First Quarter Total Adjusted Net Revenue
Increases 16% to RUB 2,905 Million and Adjusted Net Profit
Increases 3% to RUB 1,266 Million or RUB 20.76 per diluted
share QIWI upgrades 2017 GuidanceBoard of Directors Approves
Dividend of 22 cents per share
QIWI plc, (NASDAQ:QIWI) (MOEX:QIWI) (“QIWI” or the “Company”) today
announced results for the first quarter ended March 31, 2017.
First Quarter 2017 Operating and
Financial Highlights
- Total Adjusted Net Revenue increased 16% to RUB 2,905 million
($51.5 million)
- Adjusted EBITDA increased 4% to RUB 1,519 million ($26.9
million)
- Adjusted Net Profit increased 3% to RUB 1,266 million ($22.5
million), or RUB 20.76 per diluted share
- Total payment volume increased 8% to RUB 207.8 billion ($3.7
billion)
“Today I’m glad to share our first quarter 2017
results. This quarter we have noticed certain signs of improvement
in the overall economic situation in our core markets, moreover we
are happy to see that we are able to take advantage of the secular
trends towards digitalization of payments,” said Sergey Solonin,
QIWI’s chief executive officer. “We achieved solid financial
results this quarter and increased our total adjusted net revenue
as well as adjusted net profit. In 2017 we see many opportunities
ahead and will continue to focus on executing our strategy and
developing our new products.”
First Quarter 2017
Results
Revenues: Total Adjusted Net Revenue for the
quarter ended March 31, 2017 was RUB 2,905 million ($51.5 million),
an increase of 16% compared with RUB 2,509 million in the prior
year.
Payment Adjusted Net Revenue was RUB 2,372
million ($42.1 million), an increase of 18% compared with RUB 2,004
million in the prior year. Payment Adjusted Net Revenue growth was
predominantly driven by a volume growth in the Money Remittance and
E-commerce market verticals as well as by an improvement in yields
in E-commerce market vertical resulting from shift in product mix
partially offset by a decrease in payment volumes in the Telecom
and Other market verticals and a decrease in the net revenue yield
in Financial Services market vertical.
Other Adjusted Net Revenue, which is principally
composed of revenue from fees for inactive accounts and unclaimed
payments, interest revenue, revenue from overdrafts provided to
agents, rent of space for kiosks, cash and settlement services and
advertising, was RUB 533 million ($9.5 million), an increase of 6%
compared with RUB 505 million in the prior year. The growth in the
first quarter was mainly due to an increase in interest revenue
slightly offset by a decrease in revenue from fees for inactive
accounts and unclaimed payments. Fees for inactive accounts and
unclaimed payments for the first quarter ended March 31, 2017 were
RUB 318 million ($5.6 million) compared with RUB 334 million in the
prior year. Other Adjusted Net Revenue excluding revenue from fees
for inactive accounts and unclaimed payments increased 25% compared
with the same period in the prior year.
Total Adjusted Net Revenue excluding revenue
from fees for inactive accounts and unclaimed payments increased
19% compared with the same period in the prior year.
Adjusted EBITDA: For the quarter ended March 31,
2017, Adjusted EBITDA was RUB 1,519 million ($26.9 million), an
increase of 4% compared with RUB 1,466 million in the prior year.
Adjusted EBITDA increase was largely driven by an increase in
Adjusted Net Revenue offset by higher SG&A expense due to
increase in advertising expenses to RUB 214 million for the quarter
ended March 31, 2017 as compared to RUB 20 million for same period
in the prior year related to the roll out of the SOVEST project,
increase in personnel expenses (excluding effect of share based
payments) to RUB 437 million for the quarter ended March 31, 2017
as compared to RUB 389 million for same period in the prior year,
tax and office maintenance expenses all in connection with the
launch of a new project SOVEST. Adjusted EBITDA margin (Adjusted
EBITDA as a percentage of Total Adjusted Net Revenue) was 52.3%
compared with 58.4% in the prior year. Adjusted EBITDA excluding
fees for inactive accounts and unclaimed payments was RUB 1,201
million ($21.3 million), an increase of 6% compared with RUB 1,132
million in the prior year. Adjusted EBITDA margin excluding fees
for inactive accounts and unclaimed payments was 46.4% compared
with 52.1% in the prior year.
Adjusted Net Profit: For the quarter ended March
31, 2017, Adjusted Net Profit was RUB 1,266 million ($22.5
million), an increase of 3% compared with RUB 1,233 million in the
prior year. The increase in Adjusted Net Profit was primarily
driven by the same factors impacting Adjusted EBITDA. Adjusted Net
Profit excluding fees for inactive accounts and unused balances
(net of tax) increased 5% compared with the prior year. The
Adjusted Net Profit excluding net expenses associated with the
SOVEST project in the first quarter was RUB 1,566 million
representing as increase of 27% as compared with the same period of
prior year.
