Second Quarter Total Adjusted Net Revenue
Increases 12% to RUB 2,934 Million and Adjusted Net Profit
Decreases 15% to RUB 1,082 Million or RUB 17.70 per diluted
shareQIWI reiterates 2017 GuidanceBoard of Directors Approves
Dividend of 21 cents per share
QIWI plc. (NASDAQ:QIWI) (MOEX:QIWI) (“QIWI” or the “Company”) today
announced results for the second quarter ended June 30, 2017.
Second Quarter 2017 Operating
and Financial Highlights
- Total Adjusted Net Revenue increased 12% to RUB 2,934 million
($49.7 million)
- Adjusted EBITDA decreased 16% to RUB 1,376 million ($23.3
million)
- Adjusted Net Profit decreased 15% to RUB 1,082 million ($18.3
million), or RUB 17.70 per diluted share
- Total payment volume increased 6% to RUB 216.5 billion ($3.7
billion)
“Today I’m glad to share our second quarter 2017
results and highlight that the signs of improvement in the overall
economic situation in our core markets and the secular trends
towards digitalization of payments that we have noticed earlier
this year continue to evolve further supporting our core business,”
said Sergey Solonin, QIWI’s chief executive officer. “We achieved
solid financial results this quarter and increased our total
adjusted net revenue while continuing to invest in our new business
lines and projects, most noticeably SOVEST. We see many
opportunities ahead in the second half of 2017 and beyond and will
continue to focus on executing our strategy and developing our new
initiatives.”
Second Quarter 2017
Results
Revenues: Total Adjusted Net Revenue for the
quarter ended June 30, 2017 was RUB 2,934 million ($49.7 million),
an increase of 12% compared with RUB 2,619 million in the prior
year.
Payment Adjusted Net Revenue was RUB 2,471
million ($41.8 million), an increase of 23% compared with RUB 2,012
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.
Growth was partially offset by a decrease in payment volumes in the
Financial Services, Telecom and Other market verticals.
Other Adjusted Net Revenue, which is principally
composed of revenue from fees for inactive accounts and unclaimed
payments, interest revenue, SOVEST revenue, revenue from overdrafts
provided to agents, rent of space for kiosks, cash and settlement
services and advertising, was RUB 463 million ($7.8 million), a
decrease of 24% compared with RUB 607 million in the prior year.
Other Adjusted Net Revenue decline in the second quarter was mainly
due to the net loss of the SOVEST project1 in the amount of RUB 68
million, a decrease in revenue from fees for inactive accounts and
unclaimed payments and revenue from cash and settlement services
partially offset by the increase in interest revenue. Total
Adjusted Net Revenue excluding contribution of SOVEST project
increased 15% compared with the same period in the prior year.
Fees for inactive accounts and unclaimed
payments for the second quarter ended June 30, 2017 were RUB 328
million ($5.5 million) compared with RUB 380 million in the prior
year. Other Adjusted Net Revenue excluding revenue from fees for
inactive accounts and unclaimed payments decreased 40% compared
with the same period in the prior year. Total Adjusted Net Revenue
excluding revenue from fees for inactive accounts and unclaimed
payments increased 16% compared with the same period in the prior
year.
Adjusted EBITDA: For the quarter ended June 30,
2017, Adjusted EBITDA was RUB 1,376 million ($23.3 million), a
decrease of 16% compared with RUB 1,640 million in the prior year.
Adjusted EBITDA decrease was largely driven by growth of SG&A
expense due to increase in advertising expenses to RUB 335 million
for the quarter ended June 30, 2017 as compared to RUB 27 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 418 million for the quarter ended June
30, 2017 as compared to RUB 346 million for same period in the
prior year, tax and bad debt expenses also related to the launch of
the SOVEST project partially offset by an increase in Adjusted Net
Revenue. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of
Total Adjusted Net Revenue) was 46.9% for the quarter ended June
30, 2017 compared with 62.6% for the same period in the prior year.
Adjusted EBITDA excluding fees for inactive accounts and unclaimed
payments was RUB 1,048 million ($17.7 million), a decrease of 17%
compared with RUB 1,260 million in the prior year. Adjusted EBITDA
margin excluding fees for inactive accounts and unclaimed payments
was 40.2% compared with 56.3% in the prior year.
Adjusted Net Profit: For the quarter ended June
30, 2017, Adjusted Net Profit was RUB 1,082 million ($18.3
million), a decrease of 15% compared with RUB 1,270 million in the
prior year. The decrease 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) decreased 15% compared with the prior year. The
Adjusted Net Profit excluding net expenses associated with the
SOVEST project1 in the second quarter was RUB 1,662 million
representing as increase of 31% as compared with the same period of
prior year.
