News Release

Second Quarter Total Net Revenue Increases 23% to
Board of Directors Approves Dividends of
Second Quarter 2020 Operating and Financial Highlights
- Total Net Revenue increased 23% to
RUB 6,839 million ($97.8 million ) - Payment Services Segment Net Revenue increased 5% to
RUB 5,397 million ($77.2 million ) - Adjusted EBITDA increased 48% to
RUB 3,905 million ($55.8 million ) - Adjusted Net Profit increased 40% to
RUB 2,756 million ($39.4 million ), orRUB 44.19 per diluted share - Payment Services Segment Net Profit increased 1% to
RUB 3,243 million ($46.4 million ) orRUB 52.01 per diluted share - Total Payment Services volume decreased 6% to
RUB 346.8 billion ($5.0 billion )
“Today I’m glad to share our second quarter 2020 financial results. This quarter we demonstrated robust performance notwithstanding the negative impact of the COVID-19 pandemic and associated lockdown measures imposed globally on our business and operations throughout most of the quarter. Our Payment Services segment showed solid dynamics despite challenging market environment and delivered 5% segment net revenue growth. April and May were the most challenging months for us so far while in June we have started to see a strong recovery in our key markets and niches. We believe that the performance of our payment services business demonstrates the resilience of our ecosystem as well as the value and relevance of the digital solutions we have developed to date and aim to develop further,” said
Second Quarter 2020 Results
Total and Segment Net Revenues: Total Net Revenue for the quarter ended
Payment Services (PS) Segment Net Revenue for the quarter ended
PS Payment Adjusted Net Revenue was
PS Other Adjusted Net Revenue, which is principally composed of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, and advertising, was
Corporate and Other Category (CO) Net Revenue includes: (i) net revenue from cash and settlement services related to the operations of the Tochka project1; (ii) net revenue from account receivable financing and digital bank guarantees products of Factoring PLUS project; (iii) net revenue from marketing solution products of Flocktory; and (iv) net revenue from other start-up projects. For the quarter ended
- Tochka Net Revenue for the quarter ended
June 30, 2020 wasRUB 166 million ($2.4 million ) compared withRUB 186 million in the second quarter of the prior year. Tochka Net Revenue decline primarily resulted from a decrease in the number of active clients due to the macroeconomy slow-down triggered by a COVID-19 outbreak. - Factoring Net Revenue for the quarter ended
June 30, 2020 wasRUB 204 million ($2.9 million ) compared withRUB 53 million in the second quarter of the prior year. Factoring Net Revenue growth resulted predominantly from the scaling of the project including expansion of bank guarantees and factoring portfolios. - Flocktory Net Revenue for the quarter ended
June 30, 2020 wasRUB 117 million . Flocktory was considered as an associate before it was consolidated as a part of theQIWI Group in the fourth quarter of 2019.
Adjusted EBITDA: For the quarter ended
Adjusted and Segment Net Profit: For the quarter ended
For the quarter ended
The Consumer Financial Services Segment Net Loss for the second quarter 2020 was
Rocketbank Segment Net Profit was
Corporate and Other Category Net Loss includes: (i) net profit/loss from the Tochka JV operations; (ii) net profit/loss of Factoring PLUS project; (iii) net profit/loss of the Flocktory project; (iv) net profit/loss from other start-up projects, and (v) Corporate expenses. Corporate and Other Category Net Loss for the second quarter 2020 was
- Corporate Net Loss for the second quarter of 2020 was
RUB 543 million compared withRUB 242 million for the same period of the previous year; - Tochka Net Profit for the second quarter of 2020 was
RUB 165 million ($2.4 million ) compared withRUB 16 million in the same quarter of the previous year. Tochka Net Profit increase resulted from higher equity pick-up primarily driven by the growth and development of the Tochka business despite challenging operating environment. - Factoring Plus Net Profit for the second quarter of 2020 was
RUB 94 million ($1.3 million ) compared withRUB 18 million for the same period of the previous year. Factoring Plus Net Profit growth was mainly driven by project Net Revenue increase.
Payment Services Other Operating Data: For the quarter ended
Payment Services Segment Net Revenue Yield was 1.56%, an increase of 17 bps as compared with 1.39% in the prior year.
The number of active kiosks and terminals was 118,455 including Contact and Rapida physical points of service and decreased by 13% compared with the prior year. The number of our kiosks and terminals is generally decreasing as market evolves towards higher share of digital payments, moreover our physical distribution network was negatively affected by the spread of COVID-19 pandemic and corresponding lockdown measures that limited users’ access to certain retail locations as well as the overall activity of the population. Nevertheless, we believe that our physical distribution network remains an important part of our infrastructure. The number of active Qiwi Wallet accounts was 20.9 million as of
Recent Developments
Rocketbank Winding down: In
Sale of Sovest project: On
Gross carrying amount and net amount of loan portfolio presented earlier, were calculated in accordance with statutory accounts based on
Dividend: In
Following the determination of the second quarter 2020 financial results and taking into consideration our current operating environment, our Board of Directors approved a dividend of
The Board of Directors reserves the right to distribute the dividends on a quarterly basis, as it deems necessary so that the total annual payout is in accordance with the target range provided, though the payout ratios for each of the quarters may vary and be outside of this range.
