Third Quarter Total Adjusted Net Revenue
Increases 22% to RUB 3,238 Million and Adjusted Net Profit
Decreases 16% to RUB 1,064 Million or RUB 17.38 per diluted
share QIWI upgrades 2017 Guidance
QIWI plc (NASDAQ:QIWI) (MOEX:QIWI) (“QIWI” or the “Company”) today
announced results for the third quarter ended September 30, 2017.
Third Quarter 2017 Operating and
Financial Highlights
- Total Adjusted Net Revenue increased 22% to RUB 3,238 million
($55.8 million)
- Adjusted EBITDA decreased 21% to RUB 1,325 million ($22.8
million)
- Adjusted Net Profit decreased 16% to RUB 1,064 million ($18.3
million), or RUB 17.38 per diluted share
- Adjusted Net Profit excluding the effect of SOVEST project
increased 32% to RUB 1,681 million ($29.0 million), or RUB 27.46
per diluted share
- Total payment volume increased 8% to RUB 235.9 billion ($4.1
billion)
“Today I’m glad to share our third quarter 2017
results and highlight that the dynamics in our core markets and the
secular trends towards digitalization of payments that we have
noticed earlier this year continue to support our core business,”
said Sergey Solonin, QIWI’s chief executive officer. “We achieved
strong financial results in our core business this quarter and
increased our total adjusted net revenue while continuing to invest
in our new business lines and projects. This quarter we have also
acquired, subject to the review of the temporary administration of
Otkritie Bank, certain assets and focused on developing a strategy
for building wider digital infrastructure and enriching our product
offering. We see many opportunities ahead and will continue to
focus on executing our strategy and developing our new
initiatives.”
Third Quarter 2017
Results
Revenues: Total Adjusted Net Revenue for the
quarter ended September 30, 2017 was RUB 3,238 million ($55.8
million), an increase of 22% compared with RUB 2,662 million in the
prior year.
Payment Adjusted Net Revenue was RUB 2,661
million ($45.9 million), an increase of 26% compared with RUB 2,105
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 the shift in the
product mix. Growth was partially offset by a decrease in payment
volumes in the Financial Services and Telecom market verticals.
Other Adjusted Net Revenue, which is principally
composed of revenue from fees for inactive accounts and unclaimed
payments, interest revenue, SOVEST net revenue, revenue from
overdrafts provided to agents, rent of space for kiosks, cash and
settlement services and advertising, was RUB 577 million ($9.9
million), an increase of 4% compared with RUB 557 million in the
prior year. Other Adjusted Net Revenue increase in the third
quarter was mainly due to the increase in interest revenue and net
revenue from the SOVEST project1.
Total Adjusted Net Revenue excluding
contribution of the SOVEST project increased by 20% compared with
the same period in the prior year.
Fees for inactive accounts and unclaimed
payments for the third quarter ended September 30, 2017 were RUB
342 million ($5.9 million) compared with RUB 348 million for the
corresponding period in the prior year. Other Adjusted Net Revenue
excluding revenue from fees for inactive accounts and unclaimed
payments increased 12% compared with the same period in the prior
year.
Total Adjusted Net Revenue excluding revenue
from fees for inactive accounts and unclaimed payments increased
25% compared with the same period in the prior year.
Adjusted EBITDA: For the quarter ended September
30, 2017, Adjusted EBITDA was RUB 1,325 million ($22.8 million), a
decrease of 21% compared with RUB 1,669 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 413 million
for the quarter ended September 30, 2017 as compared to RUB 53
million for same period in the prior year related to SOVEST
project, increase in personnel expenses (excluding effect of share
based payments) to RUB 455 million for the quarter ended September
30, 2017 as compared to RUB 348 million for same period in the
prior year, tax and bad debt expenses also related to the launch of
the SOVEST project and office maintenance expense partially offset
by an increase in Adjusted Net Revenue. Adjusted EBITDA margin
(Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was
40.9% for the quarter ended September 30, 2017 compared with 62.7%
for the same period in the prior year. Adjusted EBITDA excluding
fees for inactive accounts and unclaimed payments was RUB 983
million ($16.9 million), a decrease of 26% compared with RUB 1,321
million for the corresponding period in the prior year. Adjusted
EBITDA margin excluding fees for inactive accounts and unclaimed
payments was 34.0% compared with 57.1% in the prior year.
Adjusted Net Profit: For the quarter ended
September 30, 2017, Adjusted Net Profit was RUB 1,064 million
($18.3 million), a decrease of 16% compared with RUB 1,271 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
unclaimed payments (net of tax) decreased 20% compared with the
prior year. The Adjusted Net Profit excluding net loss associated
with the SOVEST project1 in the third quarter was RUB 1,681 million
representing an increase of 32% as compared with the same period of
prior year.
