MKPAO Yandex's H1 2025: Strong Financials and AI-Powered Ecosystem Expansion
Артем Петренко
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8-19Arthur: When we think of global tech giants, we usually picture Silicon Valley. But there's a fascinating story unfolding with a company that just went through a massive reinvention. I'm talking about Yandex.
Mia: It's a huge story. And it's not just a corporate shuffle. In July 2024, the original Dutch parent company, Yandex N.V., sold off its entire Russian business. This created a new entity, MKPAO Yandex, which now controls everything from their core search engine in Russia to their global tech distribution.
Arthur: So this new MKPAO Yandex is the company we're really talking about now. It's a foundational shift. The big question then is, how are they actually doing? What do the numbers look like for the first half of 2025?
Mia: The numbers are surprisingly strong. They're on track for over 30% revenue growth for the year, and for the first half, they hit 34% year-over-year. The user engagement is also massive. We're talking over 90 million people a month using their Maps, and their subscription service, Yandex Plus, has over 43 million subscribers.
Arthur: Got it. And that Yandex Plus subscription seems to be the glue holding a lot of this together. It's clear that their diversified business model is the engine here. Let's break that down a bit.
Mia: Absolutely. You know, they have something like 90 different services. It's an incredible range, from their core Search and Portal, to E-commerce, RideTech like taxis, and a booming FinTech arm. But the key is how they're weaving AI into every single one of these.
Arthur: That's the number that jumped out at me. 7.6 billion interactions with their generative AI in just one quarter. So, what's the real so what behind embedding AI so deeply across all these diverse services, from Search to delivery robots? Is it just about making them 'nicer to use,' or is there a more fundamental strategic advantage being built here?
Mia: It's much more fundamental, Arthur. This isn't just a feature. By integrating advanced AI into everything, they're creating a powerful, self-reinforcing ecosystem. Every search query, every taxi ride, every online order feeds data back into the system, which makes the AI smarter. This creates a massive competitive moat. They're building intelligence into the very core of their operations, making them more efficient and indispensable to users.
Arthur: That makes sense. It's a powerful feedback loop. And to build that, you obviously need the right people and the right tech.
Mia: Exactly. And that's their other core strength. They develop almost everything in-house. We're talking their own GPT models, their own computer vision, their own autonomous driving tech. They have over 30,000 employees, a huge portion of whom are developers. Forbes even called them a Platinum employer.
Arthur: That in-house capability is a huge asset. So how does this all break down financially? Where is the money actually coming from across these different units?
Mia: Well, Search and Portal is still the biggest piece of the pie, at 27% of revenue. But the growth areas are what's really interesting. Their Advertising Services grew by 53% year-over-year, and the Plus and FinTech segment shot up by 73%.
Arthur: Wow, 73% growth in Plus and FinTech is huge. It really shows that platform strategy you mentioned is paying off, monetizing engagement across the whole ecosystem. So, with all this in mind, what are the key takeaways we should leave with?
Mia: I think there are a few critical points. First, the restructuring into MKPAO Yandex was a successful and pivotal move. Second, the company is in a period of really strong financial performance and user growth. But most importantly, their future is being built on two pillars: a deeply diversified portfolio and the aggressive integration of their own proprietary AI across every single service. This AI-powered ecosystem expansion, fueled by their own in-house talent, is what's really driving their momentum.