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03/28/18
QIWI Announces Fourth Quarter and Full Year 2017 Financial Results

Fourth Quarter Total Adjusted Net Revenue Increases 46% to RUB 4,116 Million and Adjusted Net Profit Decreases 32% to RUB 642 Million or RUB 10.48 per diluted share 

Full-Year 2017 Total Adjusted Net Revenue Increases 24% to RUB 13,193 Million and Adjusted Net Profit Decreases 14% to RUB 4,054 Million or RUB 66.29 per diluted share

QIWI gives 2018 Guidance

NICOSIA, Cyprus, March 28, 2018 (GLOBE NEWSWIRE) -- QIWI plc (NASDAQ:QIWI) (MOEX:QIWI) (“QIWI” or the “Company”) today announced results for the fourth quarter and year ended December 31, 2017.

Fourth Quarter 2017 Operating and Financial Highlights

  • Total Adjusted Net Revenue1 increased 46% to RUB 4,116 million ($71.5 million)
  • Payment Services Segment Net Revenue increased 24% to RUB 3,500 million ($60.8 million)
  • Adjusted EBITDA decreased 23% to RUB 965 million ($16.8 million)
  • Adjusted Net Profit2 decreased 32% to RUB 642 million ($11.1 million), or RUB 10.48 per diluted share
  • Payment Services Segment Net Profit increased 47% to RUB 2,013 million ($34.9 million) or RUB 32.85 per diluted share
  • Total Payment Services volume increased 9% to RUB 250.9 billion ($4.4 billion)

Full-Year 2017 Operating and Financial Highlights

  • Total Adjusted Net Revenue1 increased 24% to RUB 13,193 million ($229.0 million)
  • Payment Services Segment Net Revenue increased 19% to RUB 12,580 million ($218.4 million)
  • Adjusted EBITDA decreased 14% to RUB 5,185 million ($90.0 million)
  • Adjusted Net Profit2 decreased 14% to RUB 4,054 million ($70.4 million), or RUB 66.29 per diluted share
  • Payment Services Segment Net Profit increased 34% to RUB 7,543 million ($131.0 million) or RUB 123.11 per diluted share
  • Total Payment Services volume increased 8% to RUB 911.1 billion ($15.8 billion)
  • Qiwi Wallet active accounts increased 17% to 20.1 million

“Today I’m glad to share our fourth quarter and full year 2017 results. I would like to highlight the continued growth in our core Payment Services segment that demonstrated 19% segment net revenue growth and 34% segment net profit growth in 2017 driven by the development of our payment ecosystem as well as secular trends towards digitalization of payments in our focus market verticals,” said Sergey Solonin, QIWI’s chief executive officer. “We achieved strong financial results in our payment services business this year and thus were able to continue investing in our new business lines and projects. We continued to expand our Consumer Financial Services segment represented by the SOVEST project and have seen positive dynamics across few key metrics of the project, which makes us believe that we have entered an interesting niche with a significant potential. 
We believe we will be able to grow our payment services business by focusing on building a wider digital infrastructure and enriching our product offering, expanding and penetrating further our focus markets and generate substantial operating cash flows. At the same time we see 2018 as a year of investments in our new projects and will continue to focus on executing our strategy and developing our new initiatives.”

New Segment Presentation of the Results of Operations

Our payment services business historically has been and continues to be a major part of our operations and currently generates most of our revenues as well as significant free cash flows that we can invest in developing new businesses and projects. We are constantly striving to diversify our product offering and range of services with certain new projects contributing to our payment services business and others aiming to penetrate new areas of the financial services market. Following the development of SOVEST and certain other initiatives that we have undertaken throughout 2017, we revised our organizational structure to better reflect our operational and management strategy as well as the expansion of our business operations, including the broadening of our products and services, distinguishing two key operating segments as well as Corporate and Other category, as set below:

  • Payment Services (PS), which encompasses our virtual distribution services, including QIWI Wallet and other QIWI applications, payment channels and methods; physical distribution, including our kiosks, terminals and other retail points of service, Contact Money Remittance System; and our merchant focused services;
  • Consumer Financial Services (CFS), which encompasses our consumer lending business SOVEST; and
  • Corporate and Other (CO), which encompasses expenses associated with the corporate operations of QIWI Group as well as our R&D, projects and emerging business models that we are testing.

Fourth Quarter 2017 Results

Revenues: Total Adjusted Net Revenue for the quarter ended December 31, 2017 was RUB 4,116 million ($71.5 million), an increase of 46% compared with RUB 2,821 million in the prior year. The increase was mainly driven by Payment Services Segment and Corporate and Other Category Net Revenue growth.

Payment Services Segment Net Revenue for the quarter ended December 31, 2017 was RUB 3,500 million ($60.8 million), an increase of 24% compared with RUB 2,816 million in the prior year.

PS Payment Adjusted Net Revenue was RUB 3,005 million ($52.2 million), an increase of 26% compared with RUB 2,389 million in the prior year. PS Payment Adjusted Net Revenue growth was predominantly driven by a volume growth in the E-commerce and Money Remittance market verticals as well as by an improvement in yields in E-commerce market vertical resulting from the shift in the product mix towards higher yielding merchants. Growth was partially offset by a decrease in payment volumes in the Financial Services and Telecom market verticals.