Other Operating Data: For the quarter ended
March 31, 2017, total payment volume was RUB 207.8 billion ($3.7
billion), an increase of 8% compared with RUB 193.2 billion in the
prior year. Dynamics of payment volume was driven by mixed trends
across market verticals with growth in Money Remittances market
vertical resulting largely from secular growth in digital money
remittances including card to card and peer to peer transfers and
E-commerce market vertical offset by declining volumes across
Telecom, Other and to a lesser extent Financial Services market
verticals. Payment average net revenue yield was 1.14%, an increase
of 10 bps compared with 1.04% in the prior year primarily due to
the shift of the revenue mix towards higher yielding services.
Total average Net Revenue Yield was 1.40%, an
increase of 10 bps as compared with 1.30% in the prior year. Total
average Net Revenue Yield excluding the effect of fees for inactive
accounts and unclaimed payments was 1.24%, an increase of 12 bps as
compared with the same period in the prior year.
SOVEST: In late 2016, we launched a payment-by-installments card
program under the SOVEST brand. For the quarter ended March 31,
2017, total payment volume of the project was RUB 191.5 million
($3.4 million).
Recent Developments
Dividend: Following the determination of first
quarter 2017 financial results our Board of Directors approved a
dividend of USD 22 cents per share. The dividend record date is May
29, 2017, and the Company intends to pay the dividend on May 31,
2017. The holders of ADSs will receive the dividend shortly
thereafter.
Dividend distributions for 2017 are subject to
our future cash flow needs, including our cash requirements in
connection with our new projects or otherwise.
Regulation by the Central Bank of Russia: Our
kiosk network in Russia was affected by the enhanced controls that
the Central Bank of Russia has implemented to ensure compliance by
the agents with legislation that requires them to remit their
proceeds to special accounts, as disclosed in our Form 6-K filed on
November 2, 2015.
Although through reducing the size of our
network, this adversely affects the availability and convenience of
our services to consumers in the short-term, we continue to believe
that increased transparency in the kiosk market will ultimately
allow us to improve our market share and strengthen our competitive
advantages.
2017 Guidance1
QIWI upgrades its guidance in respect of 2017
outlook:
- Total Adjusted Net Revenue is expected to increase by 10% to
15% over 2016; We expect no material contribution to Total Adjusted
Net Revenue from SOVEST project.
- Adjusted Net Profit excluding SOVEST expenses is expected to
increase by 12% to 17% over 2016; Adjusted Net Profit including
SOVEST expenses is expected to decline by 15% to 30% over
2016.
Earnings Conference Call and Audio
Webcast
QIWI will host a conference call to discuss
first quarter 2017 financial results today at 8:30 a.m. ET. Hosting
the call will be Sergey Solonin, chief executive officer, and
Alexander Karavaev chief financial officer. The conference call can
be accessed live over the phone by dialing +1 (877) 407-3982 or for
international callers by dialing +1 (201) 493-6780. A replay will
be available at 11:30 a.m. ET and can be accessed by dialing +1
(844) 512-2921 or +1 (412) 317-6671 for international callers; the
pin number is 13661926. The replay will be available until
Wednesday, May 24, 2017. The call will be webcast live from the
Company’s website at https://www.qiwi.ru under the Corporate
Investor Relations section or directly at
http://investor.qiwi.com/.
About QIWI plc.
QIWI is a leading provider of next generation
payment services in Russia and the CIS. It has an integrated
proprietary network that enables payment services across physical,
online and mobile channels. It has deployed over 18.0 million
virtual wallets, over 157,000 kiosks and terminals, and enabled
merchants to accept over RUB 69 billion cash and electronic
payments monthly from over 53 million consumers using its network
at least once a month. QIWI’s consumers can use cash, stored value
and other electronic payment methods to order and pay for goods and
services across physical or online environments
interchangeably.
Forward-Looking
Statements
This press release includes “forward-looking
statements” within the meaning of, and subject to the protection
of, the Private Securities Litigation Reform Act of 1995,
including, without limitation, statements regarding expected total
adjusted net revenue, adjusted net profit and net revenue yield,
dividend payments, payment volume growth, growth of physical and
virtual distribution channels and trends in each of our market
verticals. Such forward-looking statements involve known and
unknown risks, uncertainties, and other factors that may cause the
actual results, performance or achievements of QIWI plc. to be
materially different from future results, performance or
achievements expressed or implied by such forward-looking
statements. Various factors that could cause actual future results
and other future events to differ materially from those estimated
by management include, but are not limited to, the macroeconomic
conditions of the Russian Federation and in each of the
international markets in which we operate, competition, a decline
in average net revenue yield, regulation, QIWI’s ability to
grow physical and virtual distribution channels, QIWI’s ability to
expand geographically and other risks identified under the Caption
“Risk Factors” in QIWI’s Annual Report on Form 20-F and in other
reports QIWI files with the U.S. Securities and Exchange
Commission. QIWI undertakes no obligation to revise any
forward-looking statements or to report future events that may
affect such forward-looking statements unless QIWI is required to
do so by law.
