QIWI plc (NASDAQ:QIWI) (MOEX:QIWI) (“QIWI” or the “Company”),
Otkritie Bank and Tochka today announced that they have signed a
partnership and agreed to establish a joint venture to develop
Tochka business together as a multi-banking platform.
The main aim of the partnership between
Otkritie, QIWI and Tochka management is to develop together the
business of Tochka, a digital banking service focused on offering a
broad range of services to small and medium businesses,
establishing a first at scale multi-banking platform in Russia,
penetrating the SME market and offering the best in class service
Tochka is famous for to a broad audience of SME customers.
Otkritie, QIWI and Tochka management will
establish a joint venture – JSC Tochka that will function as a
technological partner and service provider for banks – members of
the multibank platform. Currently Tochka will continue to serve
Otkritie Bank and Qiwi Bank. It will offer clients who have
accounts in either of the banks a broad range of services including
round-the-clock cash and settlement services, account management,
currency transactions and export/import products, merchant
acquiring and value added services such as salary projects,
accounting and tax services and many more. Partners will further
focus on developing Tochka as a multi-banking platform with the
goal to attract new participants to the platform in order to scale
the business, broaden potential reach and diversify the range of
services Tochka offers.
The joint venture will have the following
capital structure: Otkritie Bank will have 50% + 1 share, QIWI -
40% and Tochka management will have 10% - 1 share, while QIWI and
Otkritie Bank will split the economic interest proportionally with
45% each, while 10% will be attributed to Tochka management. As
part of the deal, Otkritie Bank and QIWI will contribute to the
joint venture their assets including trademarks, software and
hardware of Tochka as well as cash financing.
JSC Tochka will be led by the current management
team, which has an established track record of building best in
class SME product offering and exceptional client service, with Mr.
Boris Dyakonov as the CEO. The supervisory board comprised of the
representative of Otkritie, QIWI and Tochka will be the main
governing body of the entity, while it will remain operationally
independent.
“We are glad to announce our partnership with
QIWI on Tochka today,” said Mrs. Nadia Cherkasova, Member of the
Management Board of Otkritie Bank. “Since the beginning of the year
we have been working together on building an optimal framework for
developing Tochka and I believe that a multi-bank platform is the
best possible set up for growing and nourishing this business. We
expect that together with QIWI and Tochka management we will be
able to create and develop an innovative, best in class service
offering, gain market share in our target segment and establish a
long-lasting, mutually beneficial partnership.”
Mr. Sergey Solonin, CEO of QIWI Group,
commented, “We are proud to announce our partnership with Otkritie
Bank and the launch of a first at scale multi-banking project in
Russia. We have gone a long way to reach this agreement and we
could not be more pleased with the outcome. We believe that
Otkritie is a strong and reliable partner; their expertise and
execution combined with their scale and market position make
Otkritie one of the players best suited to develop such an
innovative project. Moreover, we believe that having Tochka
management team on board is one of the main successes of this deal.
Boris and his team have been developing Tochka since its inception
and created not only a unique SME service that offers its customers
unmatched client experience and creates value for them, but a
proven, reliable and scalable business model with exciting economic
prospects. Moreover, I am a big believer in developing unique
consumer services through multi-bank platforms that help scale the
service, attract more diversified consumer base and enrich the
offering.”
Mr. Boris Dyakonov, CEO of Tochka, stated,
“Tochka has made a journey from being a startup to being a powerful
independent player with strong shareholders and significant
ambitions. It is evident that multi-bank solutions and an
opportunity to provide services through several banking licenses is
highly demanded by the market today. During the last year, we have
nearly tripled the acquisition and onboarding of new businesses,
enriched our product offering and offered our clients an
opportunity to use new convenient services. Currently we are
talking with several other players that might be interested in
joining our platform so we can expand our operations faster and
develop our services for the benefit of entrepreneurs in
Russia.”
Tochka has more than 165 000 SME accounts
(cumulative) with over RUB 13 billion consumer balances across the
platform. Tochka has been recognized as the best mobile and
internet bank for entrepreneurs by Markswebb for three last
consecutive years and has the highest NPS on the market according
to TSN research.