Other Operating Data: For the quarter ended June
30, 2017, total payment volume was RUB 216.5 billion ($3.7
billion), an increase of 6% compared with RUB 204.5 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
Financial Services, Telecom and Other market verticals. Payment
average adjusted net revenue yield was 1.14%, an increase of 16 bps
compared with 0.98% in the prior year primarily due to the higher
average net revenue yield in the E-commerce market vertical.
Total average adjusted Net Revenue Yield was
1.36%, an increase of 8 bps as compared with 1.28% in the prior
year. Total average adjusted Net Revenue Yield excluding the effect
of fees for inactive accounts and unclaimed payments was 1.20%, an
increase of 11 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 June 30, 2017, total payment volume of the
project was RUB 313.6 million ($5.3 million).
Recent Developments
Dividend: Following the determination of second
quarter 2017 financial results, our Board of Directors approved a
dividend of USD 21 cents per share. The dividend record date is
August 29, 2017, and the Company intends to pay the dividend on
September 1, 2017. The holders of ADSs will receive the dividend
shortly thereafter.
Dividend distributions for 2017 are subject to
our future cash flow needs and we retain the right to review our
dividend distributions and suspend the dividend payments on the
quarterly basis in lieu of the funding requirements for the new
projects, capital expenditures, potential M&A or otherwise.
2017 Guidance2
QIWI reiterates 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
second 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 13667749. The replay will be available
until Tuesday, August 22, 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 18.5 million
virtual wallets, over 155,000 kiosks and terminals, and enabled
merchants to accept over RUB 72 billion cash and electronic
payments monthly from over 51 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 The methodology of segmentation and allocation of Revenues,
Costs and Expenses between QIWI core business and SOVEST project is
currently being developed and is subject to further audit reviews;
thus, we retain the right to review the methodology of Revenues,
Costs and Expenses allocation between QIWI core business and SOVEST
project and restate the corresponding data to incorporate such
adjustments.
2 Guidance is provided in Russian rubles
QIWI
plc.Consolidated Statement of
Financial Position(in
millions) |
|
|
|
|
|
|
|
|
|
|
As of December 31, |
|
As of June 30, |
|
As of June 30, |
|
|
|
2016 (audited) |
|
2017 (unaudited) |
|
2017 (unaudited) |
|
|
|
RUB |
|
RUB |
|
USD(1) |
|
|
Assets |
|
|
|
|
|
|
|
Non-current assets |
|
|
|
|
|
|
|
Property
and equipment |
593 |
|
575 |
|
10 |
|
|
Goodwill
and other intangible assets |
11,022 |
|
10,818 |
|
183 |
|
|
Investments in joint ventures |
- |
|
831 |
|
14 |
|
|
Long-term debt instruments |
399 |
|
1,096 |
|
19 |
|
|
Long-term loans |
120 |
|
168 |
|
3 |
|
|
Other
non-current assets |
40 |
|
41 |
|
1 |
|
|
Deferred
tax assets |
270 |
|
237 |
|
4 |
|
|
Total non-current assets |
12,444 |
|
13,766 |
|
233 |
|
|
Current assets |
|
|
|
|
|
|
|
Trade
and other receivables |
5,679 |
|
3,494 |
|
59 |
|
|
Short-term loans |
19 |
|
346 |
|
6 |
|
|
Short-term debt instruments |
1,772 |
|
698 |
|
12 |
|
|
Prepaid
income tax |
77 |
|
143 |
|
2 |
|
|
Cash and
cash equivalents(2) |
18,997 |
|
16,907 |
|
