Yandex’s revenue from the sale of Zen was 38.6 billion rubles

Yandex earned 38.6 billion rubles in 2022 after selling its stake in its subsidiary Zen.Platform. The stake, which Yandex sold to VK holding, amounted to 99.95% of the platform’s share capital.

The deal was completed last September, and the explanations to the company’s balance sheet and financial statements published in the Federal Tax Service database confirmed a 578% increase in revenues of Zen.Platform LLC to 5.3 billion rubles and net profit of 96.9 million rubles for the same period.

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The key factor in the company’s success was a change in platform positioning, which increased its monthly audience to 70 million people. In addition, a federal advertising campaign “Find Your Zen” was launched, which increased the number of downloads of the mobile application by 60%. Last November, the Zen app was relaunched with improved recommendations and other innovations, and in December, the ability to sign in via VK ID was added.

In late April, VK released a major update to the Zen app that brought the ability to shoot vertical videos and themed playlists to the platform.