Yandex Considers Paying Dividends for First Time as Core Earnings Surge

Yandex, the Russian technology company, announced on Tuesday that it may start paying dividends for the first time in its history. This news comes as Yandex reported a significant increase in core earnings following the completion of a complex split from its Nasdaq-listed, Dutch parent company.

The company recently finalized a $5.4 billion deal to acquire its Russia-based assets, marking the largest corporate exit since Russia’s invasion of Ukraine earlier this year. Despite the hefty discount associated with the deal, Yandex is poised for growth and financial success.

Since its establishment during the dotcom boom of the late 1990s, Yandex has focused on reinvesting its profits into various tech services, such as search, advertising, ride-hailing, e-commerce, and cloud services. However, the company’s management has now recommended a dividend of 80 roubles ($0.9302) per share, with plans to pay dividends twice a year moving forward.

In the second quarter of this year, Yandex reported a 56% increase in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA), reaching 47.6 billion roubles. Additionally, revenue grew by 37% to 249.3 billion roubles.

Looking ahead, Yandex expects revenue to grow by 38-40% for the year, with an acceleration in the second half, and adjusted EBITDA projected to reach 170-175 billion roubles.

The Dutch former parent company, YNV, is rebranding itself as Nebius Group and aims to play a significant role in developing the infrastructure for artificial intelligence. Yandex’s co-founder and former CEO, Arkady Volozh, will lead the new entity.

Overall, Yandex’s potential dividend payouts and strong financial performance demonstrate its commitment to shareholder value and future growth in the tech industry.