286 |
|
|
Other
current assets |
661 |
|
411 |
|
7 |
|
|
Total current assets |
27,205 |
|
21,999 |
|
372 |
|
|
Assets
of disposal group classified as held for sale |
25 |
|
19 |
|
0 |
|
|
Total assets |
39,674 |
|
35,784 |
|
606 |
|
|
Equity and liabilities |
|
|
|
|
|
|
|
Equity attributable to equity holders of the
parent |
|
|
|
|
|
|
|
Share
capital |
1 |
|
1 |
|
0 |
|
|
Additional paid-in capital |
1,876 |
|
1,876 |
|
32 |
|
|
Share
premium |
12,068 |
|
12,068 |
|
204 |
|
|
Other
reserve |
1,064 |
|
1,179 |
|
20 |
|
|
Retained
earnings |
4,808 |
|
5,250 |
|
89 |
|
|
Translation reserve |
131 |
|
61 |
|
1 |
|
|
Total equity attributable to equity holders of the
parent |
19,948 |
|
20,435 |
|
346 |
|
|
Non-controlling interest |
21 |
|
22 |
|
0 |
|
|
Total equity |
19,969 |
|
20,457 |
|
346 |
|
|
Non-current liabilities |
|
|
|
|
|
|
|
Other
non-current liabilities |
2 |
|
10 |
|
0 |
|
|
Deferred
tax liabilities |
851 |
|
687 |
|
12 |
|
|
Total non-current liabilities |
853 |
|
697 |
|
12 |
|
|
Current liabilities |
|
|
|
|
|
|
|
Trade
and other payables |
16,328 |
|
13,030 |
|
221 |
|
|
Amounts
due to customers and amounts due to banks |
2,342 |
|
1,436 |
|
24 |
|
|
Income
tax payable |
68 |
|
52 |
|
1 |
|
|
VAT and
other taxes payable |
102 |
|
96 |
|
2 |
|
|
Other
current liabilities |
10 |
|
11 |
|
0 |
|
|
Total current liabilities |
18,850 |
|
14,625 |
|
248 |
|
|
Liabilities directly associated with the assets of a disposal group
classified as held for sale |
2 |
|
5 |
|
0 |
|
|
Total equity and liabilities |
39,674 |
|
35,784 |
|
606 |
|
_______________________ |
|
|
|
|
|
|
(1)
Calculated using a ruble to U.S. dollar exchange rate of RUB
59.0855 to U.S. $1.00, which was the official exchange rate quoted
by the Central Bank of the Russian Federation as of June 30,
2017.(2) Cash and cash equivalents presented in the Consolidated
Statement of Financial Position as of June 30, 2017 does not
reconcile with the cash and cash equivalents presented in the
Consolidated Statement of Cash Flows for six months ended June 30,
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) |
|
June 30, 2016 |
|
June 30, 2017 |
|
June 30, 2017 |
|
RUB |
|
RUB |
|
USD(1) |
|
|
|
|
|
|
Revenue |
4,416 |
|
|
4,790 |
|
|
81 |
|
Operating costs and expenses: |
|
|
|
|
|
Cost of
revenue (exclusive of depreciation and amortization) |
2,094 |
|
|
2,215 |
|
|
38 |
|
Selling
general and administrative expenses |
682 |
|
|
1,259 |
|
|
21 |
|
Depreciation and amortization |
191 |
|
|
200 |
|
|
3 |
|
Profit from operations |
1,449 |
|
|
1,116 |
|
|
19 |
|
|
|
|
|
|
|
Other
income and expenses, net |
(2 |
) |
|
4 |
|
|
0 |
|
Foreign
exchange gain |
190 |
|
|
342 |
|
|
6 |
|
Foreign
exchange loss |
(468 |
) |
|
(193 |
) |
|
(3 |
) |
Interest
income and expenses, net |
(5 |
) |
|
11 |
|
|
0 |
|
Profit before tax |
1,164 |
|
|
1,280 |
|
|
22 |
|
Income
tax expense |
(235 |
) |
|
(204 |
) |
|
(3 |
) |
Net profit |
929 |
|
|
1,076 |
|
|
18 |
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Equity
holders of the parent |
926 |
|
|
1,070 |
|
|
18 |
|
Non-controlling interests |
3 |
|
|
6 |
|
|
0 |
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
Exchange
differences on translation of foreign operations |
|
|
|
|
|
Differences arising during the year |
(65 |
) |
|
74 |
|
|
1 |
|
Total comprehensive
income net of
tax |
864 |
|
|
1,150 |
|
|
19 |
|
attributable to: |
|
|
|
|
|
Equity
holders of the parent |
861 |
|
|
1,144 |
|
|
19 |
|