PS Other Adjusted Net Revenue3, which is principally composed of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, rent of space for kiosks, cash and settlement services and advertising, was RUB 495 million ($8.6 million), an increase of 16% compared with RUB 427 million in the prior year. PS Other Adjusted Net Revenue increase in the fourth quarter was due to the increase revenue from fees for inactive accounts and unclaimed payments.

Fees for inactive accounts and unclaimed payments for the fourth quarter ended December 31, 2017 were RUB 322 million ($5.6 million) compared with RUB 228 million for the corresponding period in the prior year, when certain changes in the Company’s approach towards recognition of revenue for unclaimed payments were implemented. PS Other Adjusted Net Revenue excluding revenue from fees for inactive accounts and unclaimed payments decreased 13% compared with the same period in the prior year.

Payment Services Segment Net Revenue excluding revenue from fees for inactive accounts and unclaimed payments increased 23% compared with the same period in the prior year.

Consumer Financial Services Segment Net Revenue4 that represents the results of operations of the SOVEST project for the quarter ended December 31, 2017 was RUB 35 million ($0.6 million) compared with the Net Revenue Loss of RUB 3 million  in the fourth quarter of the prior year as a result of the development of the SOVEST project.

Corporate and Other Category Net Revenue, which is principally composed of revenue from cash and settlement services (mostly associated with the information and technology service agreements with Otkritie Bank related to the operations of the Tochka project) and interest revenue, was RUB 581 million ($10.1 million) for the quarter ended December 31, 2017, compared to RUB 8 million in the fourth quarter of the prior year. Such increase resulted mostly from the launch of operations of the Tochka project and recognition of corresponding revenues from information and technology service agreements with Otkritie Bank for providing services to Tochka clients that have their accounts with Otkritie Bank in the amount of RUB 578 million attributable to the period from August 2017 to December 2017.

Adjusted EBITDA: For the quarter ended December 31, 2017, Adjusted EBITDA was RUB 965 million ($16.8 million), a decrease of 23% compared with RUB 1,260 million in the prior year. Adjusted EBITDA decrease was largely driven by growth of SG&A expense due to an increase in: (i) compensation to employees (excluding effect of share based payments) to RUB 656 million for the quarter ended December 31, 2017 as compared to RUB 453 million for same period in the prior year as a result of hiring of a significant number of employees in connection with the launch of the Tochka project as well as continues hiring for SOVEST; (ii) advertising, client acquisition and related expenses to RUB 332 million for the quarter ended December 31, 2017 as compared to RUB 65 million for same period in the prior year related to the SOVEST project; (iii) other administrative expenses to RUB 659 million for the quarter ended December 31, 2017 as compared to RUB 158 million for same period in the prior year primarily driven by the expenses incurred in connection with the acquisition of assets of Tochka and Rocketbank from Otkritie Bank partially offset by a lower bad debt expenses as compared to the previous year. Adjusted EBITDA decline was also offset by an increase in Adjusted Net Revenue. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was 23.4% for the quarter ended December 31, 2017 compared with 44.7% for the same period in the prior year. Adjusted EBITDA excluding fees for inactive accounts and unclaimed payments was RUB 643 million ($11.2 million), a decrease of 38% compared with RUB 1,032 million for the corresponding period in the prior year. Adjusted EBITDA margin excluding fees for inactive accounts and unclaimed payments was 16.9% compared with 39.8% in the prior year.

Adjusted and Segment Net Profit: For the quarter ended December 31, 2017, Adjusted Net Profit was RUB 642 million ($11.1 million), a decrease of 32% compared with RUB 940 million in the prior year. The decrease in Adjusted Net Profit was primarily driven by the same factors impacting Adjusted EBITDA as well as recognition of an income tax expense of RUB 173 million in fourth quarter 2017 as opposed to the income tax credit of RUB 34 million for the same period in the prior year. Adjusted Net Profit excluding fees for inactive accounts and unclaimed payments (net of tax) decreased 49% compared with the prior year.

For the quarter ended December 31, 2017, Payment Services Segment Net Profit was RUB 2,013 million ($34.9 million), an increase of 47% compared with RUB 1,366 million in the prior year driven by Payment Services Segment Net Revenue growth as well as increasing operating leverage in the payment services business. The Consumer Financial Services Segment Net Loss in the fourth quarter 2017 was RUB 647 million ($11.2 million) as compared to a Net Loss of RUB 131 million in the same period of prior year resulting from the expansion of operations of the SOVEST project and associated costs mostly related to consumer acquisition. Corporate and Other Category Net Loss was RUB 723 million ($12.6 million), an increase of 145% compared with the net loss of RUB 295 million in the prior year primarily driven by expenses incurred in connection with the acquisition of assets of Rocketbank and Tochka from Otkritie Bank and launch of the Tochka project as well as expenses related to corporate back-office operations of QIWI Group.