______________________________
1 Guidance is provided in Russian rubles
|
QIWI plc. |
|
Consolidated Statement of Financial
Position |
|
(in millions) |
|
|
|
|
As of December 31, |
|
As of March
31, |
|
As of March
31, |
|
|
2016 (audited) |
|
2017 (unaudited) |
|
2017 (unaudited) |
|
|
RUB |
|
RUB |
|
USD(1) |
|
Assets |
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
Property
and equipment |
593 |
|
577 |
|
|
10 |
|
|
Goodwill
and other intangible assets |
11,022 |
|
10,917 |
|
|
194 |
|
|
Investments in associates |
- |
|
831 |
|
|
15 |
|
|
Long-term debt instruments |
399 |
|
622 |
|
|
11 |
|
|
Long-term loans |
120 |
|
169 |
|
|
3 |
|
|
Other
non-current assets |
40 |
|
39 |
|
|
1 |
|
|
Deferred
tax assets |
270 |
|
373 |
|
|
7 |
|
|
Total non-current assets |
12,444 |
|
13,528 |
|
|
240 |
|
|
Current assets |
|
|
|
|
|
|
Trade
and other receivables |
5,679 |
|
3,033 |
|
|
54 |
|
|
Short-term loans |
19 |
|
478 |
|
|
8 |
|
|
Short-term debt instruments |
1,772 |
|
2,480 |
|
|
44 |
|
|
Prepaid
income tax |
77 |
|
54 |
|
|
1 |
|
|
Cash and
cash equivalents(2) |
18,997 |
|
15,552 |
|
|
276 |
|
|
Other
current assets |
661 |
|
473 |
|
|
8 |
|
|
Total current assets |
27,205 |
|
22,070 |
|
|
391 |
|
|
Assets
of disposal group classified as held for sale |
25 |
|
144 |
|
|
3 |
|
|
Total assets |
39,674 |
|
35,742 |
|
|
634 |
|
|
Equity and liabilities |
|
|
|
|
|
|
Equity attributable to equity holders of the
parent |
|
|
|
|
|
|
Share
capital |
1 |
|
1 |
|
|
0 |
|
|
Additional paid-in capital |
1,876 |
|
1,876 |
|
|
33 |
|
|
Share
premium |
12,068 |
|
12,068 |
|
|
214 |
|
|
Other
reserve |
1,064 |
|
1,119 |
|
|
20 |
|
|
Retained
earnings |
4,808 |
|
4,942 |
|
|
88 |
|
|
Translation reserve |
131 |
|
(13 |
) |
|
(0 |
) |
|
Total equity attributable to equity holders of the
parent |
19,948 |
|
19,993 |
|
|
355 |
|
|
Non-controlling interest |
21 |
|
26 |
|
|
0 |
|
|
Total equity |
19,969 |
|
20,019 |
|
|
355 |
|
|
Non-current liabilities |
|
|
|
|
|
|
Other
non-current liabilities |
2 |
|
10 |
|
|
0 |
|
|
Deferred
tax liabilities |
851 |
|
807 |
|
|
14 |
|
|
Total non-current liabilities |
853 |
|
817 |
|
|
14 |
|
|
Current liabilities |
|
|
|
|
|
|
Trade
and other payables |
16,328 |
|
12,475 |
|
|
221 |
|
|
Amounts
due to customers and amounts due to banks |
2,342 |
|
1,384 |
|
|
25 |
|
|
Income
tax payable |
68 |
|
180 |
|
|
3 |
|
|
VAT and
other taxes payable |
102 |
|
117 |
|
|
2 |
|
|
Dividends payable |
- |
|
650 |
|
|
12 |
|
|
Other
current liabilities |
10 |
|
8 |
|
|
0 |
|
|
Total current liabilities |
18,850 |
|
14,814 |
|
|
263 |
|
|
Liabilities directly associated with the assets of a disposal group
classified as held for sale |
2 |
|
92 |
|
|
2 |
|
|
Total equity and liabilities |
39,674 |
|
35,742 |
|
|
634 |
|
______________________ |
(1) |
Calculated
using a ruble to U.S. dollar exchange rate of RUB 56.3779 to U.S.