Non-controlling interests |
3 |
|
|
6 |
|
|
0 |
|
|
|
|
|
|
|
Earnings
per share: |
|
|
|
|
|
Basic
profit attributable to ordinary equity holders of the parent |
15.32 |
|
|
17.64 |
|
|
0.30 |
|
|
|
|
|
|
|
Diluted
profit attributable to ordinary equity holders of the parent |
15.32 |
|
|
17.51 |
|
|
0.30 |
|
_______________________ |
|
|
|
|
|
(1)
Calculated using a ruble to U.S. dollar exchange rate of RUB
59.0855 to U.S. $1.00, which was the official exchange rate quoted
by the Central Bank of the Russian Federation as of June 30,
2017. |
|
QIWI
plc.Consolidated Statement of
Comprehensive Income(in millions, except
per share data) |
|
|
|
|
|
|
|
|
|
Six months ended (unaudited) |
|
|
June 30, 2016 |
|
June 30, 2017 |
|
June 30, 2017 |
|
|
RUB |
|
RUB |
|
USD(1) |
|
|
|
|
|
|
|
|
Revenue |
8,576 |
|
|
9,402 |
|
|
159 |
|
|
Operating costs and expenses: |
|
|
|
|
|
|
Cost of
revenue (exclusive of depreciation and amortization) |
4,057 |
|
|
4,304 |
|
|
73 |
|
|
Selling
general and administrative expenses |
1,413 |
|
|
2,318 |
|
|
39 |
|
|
Depreciation and amortization |
377 |
|
|
409 |
|
|
7 |
|
|
Profit from operations |
2,729 |
|
|
2,371 |
|
|
40 |
|
|
|
|
|
|
|
|
|
Other
income and expenses, net |
(5 |
) |
|
(8 |
) |
|
(0 |
) |
|
Foreign
exchange gain |
695 |
|
|
214 |
|
|
4 |
|
|
Foreign
exchange loss |
(1,350 |
) |
|
(301 |
) |
|
(5 |
) |
|
Interest
income and expenses, net |
(16 |
) |
|
7 |
|
|
0 |
|
|
Profit before tax |
2,053 |
|
|
2,283 |
|
|
39 |
|
|
Income
tax expense |
(409 |
) |
|
(389 |
) |
|
(7 |
) |
|
Net profit |
1,644 |
|
|
1,894 |
|
|
32 |
|
|
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
|
Equity
holders of the parent |
1,638 |
|
|
1,883 |
|
|
32 |
|
|
Non-controlling interests |
6 |
|
|
11 |
|
|
0 |
|
|
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
|
Exchange
differences on translation of foreign operations |
|
|
|
|
|
|
Differences arising during the year |
(249 |
) |
|
(70 |
) |
|
(1 |
) |
|
Total comprehensive
income net of
tax |
1,395 |
|
|
1,824 |
|
|
31 |
|
|
attributable to: |
|
|
|
|
|
|
Equity
holders of the parent |
1,389 |
|
|
1,813 |
|
|
31 |
|
|
Non-controlling interests |
6 |
|
|
11 |
|
|
0 |
|
|
|
|
|
|
|
|
|
Earnings
per share: |
|
|
|
|
|
|
Basic
profit attributable to ordinary equity holders of the parent |
27.11 |
|
|
31.06 |
|
|
0.53 |
|
|
|
|
|
|
|
|
|
Diluted
profit attributable to ordinary equity holders of the parent |
27.11 |
|
|
30.84 |
|
|
0.52 |
|
_______________________ |
|
|
|
|
|
(1)
Calculated using a ruble to U.S. dollar exchange rate of RUB
59.0855 to U.S. $1.00, which was the official exchange rate quoted
by the Central Bank of the Russian Federation as of June 30,
2017. |
|
QIWI
plc.Consolidated Statement of
Cash Flows (in millions) |
|
|
|
|
|
Six months ended (unaudited) |
|
|
June 30, 2016 |
|
June 30, 2017 |
|
June 30, 2017 |
|
|
RUB |
|
RUB |
|
USD(1) |
|
|
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
|
Profit
before tax |
2,053 |
|
|
2,283 |
|
|
39 |
|
|
Adjustments to reconcile profit before income tax to net
cash flow used in/ generated from operating
activities |
|
|
|
|
|
|
Depreciation and amortization |
377 |
|
|
409 |
|
|
7 |
|
|
Foreign
exchange loss, net |
655 |
|
|
87 |
|
|
1 |
|
|
Interest
income, net |
(367 |
) |
|
(518 |
) |
|
(9 |
) |
|
Bad debt
expense, net |
12 |
|
|
36 |
|
|
1 |
|
|
Share-based payments |
- |
|
|
115 |
|
|
2 |
|
|
Other |
(3 |
) |
|
15 |
|
|
0 |
|
|
Operating profit before changes in working