It remains the long-term intention of the Company to distribute all excess cash to the shareholders.
2020 Guidance3
- Total Net Revenue is expected to increase by 7% to 15% over 2019;
- Payment Services Segment Net Revenue is expected to increase by 3% to 10% over 2019;
- Adjusted Net Profit is expected to increase by 35% to 50% over 2019.
For the purpose of the guidance in respect of 2020 outlook we would like to outline the following considerations:
The outbreak of the COVID-19 strain of coronavirus and associated responses from various countries around the world is likely to negatively affect consumer demand across the globe and across industries, and there is the potential for COVID-19 and responses to it to cause a global recession. At this moment we are not able to accurately estimate the potential impact of COVID-19 on our business. In addition, it is currently unclear how much consumer demand will be negatively affected by the outbreak of COVID-19 and what effect the outbreak of COVID-19 will have on the macroeconomic environment, as a whole. The full impact remains uncertain and will depend on the length and severity of the effect of the coronavirus on economic activity in our markets. The full scope of the negative impact that the abrupt decline in oil prices and resulting devaluation of the ruble may have on the Russian economy also remains unclear but has the potential to be very significant. Our outlook reflects our current views and expectations only and is based on the trends we see as of the day of this report. If such trends were to deteriorate further the impact on our business and operations could be more severe than currently expected. We continue to monitor the situation closely.
The Company reserves the right to revise guidance in the course of the year or when additional information regarding the effect of the ongoing events becomes available.
1 Starting from the first quarter 2020 we present Tochka JV results as part of the Corporate and Other Category
2 Foreign exchange gain/loss is calculated as total foreign exchange gain/loss, net recognized in the statement of comprehensive income excluding the effect of foreign exchange gain/loss on
3 Guidance is provided in Russian ruble
Earnings Conference Call and Audio Webcast
About
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 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 divestiture of non-core investments, including Rocketbank as well as the statements regarding the development of 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
Consolidated Statement of Financial Position
(in millions)
As of |
As of |
As of |
||||
2019 (audited) | 2020 (unaudited) | 2020 (unaudited) | ||||
RUB | RUB | USD(1) | ||||
Assets | ||||||
Non-current assets | ||||||
Property and equipment | 2,346 | 2,238 | 32 | |||
11,316 | 11,010 | 157 | ||||
Investments in associates | 1,118 | 1,357 | 19 | |||
Long-term debt securities and deposits | 4,015 | 3,246 | 46 | |||
Long-term loans | 265 | 268 | 4 | |||
Other non-current assets | 83 | 111 | 2 | |||
Deferred tax assets | 217 | 225 | 3 | |||
Total non-current assets | 19,360 | 18,455 | 264 | |||
Current assets | ||||||
Trade and other receivables | 6,162 | 4,853 | 69 | |||
Short-term loans | 11,419 | 3,360 | 48 | |||
Short-term debt securities and deposits | 1,136 | 1,059 | 15 | |||
Prepaid income tax | 259 | 93 | 1 | |||
Other current assets | 917 | 928 | 13 | |||
Cash and cash equivalents | 42,101 | 33,629 | 481 | |||
Assets held for sale | 123 | 6,596 | 94 | |||
Total current assets | 62,117 | 50,518 | 722 | |||
Total assets | 81,477 | 68,973 | 986 | |||
Equity and liabilities | ||||||
Equity attributable to equity holders of the parent | ||||||
Share capital | 1 | 1 | 0 | |||
Additional paid-in capital | 1,876 | 1,876 | 27 | |||
Share premium | 12,068 | 12,068 | 173 | |||
Other reserves | 2,576 | 2,600 | 37 | |||
Retained earnings | 10,557 | 12,305 | 176 | |||
Translation reserve | 289 | 431 | 6 | |||
Total equity attributable to equity holders of the parent | 27,367 | 29,281 | 419 | |||
Non-controlling interests | 70 | 60 | 1 | |||
Total equity | 27,437 | 29,341 | 419 | |||
Non-current liabilities | ||||||
Long term debt | 1,545 | 1,451 | 21 | |||