$1.00, which was the official exchange rate quoted by the Central
Bank of the Russian Federation as of March 31, 2017. |
(2) |
Cash and
cash equivalents presented in the Consolidated Statement of
Financial Position as of March 31, 2017 does not reconcile with the
cash and cash equivalents presented in the Consolidated Statement
of Cash Flows for three months ended March 31, 2017 due to the cash
balances classified as part of the assets held for sale. |
QIWI plc. |
Consolidated Statement of Comprehensive
Income |
(in millions, except per share
data) |
|
|
Three months ended (unaudited) |
|
March 31, 2016 |
|
March 31, 2017 |
|
March 31, 2017 |
|
RUB |
|
RUB |
|
USD(1) |
|
|
|
|
|
|
Revenue |
4,160 |
|
|
4,612 |
|
|
82 |
|
Operating costs and expenses: |
|
|
|
|
|
Cost of
revenue (exclusive of depreciation and amortization) |
1,963 |
|
|
2,089 |
|
|
37 |
|
Selling
general and administrative expenses |
731 |
|
|
1,059 |
|
|
19 |
|
Depreciation and amortization |
186 |
|
|
209 |
|
|
4 |
|
Profit from operations |
1,280 |
|
|
1,255 |
|
|
22 |
|
|
|
|
|
|
|
Other
income and expenses, net |
(3 |
) |
|
(12 |
) |
|
(0 |
) |
Foreign
exchange gain |
550 |
|
|
276 |
|
|
5 |
|
Foreign
exchange loss |
(927 |
) |
|
(512 |
) |
|
(9 |
) |
Interest
income and expenses, net |
(11 |
) |
|
(4 |
) |
|
(0 |
) |
Profit before tax |
889 |
|
|
1,003 |
|
|
18 |
|
Income
tax expense |
(174 |
) |
|
(185 |
) |
|
(3 |
) |
Net profit |
715 |
|
|
818 |
|
|
15 |
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Equity
holders of the parent |
712 |
|
|
813 |
|
|
15 |
|
Non-controlling interests |
3 |
|
|
5 |
|
|
0 |
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
Other
comprehensive income to be reclassified to profit or loss in
subsequent periods: |
|
|
|
|
|
Exchange
differences on translation of foreign operations |
(184 |
) |
|
(144 |
) |
|
(3 |
) |
Total comprehensive
income net of
tax |
531 |
|
|
674 |
|
|
12 |
|
attributable to: |
|
|
|
|
|
Equity
holders of the parent |
528 |
|
|
669 |
|
|
12 |
|
Non-controlling interests |
3 |
|
|
5 |
|
|
0 |
|
|
|
|
|
|
|
Earnings
per share: |
|
|
|
|
|
Basic profit attributable to ordinary equity holders of the
parent |
11.79 |
|
|
13.41 |
|
|
0.24 |
|
|
|
|
|
|
|
Diluted profit attributable to ordinary equity holders of the
parent |
11.79 |
|
|
13.33 |
|
|
0.24 |
|
______________________ |
(1) |
Calculated
using a ruble to U.S. dollar exchange rate of RUB 56.3779 to U.S.
$1.00, which was the official exchange rate quoted by the Central
Bank of the Russian Federation as of March 31, 2017. |
|
QIWI plc. |
|
Consolidated Statement of Cash
Flows |
|
(in millions) |
|
|
|
|
Three months ended (unaudited) |
|
|
March 31, 2016 |
|
March 31, 2017 |
|
March 31, 2017 |
|
|
RUB |
|
RUB |
|
USD(1) |
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
Profit before
tax |
889 |
|
|
1,003 |
|
|
18 |
|
|
Adjustments to reconcile profit before income tax to net
cash flow used in operating activities |
|
|
|
|
|
|
Depreciation and amortization |
186 |
|
|
209 |
|
|
4 |
|
|
Foreign
exchange loss, net |
377 |
|
|
236 |
|
|
4 |
|
|
Interest
income, net |
(171 |
) |
|
(252 |
) |
|
(4 |
) |
|
Bad debt
expense/ (recovery), net |
12 |
|
|
(2 |
) |
|
(0 |
) |
|
Share-based payments |
- |
|
|
55 |
|
|
1 |
|
|
Other |
(3 |
) |
|
16 |
|
|
0 |
|
|
Operating profit before changes in working
capital |
1,290 |
|
|
1,265 |
|
|
22 |
|
|
Decrease
in trade and other receivables |
1,402 |
|
|
2,587 |
|
|
46 |
|
|
Decrease
in other assets |
124 |
|
|
181 |
|
|
3 |
|
|
Decrease
in amounts due to customers and amounts due to banks |
(1,040 |
) |
|
(958 |
) |
|
(17 |
) |
|
Decrease
in accounts payable and accruals |
(4,271 |
) |
|
(3,759 |
) |
|
(67 |
) |
|
Decrease/(increase) in loans issued from banking operations |
5 |
|
|
(150 |
) |
|
(3 |
) |
|
Cash used in operations |
(2,490 |
) |
|
(834 |
) |
|
(15 |
) |
|
Interest
received |
177 |
|