Other Operating Data: For the quarter ended
September 30, 2017, total payment volume was RUB 235.9 billion
($4.1 billion), an increase of 8% compared with RUB 218.1 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 and Telecom market verticals. Payment average
adjusted net revenue yield was 1.13%, an increase of 16 bps
compared with 0.97% 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
1.37%, an increase of 15 bps as compared with 1.22% in the prior
year. Total average adjusted Net Revenue Yield excluding the effect
of fees for inactive accounts and unclaimed payments was 1.23%, an
increase of 17 bps as compared with the same period in the prior
year.
SOVEST: For the quarter ended September 30, 2017, total payment
volume of the project was RUB 878.8 million ($15.1 million).
Recent Developments
Pre-payment of assets of Tochka and Rocketbank: In August 2017,
we have executed a series of transactions to acquire the brands,
software and hardware of Tochka, a digital bank focused on offering
a broad range of services to small and medium businesses and
Rocketbank, a digital banking service offering debit cards and
deposits to retail customers, from Otkritie Bank. We have also
entered into certain operational agreements with Otkritie bank in
connection with these transactions. Currently as part of the
standard resolution procedures, all transactions and agreements are
under review of the temporary administration appointed to Otkritie
Bank by the Central Bank of Russia.
Dividend: Throughout 2017, we have been heavily
investing in our new project SOVEST and we anticipate that we will
continue to bear significant costs related to SOVEST project and
certain other projects that we are developing now or plan to
develop in the future. Thus, our Board of Directors have taken a
decision to refrain from paying dividends. We expect that
throughout the next twelve months we will concentrate on investing
into our future growth. While long-term we remain committed to
distributing all excess cash to our shareholders, the commencement
of dividend distribution within this timeframe is unlikely.
2017 Guidance2
QIWI upgrades its guidance in respect of 2017
outlook:
- Total Adjusted Net Revenue is expected to increase by 12% to
16% over 2016; We expect no material contribution to Total Adjusted
Net Revenue from SOVEST project, Tochka and Rocketbank.
- Adjusted Net Profit excluding SOVEST, Tochka and Rocketbank
expenses is expected to increase by 30% to 40% over 2016;
- Adjusted Net Profit including SOVEST, Tochka and Rocketbank
expenses is expected to decline by 17% to 27% over 2016.
Earnings Conference Call and Audio
Webcast
QIWI will host a conference call to discuss
third 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 13672660. The replay will be available until
Thursday, November 23, 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 19.0 million
virtual wallets, over 152,000 kiosks and terminals, and enabled
merchants to accept over RUB 78 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.
|
QIWI plc.Consolidated
Statement of Financial Position(in
millions) |
|
|
|
|
|
|
|
As of December 31, |
|
As of September 30, |
|
As of September 30, |
|
2016 (audited) |
|
2017 (unaudited) |
|
2017 (unaudited) |
|
RUB |
|
RUB |
|
USD(1) |
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property
and equipment |
593 |
|
603 |
|
10 |
Goodwill
and other intangible assets |
11,022 |
|
10,764 |
|
186 |
Investments in joint ventures |
- |
|
820 |
|
14 |
Long-term debt instruments |
399 |
|
1,098 |
|
19 |
Long-term loans |
120 |
|