Long-term lease liability | 1,017 | 1,105 | 16 | |||
Long-term customer accounts | 444 | 320 | 5 | |||
Other non-current liabilities | 45 | 40 | 1 | |||
Deferred tax liabilities | 749 | 922 | 13 | |||
Total non-current liabilities | 3,800 | 3,838 | 55 | |||
Current liabilities | ||||||
Trade and other payables | 27,295 | 24,283 | 347 | |||
Customer accounts and amounts due to banks | 21,519 | 9,556 | 137 | |||
Short-term lease liability | 340 | 385 | 6 | |||
VAT and other taxes payable | 184 | 131 | 2 | |||
Other current liabilities | 902 | 522 | 7 | |||
Liabilities directly associated with the assets held for sale | - | 917 | 13 | |||
Total current liabilities | 50,240 | 35,794 | 512 | |||
Total equity and liabilities | 81,477 | 68,973 | 986 |
(1) | Calculated using a ruble to |
Consolidated Statement of Comprehensive Income
(in millions, except per share data)
Three months ended (unaudited) | ||||||||
RUB | RUB | USD(1) | ||||||
Revenue: | 9,234 | 10,114 | 144.6 | |||||
Payment processing fees | 7,543 | 7,796 | 111.4 | |||||
Interest revenue calculated using the effective interest rate | 805 | 707 | 10.1 | |||||
Fees from inactive accounts and unclaimed payments | 471 | 501 | 7.2 | |||||
Other revenue | 415 | 1,110 | 15.9 | |||||
Operating costs and expenses: | (6,524 | ) | (6,376 | ) | (91.1 | ) | ||
Cost of revenue (exclusive of items shown separately below) | (3,948 | ) | (3,679 | ) | (52.6 | ) | ||
Selling, general and administrative expenses | (897 | ) | (629 | ) | (9.0 | ) | ||
Personnel expenses(2) | (1,359 | ) | (1,709 | ) | (24.4 | ) | ||
Depreciation and amortization | (333 | ) | (312 | ) | (4.5 | ) | ||
Credit loss (expense)/recovery | 13 | (1 | ) | (0.0 | ) | |||
Impairment of non-current assets | - | (46 | ) | (0.7 | ) | |||
Profit from operations | 2,710 | 3,738 | 53.4 | |||||
Share of gain/(loss) of an associate and a joint venture | 8 | 107 | 1.5 | |||||
Other income and expenses, net | 6 | (7 | ) | (0.1 | ) | |||
Foreign exchange gain | 132 | 798 | 11.4 | |||||
Foreign exchange loss | (190 | ) | (1,090 | ) | (15.6 | ) | ||
Interest income and expenses, net | 4 | (31 | ) | (0.4 | ) | |||
Profit before tax from continuing operations | 2,670 | 3,515 | 50.2 | |||||
Income tax expense | (527 | ) | (708 | ) | (10.1 | ) | ||
Net profit from continuing operations | 2,143 | 2,807 | 40.1 | |||||
Discontinued operations | ||||||||
Loss from discontinued operations | (459 | ) | (970 | ) | (13.9 | ) | ||
Net profit | 1,684 | 1,837 | 26.3 | |||||
Attributable to: | ||||||||
Equity holders of the parent | 1,672 | 1,816 | 26.0 | |||||
Non-controlling interests | 12 | 21 | 0.3 | |||||
Other comprehensive income | ||||||||
Other comprehensive income to be reclassified to profit or loss in subsequent periods: | ||||||||
Foreign currency translation: | ||||||||
Exchange differences on translation of foreign operations | (46 | ) | (33 | ) | (0.5 | ) | ||
Debt securities at fair value through other comprehensive income (FVOCI): | ||||||||
Net gains arising during the period, net of tax | - | 40 | 0.6 | |||||
Net gains recycled to profit or loss upon disposal | - | (25 | ) | (0.4 | ) | |||
Total other comprehensive income/(loss), net of tax | (46 | ) | (18 | ) | (0.3 | ) | ||
Total comprehensive income, net of tax | 1,638 | 1,819 | 26.0 | |||||
Attributable to: | ||||||||
Equity holders of the parent | 1,627 | 1,798 | 25.7 | |||||
Non-controlling interests | 11 | 21 | 0.3 | |||||
Earnings per share: | ||||||||
Basic, profit attributable to ordinary equity holders of the parent | 27.13 | 29.24 | 0.42 | |||||
Diluted, profit attributable to ordinary equity holders of the parent | 26.87 | 29.13 | 0.42 | |||||
Earnings per share for continuing operations | ||||||||
Basic, profit from continuing operations attributable to ordinary equity holders of the parent | 34.58 | 44.83 | 0.64 | |||||
Diluted, profit from continuing operations attributable to ordinary equity holders of the parent | 34.25 | 44.67 | 0.64 |
(1) | Calculated using a ruble to |
(2) | Historically, personnel expenses directly associated with revenue recognized were disclosed within cost of revenue and personnel expenses associated with all other activities were disclosed within selling, general, and administrative expenses. Starting full year 2019 reporting we present all personnel expenses as a single item in a Personnel expenses line. Personnel expenses for the quarter ended |