|
234 |
|
|
4 |
|
|
Interest
paid |
(38 |
) |
|
(21 |
) |
|
(0 |
) |
|
Income
tax paid |
(238 |
) |
|
(197 |
) |
|
(3 |
) |
|
Net cash flow used in operating activities |
(2,589 |
) |
|
(818 |
) |
|
(15 |
) |
|
Cash flows used
in investing activities |
|
|
|
|
|
|
Acquisition of joint control companies |
- |
|
|
(813 |
) |
|
(14 |
) |
|
Purchase
of property and equipment |
(90 |
) |
|
(40 |
) |
|
(1 |
) |
|
Purchase
of intangible assets |
(20 |
) |
|
(56 |
) |
|
(1 |
) |
|
Loans
issued |
(498 |
) |
|
(377 |
) |
|
(7 |
) |
|
Repayment
of loans issued |
755 |
|
|
3 |
|
|
0 |
|
|
Purchase
of debt instruments |
(400 |
) |
|
(900 |
) |
|
(16 |
) |
|
Net cash flow used in investing activities |
(253 |
) |
|
(2,183 |
) |
|
(39 |
) |
|
Cash flows used
in financing activities |
|
|
|
|
|
|
Proceeds
from borrowings |
1 |
|
|
- |
|
|
- |
|
|
Repayment
of borrowings |
(2 |
) |
|
- |
|
|
- |
|
|
Dividends
paid to owners of the Group |
(2,042 |
) |
|
- |
|
|
- |
|
|
Dividends
paid to non-controlling shareholders |
(4 |
) |
|
- |
|
|
- |
|
|
Net cash flow used in financing activities |
(2,047 |
) |
|
- |
|
|
- |
|
|
Effect of
exchange rate changes on cash and cash equivalents |
(737 |
) |
|
(400 |
) |
|
(7 |
) |
|
Net decrease in cash and cash equivalents |
(5,626 |
) |
|
(3,401 |
) |
|
(60 |
) |
|
Cash and
cash equivalents at the beginning of the period |
19,363 |
|
|
19,021 |
|
|
337 |
|
|
Cash and cash equivalents at the end of the
period(2) |
13,737 |
|
|
15,620 |
|
|
277 |
|
______________________ |
(1) |
Calculated
using a ruble to U.S. dollar exchange rate of RUB 56.3779 to U.S.
$1.00, which was the official exchange rate quoted by the Central
Bank of the Russian Federation as of March 31, 2017. |
(2) |
Cash and
cash equivalents presented in the Consolidated Statement of
Financial Position as of March 31, 2017 does not reconcile with the
cash and cash equivalents presented in the Consolidated Statement
of Cash Flows for three months ended March 31, 2017 due to the cash
balances classified as part of the assets held for sale. |
|
|
Non-IFRS Financial Measures and Supplemental Financial
Information
This release presents Total Adjusted Net
Revenue, Payment Adjusted Net Revenue, Other Adjusted Net Revenue,
Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit and
Adjusted Net Profit per share, which are non-IFRS financial
measures. You should not consider these non-IFRS financial measures
as substitutes for or superior to revenue, in the case of Total
Adjusted Net Revenue, Payment Adjusted Net Revenue and Other
Adjusted Net Revenue; Net Profit, in the case of Adjusted EBITDA;
and Adjusted Net Profit, or earnings per share, in the case of
Adjusted Net Profit per share, each prepared in accordance with
IFRS. Furthermore, because these non-IFRS financial measures are
not determined in accordance with IFRS, they are susceptible to
varying calculations and may not be comparable to other similarly
titled measures presented by other companies. QIWI encourages
investors and others to review our financial information in its
entirety and not rely on a single financial measure. For more
information regarding Total Adjusted Net Revenue, Payment Adjusted
Net Revenue, Other Adjusted Net Revenue, Adjusted EBITDA, Adjusted
EBITDA margin, Adjusted Net Profit, and Adjusted Net Profit per
share, including a quantitative reconciliation of Total Adjusted
Net Revenue, Payment Adjusted Net Revenue, Other Adjusted Net
Revenue, Adjusted EBITDA and Adjusted Net Profit to the most
directly comparable IFRS financial performance measure, which is
revenue in the case of Total Adjusted Net Revenue, payment revenue
in the case of Payment Adjusted Net Revenue, other revenue in the
case of Other Adjusted Net Revenue and net profit in the case of
Adjusted EBITDA and Adjusted Net Profit, see Reconciliation of IFRS
to Non-IFRS Operating Results in this earnings release.
