HispanicBusiness

Yandex (Nasdaq:YNDX), the leading internet company in Russia operating the country's most popular search engine and most visited website, today announced its financial results for the fourth quarter and the full year ended December 31, 2011.

Q4 2011 Financial Highlights

-- Revenues of RUR 6.4 billion ($200.0 million1), up 56% compared with Q4

2010 Ex-TAC revenues2 (excluding traffic acquisition costs) up 50%

compared with Q4 2010

-- Income from operations of RUR 2.6 billion ($80.8 million), up 44%

compared with Q4 2010

-- Adjusted EBITDA2 of RUR 3.3 billion ($101.5 million), up 48% compared

with Q4 2010

-- Operating margin of 40.4% Adjusted EBITDA margin2 of 50.8% Adjusted ex-TAC EBITDA margin2 of 60.1%

-- Net income of RUR 2.1 billion ($65.9 million), up 51% compared with Q4

2010

-- Adjusted net income2 of RUR 2.2 billion ($68.3 million), up 50% compared

with Q4 2010

-- Net income margin of 33.0% Adjusted net income margin2 of 34.1% Adjusted ex-TAC net income margin2 of 40.4%

FY 2011 Financial Highlights

-- Revenues of RUR 20.0 billion ($622.2 million1), up 60% compared with FY

2010 Ex-TAC revenues2 (excluding traffic acquisition costs) up 56%

compared with FY 2010

-- Income from operations of RUR 7.0 billion ($218.5 million), up 46%

compared with FY 2010

-- Adjusted EBITDA2 of RUR 9.2 billion ($286.9 million), up 50% compared

with FY 2010

-- Operating margin of 35.1% Adjusted EBITDA margin2 of 46.1% Adjusted ex-TAC EBITDA margin2 of 54.2%

-- Net income of RUR 5.8 billion ($179.3 million), up 51% compared with FY

2010 Adjusted net income2 of RUR 6.0 billion ($186.5 million), up

51% compared with FY 2010

-- Net income margin of 28.8% Adjusted net income margin2 of 30.0% Adjusted ex-TAC net income margin2 of 35.2%

"Yandex demonstrated strong traffic and revenue growth, capping off results for 2011 at the top end of our guidance range and building upon our clear leadership in the Russian search market," said Arkady Volozh, Chief Executive Officer of Yandex. "During the past year we continued to innovate and offer new services that make a difference in the lives of our users, including those in Turkey, our first market outside the CIS. This past year's significant investments in talent and infrastructure, along with our focus on the needs of users, position us well going forward. We will continue to develop a broad range of services that complement our core search platform, including maps and personal services on the desktop and on mobile platforms, emphasizing collaboration with our strategic partners."

The following table provides a summary of key financial results for the three months ended December 31, 2010 and 2011 and fiscal years 2010 and 2011:


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Three months Twelve months

In RUR millions ended December 31, ended December 31,

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2010 2011 Change 2010 2011 Change