capital |
2,727 |
|
|
2,427 |
|
|
41 |
|
|
Decrease
in trade and other receivables |
1,548 |
|
|
2,211 |
|
|
37 |
|
|
Decrease
in other assets |
118 |
|
|
244 |
|
|
4 |
|
|
Decrease
in amounts due to customers and amounts due to banks |
(1,183 |
) |
|
(869 |
) |
|
(15 |
) |
|
Decrease
in trade and other payables |
(4,117 |
) |
|
(3,319 |
) |
|
(56 |
) |
|
Decrease/(increase) in loans issued from banking operations |
7 |
|
|
(272 |
) |
|
(5 |
) |
|
Cash (used in) / generated from operations |
(900 |
) |
|
422 |
|
|
7 |
|
|
Interest
received |
357 |
|
|
527 |
|
|
9 |
|
|
Interest
paid |
(60 |
) |
|
(36 |
) |
|
(1 |
) |
|
Income
tax paid |
(502 |
) |
|
(592 |
) |
|
(10 |
) |
|
Net cash flow (used in)/ generated from operating
activities |
(1,105 |
) |
|
321 |
|
|
5 |
|
|
Cash flows used
in investing activities |
|
|
|
|
|
|
Acquisition of joint control companies |
- |
|
|
(813 |
) |
|
(14 |
) |
|
Purchase
of property and equipment |
(154 |
) |
|
(82 |
) |
|
(1 |
) |
|
Purchase
of intangible assets |
(101 |
) |
|
(106 |
) |
|
(2 |
) |
|
Loans
issued |
(508 |
) |
|
(376 |
) |
|
(6 |
) |
|
Repayment
of loans issued |
760 |
|
|
203 |
|
|
3 |
|
|
Purchase
of debt instruments |
(400 |
) |
|
(1,376 |
) |
|
(23 |
) |
|
Proceeds
from settlement of debt instruments |
- |
|
|
1,775 |
|
|
30 |
|
|
Net cash flow used in investing activities |
(403 |
) |
|
(775 |
) |
|
(13 |
) |
|
Cash flows used
in financing activities |
|
|
|
|
|
|
Proceeds
from borrowings |
2 |
|
|
- |
|
|
- |
|
|
Repayment
of borrowings |
(4 |
) |
|
- |
|
|
- |
|
|
Dividends
paid to owners of the Group |
(2,909 |
) |
|
(1,400 |
) |
|
(24 |
) |
|
Dividends
paid to non-controlling shareholders |
(6 |
) |
|
(10 |
) |
|
(0 |
) |
|
Net cash flow used in financing activities |
(2,917 |
) |
|
(1,410 |
) |
|
(24 |
) |
|
Effect of
exchange rate changes on cash and cash equivalents |
(1,067 |
) |
|
(231 |
) |
|
(4 |
) |
|
Net decrease in cash and cash equivalents |
(5,492 |
) |
|
(2,095 |
) |
|
(35 |
) |
|
Cash and
cash equivalents at the beginning of the period |
19,363 |
|
|
19,021 |
|
|
322 |
|
|
Cash and cash equivalents at the end of the
period(2) |
13,871 |
|
|
16,926 |
|
|
286 |
|
_______________________ |
|
|
|
|
|
(1)
Calculated using a ruble to U.S. dollar exchange rate of RUB
59.0855 to U.S. $1.00, which was the official exchange rate quoted
by the Central Bank of the Russian Federation as of June 30,
2017.(2) Cash and cash equivalents presented in the
Consolidated Statement of Financial Position as of June 30, 2017
does not reconcile with the cash and cash equivalents presented in
the Consolidated Statement of Cash Flows for six months ended June
30, 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
Processing Fees Revenue (or Payment Revenue) in the case of Payment
Adjusted Net Revenue, Revenue, Other Than Payment Processing Fees
(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 (unaudited) |
|
|
|
June 30, 2016 |
|
June 30, 2017 |
|
June 30, 2017 |
|
|
|
RUB |
|
RUB |
|
USD(1) |
|
|
|
|
|
|
|
|
|
|
Revenue |
4,416 |
|
|
4,790 |
|
|
81.1 |
|
|
|
Minus:
Cost of revenue (exclusive of depreciation and amortization) |
2,094 |
|
|
2,215 |
|
|
37.5 |
|
|
|
Plus:
Compensation to employees and related taxes |
297 |
|
|
359 |
|
|
6.1 |
|
|
|
Total Adjusted
Net Revenue |
2,619 |
|
|
2,934 |
|
|
49.7 |
|
|
|
|
|
|
|
|
|
|
|
Payment
Revenue(2) |
3,621 |
|
|
4,052 |
|
|
68.6 |
|
|
|
Minus: Cost of payment
revenue (exclusive of depreciation and amortization)(3) |
