Russian tech giant Yandex reported a 27% fall in net second-quarter net profit on Thursday as costs rose from a low base a year earlier when uncertainty dominated in the immediate aftermath of Russia's invasion of Ukraine.

Often dubbed "Russia's Google", Yandex has struggled to balance domestic pressures with the interests of its Western investors since Russia sent troops into Ukraine in February 2022.

Yandex's net income fell to 9.6 billion roubles ($106.8 million) while its adjusted earnings before income, tax, depreciation and amortisation (EBITDA) fell 4% to 24.7 billion.

"The decline was expected and is due to the fact that the second quarter of 2022 was an 'anomaly' for the whole market," Yandex said referring to the year-earlier period.

"A year ago, Yandex had strong EBITDA due to a very low base of costs. The company froze hiring, cut part of its marketing budgets and was generally stricter on cost control."

Revenue continued to grow, however, gaining 55% to 182.5 billion roubles, Yandex said.

Its e-commerce division's gross merchandise volume (GMV) rose 89% versus a 67% gain last quarter.

The company's Dutch-registered holding company is advancing plans to divest ownership and control of most of Yandex Group with a corporate restructuring.

Sources told Reuters in May that shareholders in Yandex's holding company, many of whom are Western investment funds, could be in line to make $7 billion from a full divestment of its Russian businesses.

  - Reuters