Payment Adjusted Net Revenue is the Adjusted Net Revenue
consisting of the merchant and consumer fees collected for the
payment transactions. E-commerce payment adjusted net revenue
consists of fees charged to customers and merchants that buy and
sell products and services online, including online games, social
networks, betting, online stores, game developers, software
producers, coupon websites, tickets and numerous other merchants.
Financial Services payment adjusted net revenue primarily consists
of fees charged for payments accepted on behalf of our bank
partners and microfinance companies. Money Remittances payment
adjusted net revenue primarily consists of fees charged for
transferring funds via money remittance companies, card to card
transfers and certain wallet to wallet transfers. Telecom payment
adjusted net revenue primarily consists of fees charged for
payments to MNOs, internet services providers and pay television
providers. Other payment adjusted net revenue consists of consumer
and merchant fees charged for a variety of payments including
multi-level-marketing, utility bills, government payments,
education services and many others. Other Adjusted Net Revenue
primarily consists of revenue from fees for inactive accounts and
unclaimed payments, interest revenue, revenue from overdrafts
provided to agents, rent of space for kiosks, cash and settlement
services and advertising.
QIWI plc. |
Reconciliation of IFRS to Non-IFRS
Operating Results |
(in millions, except per share
data) |
|
|
Three months ended |
|
March 31, 2016 |
|
March 31, 2017 |
|
March 31, 2017 |
|
RUB |
|
RUB |
|
USD(1) |
|
|
|
|
|
|
Revenue |
4,160 |
|
|
4,612 |
|
|
81.8 |
|
Minus:
Cost of revenue (exclusive of depreciation and amortization) |
1,963 |
|
|
2,089 |
|
|
37.1 |
|
Plus:
Compensation to employees and related taxes |
312 |
|
|
382 |
|
|
6.8 |
|
Total Adjusted
Net Revenue |
2,509 |
|
|
2,905 |
|
|
51.5 |
|
|
|
|
|
|
|
Payment
Revenue(2) |
3,435 |
|
|
3,879 |
|
|
68.8 |
|
Minus: Cost of payment
revenue (exclusive of depreciation and amortization)(3) |
1,689 |
|
|
1,828 |
|
|
32.4 |
|
Plus: Compensation to
employees and related taxes allocated to payment revenue(4) |
258 |
|
|
321 |
|
|
5.7 |
|
|
|
|
|
|
|
Payment
Adjusted Net Revenue |
2,004 |
|
|
2,372 |
|
|
42.1 |
|
|
|
|
|
|
|
Other
Revenue(5) |
725 |
|
|
733 |
|
|
13.0 |
|
Minus: Cost of other
revenue (exclusive of depreciation and amortization)(6) |
274 |
|
|
261 |
|
|
4.6 |
|
Plus: Compensation to
employees and related taxes allocated to other revenue(4) |
54 |
|
|
61 |
|
|
1.1 |
|
|
|
|
|
|
|
Other Adjusted
Net Revenue |
505 |
|
|
533 |
|
|
9.5 |
|
|
|
|
|
|
|
Payment
Adjusted Net Revenue |
2,004 |
|
|
2,372 |
|
|
42.1 |
|
E-commerce |
954 |
|
|
1,178 |
|
|
20.9 |
|
Financial services |
351 |
|
|
306 |
|
|
5.4 |
|
Money remittances |
394 |
|
|
641 |
|
|
11.4 |
|
Telecom |
224 |
|
|
184 |
|
|
3.3 |
|
Other |
81 |
|
|
63 |
|
|
1.1 |
|
Other Adjusted
Net Revenue |
505 |
|
|
533 |
|
|
9.5 |
|
Total Adjusted
Net Revenue |
2,509 |
|
|
2,905 |
|
|
51.5 |
|
|
|
|
|
|
|
Net
Profit |
715 |
|
|
818 |
|
|
14.5 |
|
Plus: |
|
|
|
|
|
Depreciation and amortization |
186 |
|
|
209 |
|
|
3.7 |
|
Other
income and expenses, net |
3 |
|
|
12 |
|
|
0.2 |
|
Foreign
exchange gain |
(550 |
) |
|
(276 |
) |
|
(4.9 |
) |
Foreign
exchange loss |
927 |
|
|
512 |
|
|
9.1 |
|
Interest
expenses |
11 |
|
|
4 |
|
|
0.1 |
|
Income
tax expenses |
174 |
|
|
185 |
|
|
3.3 |
|
Share-based payments expenses |
- |
|
|
55 |
|
|
1.0 |
|
Adjusted
EBITDA |
1,466 |
|
|
1,519 |
|
|
26.9 |
|
Adjusted
EBITDA margin |
58.4 |
% |
|
52.3 |
% |
|
52.3 |
% |
|
|
|
|
|
|
Net
profit |
715 |
|
|
818 |
|
|
14.5 |
|
Amortization of fair value adjustments(7) |
91 |
|
|
103 |
|
|
1.8 |
|
Share-based payments expenses |
- |
|
|
55 |
|
|
1.0 |
|
Effect
of taxation of the above items |
(17 |
) |
|
(19 |
) |
|
(0.3 |
) |
Foreign
Exchange loss/(gain) on June 2014 offering proceeds(8) |