163 |
|
3 |
Other
non-current assets(2) |
40 |
|
986 |
|
17 |
Deferred
tax assets |
270 |
|
227 |
|
4 |
Total non-current assets |
12,444 |
|
14,661 |
|
253 |
Current assets |
|
|
|
|
|
Trade
and other receivables |
5,679 |
|
4,777 |
|
82 |
Short-term loans |
19 |
|
667 |
|
11 |
Short-term debt instruments |
1,772 |
|
686 |
|
12 |
Prepaid
income tax |
77 |
|
208 |
|
4 |
Cash and
cash equivalents(3) |
18,997 |
|
15,981 |
|
275 |
Other
current assets |
661 |
|
468 |
|
8 |
Total current assets |
27,205 |
|
22,787 |
|
393 |
Assets
of disposal group classified as held for sale |
25 |
|
24 |
|
0 |
Total assets |
39,674 |
|
37,472 |
|
646 |
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 |
|
208 |
Other
reserve |
1,064 |
|
1,352 |
|
23 |
Retained
earnings |
4,808 |
|
5,269 |
|
91 |
Translation reserve |
131 |
|
16 |
|
0 |
Total equity attributable to equity holders of the
parent |
19,948 |
|
20,582 |
|
355 |
Non-controlling interest |
21 |
|
28 |
|
0 |
Total equity |
19,969 |
|
20,610 |
|
355 |
Non-current liabilities |
|
|
|
|
|
Other
non-current liabilities |
2 |
|
10 |
|
0 |
Deferred
tax liabilities |
851 |
|
786 |
|
14 |
Total non-current liabilities |
853 |
|
796 |
|
14 |
Current liabilities |
|
|
|
|
|
Trade
and other payables |
16,328 |
|
14,290 |
|
246 |
Amounts
due to customers and amounts due to banks |
2,342 |
|
1,583 |
|
27 |
Income
tax payable |
68 |
|
65 |
|
1 |
VAT and
other taxes payable |
102 |
|
107 |
|
2 |
Other
current liabilities |
10 |
|
17 |
|
0 |
Total current liabilities |
18,850 |
|
16,062 |
|
277 |
Liabilities directly associated with the assets of a disposal group
classified as held for sale |
2 |
|
4 |
|
0 |
Total equity and liabilities |
39,674 |
|
37,472 |
|
646 |
______________________ |
|
|
|
|
|
(1)
Calculated using a ruble to U.S. dollar exchange rate of RUB
58.0169 to U.S. $1.00, which was the official exchange rate quoted
by the Central Bank of the Russian Federation as of September 30,
2017.(2) As of September 30, 2017 Other non-current assets include
pre-payments made in connection with the acquisition of Tochka and
Rocketbank assets.(3) Cash and cash equivalents presented in the
Consolidated Statement of Financial Position as of September 30,
2017 does not reconcile with the cash and cash equivalents
presented in the Consolidated Statement of Cash Flows for nine
months ended September 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) |
|
September 30, 2016 |
|
September 30, 2017 |
|
September 30, 2017 |
|
RUB |
|
RUB |
|
USD(1) |
|
|
|
|
|
|
Revenue |
4,412 |
|
|
5,130 |
|
|
88 |
|
Operating costs and expenses: |
|
|
|
|
|
Cost of
revenue (exclusive of depreciation and amortization) |
2,095 |
|
|
2,399 |
|
|
41 |
|
Selling
general and administrative expenses |
784 |
|
|
1,579 |
|
|
27 |
|
Depreciation and amortization |
195 |
|
|
189 |
|
|
3 |
|
Profit from operations |
1,338 |
|
|
963 |
|
|
17 |
|
|
|
|
|
|
|
Other
income |
(47 |
) |
|
(22 |
) |
|
(0 |
) |
Foreign
exchange gain |
80 |
|
|
59 |
|
|
1 |
|
Foreign
exchange loss |
(135 |
) |
|
(72 |
) |
|
(1 |
) |
Interest
expense |
(7 |
) |
|
1 |
|
|
0 |
|
Profit before tax |
1,229 |
|
|
929 |
|
|
16 |
|
Income
tax expense |
(243 |
) |
|
(136 |
) |
|
(2 |
) |
Net profit |
986 |
|
|
793 |
|
|
14 |
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Equity
holders of the parent |
982 |
|
|
786 |
|
|
14 |
|
Non-controlling interests |
4 |
|
|
7 |
|
|
0 |
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
Exchange
differences on translation of foreign operations |
|
|
|
|
|
|
|
|
|
|
|
Differences arising during the year |
(26 |