1,851 |
|
|
1,885 |
|
|
31.9 |
|
|
|
Plus: Compensation to
employees and related taxes allocated to payment revenue(4) |
242 |
|
|
304 |
|
|
5.1 |
|
|
|
|
|
|
|
|
|
|
|
Payment
Adjusted Net Revenue |
2,012 |
|
|
2,471 |
|
|
41.8 |
|
|
|
|
|
|
|
|
|
|
|
Other
Revenue(5) |
795 |
|
|
738 |
|
|
12.5 |
|
|
|
Minus: Cost of other
revenue (exclusive of depreciation and amortization)(6) |
243 |
|
|
330 |
|
|
5.6 |
|
|
|
Plus: Compensation to
employees and related taxes allocated to other revenue(4) |
55 |
|
|
55 |
|
|
0.9 |
|
|
|
|
|
|
|
|
|
|
|
Other Adjusted
Net Revenue |
607 |
|
|
463 |
|
|
7.8 |
|
|
|
|
|
|
|
|
|
|
|
Payment
Adjusted Net Revenue |
2,012 |
|
|
2,471 |
|
|
41.8 |
|
|
|
E-commerce |
948 |
|
|
1,246 |
|
|
21.1 |
|
|
|
Financial services |
359 |
|
|
311 |
|
|
5.3 |
|
|
|
Money remittances |
419 |
|
|
660 |
|
|
11.2 |
|
|
|
Telecom |
221 |
|
|
189 |
|
|
3.2 |
|
|
|
Other |
65 |
|
|
63 |
|
|
1.1 |
|
|
|
Other Adjusted
Net Revenue |
607 |
|
|
463 |
|
|
7.8 |
|
|
|
Total Adjusted
Net Revenue |
2,619 |
|
|
2,934 |
|
|
49.7 |
|
|
|
|
|
|
|
|
|
|
|
Net
Profit |
929 |
|
|
1,076 |
|
|
18.2 |
|
|
|
Plus: |
|
|
|
|
|
|
|
Depreciation and amortization |
191 |
|
|
200 |
|
|
3.4 |
|
|
|
Other
income |
2 |
|
|
(4 |
) |
|
(0.1 |
) |
|
|
Foreign
exchange gain |
(190 |
) |
|
(342 |
) |
|
(5.8 |
) |
|
|
Foreign
exchange loss |
468 |
|
|
193 |
|
|
3.3 |
|
|
|
Interest
expenses |
5 |
|
|
(11 |
) |
|
(0.2 |
) |
|
|
Income
tax expenses |
235 |
|
|
204 |
|
|
3.5 |
|
|
|
Share-based payments expenses |
- |
|
|
60 |
|
|
1.0 |
|
|
|
Adjusted
EBITDA |
1,640 |
|
|
1,376 |
|
|
23.3 |
|
|
|
Adjusted
EBITDA margin |
62.6 |
% |
|
46.9 |
% |
|
46.9 |
% |
|
|
|
|
|
|
|
|
|
|
Net
profit |
929 |
|
|
1,076 |
|
|
18.2 |
|
|
|
Amortization of fair value adjustments(7) |
93 |
|
|
91 |
|
|
1.5 |
|
|
|
Share-based payments expenses |
- |
|
|
60 |
|
|
1.0 |
|
|
|
Effect
of taxation of the above items |
(18 |
) |
|
(18 |
) |
|
(0.3 |
) |
|
|
Foreign
Exchange loss/(gain) on June 2014 offering proceeds(8) |
266 |
|
|
(127 |
) |
|
(2.1 |
) |
|
|
Adjusted Net
Profit |
1,270 |
|
|
1,082 |
|
|
18.3 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Net Profit per share: |
|
|
|
|
|
|
|
Basic |
21.02 |
|
|
17.84 |
|
|
0.30 |
|
|
|
Diluted |
21.02 |
|
|
17.70 |
|
|
0.30 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares used in computing Adjusted Net Profit per share |
|
|
|
|
|
|
|
Basic |
60,427 |
|
|
60,642 |
|
|
60,642 |
|
|
|
Diluted |
60,427 |
|
|
61,111 |
|
|
61,111 |
|
|
_______________________ |
|
|
|
|
|
|
(1) Calculated using a ruble to U.S. dollar exchange
rate of RUB 59.0855 to U.S. $1.00, which was the official exchange
rate quoted by the Central Bank of the Russian Federation as of
June 30, 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, 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.Reconciliation of IFRS to
Non-IFRS Operating Results(in millions,
except per share data) |
|
|
|
|
|
|
|
|
|
|
Six months ended |
|
|
|
June 30, 2016 |
|
June 30, 2017 |
|
June 30, 2017 |
|
|
|
RUB |
|
RUB |
|
USD(1) |
|
|
|
|
|
|
|
|
|
|
Revenue |
8,576 |
|
|
9,402 |
|
|
159.1 |
|
|
|
Minus:
Cost of revenue (exclusive of depreciation and amortization) |
4,057 |
|
|
4,304 |
|
|
72.8 |
|
|
|
Plus:
Compensation to employees and related taxes |
609 |
|
|
741 |
|
|
12.5 |
|
|
|
Total Adjusted
Net Revenue |
5,128 |
|
|
5,839 |
|
|
98.8 |
|
|
|
|
|
|
|
|
|
|
|
Payment
Revenue(2) |
7,056 |
|
|
7,931 |
|
|
134.2 |
|
|
|
Minus: Cost of payment
