

 

2017

 

2018

 

2018

 

 

 

RUB

 

RUB

 

$

 

 

 

 

 

 

 

 

 

Revenues

 

42,756

 

56,245

 

896.2

 

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of revenues(1)

 

11,095

 

14,964

 

238.4

 

Product development(1)

 

8,991

 

11,173

 

178.0

 

Sales, general and administrative(1)

 

11,012

 

16,785

 

267.5

 

Depreciation and amortization

 

5,286

 

5,816

 

92.7

 

Total operating costs and expenses

 

36,384

 

48,738

 

776.6

 

Income from operations

 

6,372

 

7,507

 

119.6

 

Interest income

 

1,397

 

1,525

 

24.3

 

Interest expense

 

(445)

 

(464)

 

(7.4)

 

Other (loss)/income, net

 

(866)

 

30,268

 

482.3

 

Net income before income taxes

 

6,458

 

38,836

 

618.8

 

Provision for income taxes

 

2,155

 

3,654

 

58.2

 

Net income

 

4,303

 

35,182

 

560.6

 

Net loss attributable to noncontrolling interests

 

46

 

1,244

 

19.8

 

Net income attributable to Yandex N.V.

 

4,349

 

36,426

 

580.4

 

Net income per Class A and Class B share:

 

 

 

 

 

 

 

Basic

 

13.43

 

111.18

 

1.77

 

Diluted

 

13.20

 

108.41

 

1.73

 

Weighted average number of Class A and Class B shares outstanding

 

 

 

 

 

 

 

Basic

 

323,803,590

 

327,618,094

 

327,618,094

 

Diluted

 

329,455,881

 

335,991,164

 

335,991,164

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

 

(2)

These balances exclude depreciation and amortization expenses, which are presented separately, and include share-based compensation expenses of:

 

 

 

 

 

 

 

Cost of revenues

 

106

 

79

 

1.3

Product development

 

1,118

 

2,204

 

35.1

Sales, general and administrative

 

699

 

911

 

14.5

 

 

 

 

 

 


 

YANDEX N.V.

 

Unaudited Condensed Consolidated Statements of Cash Flows

 

(in millions of Russian rubles and U.S. dollars)

 

 

 

 

 

 

 

 

 

 

Three months ended June 30, 

 

 

2017

 

2018

 

2018

 

 

RUB

 

RUB

 

$

CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

3,484

 

33,331

 

531.1

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation of property and equipment

 

2,205

 

2,376

 

37.8

Amortization of intangible assets

 

618

 

550

 

8.8

Amortization of debt discount and issuance costs

 

165

 

187

 

3.0

Share-based compensation expense

 

965

 

1,561

 

24.9

Deferred income taxes

 

(249)

 

(530)

 

(8.4)

Foreign exchange gains

 

(1,273)

 

(2,085)

 

(33.2)

Effect of deconsolidation of Yandex.Market

 

 -

 

(28,244)

 

(450.1)

Losses from repurchases of convertible debt

 

 3

 

 -

 

 -

Income from equity method investments

 

(67)

 

(213)

 

(3.4)

Other

 

28

 

(90)

 

(1.5)

Changes in operating assets and liabilities excluding the effect of acquisitions:

 

 

 

 

 

 

Accounts receivable, net

 

(172)

 

(747)

 

(11.9)

Prepaid expenses and other assets

 

(72)

 

(2,551)

 

(40.6)

Accounts payable and accrued liabilities

 

1,384

 

3,083

 

49.1

Deferred revenue

 

152

 

194

 

3.1

Net cash provided by operating activities

 

7,171

 

6,822

 

108.7

CASH FLOWS USED IN INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of property and equipment and intangible assets

 

(3,864)

 

(9,005)

 

(143.5)

Proceeds from sale of property and equipment

 

14

 

147

 

2.4

Acquisitions of businesses, net of cash acquired

 

(364)

 

 -

 

 -

Investments in non-marketable equity securities

 

(69)

 

(38)

 

(0.6)

Proceeds from maturity of debt securities

 

1,702

 

 -

 

 -

Investments in term deposits

 

(18,224)

 

(10,953)

 

(174.5)

Maturities of term deposits

 

8,122

 

3,448

 

54.9

Deconsolidation of cash and cash equivalents of Yandex.Market

 

 -

 

(2,181)

 

(34.8)

Loans granted, net of proceeds from repayments

 

(41)

 

(48)

 

(0.8)

Net cash used in investing activities

 