Payment Services Other Operating Data: For the quarter ended December 31, 2017, Payment Services Segment payment volume was RUB 250.9 billion ($4.4 billion), an increase of 9% compared with RUB 231.1 billion in the prior year. The increase in 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 1.20%, an increase of 17 bps compared with 1.03% in the prior year primarily due to the higher average net revenue yield in the E-commerce market vertical as well as shift of product mix towards higher yielding E-commerce volumes.

Payment Services Segment Net Revenue Yield was 1.39%, an increase of 17 bps as compared with 1.22% in the prior year. Payment Services Segment Net Revenue Yield excluding the effect of fees for inactive accounts and unclaimed payments was 1.27%, an increase of 15 bps as compared with the same period in the prior year.

Consumer Financial Services Other Operating Data: For the quarter ended December 31, 2017, Consumer Financial Services Segment payment volume was RUB 1.9 billion ($33.3 million). Consumer Financial Services Segment Net Revenue Yield was 1.82%.

Full-Year 2017 Results

Revenues: Total Adjusted Net Revenue for the year ended December 31, 2017 was RUB 13,193 million ($229.0 million), an increase of 24% compared with RUB 10,611 million in the prior year. The increase was mainly driven by Payment Services Segment and Corporate and Other Category Net Revenue growth.

Payment Services Segment Net Revenue for the year ended December 31, 2017 was RUB 12,580 million ($218.4 million), an increase of 19% compared with RUB 10,583 million in the prior year.

PS Payment Adjusted Net Revenue was RUB 10,509 million ($182.4 million), an increase of 23% compared with RUB 8,509 million in the prior year. PS 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 towards higher yielding merchants. Growth was partially offset by a decrease in payment volumes in the Financial Services and Telecom market verticals.

PS Other Adjusted Net Revenue5, which is principally composed of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, rent of space for kiosks, cash and settlement services and advertising, was RUB 2,071 million ($36.0 million), flat as compared with RUB 2,074 million in the prior year.

Fees for inactive accounts and unclaimed payments for the year ended December 31, 2017 were RUB 1,310 million ($22.7 million) compared with RUB 1,290 million for the corresponding period in the prior year. PS Other Adjusted Net Revenue excluding revenue from fees for inactive accounts and unclaimed payments decreased 3% compared with the same period in the prior year.

Payment Services Segment Net Revenue excluding revenue from fees for inactive accounts and unclaimed payments increased 21% compared with the same period in the prior year.

Consumer Financial Services Segment Net Revenue6 representing the results of the SOVEST project for the year ended December 31, 2017 was RUB 9 million ($0.2 million) compared with Net Revenue Loss of RUB 3 million in the prior year as a result of the development of the SOVEST project.

Corporate and Other Category Net Revenue, which is principally composed of revenue from cash and settlement services (mostly associated with the information and technology service agreements with Otkritie Bank related to the operations of the Tochka project) and interest revenue, was RUB 604 million ($10.5 million) for the year ended December 31, 2017, compared to RUB 31 million in the prior year. Such increase resulted mostly from the launch of operations of the Tochka project and recognition of corresponding revenues from information and technology service agreements with Otkritie Bank for providing services to Tochka clients that have their accounts with Otkritie Bank in the amount of RUB 578 million attributable to the period from August 2017 to December 2017.

Adjusted EBITDA: For the year ended December 31, 2017, Adjusted EBITDA was RUB 5,185 million ($90.0 million), a decrease of 14% compared with RUB 6,035 million in the prior year. Adjusted EBITDA decrease was largely driven by growth of SG&A expense due to increase in (i) advertising, client acquisition and related expenses to RUB 1,294 million for the year ended December 31, 2017 as compared to RUB 165 million for same period in the prior year related to the SOVEST project; (ii) compensation to employees  (excluding effect of share based payments) to RUB 1,967 million for the year ended December 31, 2017 as compared to RUB 1,537 million for the prior year driven mostly by the same factors affecting fourth quarter dynamics; (iii) other administrative expenses to RUB 1,035 million for the year ended December 31, 2017 as compared to RUB 363 million for same period in the prior year primarily driven by the expenses incurred in connection with the acquisition of assets of Tochka and Rocketbank from Otkritie Bank; (iv) tax, advisory and audit expense. The increase in expenses was partially offset by growth of Adjusted Net Revenue. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was 39.3% for the year ended December 31, 2017 compared with 56.9% in the prior year. Adjusted EBITDA excluding fees for inactive accounts and unclaimed payments was RUB 3,875 million ($67.3 million), a decrease of 18% compared with RUB 4,745 million for the prior year. Adjusted EBITDA margin excluding fees for inactive accounts and unclaimed payments was 32.6% compared with 50.9% in the prior year.

Adjusted and Segment Net Profit: For the year ended December 31, 2017, Adjusted Net Profit was RUB 4,054 million ($70.4 million), a decrease of 14% compared with RUB 4,714 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 18% compared with the prior year.

