Russian search engine and Internet service provider Yandex NV (NASDAQ: YNDX) reported a 57% rise in second-quarter revenue helped by higher ad sales, while the company expects to see sales growth for the full-year.
Revenues for the three months ending June 30, 2011 rose 57% to $4.54 billion roubles (US$162 million) compared to 2.89 billion roubles (US$104 million) a year earlier.
Net income for the quarter grew 11% to 1.13 billion roubles ($40.1 million) in the period. That compares to one billion roubles for the same comparable year.
This latest quarter included a foreign exchange loss of 34 million roubles, compared to a foreign exchange gain of 143 million roubles last year.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) grew 32% to 1.91 billion roubles ($68.1 million.)
Yandex said text-based advertising, its top-line performer, accounted for 88% of revenue, while its ad network rose to 69% in the second quarter, as well as a 50% rise in online advertising.
However, the company said operating costs spiked to 3.16 billion roubles.
Selling, general and administration (SG&A) rose 128% driven by advertising campaign and spillover costs of 65 million roubles from its initial public offering in May, the company said.
Russian based company hired more people in the period by 54% to 3,001, up from 1,030 last year.
Earlier this year, Yandex made an initial public offering. It sold shares, raising $1.3 billion.
Looking ahead, Yandex said it expects to achieve revenue growth of 55% to 60% for the full year of 2011.
Yandex is an internet company in Russia, operating the country's most popular search engine and the most visited website. According to LiveInternet, Yandex generated 64.6% of all search traffic in Russia during the second quarter. The company operates in Ukraine, Kazakhstan and Belarus.