) |
|
(45 |
) |
|
(1 |
) |
Total comprehensive
income net of
tax |
960 |
|
|
748 |
|
|
13 |
|
attributable to: |
|
|
|
|
|
Equity
holders of the parent |
956 |
|
|
741 |
|
|
13 |
|
Non-controlling interests |
4 |
|
|
7 |
|
|
0 |
|
|
|
|
|
|
|
Earnings
per share: |
|
|
|
|
|
Basic profit attributable to ordinary equity holders of the
parent |
16.14 |
|
|
12.93 |
|
|
0.22 |
|
|
|
|
|
|
|
Diluted profit attributable to ordinary equity holders of the
parent |
16.05 |
|
|
12.84 |
|
|
0.22 |
|
______________________ |
|
|
|
|
|
|
|
|
(1) Calculated using a ruble to U.S. dollar exchange rate of
RUB 58.0169 to U.S. $1.00, which was the official exchange rate
quoted by the Central Bank of the Russian Federation as of
September 30, 2017. |
|
|
QIWI
plc.Consolidated Statement of
Comprehensive Income(in millions, except
per share data) |
|
|
|
|
|
|
|
Nine months ended (unaudited) |
|
September 30, 2016 |
|
September 30, 2017 |
|
September 30, 2017 |
|
RUB |
|
RUB |
|
USD(1) |
|
|
|
|
|
|
Revenue |
12,988 |
|
|
14,532 |
|
|
250 |
|
Operating costs and expenses: |
|
|
|
|
|
Cost of
revenue (exclusive of depreciation and amortization) |
6,152 |
|
|
6,703 |
|
|
116 |
|
Selling
general and administrative expenses |
2,197 |
|
|
3,897 |
|
|
67 |
|
Depreciation and amortization |
572 |
|
|
598 |
|
|
10 |
|
Profit from operations |
4,067 |
|
|
3,334 |
|
|
57 |
|
|
|
|
|
|
|
Other
income |
(52 |
) |
|
(30 |
) |
|
(1 |
) |
Foreign
exchange gain |
775 |
|
|
233 |
|
|
4 |
|
Foreign
exchange loss |
(1,485 |
) |
|
(333 |
) |
|
(6 |
) |
Interest
expense |
(23 |
) |
|
8 |
|
|
0 |
|
Profit before tax |
3,282 |
|
|
3,212 |
|
|
55 |
|
Income
tax expense |
(652 |
) |
|
(525 |
) |
|
(9 |
) |
Net profit |
2,630 |
|
|
2,687 |
|
|
46 |
|
|
|
|
|
|
|
Attributable to: |
|
|
|
|
|
Equity
holders of the parent |
2,620 |
|
|
2,669 |
|
|
46 |
|
Non-controlling interests |
10 |
|
|
18 |
|
|
0 |
|
|
|
|
|
|
|
Other comprehensive income |
|
|
|
|
|
Exchange
differences on translation of foreign operations |
|
|
|
|
|
Differences arising during the year |
(275 |
) |
|
(115 |
) |
|
(2 |
) |
Total comprehensive
income net of
tax |
2,355 |
|
|
2,572 |
|
|
44 |
|
attributable to: |
|
|
|
|
|
Equity
holders of the parent |
2,345 |
|
|
2,554 |
|
|
44 |
|
Non-controlling interests |
10 |
|
|
18 |
|
|
0 |
|
|
|
|
|
|
|
Earnings
per share: |
|
|
|
|
|
Basic profit attributable to ordinary equity holders of the
parent |
43.25 |
|
|
43.98 |
|
|
0.76 |
|
|
|
|
|
|
|
Diluted profit attributable to ordinary equity holders of the
parent |
43.17 |
|
|
43.71 |
|
|
0.75 |
|
______________________ |
|
|
|
|
|
|
|
|
(1) Calculated using a ruble to U.S. dollar exchange rate of
RUB 58.0169 to U.S. $1.00, which was the official exchange rate
quoted by the Central Bank of the Russian Federation as of
September 30, 2017. |
|
|
QIWI
plc.Consolidated Statement of
Cash Flows (in millions) |
|
|
Nine months ended (unaudited) |
|
September 30, 2016 |
|
September 30, 2017 |
|
September 30, 2017 |
|
RUB |
|
RUB |
|
USD(1) |
|
|
|
|
|
|
Cash flows from operating activities |
|
|
|
|
|
Profit before
tax |
3,282 |
|
|
3,212 |
|
|
55 |
|
Adjustments to reconcile profit before income tax to net
cash flow used in/ generated from operating
activities |
|
|
|
|
|
Depreciation and amortization |
572 |
|
|
598 |
|
|
10 |
|
Foreign
exchange loss, net |
710 |
|
|
100 |
|
|
2 |
|
Interest
income, net |
(592 |
) |
|
(765 |
) |
|
(13 |
) |
Bad debt
expense, net |
11 |
|
|
88 |
|
|
2 |
|
Share-based payments |
136 |
|
|
288 |
|
|
5 |
|
Other |
36 |
|
|
32 |
|
|
1 |
|
Operating profit before changes in working