Consolidated Statement of Comprehensive Income
(in millions, except per share data)
Six months ended (unaudited) | ||||||||
RUB | RUB | USD(1) | ||||||
Revenue: | 17,794 | 19,955 | 285.3 | |||||
Payment processing fees | 14,490 | 15,731 | 224.9 | |||||
Interest revenue calculated using the effective interest rate | 1,397 | 1,433 | 20.5 | |||||
Fees from inactive accounts and unclaimed payments | 916 | 991 | 14.2 | |||||
Other revenue | 991 | 1,800 | 25.7 | |||||
Operating costs and expenses: | (12,627 | ) | (13,785 | ) | (197.1 | ) | ||
Cost of revenue (exclusive of items shown separately below) | (7,475 | ) | (7,946 | ) | (113.6 | ) | ||
Selling, general and administrative expenses | (1,699 | ) | (1,522 | ) | (21.8 | ) | ||
Personnel expenses(2) | (2,814 | ) | (3,620 | ) | (51.8 | ) | ||
Depreciation and amortization | (669 | ) | (612 | ) | (8.7 | ) | ||
Credit loss (expense)/recovery | 30 | (19 | ) | (0.3 | ) | |||
Impairment of non-current assets | - | (66 | ) | (0.9 | ) | |||
Profit from operations | 5,167 | 6,170 | 88.2 | |||||
Share of gain/(loss) of an associate and a joint venture | (71 | ) | 239 | 3.4 | ||||
Other income and expenses, net | 55 | (23 | ) | (0.3 | ) | |||
Foreign exchange gain | 773 | 471 | 6.7 | |||||
Foreign exchange loss | (989 | ) | (726 | ) | (10.4 | ) | ||
Interest income and expenses, net | (11 | ) | (61 | ) | (0.9 | ) | ||
Profit before tax from continuing operations | 4,924 | 6,070 | 86.8 | |||||
Income tax expense | (1,000 | ) | (1,232 | ) | (17.6 | ) | ||
Net profit from continuing operations | 3,924 | 4,838 | 69.2 | |||||
Discontinued operations | ||||||||
Loss from discontinued operations | (913 | ) | (1,402 | ) | (20.0 | ) | ||
Net profit | 3,011 | 3,436 | 49.1 | |||||
Attributable to: | ||||||||
Equity holders of the parent | 2,987 | 3,403 | 48.6 | |||||
Non-controlling interests | 24 | 33 | 0.5 | |||||
Other comprehensive income | ||||||||
Other comprehensive income to be reclassified to profit or loss in subsequent periods: | ||||||||
Foreign currency translation: | ||||||||
Exchange differences on translation of foreign operations | (227 | ) | 153 | 2.2 | ||||
Debt securities at fair value through other comprehensive income (FVOCI): | ||||||||
Net gains arising during the period, net of tax | - | 32 | 0.5 | |||||
Net gains recycled to profit or loss upon disposal | - | (47 | ) | (0.7 | ) | |||
Total other comprehensive income/(loss), net of tax | (227 | ) | 138 | 2.0 | ||||
Total comprehensive income, net of tax | 2,784 | 3,574 | 51.1 | |||||
Attributable to: | ||||||||
Equity holders of the parent | 2,766 | 3,530 | 50.5 | |||||
Non-controlling interests | 18 | 44 | 0.6 | |||||
Earnings per share: | ||||||||
Basic, profit attributable to ordinary equity holders of the parent | 48.49 | 54.78 | 0.78 | |||||
Diluted, profit attributable to ordinary equity holders of the parent | 48.02 | 54.58 | 0.78 | |||||
Earnings per share for continuing operations | ||||||||
Basic, profit from continuing operations attributable to ordinary equity holders of the parent | 63.31 | 77.33 | 1.11 | |||||
Diluted, profit from continuing operations attributable to ordinary equity holders of the parent | 62.70 | 77.04 | 1.10 |
(1) | Calculated using a ruble to |
(2) | Historically, personnel expenses directly associated with revenue recognized were disclosed within cost of revenue and personnel expenses associated with all other activities were disclosed within selling, general, and administrative expenses. Starting full year 2019 reporting we present all personnel expenses as a single item in a Personnel expenses line. Personnel expenses for the six months ended |
Consolidated Statement of Cash Flows
(in millions)
Six months ended (unaudited) | ||||||||
RUB | RUB | USD(1) | ||||||
Operating activities | ||||||||
Profit before tax from continuing operations | 4,924 | 6,070 | 87 | |||||
Loss before tax from discontinued operations | (1,138 | ) | (1,471 | ) | (21 | ) | ||
Profit before tax | 3,786 | 4,599 | 66 | |||||
Adjustments to reconcile profit before tax to net cash flows: | ||||||||
