Yandex estimates the damage from the coronavirus crisis at 4.5 billion rubles

Yandex expects a net loss of up to 4.5 billion rubles and admits a decrease in revenue in the second quarter, follows from the company's published forecast for financial results.

According to a preliminary forecast, Yandex NV (this is the parent structure for Yandex and other companies of the group) will receive a net loss of 3 to 4.5 billion rubles in the second quarter against a net profit of 3.4 billion rubles in 2018.

The company's revenue will remain at the same period in 2019 or decrease by 2%, to 40.6 billion rubles, the company predicts. Revenue was impacted by coronavirus restrictions, due to which profits decreased in the advertising business, taxis and carsharing, but increased in food delivery and media services.

Prior to the epidemic, Yandex expected revenue growth of 22-26% year-on-year in 2020. But in April, the company withdrew the forecast because it did not include the coronavirus in its financial results. At the end of 2020, Yandex may expect the first drop in revenue since 2008, when the company began publishing consolidated financial statements, believes . Uliana Lenvalskaya, an analyst at the Swiss bank UBS,

If initially the bank expected revenue growth of almost 22%, to 213.2 billion rubles, then, according to the new forecast, due to the coronavirus pandemic, Yandex's consolidated revenue in 2020 may decrease by 2%, to 171.8 billion rubles.

According to the results of the first quarter of 2020, Yandex's revenue grew by 26% compared to the same period last year and amounted to 47 billion rubles, but adjusted net profit fell by 5%, to 5.1 billion rubles, the company said.

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