capital |
4,155 |
|
|
3,553 |
|
|
61 |
|
Decrease
in trade and other receivables |
1,475 |
|
|
898 |
|
|
15 |
|
Decrease
in other assets |
27 |
|
|
183 |
|
|
3 |
|
Decrease
in trade and other payables |
(2,928 |
) |
|
(2,046 |
) |
|
(35 |
) |
Decrease
in amounts due to customers and amounts due to banks |
(653 |
) |
|
(718 |
) |
|
(12 |
) |
Decrease/(increase) in loans issued from banking operations |
7 |
|
|
(741 |
) |
|
(13 |
) |
Cash (used in) / generated from operations |
2,083 |
|
|
1,129 |
|
|
19 |
|
Interest
received |
591 |
|
|
798 |
|
|
14 |
|
Interest
paid |
(80 |
) |
|
(52 |
) |
|
(1 |
) |
Income
tax paid |
(721 |
) |
|
(671 |
) |
|
(12 |
) |
Net cash flow (used in)/ generated from operating
activities |
1,873 |
|
|
1,204 |
|
|
21 |
|
Cash flows used
in investing activities |
|
|
|
|
|
Acquisition of joint control companies |
- |
|
|
(813 |
) |
|
(14 |
) |
Cash
acquired/(spent) upon business combination |
(10 |
) |
|
- |
|
|
- |
|
Purchase
of property and equipment |
(259 |
) |
|
(140 |
) |
|
(2 |
) |
Purchase
of intangible assets |
(198 |
) |
|
(190 |
) |
|
(3 |
) |
Advances
issued for other non-current assets |
- |
|
|
(944 |
) |
|
(16 |
) |
Loans
issued |
(659 |
) |
|
(376 |
) |
|
(6 |
) |
Repayment
of loans issued |
762 |
|
|
303 |
|
|
5 |
|
Purchase
of debt instruments |
(549 |
) |
|
(1,376 |
) |
|
(24 |
) |
Proceeds
from settlement of debt instruments |
1,326 |
|
|
1,775 |
|
|
31 |
|
Net cash flow used in investing activities |
413 |
|
|
(1,761 |
) |
|
(30 |
) |
Cash flows used
in financing activities |
|
|
|
|
|
Repayment
of borrowings, net |
(2 |
) |
|
- |
|
|
- |
|
Dividends
paid to owners of the Group |
(3,776 |
) |
|
(2,148 |
) |
|
(37 |
) |
Dividends
paid to non-controlling shareholders |
(7 |
) |
|
(11 |
) |
|
(0 |
) |
Net cash flow used in financing activities |
(3,785 |
) |
|
(2,159 |
) |
|
(37 |
) |
Effect of
exchange rate changes on cash and cash equivalents |
(1,169 |
) |
|
(301 |
) |
|
(5 |
) |
Net decrease in cash and cash equivalents |
(2,668 |
) |
|
(3,017 |
) |
|
(52 |
) |
Cash and
cash equivalents at the beginning of the period |
19,363 |
|
|
19,021 |
|
|
328 |
|
Cash and cash equivalents at the end of the
period(2) |
16,695 |
|
|
16,004 |
|
|
276 |
|
______________________ |
|
|
|
|
|
(1)
Calculated using a ruble to U.S. dollar exchange rate of RUB
58.0169 to U.S. $1.00, which was the official exchange rate quoted
by the Central Bank of the Russian Federation as of September 30,
2017.(2) Cash and cash equivalents presented in the Consolidated
Statement of Financial Position as of September 30, 2017 does not
reconcile with the cash and cash equivalents presented in the
Consolidated Statement of Cash Flows for nine months ended
September 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, net revenue from SOVEST
project, 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) |
|
September 30, 2016 |
|
September 30, 2017 |
|
September 30, 2017 |
|
RUB |
|
RUB |
|
USD(1) |
|
|
|
|
|
|
Revenue |
4,412 |
|
|
5,130 |
|
|
88.4 |
|
Minus:
Cost of revenue (exclusive of depreciation and amortization) |
2,095 |
|
|
2,399 |
|
|
41.4 |
|
Plus:
Compensation to employees and related taxes |
345 |
|
|
507 |
|
|
8.7 |
|
Total Adjusted
Net Revenue |
2,662 |
|
|
3,238 |
|
|
55.8 |
|
|
|
|
|
|
|
Payment
Revenue(2) |
3,674 |
|
|
4,366 |
|
|
75.3 |
|
Minus: Cost of payment
revenue (exclusive of depreciation and amortization)(3) |
1,857 |
|
|
2,136 |
|
|
36.8 |
|
Plus: Compensation to
employees and related taxes allocated to payment revenue(4) |
288 |
|
|
431 |
|
|
7.4 |
|
|
|
|
|
|
|
Payment