Depreciation and amortization | 690 | 650 | 9 | |||||
Foreign exchange loss, net | 216 | 255 | 4 | |||||
Interest income, net | (1,289 | ) | (1,595 | ) | (23 | ) | ||
Сredit loss expense | 281 | 810 | 12 | |||||
Share of (gain) / loss of an associate and a joint venture | 71 | (239 | ) | (3 | ) | |||
Loss on forward contract to sell Sovest loans’ portfolio | - | 658 | 9 | |||||
Share-based payments | 256 | 48 | 1 | |||||
Impairment of non-current assets | - | 134 | 2 | |||||
Loss from initial recognition | 91 | 13 | 0 | |||||
Other | (10 | ) | (28 | ) | (0 | ) | ||
Working capital adjustments: | ||||||||
(Increase)/decrease in trade and other receivables | (281 | ) | 1,218 | 17 | ||||
Increase in other assets | (35 | ) | (37 | ) | (1 | ) | ||
Increase / (decrease) in customer accounts and amounts due to banks | 66 | (12,441 | ) | (178 | ) | |||
Decrease in accounts payable and accruals | (3,179 | ) | (3,391 | ) | (48 | ) | ||
Decrease in loans issued from banking operations | 220 | 807 | 12 | |||||
Cash received from/(used in) operations | 883 | (8,539 | ) | (122 | ) | |||
Interest received | 1,741 | 1,985 | 28 | |||||
Interest paid | (144 | ) | (332 | ) | (5 | ) | ||
Income tax paid | (748 | ) | (805 | ) | (12 | ) | ||
Net cash flow received from/(used in) operating activities | 1,732 | (7,691 | ) | (110 | ) | |||
Investing activities | ||||||||
Cash paid for acquisitions | (200 | ) | (66 | ) | (1 | ) | ||
Purchase of property and equipment | (291 | ) | (90 | ) | (1 | ) | ||
Purchase of intangible assets | (116 | ) | (111 | ) | (2 | ) | ||
Proceeds from sale of fixed and intangible assets | 134 | 54 | 1 | |||||
Loans issued | (345 | ) | (11 | ) | (0 | ) | ||
Repayment of loans issued | 26 | - | - | |||||
Purchase of debt securities and deposits | (2,468 | ) | (2,358 | ) | (34 | ) | ||
Proceeds from sale and redemption of debt instruments | 1,412 | 3,230 | 46 | |||||
Net cash flow (used in)/received from investing activities | (1,848 | ) | 648 | 9 | ||||
Financing activities | ||||||||
Proceeds from borrowings | - | (102 | ) | (1 | ) | |||
Payment of principal portion of lease liabilities | (142 | ) | (46 | ) | (1 | ) | ||
Dividends paid to owners of the Group | (1,122 | ) | (1,630 | ) | (23 | ) | ||
Dividends paid to non-controlling shareholders | (39 | ) | (54 | ) | (1 | ) | ||
Net cash flow used in financing activities | (1,303 | ) | (1,832 | ) | (26 | ) | ||
Effect of exchange rate changes on cash and cash equivalents | (945 | ) | 403 | 6 | ||||
Net decrease in cash and cash equivalents | (2,364 | ) | (8,472 | ) | (121 | ) | ||
Cash and cash equivalents at the beginning of the period | 40,966 | 42,101 | 602 | |||||
Cash and cash equivalents at the end of the period | 38,602 | 33,629 | 481 |
(1) | Calculated using a ruble to |
Reporting Segments Data
(in millions)
Three months ended (unaudited) | ||||||
RUB | RUB | USD (1) | ||||
Total Net Revenue | 5,563 | 6,839 | 97.8 | |||
Payment Services | 5,158 | 5,397 | 77.2 | |||
283 | 437 | 6.2 | ||||
Rocketbank | (132 | ) | 509 | 7.3 | ||
Corporate and Other | 254 | 496 | 7.1 | |||
Total Segment Net Profit(2) | 1,965 | 2,756 | 39.4 | |||
Payment Services | 3,206 | 3,243 | 46.4 | |||
(435 | ) | (134 | ) | (1.9 | ) | |
Rocketbank | (511 | ) | 44 | 0.6 | ||
Corporate and Other | (295 | ) | (397 | ) | (5.7 | ) |
(1) | Calculated using a ruble to |
(2) | For the three months ended |
Reporting Segments Data
(in millions)
Six months ended (unaudited) | ||||||
RUB | RUB | USD (1) | ||||
Total Net Revenue | 10,930 | 13,099 | 187.3 | |||
Payment Services | 9,994 | 10,718 | 153.2 | |||
501 | 1,003 | 14.3 | ||||
Rocketbank | (295 | ) | 532 | 7.6 | ||
Corporate and Other | 730 | 846 | 12.1 | |||
Total Segment Net Profit(2) | 3,618 | 4,510 | 64.5 | |||
Payment Services | 6,194 | 6,294 | 90.0 | |||
(967 | ) | (656 | ) | (9.4 | ) | |
Rocketbank | (1,001 | ) | (616 | ) | (8.8 | ) |
Corporate and Other | (608 | ) | (512 | ) | (7.3 | ) |
(1) |
Calculated using a ruble to |
(2) |
For the six months ended |
Non-IFRS Financial Measures and Supplemental Financial Information
This release presents 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 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.
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.