444 |
|
|
309 |
|
|
5.5 |
|
Adjusted Net
Profit |
1,233 |
|
|
1,266 |
|
|
22.5 |
|
|
|
|
|
|
|
Adjusted
Net Profit per share: |
|
|
|
|
|
Basic |
20.41 |
|
|
20.89 |
|
|
0.37 |
|
Diluted |
20.41 |
|
|
20.76 |
|
|
0.37 |
|
|
|
|
|
|
|
Shares used in
computing Adjusted Net Profit per share |
|
|
|
|
|
Basic |
60,420 |
|
|
60,618 |
|
|
60,618 |
|
Diluted |
60,420 |
|
|
60,989 |
|
|
60,989 |
|
______________________ |
(1) |
Calculated
using a ruble to U.S. dollar exchange rate of RUB 56.3779 to U.S.
$1.00, which was the official exchange rate quoted by the Central
Bank of the Russian Federation as of March 31, 2017. |
(2) |
Payment
revenue primarily consists of the merchant and consumer fees
charged for the payment transactions. |
(3) |
Cost of
payment revenue (exclusive of depreciation and amortization)
primarily consists of transaction costs to acquire payments from
our customers payable to agents, mobile operators, international
payment systems and other parties. |
(4) |
The Company
does not record the compensation to employees and related taxes
within cost of revenue separately for payment revenue and other
revenue, therefore it has been allocated between payment revenue
and other revenue in proportion to the relevant revenue amounts for
the purposes of the reconciliation presented above. |
(5) |
Other
Revenue primarily consists of revenue from inactivity fees,
interest revenue, revenue from overdrafts provided to agents, rent
of space for kiosks and sale of kiosks, cash and settlement
services and advertising. |
(6) |
Cost of
other revenue (exclusive of depreciation and amortization)
primarily consists of direct costs associated with other revenue
and other costs, including but not limited to: compensation to
employees and related taxes allocated to other revenue, costs of
call-centers and advertising commissions. |
(7) |
Amortization
of fair value adjustments primarily includes the effect of the
acquisition of control in Contact and Rapida. |
(8) |
The Forex
loss on SPO funds as presented in the reconciliation of Net Profit
to Adjusted Net Profit differs from the Foreign exchange loss and
Foreign exchange gain in the reconciliation of Net Profit to
Adjusted EBITDA as the latter includes all the foreign exchange
losses/(gains) for the period, while the former only include the
foreign exchange loss/(gain) on the US dollar amount, which we
received at SPO. |
QIWI plc. |
Other Operating
Data |
|
|
|
Three months ended |
|
|
March 31,
2016(1) |
|
March 31, 2017 |
|
March 31, 2017 |
|
|
RUB |
|
RUB |
|
USD (2) |
Payment volume (billion)(3) |
|
193.2 |
|
|
207.8 |
|
|
3.7 |
|
E-commerce |
|
33.8 |
|
|
37.6 |
|
|
0.7 |
|
Financial services |
|
59.4 |
|
|
59.1 |
|
|
1.0 |
|
Money
remittances(4) |
|
32.6 |
|
|
55.9 |
|
|
1.0 |
|
Telecom |
|
51.1 |
|
|
41.3 |
|
|
0.7 |
|
Other |
|
16.2 |
|
|
13.9 |
|
|
0.2 |
|
Payment adjusted net revenue
(million)(5) |
|
2,003.7 |
|
|
2,372.3 |
|
|
42.1 |
|
E-commerce |
|
953.5 |
|
|
1,178.1 |
|
|
20.9 |
|
Financial services |
|
351.1 |
|
|
306.0 |
|
|
5.4 |
|
Money
remittances(4) |
|
393.5 |
|
|
641.4 |
|
|
11.4 |
|
Telecom |
|
224.3 |
|
|
183.9 |
|
|
3.3 |
|
Other |
|
81.3 |
|
|
62.9 |
|
|
1.1 |
|
Payment average net revenue yield |
|
1.04 |
% |
|
1.14 |
% |
|
1.14 |
% |
E-commerce |
|
2.82 |
% |
|
3.13 |
% |
|
3.13 |
% |
Financial services |
|
0.59 |
% |
|
0.52 |
% |
|
0.52 |
% |
Money
remittances(4) |
|
1.21 |
% |
|
1.15 |
% |
|
1.15 |
% |
Telecom |
|
0.44 |
% |
|
0.45 |
% |
|
0.45 |
% |
Other |
|
0.50 |
% |
|
0.45 |
% |
|
0.45 |
% |
|
|
|
|
|
Total average Net
Revenue Yield |
|
1.30 |
% |
|
1.40 |
% |
|
1.40 |
% |
Active kiosks and
terminals (units)(6) |
|
167,399 |
|
|
157,596 |
|
|
157,596 |
|
Active Visa Qiwi Wallet
accounts (million)(7) |
|
16.1 |
|
|
18.0 |
|
|
18.0 |
|
|
|
|
|
|
SOVEST key operating
metrics |
|
|
|
|
Total payment volume
(million)(8) |
|
n/a |
|
|
191.5 |
|
|
3.4 |
|
______________________ |
(1) |