Adjusted Net Revenue |
2,105 |
|
|
2,661 |
|
|
45.9 |
|
|
|
|
|
|
|
Other
Revenue(5) |
738 |
|
|
764 |
|
|
13.2 |
|
Minus: Cost of other
revenue (exclusive of depreciation and amortization)(6) |
238 |
|
|
263 |
|
|
4.5 |
|
Plus: Compensation to
employees and related taxes allocated to other revenue(4) |
57 |
|
|
76 |
|
|
1.3 |
|
|
|
|
|
|
|
Other Adjusted
Net Revenue |
557 |
|
|
577 |
|
|
9.9 |
|
|
|
|
|
|
|
Payment
Adjusted Net Revenue |
2,105 |
|
|
2,661 |
|
|
45.9 |
|
E-commerce |
967 |
|
|
1,332 |
|
|
23.0 |
|
Financial services |
344 |
|
|
310 |
|
|
5.3 |
|
Money remittances |
508 |
|
|
756 |
|
|
13.0 |
|
Telecom |
219 |
|
|
199 |
|
|
3.4 |
|
Other |
67 |
|
|
64 |
|
|
1.1 |
|
Other Adjusted
Net Revenue |
557 |
|
|
577 |
|
|
9.9 |
|
Total Adjusted
Net Revenue |
2,662 |
|
|
3,238 |
|
|
55.8 |
|
|
|
|
|
|
|
Net
Profit |
986 |
|
|
793 |
|
|
13.7 |
|
Plus: |
|
|
|
|
|
Depreciation and amortization |
195 |
|
|
189 |
|
|
3.3 |
|
Other
income |
47 |
|
|
22 |
|
|
0.4 |
|
Foreign
exchange gain |
(80 |
) |
|
(59 |
) |
|
(1.0 |
) |
Foreign
exchange loss |
135 |
|
|
72 |
|
|
1.2 |
|
Interest
expenses |
7 |
|
|
(1 |
) |
|
(0.0 |
) |
Income
tax expenses |
243 |
|
|
136 |
|
|
2.3 |
|
Share-based payments expenses |
136 |
|
|
173 |
|
|
3.0 |
|
Adjusted
EBITDA |
1,669 |
|
|
1,325 |
|
|
22.8 |
|
Adjusted
EBITDA margin |
62.7 |
% |
|
40.9 |
% |
|
40.9 |
% |
|
|
|
|
|
|
Net
profit |
986 |
|
|
793 |
|
|
13.7 |
|
Amortization of fair value adjustments(7) |
92 |
|
|
75 |
|
|
1.3 |
|
Share-based payments expenses |
136 |
|
|
173 |
|
|
3.0 |
|
Effect
of taxation of the above items |
(19 |
) |
|
(15 |
) |
|
(0.3 |
) |
Foreign
Exchange loss/(gain) on June 2014 offering proceeds(8) |
76 |
|
|
38 |
|
|
0.7 |
|
Adjusted Net
Profit |
1,271 |
|
|
1,064 |
|
|
18.3 |
|
|
|
|
|
|
|
Adjusted
Net Profit per share: |
|
|
|
|
|
Basic |
21.01 |
|
|
17.50 |
|
|
0.30 |
|
Diluted |
20.90 |
|
|
17.38 |
|
|
0.30 |
|
|
|
|
|
|
|
Weighted-average number
of shares used in computing Adjusted Net Profit per share |
|
|
|
|
|
Basic |
60,477 |
|
|
60,791 |
|
|
60,791 |
|
Diluted |
60,797 |
|
|
61,228 |
|
|
61,228 |
|
______________________ |
|
|
|
|
|
(1)
Calculated using a ruble to U.S. dollar exchange rate of RUB
58.0169 to U.S. $1.00, which was the official exchange rate quoted
by the Central Bank of the Russian Federation as of September 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 fees for inactive accounts and
unclaimed payments, interest revenue, revenue from SOVEST project,
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 and 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) |
|
|
|
|
|
|
|
Nine months ended |
|
September 30, 2016 |
|
September 30, 2017 |
|
September 30, 2017 |
|
RUB |
|
RUB |
|
USD(1) |
|
|
|
|
|
|
Revenue |
12,988 |
|
|
14,532 |
|
|
250.5 |
|
Minus:
Cost of revenue (exclusive of depreciation and amortization) |
6,152 |
|
|
6,703 |
|
|
115.5 |
|
Plus:
Compensation to employees and related taxes |
954 |
|
|
1,248 |
|
|
21.5 |
|
Total Adjusted
Net Revenue |
7,790 |
|
|
9,077 |
|
|
156.5 |
|
|
|
|
|
|
|
Payment
Revenue(2) |
10,730 |
|
|
12,297 |
|
|
212.0 |
|
Minus: Cost of payment
revenue (exclusive of depreciation and amortization)(3) |
5,397 |
|
|
5,849 |
|
|
100.8 |
|
Plus: Compensation to
employees and related taxes allocated to payment revenue(4) |
788 |
|
|
1,056 |
|
|
18.2 |
|
|
|
|
|
|
|
Payment
Adjusted Net Revenue |
6,121 |
|
|
7,504 |
|
|
129.3 |
|
|
|
|
|
|
|
Other
Revenue(5) |
2,258 |
|
|
2,235 |
|
|
38.5 |
|
Minus: Cost of other
revenue (exclusive of depreciation and amortization)(6) |
755 |
|
|
854 |
|
|
14.7 |
|
