Russia's Yandex revenue rises after Mail.ru online deal

Reuters

* Posts 40 pct rise in Q3 revenue vs 34-38 pct year guidance

* More advertisers, agreement with Mail.Ru fuel growth

* Net profit boosted by one-off gain

MOSCOW, Oct 24 (Reuters) - Yandex, Russia's biggestsearch engine, reported a 40 percent rise in third-quarter saleson Thursday, supported by a deal with rival Mail.Ru for search-based online advertising.

Yandex also said it expected full-year 2013 revenue growthat the high end of its previous guidance of 34-38 percentfollowing strong third-quarter results.

The company, which leads the world's biggest search engineGoogle in Russia with a market share of about 62percent, has benefited from a booming online advertising marketas the country has become Europe's largest internet market byaudience.

An increase in the number of advertisers also helped pushits third-quarter revenue up 40 percent compared with a year agoto 10.2 billion roubles ($321.2 million).

Net profit rose 117 percent, year-on-year, to 5 billionroubles, boosted by a gain from the deconsolidation of theonline payment service Yandex.Money following the sale of a 75percent stake to Sberbank in July.

Adjusted for that gain, net profit was up 41 percent at 3.2billion roubles, Yandex said in a statement, compared with theaverage analyst estimate of 2.9 billion roubles, according toThomson Reuters I/B/E/S.

Adjusted earnings before interest, taxation, depreciationand amortisation (EBITDA) grew 28 percent to 4.4 billionroubles, in line with forecasts.

Yandex raised $1.4 billion in an oversubscribed initialpublic offering in New York in May 2011 that was priced at $25per share. The shares closed at $41 on Wednesday.

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