Reconciliation of IFRS to Non-IFRS Operating Results
(in millions, except per share data)
Three months ended (unaudited) | ||||||||
RUB | RUB | USD(1) | ||||||
Revenue (2) | 9,566 | 10,580 | 151.3 | |||||
Minus: Cost of revenue (exclusive of depreciation and amortization) (3) | 4,003 | 3,741 | 53.5 | |||||
Total Net Revenue | 5,563 | 6,839 | 97.8 | |||||
Segment Net Revenue | ||||||||
Payment Services Segment Revenue | 8,569 | 8,828 | 126.2 | |||||
PS Payment Revenue(4) | 7,543 | 7,796 | 111 | |||||
Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(5) | 3,131 | 3,187 | 46 | |||||
PS Payment Adjusted Net Revenue | 4,412 | 4,609 | 65.9 | |||||
PS Other Revenue(6) | 1,026 | 1,032 | 15 | |||||
Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(7) | 280 | 244 | 3 | |||||
PS Other Adjusted Net Revenue | 746 | 788 | 11.3 | |||||
Payment Services Segment Net Revenue | 5,158 | 5,397 | 77.2 | |||||
Consumer Financial Services Segment Revenue | 328 | 486 | 7.0 | |||||
Minus: Cost of CFS revenue (exclusive of depreciation and amortization) | 46 | 49 | 0.7 | |||||
Consumer Financial Services Segment Net Revenue | 283 | 437 | 6.2 | |||||
Rocketbank Revenue | 338 | 688 | 9.8 | |||||
Minus: Cost of Rocketbank revenue (exclusive of depreciation and amortization) | 470 | 178 | 2.6 | |||||
Rocketbank Net Revenue | (132 | ) | 509 | 7.3 | ||||
Corporate and Other Category Revenue | 331 | 578 | 8.3 | |||||
Minus: Cost of CO revenue (exclusive of depreciation and amortization) | 77 | 83 | 1.2 | |||||
Corporate and Other Category Net Revenue | 254 | 496 | 7.1 | |||||
Total Net Revenue | 5,563 | 6,839 | 97.8 | |||||
Net Profit | 1,684 | 1,837 | 26.3 | |||||
Plus: | ||||||||
Depreciation and amortization | 344 | 331 | 4.7 | |||||
Other income and expenses, net | (6 | ) | 7 | 0.1 | ||||
Foreign exchange gain | (132 | ) | (798 | ) | (11.4 | ) | ||
Foreign exchange loss | 190 | 1,090 | 15.6 | |||||
Share of loss/(gain) of an associate and a joint venture | (8 | ) | (107 | ) | (1.5 | ) | ||
Interest income and expenses, net | (4 | ) | 33 | 0.5 | ||||
Income tax expenses | 414 | 751 | 10.7 | |||||
Expenses related to form F-3 filing | - | - | - | |||||
Loss on forward contract to sell Sovest loans’ portfolio | - | 658 | 9.4 | |||||
Share-based payments | 157 | (11 | ) | (0.2 | ) | |||
Impairment of non-current assets | - | 114 | 1.6 | |||||
Adjusted EBITDA | 2,639 | 3,905 | 55.8 | |||||
Adjusted EBITDA margin | 47.4 | % | 57.1 | % | 57.1 | % | ||
Net profit | 1,684 | 1,837 | 26.3 | |||||
Fair value adjustments recorded on business combinations and their amortization(8) | 95 | 85 | 1.2 | |||||
Expenses related to form F-3 filing | - | - | - | |||||
Share-based payments | 157 | (11 | ) | (0.2 | ) | |||
Foreign exchange (gain)/loss from revaluation of cash proceeds received from secondary public offering (9) | 44 | - | - | |||||
Impairment of non-current assets | - | 114 | 1.6 | |||||
Loss on forward contract to sell Sovest loans’ portfolio | - | 658 | 9.4 | |||||
Effect from taxation of the above items | (15 | ) | 73 | 1.0 | ||||
Adjusted Net Profit | 1,965 | 2,756 | 39.4 | |||||
Adjusted Net Profit per share: | ||||||||
Basic | 31.89 | 44.35 | 0.63 | |||||
Diluted | 31.58 | 44.19 | 0.63 | |||||
Weighted-average number of shares used in computing Adjusted Net Profit per share | ||||||||
Basic | 61,623 | 62,147 | 62,147 | |||||
Diluted | 62,224 | 62,362 | 62,362 |
(1) | Calculated using a ruble to |
(2) | Including revenue from discontinued operations in the amount of |
(3) | Including cost of revenue from discontinued operations of |
(4) | PS Payment Revenue represents payment processing fees, which primarily consists of the merchant and consumer fees charged for the payment transactions. |
(5) | 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. |
(6) | 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. |
(7) | 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. |
(8) | Amortization of fair value adjustments primarily includes the effect of the acquisition of control in Contact and Rapida. |
(9) | 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 includes the foreign exchange loss/(gain) on the US dollar amount, which we received at SPO. |
Reconciliation of IFRS to Non-IFRS Operating Results
(in millions, except per share data)