Plus: Compensation to
employees and related taxes allocated to other revenue(4) |
166 |
|
|
192 |
|
|
3.3 |
|
|
|
|
|
|
|
Other Adjusted
Net Revenue |
1,669 |
|
|
1,573 |
|
|
27.1 |
|
|
|
|
|
|
|
Payment
Adjusted Net Revenue |
6,121 |
|
|
7,504 |
|
|
129.3 |
|
E-commerce |
2,869 |
|
|
3,757 |
|
|
64.7 |
|
Financial services |
1,054 |
|
|
927 |
|
|
16.0 |
|
Money remittances |
1,320 |
|
|
2,058 |
|
|
35.5 |
|
Telecom |
665 |
|
|
573 |
|
|
9.9 |
|
Other |
214 |
|
|
190 |
|
|
3.3 |
|
Other Adjusted
Net Revenue |
1,669 |
|
|
1,573 |
|
|
27.1 |
|
Total Adjusted
Net Revenue |
7,790 |
|
|
9,077 |
|
|
156.5 |
|
|
|
|
|
|
|
Net
Profit |
2,630 |
|
|
2,687 |
|
|
46.3 |
|
Plus: |
|
|
|
|
|
Depreciation and amortization |
572 |
|
|
598 |
|
|
10.3 |
|
Other
income and expenses, net |
52 |
|
|
30 |
|
|
0.5 |
|
Foreign
exchange gain |
(775 |
) |
|
(233 |
) |
|
(4.0 |
) |
Foreign
exchange loss |
1,485 |
|
|
333 |
|
|
5.7 |
|
Interest
expenses |
23 |
|
|
(8 |
) |
|
(0.1 |
) |
Income
tax expenses |
652 |
|
|
525 |
|
|
9.0 |
|
Share-based payments expenses |
136 |
|
|
288 |
|
|
5.0 |
|
Adjusted
EBITDA |
4,775 |
|
|
4,220 |
|
|
72.7 |
|
Adjusted
EBITDA margin |
61.3 |
% |
|
46.5 |
% |
|
46.5 |
% |
|
|
|
|
|
|
Net
profit |
2,630 |
|
|
2,687 |
|
|
46.3 |
|
Amortization of fair value adjustments(7) |
276 |
|
|
269 |
|
|
4.6 |
|
Share-based payments expenses |
136 |
|
|
288 |
|
|
5.0 |
|
Effect
of taxation of the above items |
(54 |
) |
|
(52 |
) |
|
(0.9 |
) |
Foreign
Exchange loss/(gain) on June 2014 offering proceeds(8) |
786 |
|
|
220 |
|
|
3.8 |
|
Adjusted Net
Profit |
3,774 |
|
|
3,412 |
|
|
58.8 |
|
|
|
|
|
|
|
Adjusted
Net Profit per share: |
|
|
|
|
|
Basic |
62.44 |
|
|
56.22 |
|
|
0.97 |
|
Diluted |
62.33 |
|
|
55.88 |
|
|
0.96 |
|
|
|
|
|
|
|
Weighted-average number
of shares used in computing Adjusted Net Profit per share |
|
|
|
|
|
Basic |
60,442 |
|
|
60,690 |
|
|
60,690 |
|
Diluted |
60,547 |
|
|
61,064 |
|
|
61,064 |
|
______________________ |
|
|
|
|
|
(1)
Calculated using a ruble to U.S. dollar exchange rate of RUB
58.0169 to U.S. $1.00, which was the official exchange rate quoted
by the Central Bank of the Russian Federation as of September 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 fees for inactive accounts and
unclaimed payments, interest revenue, revenue from SOVEST project,
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 and 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 |
|
September 30,
2016(1) |
September 30, 2017 |
September 30, 2017 |
|
RUB |
RUB |
USD (2) |
Payment volume (billion)(3) |
218.1 |
|
235.9 |
|
4.1 |
|
E-commerce |
37.6 |
|
43.8 |
|
0.8 |
|
Financial services |
68.0 |
|
59.1 |
|
1.0 |
|
Money
remittances(4) |
50.4 |
|
74.2 |
|
1.3 |
|
Telecom |
50.2 |
|
44.4 |
|
0.8 |
|
Other |
11.9 |
|
14.4 |
|
0.2 |
|
Payment adjusted net revenue
(million)(5) |
2,105.4 |
|
2,661.2 |
|
45.9 |
|
E-commerce |
967.1 |
|
1,332.0 |
|
23.0 |
|
Financial services |
343.8 |
|
310.0 |
|
5.3 |
|
Money
remittances(4) |
507.7 |
|
755.9 |
|
13.0 |
|
Telecom |
219.4 |
|
199.4 |
|
3.4 |
|
Other |
67.4 |
|
63.9 |
|
1.1 |
|
Payment average adjusted net revenue yield |
0.97 |
% |
1.13 |
% |
1.13 |
% |
E-commerce |
2.57 |
% |
3.04 |
% |
3.04 |
% |
Financial services |
0.51 |
% |
0.52 |
% |
0.52 |
% |
Money
remittances(4) |
1.01 |
% |
1.02 |
% |
1.02 |
% |
Telecom |
0.44 |
% |
0.45 |
% |
0.45 |
% |
Other |
0.56 |
% |
0.44 |
% |
0.44 |
% |
|
|
|
|
Total average adjusted
net revenue yield |
1.22 |
% |
1.37 |
% |
1.37 |
% |
Active kiosks and
terminals (units)(6) |
163,049 |
|
152,509 |
|
152,509 |
|
Active Visa Qiwi Wallet