Payment Services Segment Net Profit for the year ended December 31, 2017 was RUB 7,543 million ($131.0 million) representing an increase of 34% as compared with RUB 5,612 million in the prior year driven mostly by the growth in Payment Services Segment Net Revenue as well as an increasing operating leverage of our payment services business. The Consumer Financial Services Segment Net Loss for the year ended December 31, 2017 was RUB 2,164 million ($37.6 million) compared with the Net Loss of  RUB 219 million for the year ended December 31, 2016 as a result of the expenses associated with the development, launch and roll out of the SOVEST project. Corporate and Other Category Net Loss for the year ended December 31, 2017 was RUB 1,325 million ($23.0 million) representing an increase of 95% as compared with RUB 679 million in the prior year primarily driven by expenses incurred in connection with the acquisition of assets of Rocketbank and Tochka from Otkritie Bank and launch of the Tochka project as well as expenses related to corporate back-office operations of QIWI Group.

Payment Services Other Operating Data: For the year ended December 31, 2017, Payment Services segment payment volume was RUB 911.1 billion ($15.8 billion), an increase of 8% compared with RUB 847.0 billion in the prior year. Increase in 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 1.15%, an increase of 15 bps compared with 1.00% in the prior year primarily due to the higher average net revenue yield in the E-commerce market vertical as well as shift of product mix towards higher yielding E-commerce volumes.

Payment Services Segment Net Revenue Yield was 1.38%, an increase of 13 bps as compared with 1.25% in the prior year. Payment Services Segment Net Revenue Yield excluding the effect of fees for inactive accounts and unclaimed payments was 1.24%, an increase of 14 bps as compared with the prior year.

The number of active kiosks and terminals was 152,525 including Contact and Rapida physical points of service, a decrease of 6% compared with the prior year.

The number of active Qiwi Wallet accounts was 20.1 million as of the end of 2017, an increase of 2.9 million, or 17%, as compared with 17.2 million in 2016. The increase was driven mainly by development of consumer and merchant use cases in the core market verticals, network effects as well as increasing convenience and usability of our services.

Consumer Financial Services Other Operating Data: For the year ended December 31, 2017, Consumer Financial Services Segment payment volume was RUB 3.3 billion ($57.4 million). Consumer Financial Services Segment Net Revenue Yield was 0.27%.

Recent Developments

Acquisition 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 banking service 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 we continue our negotiations with the new administration of Otkritie Bank regarding our future cooperation and development of both businesses. We believe that our negotiations in respect of Tochka are currently in an advanced phase and we will be in a position to frame a mutually beneficial resolution that would establish the basis for our future joint activities.

As of December 31, 2017 we have launched our Tochka project on QIWI infrastructure and concluded the development of the Rocketbank project. We started offering Tochka services in Qiwi Bank in August 2017 and since than the project is operating as a multi-bank service providing its customers the opportunity to open accounts with either Qiwi Bank or Otkritie Bank.
Rocketbank operations have not been launched so far and we presume that given the early stages of our negotiations in respect of this project we may not launch Rocketbank operations in the nearest future.

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 the SOVEST project and certain other projects that we are developing now or plan to develop in the future. Thus, starting from the third quarter 2017 our Board of Directors have taken a decision to refrain from paying dividends. We expect that throughout the following 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.

2018 Guidance7

QIWI provides its guidance in respect of 2018 outlook:

  • Total Adjusted Net Revenue assuming no contribution from Tochka and Rocketbank projects is expected to increase by 12% to 16% over 2017;
  • 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 substantial uncertainty in respect of the future arrangements regarding the development of the Tochka and Rocketbank projects 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 Tochka and Rocketbank projects for 2018, we therefore only include in our guidance for 2018 actual expenses associated with the Tochka and Rocketbank projects for the first quarter of 2018. Actual results of these projects for 2018 may differ substantially from the data that we used in our guidance.

Earnings Conference Call and Audio Webcast

QIWI will host a conference call to discuss fourth quarter and full year 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 13677678. The replay will be available until Wednesday, April 4, 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 20.1 million virtual wallets, over 152,000 kiosks and terminals, and enabled merchants and customers to accept and transfer over RUB 76 billion cash and electronic payments monthly connecting over 50 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 and pay for goods and services or transfer money across virtual or physical 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, 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.

 

QIWI plc.
Consolidated Statement of Financial Position
 (in millions)

  As of December 31,    As of December 31,    As of December 31, 
  2016 (audited)   2017 (audited)   2017 (audited)
  RUB   RUB   USD(1)
Assets          
Non-current assets          
Property and equipment 593   724   13
Goodwill and other intangible assets 11,022   10,807   188
Investments in joint ventures   -    832   14
Long-term debt instruments  399   1,100   19
Long-term loans  120   164   3
Other non-current assets 40   64   1
Deferred tax assets 270   245   4
Total non-current assets 12,444   13,936   242
Current assets          
Trade and other receivables 5,679   9,648   167
Short-term loans  19   1,691   29
Short-term debt instruments  1,772   704   12
Prepaid income tax 77   187   3
Cash and cash equivalents(2) 18,997   18,406   320
Other current assets 661   458   8
Total current assets 27,205   31,094   540
Assets of disposal group classified as held for sale 25   29   1
Total assets 39,674   45,059   782
Equity and liabilities          
Equity attributable to equity holders of the parent          
Share capital 1   1   0
Additional paid-in capital 1,876   1,876   33
Share premium 12,068   12,068   210
Other reserve 1,064   1,462   25
Retained earnings 4,808   5,715   99
Translation reserve 131   (2)     (0)
Total equity attributable to equity holders of the parent 19,948   21,120   367
Non-controlling interest 21   37   1
Total equity 19,969   21,157   367
Non-current liabilities          
Other non-current liabilities 2   10   0
Deferred tax liabilities 851   826   14
Total non-current liabilities 853   836   15
Current liabilities          
Trade and other payables 16,328   19,599   340
Amounts due to customers and amounts due to banks 2,342   3,182   55
VAT and other taxes payable 102   198   3
Income tax payable 68   32   1
Other current liabilities 10   51   1
Total current liabilities 18,850   23,062   400
Liabilities directly associated with the assets of a disposal group classified as held for sale   2     4     0
Total equity and liabilities 39,674   45,059   782
           


