Russia’s Yandex To Take On Google In Emerging Markets

Russia’s leading internet search engine, Yandex, will compete with Google in emerging markets like Turkey in a bid to offset the inroads made by the US giant in its home market.

Yandex founder and chief executive Arkady Volozh said the firm was likely to use its own experts to expand into new countries, including acquisitions or partnership deals.

Yandex is currently focussing on Turkey, where it has managed a 1 percent market share since it entered last year. It describes this as a base for a significant expansion and says it will look to other large markets where it sees no real competition to Google

Yandex, which raised $1.4 billion in an initial public offering (IPO) in New York last year, has seen its share of the Russian search market fall to 60 percent in the second quarter from 64 percent a year earlier.

Yandex posted revenues of 20 billion roubles ($648 million)last year and has a market capitalisation of $7.2 billion.

Google is also under pressure from slowing revenue, reporting quarterly revenue growth of 17 percent year-over-year, the first time its growth has fallen below 20 percent since 2009.

In September, Yandex launched a browser to compete with Google’s Chrome. Norwegian mobile internet browser maker Opera has signed a licensing deal with Yandex to share its browser technology.

The Russian search engine has no plans to follow Google into the hardware market, where it builds mobile phones and tablets, but it would consider it if necessary.

While Yandex is building a platform of applications to work on its browser, it expects most revenue to continue to come from search rather than display ads or paid-for services.

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