2018 Guidance1
Based on the agreements signed today, we
anticipate that we will continue to recognize Net Revenues from
Tochka operations until the end of the second quarter of 2018. As
soon as the joint venture is legally established, we will account
for Tochka business as for an equity associate in our financial
statements reflecting our economic share of Tochka’s total
comprehensive income in the statement of comprehensive income.
We believe that as long as the supervisory board
of the joint venture has not approved the business plan for the
year, we are not in a position to provide precise estimates of the
expenses associated with the Tochka operations for 2018. We
therefore maintain our previous Adjusted Net Profit guidance and
may revisit it once the business plan of JSC Tochka is approved by
its supervisory board.
QIWI upgrades its Total Adjusted Net Revenue
guidance in respect of 2018 outlook:
- Total Adjusted Net Revenue is expected to increase by 18% to
22% over 2017;
While guidance in respect to Payment Services
Segment Net Revenue, Adjusted Net Profit and Payment Services
Segment Net Profit remains unchanged:
- Payment Services Segment Net Revenue is expected to increase by
12% to 16% over 2017;
- Adjusted Net Profit is expected to decline by 10% to 0% over
2017;
- Payment Services Segment Net Profit is expected to increase by
10% to 15% over 2017.
Given uncertainty in respect of the future
arrangements regarding the development of the Rocketbank project
and the outcome of our negotiations in respect thereon with
Otkritie Bank, we believe that we are not in a position to provide
any reliable estimates of revenues or expenses associated with
Rocketbank project for 2018, we therefore only include in our
guidance for 2018 actual revenues and expenses associated with the
Rocketbank projects for the first half of 2018. Actual results of
the project for 2018 may differ substantially from the data that we
used in our guidance.
__________________1 Guidance is provided in
Russian rubles
Conference Call and Audio
Webcast
QIWI will host a conference call to discuss the
partnership in more detail today at 11:00 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 2:00 p.m. ET and can be accessed by dialing +1
(844) 512-2921 or +1 (412) 317-6671 for international callers; the
pin number is 13680655. The replay will be available until
Thursday, June 21, 2018. 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 and financial services in Russia and the CIS. It has an
integrated proprietary network that enables payment services across
online, mobile and physical channels. It has deployed over 20.3
million virtual wallets, over 149,000 kiosks and terminals, and
enabled merchants and customers to accept and transfer over RUB 79
billion cash and electronic payments monthly connecting over 47
million consumers using its network at least once a month. QIWI’s
consumers can use cash, stored value and other electronic payment
methods in order to pay for goods and services or transfer money
across virtual or physical environments interchangeably.
About Otkritie Bank
Otkritie Bank is one of the top-10 largest banks
in Russia and is a systematically important credit organization.
The Bank is operating on the financial market since 1993. Otkritie
Bank is a full-service bank with diversified operations. The Bank
is focused on developing the following key segments: corporate
banking, investment banking, retail banking, SME services and
private banking. As of May 1, 2018, the capital of Otkritie Bank
(calculated in accordance with RAS standards) was RUB 184.8
billion, assets amounted to RUB 1.28 trillion. The client base of
the bank included more than 200 000 active business customers and
over 2.7 million retail clients including premium clients. Otkritie
Bank has more than 500 branches in 67 regions across Russia.
About Tochka
Tochka is a banking service for entrepreneurs,
which is operating as a multi-banking platform through the
infrastructure of Bank “Otkritie” and Qiwi Bank. Tochka does not
have any physical offices and offers its services remotely. The
service has more than 165,000 SME accounts (cumulative), and has
been recognized as the best mobile and internet bank for
entrepreneurs by Markswebb analytical agency for three last
consecutive years. Apart from its technological leadership, Tochka
is famous for the level of services it offers - it has an NPS of
59.3%, which is the highest on the market according to TSN
research. Apart from round-the-clock cash and settlement services,
Tochka offers its customers a broad range of services including
company registration assistance, accounting services, currency
transactions and convenient export/import products, low commission
merchant acquiring and salary projects.
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, trends in each of our market
verticals and statements regarding the development of our Consumer
Financial Services segment, including, in particular, the
development of our SOVEST project as well as other new projects.
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 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.
Contact
Varvara Kiseleva
Investor Relations
+357.25028091
ir@qiwi.com
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