(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 57.6002 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2017.
(2) Cash and cash equivalents presented in the Consolidated Statement of Financial Position as of December 31, 2017 does not reconcile with the cash and cash equivalents presented in the Consolidated Statement of Cash Flows for twelve months ended December 31, 2017 due to the cash balances classified as part of the assets held for sale.
   


QIWI plc.
Consolidated Statement of Comprehensive Income
(in millions, except per share data)

  Three months ended (unaudited)
  December 31, 2016   December 31, 2017   December 31, 2017
  RUB   RUB   USD(1)
           
Revenue   4,892     6,365     111
Operating costs and expenses:          
Cost of revenue (exclusive of depreciation and amortization)   2,494     3,060     53
Selling  general and administrative expenses   1,226     2,346     41
Depreciation and amortization   224     198     3
Impairment of intangible assets   878     104     2
Profit from operations   70     657     11
           
Loss on disposal of subsidiaries   (10)     -      - 
Other income and expenses, net   (17)     (11)     (0)
Foreign exchange gain   295     40     1
Foreign exchange loss   (508)     (56)     (1)
Interest income and expenses, net   (5)     (2)     (0)
Profit before tax   (175)     628     11
Income tax expense   34     (173)     (3)
Net profit   (141)     455     8
           
Attributable to:          
Equity holders of the parent   (146)     445     8
Non-controlling interests   5     10     0
           
Other comprehensive income          
Exchange differences on translation of foreign operations          
Differences arising during the year   (55)     (18)     (0)
Total comprehensive income  net of tax   (196)     437     8
attributable to:          
Equity holders of the parent   (201)     427     7
Non-controlling interests   5     10     0
           
Earnings per share:          
Basic  profit attributable to ordinary equity holders of the parent   (2.41)     7.30     0.13
           
Diluted  profit attributable to ordinary equity holders of the parent   (2.40)     7.26     0.13


(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 57.6002 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2017.
   


QIWI plc.
Consolidated Statement of Comprehensive Income
(in millions, except per share data)

  Full Year ended (audited)
  December 31, 2016   December 31, 2017   December 31, 2017
  RUB   RUB   USD(1)
           
Revenue   17,880     20,897     363
Operating costs and expenses:          
Cost of revenue (exclusive of depreciation and amortization)   8,646     9,763     169
Selling  general and administrative expenses   3,423     6,243     108
Depreciation and amortization   796     796     14
Impairment of intangible assets recorded on acquisitions    878     104     2
Profit from operations   4,137     3,991     69
           
Loss on disposal of subsidiaries   (10)     -      - 
Other income and expenses, net   (69)     (41)     (1)
Foreign exchange gain   1,040     257     4
Foreign exchange loss   (1,963)     (373)     (6)
Interest income and expenses, net   (28)     6     0
Profit before tax   3,107     3,840     67
Income tax expense   (618)     (698)     (12)
Net profit   2,489     3,142     55
           
Attributable to:          
Equity holders of the parent 2,474   3,114     54
Non-controlling interests   15     28     0
           
Other comprehensive income          
Exchange differences on translation of foreign operations          
Differences arising during the year   (330)     (133)     (2)
Total comprehensive income  net of tax   2,159     3,009     52
attributable to:          
Equity holders of the parent   2,144     2,981     52
Non-controlling interests   15     28     0
           
Earnings per share:          
Basic  profit attributable to ordinary equity holders of the parent 40.91   51.25   0.89
           
Diluted  profit attributable to ordinary equity holders of the parent 40.79   50.92   0.88


(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 57.6002 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2017.
   