revenue (exclusive of depreciation and amortization)(3) |
3,540 |
|
|
3,713 |
|
|
62.8 |
|
|
|
Plus: Compensation to
employees and related taxes allocated to payment revenue(4) |
500 |
|
|
625 |
|
|
10.6 |
|
|
|
|
|
|
|
|
|
|
|
Payment
Adjusted Net Revenue |
4,016 |
|
|
4,843 |
|
|
82.0 |
|
|
|
|
|
|
|
|
|
|
|
Other
Revenue(5) |
1,520 |
|
|
1,471 |
|
|
24.9 |
|
|
|
Minus: Cost of other
revenue (exclusive of depreciation and amortization)(6) |
517 |
|
|
591 |
|
|
10.0 |
|
|
|
Plus: Compensation to
employees and related taxes allocated to other revenue(4) |
109 |
|
|
116 |
|
|
2.0 |
|
|
|
|
|
|
|
|
|
|
|
Other Adjusted
Net Revenue |
1,112 |
|
|
996 |
|
|
16.9 |
|
|
|
|
|
|
|
|
|
|
|
Payment
Adjusted Net Revenue |
4,016 |
|
|
4,843 |
|
|
82.0 |
|
|
|
E-commerce |
1,902 |
|
|
2,425 |
|
|
41.0 |
|
|
|
Financial services |
710 |
|
|
617 |
|
|
10.4 |
|
|
|
Money remittances |
812 |
|
|
1,302 |
|
|
22.0 |
|
|
|
Telecom |
445 |
|
|
373 |
|
|
6.3 |
|
|
|
Other |
147 |
|
|
126 |
|
|
2.1 |
|
|
|
Other Adjusted
Net Revenue |
1,112 |
|
|
996 |
|
|
16.9 |
|
|
|
Total Adjusted
Net Revenue |
5,128 |
|
|
5,839 |
|
|
98.8 |
|
|
|
|
|
|
|
|
|
|
|
Net
Profit |
1,644 |
|
|
1,894 |
|
|
32.1 |
|
|
|
Plus: |
|
|
|
|
|
|
|
Depreciation and amortization |
377 |
|
|
409 |
|
|
6.9 |
|
|
|
Other
income and expenses, net |
5 |
|
|
8 |
|
|
0.1 |
|
|
|
Foreign
exchange gain |
(695 |
) |
|
(214 |
) |
|
(3.6 |
) |
|
|
Foreign
exchange loss |
1,350 |
|
|
301 |
|
|
5.1 |
|
|
|
Interest
expenses |
16 |
|
|
(7 |
) |
|
(0.1 |
) |
|
|
Income
tax expenses |
409 |
|
|
389 |
|
|
6.6 |
|
|
|
Share-based payments expenses |
- |
|
|
115 |
|
|
1.9 |
|
|
|
Adjusted
EBITDA |
3,106 |
|
|
2,895 |
|
|
49.0 |
|
|
|
Adjusted
EBITDA margin |
60.6 |
% |
|
49.6 |
% |
|
49.6 |
% |
|
|
|
|
|
|
|
|
|
|
Net
profit |
1,644 |
|
|
1,894 |
|
|
32.1 |
|
|
|
Amortization of fair value adjustments(7) |
184 |
|
|
194 |
|
|
3.3 |
|
|
|
Share-based payments expenses |
- |
|
|
115 |
|
|
1.9 |
|
|
|
Effect
of taxation of the above items |
(35 |
) |
|
(37 |
) |
|
(0.6 |
) |
|
|
Foreign
Exchange loss/(gain) on June 2014 offering proceeds(8) |
710 |
|
|
182 |
|
|
3.1 |
|
|
|
Adjusted Net
Profit |
2,503 |
|
|
2,348 |
|
|
39.7 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted
Net Profit per share: |
|
|
|
|
|
|
|
Basic |
41.43 |
|
|
38.73 |
|
|
0.66 |
|
|
|
Diluted |
41.43 |
|
|
38.46 |
|
|
0.65 |
|
|
|
|
|
|
|
|
|
|
|
Weighted-average number
of shares used in computing Adjusted Net Profit per share |
|
|
|
|
|
|
|
Basic |
60,424 |
|
|
60,630 |
|
|
60,630 |
|
|
|
Diluted |
60,424 |
|
|
61,051 |
|
|
61,051 |
|
|
_______________________ |
|
|
|
|
|
|
(1)
Calculated using a ruble to U.S. dollar exchange rate of RUB
59.0855 to U.S. $1.00, which was the official exchange rate quoted
by the Central Bank of the Russian Federation as of June 30,
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, 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 |
|
|
June 30, 2016(1) |
June 30, 2017 |
June 30, 2017 |
|
|
RUB |
RUB |
USD(2) |
|
Payment volume (billion)(3) |
204.5 |
|
216.5 |
|
3.7 |
|
|
E-commerce |
34.5 |
|
39.0 |
|
0.7 |
|
|
Financial services |
64.8 |
|
56.7 |
|
1.0 |
|
|
Money
remittances(4) |
41.5 |
|
65.7 |
|
1.1 |
|
|
Telecom |
49.9 |
|
42.4 |
|
0.7 |
|
|
Other |
13.9 |
|
12.7 |
|
0.2 |
|
|
Payment adjusted net revenue
(million)(5) |
2,012.4 |
|
2,470.6 |
|
41.8 |
|
|
E-commerce |
948.2 |
|
1,246.4 |
|
21.1 |
|
|
Financial services |
359.2 |
|
311.2 |
|
5.3 |
|
|
Money