Six months ended (unaudited) | ||||||||
RUB | RUB | USD(1) | ||||||
Revenue (2) | 18,504 | 21,190 | 302.9 | |||||
Minus: Cost of revenue (exclusive of depreciation and amortization) (3) | 7,575 | 8,092 | 115.7 | |||||
Total Net Revenue | 10,930 | 13,099 | 187.3 | |||||
Segment Net Revenue | ||||||||
Payment Services Segment Revenue | 16,438 | 17,816 | 254.7 | |||||
PS Payment Revenue(4) | 14,490 | 15,731 | 225 | |||||
Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(5) | 5,903 | 6,528 | 93 | |||||
PS Payment Adjusted Net Revenue | 8,587 | 9,203 | 131.6 | |||||
PS Other Revenue(6) | 1,948 | 2,085 | 30 | |||||
Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(7) | 540 | 570 | 8 | |||||
PS Other Adjusted Net Revenue | 1,407 | 1,514 | 21.6 | |||||
Payment Services Segment Net Revenue | 9,994 | 10,718 | 153.2 | |||||
Consumer Financial Services Segment Revenue | 587 | 1,126 | 16.1 | |||||
Minus: Cost of CFS revenue (exclusive of depreciation and amortization) | 85 | 124 | 1.8 | |||||
Consumer Financial Services Segment Net Revenue | 501 | 1,003 | 14.3 | |||||
Rocketbank Revenue | 613 | 1,125 | 16.1 | |||||
Minus: Cost of Rocketbank revenue (exclusive of depreciation and amortization) | 908 | 593 | 8.5 | |||||
Rocketbank Net Revenue | (295 | ) | 532 | 7.6 | ||||
Corporate and Other Category Revenue | 866 | 1,123 | 16.1 | |||||
Minus: Cost of CO revenue (exclusive of depreciation and amortization) | 136 | 277 | 4.0 | |||||
Corporate and Other Category Net Revenue | 730 | 846 | 12.1 | |||||
Total Net Revenue | 10,930 | 13,099 | 187.3 | |||||
Net Profit | 3,011 | 3,436 | 49.1 | |||||
Plus: | ||||||||
Depreciation and amortization | 690 | 650 | 9.3 | |||||
Other income and expenses, net | (55 | ) | 23 | 0.3 | ||||
Foreign exchange gain | (773 | ) | (471 | ) | (6.7 | ) | ||
Foreign exchange loss | 989 | 726 | 10.4 | |||||
Share of loss/(gain) of an associate and a joint venture | 71 | (239 | ) | (3.4 | ) | |||
Interest income and expenses, net | 11 | 65 | 0.9 | |||||
Income tax expenses | 775 | 1,163 | 16.6 | |||||
Expenses related to form F-3 filing | - | 10 | 0.1 | |||||
Loss on forward contract to sell Sovest loans’ portfolio | - | 658 | 9.4 | |||||
Share-based payments | 256 | 48 | 0.7 | |||||
Impairment of non-current assets | - | 134 | 1.9 | |||||
Adjusted EBITDA | 4,975 | 6,203 | 88.7 | |||||
Adjusted EBITDA margin | 45.5 | % | 47.4 | % | 47.4 | % | ||
Net profit | 3,011 | 3,436 | 49.1 | |||||
Fair value adjustments recorded on business combinations and their amortization(8) | 197 | 169 | 2.4 | |||||
Expenses related to form F-3 filing | - | 10 | 0.1 | |||||
Share-based payments | 256 | 48 | 0.7 | |||||
Foreign exchange (gain)/loss from revaluation of cash proceeds received from secondary public offering (9) | 185 | - | - | |||||
Impairment of non-current assets | - | 134 | 1.9 | |||||
Loss on forward contract to sell Sovest loans’ portfolio | 658 | 9.4 | ||||||
Effect from taxation of the above items | (31 | ) | 55 | 0.8 | ||||
Adjusted Net Profit | 3,618 | 4,510 | 64.5 | |||||
Adjusted Net Profit per share: | ||||||||
Basic | 58.74 | 72.58 | 1.04 | |||||
Diluted | 58.17 | 72.31 | 1.03 | |||||
Weighted-average number of shares used in computing Adjusted Net Profit per share | ||||||||
Basic | 61,601 | 62,137 | 62,137 | |||||
Diluted | 62,200 | 62,367 | 62,367 |
(1) | Calculated using a ruble to |
(2) | Including revenue from discontinued operations in the amount of |
(3) | Including cost of revenue from discontinued operations of |
(4) | PS Payment Revenue represents payment processing fees, which primarily consists of the merchant and consumer fees charged for the payment transactions. |
(5) | 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. |
(6) | 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. |
(7) | 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. |
(8) | Amortization of fair value adjustments primarily includes the effect of the acquisition of control in Contact and Rapida. |
(9) | 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 includes the foreign exchange loss/(gain) on the US dollar amount, which we received at SPO. |
Other Operating Data
Three months ended (unaudited) | ||||||
RUB | RUB | USD (1) | ||||
Payment Services Segment key operating metrics | ||||||
Payment volume (billion)(2) | 370.8 | 346.8 | 5.0 | |||