QIWI plc.
Consolidated Statement of Cash Flows
(in millions)

  Full Year ended
  December 31, 2016   December 31, 2017   December 31, 2017
  RUB   RUB   USD(1)
           
Cash flows from operating activities          
Profit before tax   3,107     3,840     67
Adjustments to reconcile profit before income tax to net cash flow used in/ generated from operating activities          
Depreciation and amortization 796     796     14
Foreign exchange loss/(gain), net   923     116     2
Interest income, net   (834)     (1,016)     (18)
Bad debt expense   215     220     4
Share-based payments   224     398     7
Impairment of intangible assets   878     104     2
Other   80     46     1
Operating profit before changes in working capital   5,389     4,504     78
(Increase)/decrease in trade and other receivables   (709)     (3,683)     (64)
(Increase)/decrease in other assets   (127)     150     3
Increase in customer accounts and amounts due to banks   90     898     16
Increase/(decrease) in trade and other payables   1,020     3,414     59
Loans (issued)/repaid from banking operations   -      (1,888)     (33)
Cash (used in) / generated from operations   5,663     3,395     59
Interest received   858     1,048     18
Interest paid   (101)     (70)     (1)
Income tax paid    (877)     (813)     (14)
Net cash flow (used in)/ generated from operating activities   5,543     3,560     62
Cash flows (used in)/generated from investing activities          
Acquisition of joint control companies  -      (813)     (14)
Cash acquired/(spent) upon business combination   (10)     -      - 
Purchase of property and equipment   (388)     (360)     (6)
Purchase of intangible assets   (298)     (819)     (14)
Loans issued   (675)     (376)     (7)
Repayment of loans issued   774     316     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   180     (1,653)     (29)
Cash flows used in financing activities          
Proceeds from borrowings   2     -      - 
Repayment of borrowings, net   (4)     -      - 
Dividends paid to owners of the Group   (4,628)     (2,148)     (37)
Dividends paid to non-controlling shareholders   (7)     (12)     (0)
Net cash flow used in financing activities   (4,637)     (2,160)     (37)
Effect of exchange rate changes on cash and cash equivalents   (1,428)     (333)     (6)
Net decrease in cash and cash equivalents   (342)     (586)     (10)
Cash and cash equivalents at the beginning  of the period   19,363     19,021     330
Cash and cash equivalents at the end of the period(2)   19,021     18,435     320
           


(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 57.6002 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2017.
(2) Cash and cash equivalents presented in the Consolidated Statement of Financial Position as of December 31, 2017 does not reconcile with the cash and cash equivalents presented in the Consolidated Statement of Cash Flows for twelve months ended December 31, 2017 due to the cash balances classified as part of the assets held for sale.
   


QIWI plc.
Operating Segments Data

  Three months ended
  December 31, 2016 December 31, 2017 December 31, 2017
  RUB RUB USD (1)
Total Segment Net Revenue(2)   2,821   4,116   71.5
Payment Services   2,816   3,500   60.8
Consumer Financial Services   (3)   35   0.6
Corporate and Other   8   581   10.1
       
Total Segment Net Profit(3)   940   643   11.2
Payment Services   1,366   2,013   34.9
Consumer Financial Services   (131)   (647)   (11.2)
Corporate and Other   (295)   (723)   (12.6)
       
       


  Full Year ended
  December 31, 2016 December 31, 2017 December 31, 2017
  RUB RUB USD (1)
Total Segment Net Revenue(2)   10,611   13,193   229.0
Payment Services   10,583   12,580   218.4
Consumer Financial Services   (3)   9   0.2
Corporate and Other   31   604   10.5
       
Total Segment Net Profit(3)   4,714   4,054   70.4
Payment Services   5,612   7,543   131.0
Consumer Financial Services   (219)   (2,164)   (37.6)
Corporate and Other   (679)   (1,325)   (23.0)
       
       


(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 57.6002 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2017.
(2) For the quarter and full year ended December 31, 2017 and December 31, 2016 Total Adjusted Net Revenue is equal to Total Segment Net Revenue
(3) For the quarter and full year ended December 31, 2017 and December 31, 2016 Total Adjusted Net Profit is equal to Total Segment Net Profit
   


Non-IFRS Financial Measures and Supplemental Financial Information

This release presents Total Adjusted Net Revenue, PS Payment Adjusted Net Revenue, PS 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, PS Payment Adjusted Net Revenue and PS 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, PS Payment Adjusted Net Revenue, PS 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, PS Payment Adjusted Net Revenue, PS 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 PS Payment Adjusted Net Revenue, Revenue, Other Than Payment Processing Fees of the Payment Services segment (Other revenue) in the case of PS 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.

PS 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. PS 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)
  December 31, 2016   December 31, 2017   December 31, 2017
  RUB   RUB   USD(1)
           
Revenue   4,892     6,365     110.5
Minus: Cost of revenue (exclusive of depreciation and amortization)   2,494     3,060     53.1
Plus: Compensation to employees and related taxes   423     811     14.1
Total Adjusted Net Revenue   2,821     4,116     71.5
Segment Net Revenue          
Payment Services Segment Revenue   4,882     5,674     98.5
           
PS Payment Revenue(2)   4,269     4,968     86.2
Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(3)   2,197     2,258     39.2
Plus: Compensation to employees and related taxes allocated to PS Payment Revenue(4)   317     295     5.1
PS Payment Adjusted Net Revenue   2,389     3,005     52.2
           
PS Other Revenue(5)   613     706     12.3
Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(6)   230     254     4.4
Plus: Compensation to employees and related taxes allocated to PS Other Revenue(4)   44     43    0.7
PS Other Adjusted Net Revenue   427     495     8.6
Payment Services Segment Net Revenue   2,816     3,500     60.8
           