Payment
volumes, payment adjusted net revenue by vertical and payment
average net revenue yields presented for the respective period in
2016 differ from the data previously published, including as
presented in our quarterly earnings releases, and reflect
adjustments made to the methodology of payment volumes and payment
adjusted net revenues recognition and allocation between market
verticals including the following changes: (i) adjustment to
methodology in QIWI Kazakhstan to conform with the methodology used
in QIWI’s Russian operations and corresponding reallocation of
Kazakhstan payment volumes and payment adjusted net revenues to
appropriate market verticals; (ii) adjustment to methodology of
revenue and cost allocation between categories and corresponding
reallocation of certain commissions and costs between market
verticals; (iii) change in methodology of accounting for
transactions in foreign currencies and corresponding revaluation of
certain volumes, costs and revenues; (iv) change in methodology of
Contact and Rapida volume recognition in ongoing effort to bring
methodology in line with QIWI’s processes and procedures (see also
Note (4) below). The adjustments made reduced total volumes for the
period starting January 1, 2016 to March 31, 2016 by RUB 4.9
billion and affected the allocation of payment adjusted net revenue
between market verticals. The updated methodology is applied
starting fourth quarter 2016 with all previous data revised
retrospectively. |
(2) |
Calculated
using a ruble to U.S. dollar exchange rate of RUB 56.3779 to U.S.
$1.00, which was the official exchange rate quoted by the Central
Bank of the Russian Federation as of March 31, 2017. |
(3) |
Payment
volume by market verticals and consolidated payment volume consist
of the amounts paid by our customers to merchants or other
customers included in each of those market verticals less
intra-group eliminations. The methodology of payment volumes
allocation between different market verticals in Contact and Rapida
may differ from the methodology used by QIWI. We therefore retain
the right to restate the presented volumes, net revenues and net
revenue yields data in case the methodology of Contact and Rapida
will be brought in conformity with the methodology used by
QIWI. |
(4) |
In 2016 we
introduced consumer commissions for certain types of P2P (wallet to
wallet) transactions including cross currency transactions and
transactions above certain limits. Corresponding volumes and
payment adjusted net revenues are accounted for in our Money
Remittances market vertical and amounted to RUB 7.9 billion and RUB
95 million respectively for the quarter ended March 31, 2017. |
(5) |
Payment
Adjusted Net Revenue is calculated as the difference between
Payment Revenue and Cost of payment revenue (excluding D&A)
plus compensation to employees and related taxes allocated to
payment revenue. Payment Revenue primarily consists of merchant and
consumer fees. Cost of payment revenue primarily consists of
commission to agents. |
(6) |
We measure
the numbers of our kiosks and terminals on a daily basis, with only
those kiosks and terminals being taken into calculation through
which at least one payment has been processed during the day, which
we refer to as active kiosks and terminals. The period end numbers
of our kiosks and terminals are calculated as an average of the
amount of active kiosks and terminals for the last 30 days of the
respective reporting period. |
(7) |
Active Visa
Qiwi Wallet accounts calculated on a yearly basis, i.e. an active
account is an account that had at least one transaction within the
last 12 months from the reporting date. |
(8) |
Total
payment volume (million) consist of the amounts paid by our
customers using SOVEST card to the partner merchants. |
Contact
Varvara Kiseleva
Investor Relations
+357.25028091
ir@qiwi.com
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