E-commerce | 100.2 | 100.2 | 1.4 | |||
Financial services | 86.6 | 53.7 | 0.8 | |||
Money remittances | 132.8 | 142.2 | 2.0 | |||
Telecom | 41.8 | 42.6 | 0.6 | |||
Other | 9.4 | 8.1 | 0.1 | |||
Payment adjusted net revenue (million)(3) | 4,411.8 | 4,608.4 | 65.9 | |||
E-commerce | 2,520.1 | 2,687.7 | 38.4 | |||
Financial services | 272.8 | 313.6 | 4.5 | |||
Money remittances | 1,392.4 | 1,317.5 | 18.8 | |||
Telecom | 176.0 | 238.7 | 3.4 | |||
Other | 50.5 | 51.0 | 0.7 | |||
Payment Average Adjusted Net Revenue Yield(4) | 1.19 | % | 1.33 | % | 1.33 | % |
E-commerce | 2.51 | % | 2.68 | % | 2.68 | % |
Financial services | 0.31 | % | 0.58 | % | 0.58 | % |
Money remittances | 1.05 | % | 0.93 | % | 0.93 | % |
Telecom | 0.42 | % | 0.56 | % | 0.56 | % |
Other | 0.54 | % | 0.63 | % | 0.63 | % |
Payment Services Segment Net Revenue Yield | 1.39 | % | 1.56 | % | 1.56 | % |
Active kiosks and terminals (units)(5) | 136,134 | 118,455 | 118,455 | |||
Active Qiwi Wallet accounts (million)(6) | 21.8 | 20.9 | 20.9 | |||
Consumer Financial Services Segment key operating metrics | ||||||
Payment volume (million)(7) | 5.8 | 5.1 | 0.1 | |||
CFS Segment Net Revenue Yield | 4.88 | % | 8.57 | % | 8.57 | % |
(1) | Calculated using a ruble to |
(2) | 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 |
(3) | PS Payment Adjusted Net Revenue is calculated as the difference between PS Payment Revenue and PS Cost of Payment Revenue (excluding D&A). PS Payment Revenue primarily consists of merchant and consumer fees. Cost of PS Payment Revenue primarily consists of commission to agents. |
(4) | Payment Average Adjusted Net Revenue Yield is defined as PS Payment Adjusted Net Revenue divided by Payment Services payment segment volume. |
(5) | 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 number of active kiosks and terminals for the last 30 days of the respective reporting period. |
(6) | 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 prior to the reporting date. |
(7) |
Other Operating Data
Six months ended (unaudited) | ||||||
RUB | RUB | USD (1) | ||||
Payment Services Segment key operating metrics | ||||||
Payment volume (billion)(2) | 696.8 | 717.1 | 10.3 | |||
E-commerce | 193.0 | 209.4 | 3.0 | |||
Financial services | 155.4 | 121.3 | 1.7 | |||
Money remittances | 249.1 | 286.5 | 4.1 | |||
Telecom | 80.2 | 82.7 | 1.2 | |||
Other | 19.2 | 17.3 | 0.2 | |||
Payment adjusted net revenue (million)(3) | 8,586.3 | 9,203.1 | 131.6 | |||
E-commerce | 4,992.5 | 5,400.5 | 77.2 | |||
Financial services | 542.8 | 600.1 | 8.6 | |||
Money remittances | 2,611.3 | 2,668.5 | 38.1 | |||
Telecom | 334.5 | 430.1 | 6.1 | |||
Other | 105.2 | 103.9 | 1.5 | |||
Payment Average Adjusted Net Revenue Yield(4) | 1.23 | % | 1.28 | % | 1.28 | % |
E-commerce | 2.59 | % | 2.58 | % | 2.58 | % |
Financial services | 0.35 | % | 0.49 | % | 0.49 | % |
Money remittances | 1.05 | % | 0.93 | % | 0.93 | % |
Telecom | 0.42 | % | 0.52 | % | 0.52 | % |
Other | 0.55 | % | 0.60 | % | 0.60 | % |
Payment Services Segment Net Revenue Yield | 1.43 | % | 1.49 | % | 1.49 | % |
Active kiosks and terminals (units)(5) | 136,134 | 118,455 | 118,455 | |||
Active Qiwi Wallet accounts (million)(6) | 21.8 | 20.9 | 20.9 | |||
Consumer Financial Services Segment key operating metrics | ||||||
Payment volume (billion)(7) | 10.8 | 13.9 | 0.2 | |||
CFS Segment Net Revenue Yield | 4.63 | % | 7.23 | % | 7.23 | % |
(1) | Calculated using a ruble to |
(2) | 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 |
(3) | PS Payment Adjusted Net Revenue is calculated as the difference between PS Payment Revenue and PS Cost of Payment Revenue (excluding D&A). PS Payment Revenue primarily consists of merchant and consumer fees. Cost of PS Payment Revenue primarily consists of commission to agents. |
(4) | Payment Average Adjusted Net Revenue Yield is defined as PS Payment Adjusted Net Revenue divided by Payment Services payment segment volume. |
(5) | 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 number of active kiosks and terminals for the last 30 days of the respective reporting period. |
(6) | 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 prior to the reporting date. |
(7) |
Contact Investor Relations +357.25028091 ir@qiwi.com
Source: QIWI plc
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