Consumer Financial Services Segment Revenue   1     65     1.1
Minus: Cost of CFS revenue (exclusive of depreciation and amortization)   58     175     3.0
Plus: Compensation to employees and related taxes   54     145     2.5
Consumer Financial Services Segment Net Revenue   (3)     35     0.6
           
Corporate and Other Category Revenue   9     626     10.9
Minus: Cost of CO revenue (exclusive of depreciation and amortization)   9     373     6.5
Plus: Compensation to employees and related taxes   8     328     5.7
Corporate and Other Category Net Revenue   8     581     10.1
           
Total Segment Net Revenue   2,821     4,116     71.5
           
Net Profit   (141)     455     7.9
Plus:          
Depreciation and amortization   224     198     3.4
Other income   17     11     0.2
Foreign exchange gain   (295)     (40)     (0.7)
Foreign exchange loss   508     56     1.0
Interest expenses   5     2     0.0
Income tax expenses   (34)     173     3.0
Share-based payments expenses   88     110     1.9
Gain from disposal of subsidiaries   10     -      - 
Impairment of intangible assets   878     -      - 
Adjusted EBITDA   1,260     965     16.8
Adjusted EBITDA margin 44.7%   23.4%   23.4%
           
Net profit   (141)     455     7.9
Amortization of fair value adjustments(7)   120     75     1.3
Share-based payments expenses   88     110     1.9
Foreign Exchange loss/(gain) on June 2014 offering proceeds(8)   189     16     0.3
Impairment of intangible assets and goodwill   878     -      - 
Gain from disposal of subsidiaries   10     -      - 
Effect of taxation of the above items   (204)     (14)     (0.2)
Adjusted Net Profit   940     642     11.1
           
Adjusted Net Profit per share:          
Basic   15.52     10.53     0.18
Diluted   15.43     10.48     0.18
           
Weighted-average number of shares used in computing Adjusted Net Profit per share          
Basic   60,586     60,952     60,952
Diluted   60,938     61,270     61,270
           


(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 57.6002 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2017.
(2) PS Payment Revenue primarily consists of the merchant and consumer fees charged for the payment transactions.
(3) Cost of PS 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 PS Payment Revenue and PS Other Revenue; therefore, it has been allocated between PS Payment Revenue and PS Other Revenue in proportion to the relevant revenue amounts for the purposes of the reconciliation presented above.
(5) PS Other 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.
(6) Cost of PS 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 PS 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)

  Full Year ended
  December 31, 2016   December 31, 2017   December 31, 2017
  RUB   RUB   USD(1)
           
Revenue   17,880     20,897     362.8
Minus: Cost of revenue (exclusive of depreciation and amortization)   8,646     9,763     169.5
Plus: Compensation to employees and related taxes   1,377     2,059     35.7
Total Adjusted Net Revenue   10,611     13,193     229.0
Segment Net Revenue          
Payment Services Segment Revenue   17,847     20,135     349.6
           
PS Payment Revenue(2)   14,999     17,265    299.7
Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(3)   7,550     7,769     134.9
Plus: Compensation to employees and related taxes allocated to PS Payment Revenue(4)   1,060     1,013    17.6
PS Payment Adjusted Net Revenue   8,509     10,509     182.4
           
PS Other Revenue(5)   2,848     2,870    49.8
Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(6)   975     967    16.8
Plus: Compensation to employees and related taxes allocated to PS Other Revenue(4)   202     168    2.9
PS Other Adjusted Net Revenue   2,074     2,071     36.0
Payment Services Segment Net Revenue   10,583     12,580     218.4
           
Consumer Financial Services Segment Revenue   1     104     1.8
Minus: Cost of CFS revenue (exclusive of depreciation and amortization)   97     512     8.9
Plus: Compensation to employees and related taxes   93     417     7.2
Consumer Financial Services Segment Net Revenue   (3)     9     0.2
           
Corporate and Other Category Revenue   32     658     11.4
Minus: Cost of CO revenue (exclusive of depreciation and amortization)   24     515     8.9
Plus: Compensation to employees and related taxes   23     461     8.0
Corporate and Other Category Net Revenue   31     604     10.5
           
Total Segment Net Revenue   10,611     13,193     229.1
           
Net Profit   2,489     3,142     54.5
Plus:          
Depreciation and amortization   796     796     13.8
Other income and expenses, net   69     41     0.7
Foreign exchange gain   (1,040)     (257)     (4.5)
Foreign exchange loss   1,963     373     6.5
Interest income and expenses, net   28     (6)     (0.1)
Income tax expenses   618     698     12.1
Share-based payments expenses   224     398     6.9
Loss from disposal of subsidiaries   10     -      - 
Impairment of intangible assets recorded on acquisitions    878     -      - 
Adjusted EBITDA   6,035     5,185     90.0
Adjusted EBITDA margin 56.9%   39.3%   39.3%
           
Net profit   2,489     3,142     54.5
Amortization of fair value adjustments(7)   396     344     6.0
Share-based payments expenses   224     398     6.9
Foreign Exchange loss/(gain) on June 2014 offering proceeds(8)   975     236     4.1
Impairment of intangible assets recorded on acquisitions    878     -      - 
Loss from disposal of subsidiaries   10     -      - 
Effect of taxation of the above items   (258)     (66)     (1.1)
Adjusted Net Profit   4,714     4,054     70.4
           