remittances(4) |
418.7 |
|
660.4 |
|
11.2 |
|
|
Telecom |
221.0 |
|
189.3 |
|
3.2 |
|
|
Other |
65.4 |
|
63.4 |
|
1.1 |
|
|
Payment average adjusted net revenue yield |
0.98 |
% |
1.14 |
% |
1.14 |
% |
|
E-commerce |
2.75 |
% |
3.20 |
% |
3.20 |
% |
|
Financial services |
0.55 |
% |
0.55 |
% |
0.55 |
% |
|
Money
remittances(4) |
1.01 |
% |
1.01 |
% |
1.01 |
% |
|
Telecom |
0.44 |
% |
0.45 |
% |
0.45 |
% |
|
Other |
0.47 |
% |
0.50 |
% |
0.50 |
% |
|
|
|
|
|
|
Total average adjusted
net revenue yield |
1.28 |
% |
1.36 |
% |
1.36 |
% |
|
Active kiosks and
terminals (units)(6) |
164,709 |
|
155,730 |
|
155,730 |
|
|
Active Visa Qiwi Wallet
accounts (million)(7) |
16.2 |
|
18.5 |
|
18.5 |
|
|
|
|
|
|
|
SOVEST key operating
metrics |
|
|
|
|
Total payment volume
(million)(8) |
n/a |
|
313.6 |
|
5.3 |
|
|
_______________________ |
|
|
|
|
|
|
(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 increased total volumes for
the period starting April 1, 2016 to June 30, 2016 by RUB 2.3
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 59.0855 to U.S. $1.00, which was the official
exchange rate quoted by the Central Bank of the Russian Federation
as of June 30, 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 9.5 billion and RUB 104 million
respectively for the quarter ended June 30, 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. |
|
QIWI
plc.Other Operating
Data |
|
|
|
|
|
|
Six months ended |
|
|
June 30, 2016(1) |
June 30, 2017 |
June 30, 2017 |
|
|
RUB |
RUB |
USD(2) |
|
Payment volume (billion)(3) |
397.7 |
|
424.3 |
|
7.2 |
|
|
E-commerce |
68.3 |
|
76.6 |
|
1.3 |
|
|
Financial services |
124.2 |
|
115.8 |
|
2.0 |
|
|
Money
remittances(4) |
74.1 |
|
121.6 |
|
2.1 |
|
|
Telecom |
101.0 |
|
83.7 |
|
1.4 |
|
|
Other |
30.1 |
|
26.6 |
|
0.5 |
|
|
Payment adjusted net revenue
(million)(5) |
4,016.1 |
|
4,842.8 |
|
82.0 |
|
|
E-commerce |
1,901.6 |
|
2,424.5 |
|
41.0 |
|
|
Financial services |
710.3 |
|
617.1 |
|
10.4 |
|
|
Money
remittances(4) |
812.2 |
|
1,301.8 |
|
22.0 |
|
|
Telecom |
445.4 |
|
373.2 |
|
6.3 |
|
|
Other |
146.7 |
|
126.2 |
|
2.1 |
|
|
Payment average adjusted net revenue yield |
1.01 |
% |
1.14 |
% |
1.14 |
% |
|
E-commerce |
2.79 |
% |
3.17 |
% |
3.17 |
% |
|
Financial services |
0.57 |
% |
0.53 |
% |
0.53 |
% |
|
Money
remittances(4) |
1.10 |
% |
1.07 |
% |
1.07 |
% |
|
Telecom |
0.44 |
% |
0.45 |
% |
0.45 |
% |
|
Other |
0.49 |
% |
0.47 |
% |
0.47 |
% |
|
|
|
|
|
|
Total average adjusted
net revenue yield |
1.29 |
% |
1.38 |
% |
1.38 |
% |
|
Active kiosks and
terminals (units)(6) |
164,709 |
|
155,730 |
|
155,730 |
|
|
Active Visa Qiwi Wallet
accounts (million)(7) |
16.2 |
|
18.5 |
|
18.5 |
|
|
|
|
|
|
|
SOVEST key operating
metrics |
|
|
|
|
Total payment volume
(million)(8) |
n/a |
|
505.1 |
|
8.5 |
|
|
_______________________ |
|
|
|
|
(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 increased total volumes for
the period starting January 1, 2016 to June 30, 2016 by RUB 4.4
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 59.0855 to U.S. $1.00, which was the official
exchange rate quoted by the Central Bank of the Russian Federation
as of June 30, 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 17.4 billion and RUB 199 million
respectively for the six months ended June 30, 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
QIWI (NASDAQ:QIWI)
Historical Stock Chart
From Aug 2024 to Sep 2024
QIWI (NASDAQ:QIWI)
Historical Stock Chart
From Sep 2023 to Sep 2024