accounts (million)(7) |
16.5 |
|
19.0 |
|
19.0 |
|
|
|
|
|
SOVEST key operating
metrics |
|
|
|
Total payment volume
(million)(8) |
n/a |
878.8 |
|
15.1 |
|
______________________ |
(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 July 1, 2016 to September 30, 2016 by RUB 3.6
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 58.0169 to U.S. $1.00, which was the official
exchange rate quoted by the Central Bank of the Russian Federation
as of September 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 12.6 billion and RUB 150 million
respectively for the quarter ended September 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 |
|
|
|
|
|
Nine months ended |
|
September 30,
2016(1) |
September 30, 2017 |
September 30, 2017 |
|
RUB |
RUB |
USD (2) |
Payment volume (billion)(3) |
615.9 |
|
660.2 |
|
11.4 |
|
E-commerce |
105.8 |
|
120.4 |
|
2.1 |
|
Financial services |
192.2 |
|
174.9 |
|
3.0 |
|
Money
remittances(4) |
124.5 |
|
195.8 |
|
3.4 |
|
Telecom |
151.3 |
|
128.1 |
|
2.2 |
|
Other |
42.1 |
|
41.0 |
|
0.7 |
|
Payment adjusted net revenue
(million)(5) |
6,121.5 |
|
7,504.2 |
|
129.3 |
|
E-commerce |
2,868.8 |
|
3,756.5 |
|
64.7 |
|
Financial services |
1,054.0 |
|
927.1 |
|
16.0 |
|
Money
remittances(4) |
1,319.9 |
|
2,057.7 |
|
35.5 |
|
Telecom |
664.8 |
|
572.7 |
|
9.9 |
|
Other |
214.0 |
|
190.2 |
|
3.3 |
|
Payment average adjusted net revenue yield |
0.99 |
% |
1.14 |
% |
1.14 |
% |
E-commerce |
2.71 |
% |
3.12 |
% |
3.12 |
% |
Financial services |
0.55 |
% |
0.53 |
% |
0.53 |
% |
Money
remittances(4) |
1.06 |
% |
1.05 |
% |
1.05 |
% |
Telecom |
0.44 |
% |
0.45 |
% |
0.45 |
% |
Other |
0.51 |
% |
0.46 |
% |
0.46 |
% |
|
|
|
|
Total average adjusted
net revenue yield |
1.26 |
% |
1.37 |
% |
1.37 |
% |
Active kiosks and
terminals (units)(6) |
163,049 |
|
152,509 |
|
152,509 |
|
Active Visa Qiwi Wallet
accounts (million)(7) |
16.5 |
|
19.0 |
|
19.0 |
|
|
|
|
|
SOVEST key operating
metrics |
|
|
|
Total payment volume
(million)(8) |
n/a |
1,383.9 |
|
23.9 |
|
______________________ |
|
|
|
(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 September 30, 2016 by RUB
8.1 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 58.0169 to U.S. $1.00, which was the official
exchange rate quoted by the Central Bank of the Russian Federation
as of September 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 30.0 billion and RUB 349 million
respectively for the nine months ended September 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. |
|
_______________________
1 The methodology of segmentation and allocation of Revenues,
Costs and Selling, General and Administrative Expenses between QIWI
core business and SOVEST project is currently being developed and
is subject to further reviews; thus, we retain the right to review
the methodology of Revenues, Costs and Selling, General and
Administrative Expenses allocation between QIWI core business and
SOVEST project and restate the corresponding data to incorporate
such adjustments.Other adjusted net revenue for the quarter ended
September 30, 2017 includes RUB 51 million gain from SOVEST project
due to the change in the methodology of Costs and Selling, General
and Administrative Expenses allocation for the project. SOVEST Net
loss calculated based on revised methodology for the quarter ended
June 30, 2017 and September 30, 2017 was RUB 13 million and RUB 9
million correspondingly.
2 Guidance is provided in Russian rubles
Contact:
Varvara Kiseleva
Investor Relations
+357.25028091
ir@qiwi.com
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