(12,724)

 

(18,630)

 

(296.9)

CASH FLOWS USED IN FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from exercise of share options

 

167

 

52

 

0.8

Repurchases of convertible debt

 

(220)

 

 -

 

 -

Repurchases of ordinary shares

 

 -

 

(221)

 

(3.5)

Payment for contingent consideration

 

 -

 

(156)

 

(2.5)

Other financing activities

 

(63)

 

(44)

 

(0.7)

Net cash used in financing activities

 

(116)

 

(369)

 

(5.9)

Effect of exchange rate changes on cash and cash balances

 

345

 

1,681

 

26.9

Net change in cash and cash balances

 

(5,324)

 

(10,496)

 

(167.2)

Cash and cash balances at beginning of period

 

20,524

 

46,612

 

742.7

Cash and cash balances at end of period

 

15,200

 

36,116

 

575.5

 

 

 

 

 

 

 

Reconciliation of cash and cash balances:

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

19,983

 

46,443

 

740.1

Restricted cash, beginning of period

 

541

 

169

 

2.6

Cash and cash balances, beginning of period

 

20,524

 

46,612

 

742.7

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

14,606

 

35,930

 

572.5

Restricted cash, end of period

 

594

 

186

 

3.0

Cash and cash balances, end of period

 

15,200

 

36,116

 

575.5

 

 

 


 

YANDEX N.V.

 

Unaudited Condensed Consolidated Statements of Cash Flows

 

(in millions of Russian rubles and U.S. dollars)

 

 

 

 

 

 

 

 

 

 

 

Six months ended June 30, 

 

 

2017

 

2018

 

2018

 

 

RUB

 

RUB

 

$

CASH FLOWS PROVIDED BY OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income

 

4,303

 

35,182

 

560.6

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation of property and equipment

 

4,170

 

4,728

 

75.4

Amortization of intangible assets

 

1,116

 

1,088

 

17.3

Amortization of debt discount and issuance costs

 

338

 

357

 

5.7

Share-based compensation expense

 

1,923

 

3,194

 

50.9

Deferred income taxes

 

(232)

 

(1,241)

 

(19.8)

Foreign exchange losses/(gains)

 

932

 

(1,603)

 

(25.5)

Effect of deconsolidation of Yandex.Market

 

 -

 

(28,244)

 

(450.1)

Losses from repurchases of convertible debt

 

 6

 

 -

 

 -

Income from equity method investments

 

(132)

 

(304)

 

(4.8)

Other

 

170

 

(149)

 

(2.3)

Changes in operating assets and liabilities excluding the effect of acquisitions:

 

 

 

 

 

 

Accounts receivable, net

 

(28)

 

(1,152)

 

(18.4)

Prepaid expenses and other assets

 

(999)

 

(2,929)

 

(46.7)

Accounts payable and accrued liabilities

 

1,336

 

3,148

 

50.2

Deferred revenue

 

12

 

(66)

 

(1.1)

Net cash provided by operating activities

 

12,915

 

12,009

 

191.4

CASH FLOWS USED IN INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchases of property and equipment and intangible assets

 

(7,729)

 

(10,161)

 

(161.9)

Proceeds from sale of property and equipment

 

20

 

164

 

2.6

Acquisitions of businesses, net of cash acquired

 

(364)

 

20,763

 

330.9

Investments in non-marketable equity securities

 

(103)

 

(139)

 

(2.2)

Proceeds from sale of equity securities

 

216

 

 -

 

 -

Proceeds from maturity of debt securities

 

1,702

 

 -

 

 -

Investments in term deposits

 

(58,482)

 

(55,592)

 

(885.8)

Maturities of term deposits

 

39,560

 

27,100

 

431.8

Deconsolidation of cash and cash equivalents of Yandex.Market

 

 -

 

(2,181)

 

(34.8)

Loans granted, net of proceeds from repayments

 

(39)

 

(189)

 

(3.0)

Net cash used in investing activities

 

(25,219)

 

(20,235)

 

(322.4)

CASH FLOWS USED IN FINANCING ACTIVITIES:

 

 

 

 

 

 

Proceeds from exercise of share options

 

258

 

104

 

1.7

Repurchases of convertible debt

 

(668)

 

 -

 

 -

Repurchases of ordinary shares

 

 -

 

(221)

 

(3.5)

Payment for contingent consideration

 

(195)

 

(641)

 

(10.3)

Other financing activities

 

10

 

(63)

 

(1.0)