Adjusted Net Profit per share:          
Basic   77.95     66.73     1.16
Diluted   77.73     66.29     1.15
           
Weighted-average number of shares used in computing Adjusted Net Profit per share          
Basic   60,478     60,756     60,756
Diluted   60,645     61,160     61,160
           


(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 57.6002 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2017.
(2) PS Payment Revenue primarily consists of the merchant and consumer fees charged for the payment transactions.
(3) Cost of PS 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 PS Payment Revenue and PS Other Revenue; therefore, it has been allocated between PS Payment Revenue and PS Other Revenue in proportion to the relevant revenue amounts for the purposes of the reconciliation presented above.
(5) PS Other 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.
(6) Cost of PS 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 PS 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
  December 31, 2016(1) December 31, 2017 December 31, 2017
  RUB RUB USD (2)
Payment Services Segment key operating metrics       
Payment volume (billion)(3)   231.1   250.9   4.4
E-commerce   38.0   47.5   0.8
Financial services   71.1   63.8   1.1
Money remittances(4)   59.6   81.3   1.4
Telecom   47.3   42.6   0.7
Other   15.0   15.7   0.3
Payment adjusted net revenue (million)(5)   2,388.6   3,004.7   52.2
E-commerce   1,123.3   1,590.7   27.6
Financial services   324.3   299.5   5.2
Money remittances(4)   643.5   844.8   14.7
Telecom   216.4   184.2   3.2
Other   81.1   85.6   1.5
Payment average adjusted net revenue yield 1.03% 1.20% 1.20%
E-commerce 2.96% 3.35% 3.35%
Financial services 0.46% 0.47% 0.47%
Money remittances(4) 1.08% 1.04% 1.04%
Telecom 0.46% 0.43% 0.43%
Other 0.54% 0.55% 0.55%
       
Payment Services Segment Net Revenue Yield 1.22% 1.39% 1.39%
Active kiosks and terminals (units)(6)   162,173   152,525   152,525
Active Qiwi Wallet accounts (million)(7) 17.2 20.1 20.1
       
Consumer Financial Services Segment key operating metrics       
Payment volume (million)(8)  n/a    1,920   33.3
CFS Segment Net Revenue Yield  n/a  1.82% 1.82%
       


(1) Payment Services Segment 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 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 57.6002 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2017.
(3) Payment Services Segment 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.
(5) PS Payment Adjusted Net Revenue is calculated as the difference between PS Payment Revenue and PS Cost of Payment Revenue (excluding D&A) plus compensation to employees and related taxes allocated to PS Payment Revenue. PS payment Revenue primarily consists of merchant and consumer fees. Cost of PS 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 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) Consumer Financial Services Segnment payment volume (million) consist of the amounts paid by our customers using SOVEST card to our partner merchants.
   


QIWI plc.
Other Operating Data

  Full Year ended
  December 31, 2016(1) December 31, 2017 December 31, 2017
  RUB RUB USD (2)
Payment Services Segment key operating metrics       
Payment volume (billion)(3)   847.0   911.1   15.8
E-commerce   143.8   167.9   2.9
Financial services   263.3   238.7   4.1
Money remittances(4)   184.1   277.2   4.8
Telecom   198.6   170.7   3.0
Other   57.2   56.6   1.0
Payment adjusted net revenue (million)(5)   8,510.0   10,509.0   182.4
E-commerce   3,992.0   5,347.2   92.8
Financial services   1,378.3   1,226.6   21.3
Money remittances(4)   1,963.3   2,902.5   50.4
Telecom   881.2   756.9   13.1
Other   295.2   275.9   4.8
Payment average adjusted net revenue yield 1.00% 1.15% 1.15%
E-commerce 2.78% 3.18% 3.18%
Financial services 0.52% 0.51% 0.51%
Money remittances(4) 1.07% 1.05% 1.05%
Telecom 0.44% 0.44% 0.44%
Other 0.52% 0.49% 0.49%
       
Payment Services Segment Net Revenue Yield 1.25% 1.38% 1.38%
Active kiosks and terminals (units)(6)   162,173   152,525   152,525
Active Qiwi Wallet accounts (million)(7) 17.2 20.1 20.1
       
Consumer Financial Services Segment key operating metrics       
Payment volume (million)(8)  n/a    3,304   57.4
CFS Segment Net Revenue Yield  n/a  0.27% 0.27%
       


(1) Payment Services Segment 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 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 57.6002 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2017.
(3) Payment Services Segment 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.
(5) PS Payment Adjusted Net Revenue is calculated as the difference between PS Payment Revenue and PS Cost of payment revenue (excluding D&A) plus compensation to employees and related taxes allocated to PS Payment Revenue. PS Payment Revenue primarily consists of merchant and consumer fees. Cost of PS 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 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) Consumer Financial Services Segment payment volume (million) consist of the amounts paid by our customers using SOVEST card to our partner merchants.
   


Contact

Varvara Kiseleva
Investor Relations
+357.25028091
ir@qiwi.com

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Source: QIWI plc


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