Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

REPORT OF A FOREIGN ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For November 23, 2021

 

 

QIWI plc

12-14 Kennedy Ave.

Kennedy Business Centre, 2nd Floor, Office 203

1087 Nicosia Cyprus

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  ☒                Form 40-F  ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ☐                No  ☒

If ‘‘Yes’’ is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

EXCEPT FOR REFERENCES TO “TOTAL NET REVENUE”, “PS PAYMENT REVENUE”, “PS PAYMENT ADJUSTED NET REVENUE”, “PS OTHER REVENUE”, “PS OTHER ADJUSTED NET REVENUE”, “PAYMENT AVERAGE ADJUSTED NET REVENUE YIELD”, “CFS SEGMENT NET REVENUE YIELD”, “ADJUSTED EBITDA”, “ADJUSTED EBITDA MARGIN”, “ADJUSTED NET PROFIT”, AND “ADJUSTED NET PROFIT PER SHARE”, EXHIBIT 99.1 TO THIS REPORT ON FORM 6-K IS INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENTS ON FORM S-8 (FILE NO. 333-190918; FILE NO. 333-212441) OF QIWI PLC AND IN THE OUTSTANDING PROSPECTUS CONTAINED IN SUCH REGISTRATION STATEMENTS.


Exhibits

    
99.1    “QIWI Announces Third Quarter 2021 Financial Results” press release dated November 23, 2021


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    QIWI PLC (Registrant)
Date: November 23, 2021     By:  

/s/ Alexey Mashchenkov

     

Chief Financial Officer

EX-99.1

Exhibit 99.1

 

LOGO

QIWI Announces Third Quarter 2021 Financial Results

Revenue from continued operations increased 8% YoY to RUB 11,746 million

Total Net Revenue from continued operations decreased 2% YoY to RUB 6,419 million

Net Profit increased 190% YoY to RUB 8,836 million (or RUB 140.71 per diluted share)

Adjusted Net Profit decreased 17% YoY to RUB 2,705 million (or RUB 43.32 per diluted share)

QIWI upgraded FY 2021 guidance

Board of Directors approved interim dividends of 30 cents per share

NICOSIA, CYPRUS – November 23, 2021 – QIWI plc (NASDAQ and MOEX: QIWI) (“QIWI” or the “Company”), a leading provider of cutting-edge payment and financial services in Russia and the CIS, today announced its financial results for the third quarter ended September 30, 2021.

3Q 2021 Key Operating and Financial Highlights1

 

          3Q 2020     3Q 2021     YoY     9M 2020     9M 2021     YoY     3Q 2021  
          RUB million     RUB million     %     RUB million     RUB million     %     USD million(1)  
   Revenue      10,833       11,746       8.4     29,663       31,793       7.2     161.4  
  

Total Net Revenue

     6,637       6,419       (3.3 %)      19,736       17,629       (10.7 %)      88.2  
  

LFL Total Net Revenue (2)

     6,557       6,419       (2.1 %)      18,122       17,629       (2.7 %)      88.2  

Consolidated

   Adjusted EBITDA      4,020       3,834       (4.6 %)      10,223       10,504       2.7     53  

Group results

  

Adjusted EBITDA margin

     60.6     59.7     (0.8 %)      51.8     59.6     7.8     59.7
   Net Profit      3,043       8,836       190.4     6,479       13,423       107.2     121.4  
   Adjusted Net profit      3,275       2,705       (17.4 %)      7,785       7,470       (4.0 %)      37.2  
  

Adjusted Net profit margin

     49.3     42.1     (7.2 %)      39.4     42.4     2.9     42.1

 

 
   PS Net Revenue      6,108       5,855       (4.1 %)      16,826       16,295       (3.2 %)      80.5  
  

PS Payment Net Revenue

     5,303       4,856       (8.4 %)      14,507       13,857       (4.5 %)      66.7  

Payment

  

PS Payment Volume, billion

     435       490       12.6     1,153       1,332       15.6     6.7  

Services (PS)

  

PS Payment Net Revenue Yield

     1.22     0.99     (0.2 %)      1.26     1.04     (0.2 %)      0.99
  

PS Other Net Revenue

     805       999       24.1     2,320       2,438       5.1     14  
   Adjusted Net profit      3,633       3,231       (11.1 %)      9,927       8,753       (11.8 %)      44  
  

Adjusted Net profit margin

     59.5     55.2     (4.3 %)      59.0     53.7     (5.3 %)      55.2

 

(1)

Throughout this release dollar translation calculated using a ruble to U.S. dollar exchange rate of RUB 72.7608 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2021.

(2)

Like-for-like Total Net Revenue excludes discontinued Consumer Financial Services (Sovest) and Rocketbank segments.

Key events in 3Q 2021 and after the reported period

 

   

Alexey Mashchenkov was appointed as CFO of QIWI.

 

   

The Board of Directors approved an interim dividend for 3Q 2021 in the amount of 30 cents per share.

 

   

QIWI completed the sale of its 40% stake (45% economic interest) in Tochka2 resulting in total gain on disposal of RUB 6.2 billion, including RUB 2.7 billion of accrued performance adjustment income contingent to Tochka’s earnings for the year 2021.

 

   

The role of a single Unified Interactive Bets Accounting Center (ETSUP) was announced. Since October 2021 the newly-appointed ETSUP replaced TSUPIS of QIWI. The Company ensured a seamless transition of clients to the ETSUP. QIWI wallet remains a payment method for making bets and receiving winning payouts.

 

   

Factoring PLUS was rebranded into ROWI.

 

1 

Total Net Revenue, adjusted EBITDA, adjusted EBITDA margin, adjusted Net profit, adjusted Net profit margin, financial results on a like-for-like basis in this release are “non-IFRS financial measures”. Please see the section “Non-IFRS Financial Measures and Supplemental Financial Information” for more details as well as reconciliation at the end of this release.

2

For more details please refer to the respective press release disclosed at Company’s website:

    

https://investor.qiwi.com/news-releases/news-release-details/qiwi-completes-sale-its-stake-tochka-project.


2021 Guidance3

QIWI upgraded its FY 2021 guidance following strong results for 9M 2021:

 

   

Total Net Revenue is expected to decrease by 10% to 15% YoY;

 

   

Payment Services Net Revenue is expected to decrease by 5% to 10% YoY;

 

   

Adjusted Net Profit is expected to decrease by 10% to 15% YoY.

Our outlook reflects (1) recent changes in the betting industry landscape described in the “Recent developments” section, (2) conservative projections of recovery of cross-borders operations, and (3) sale of stake in Tochka project, previously accounted for under the equity pick-up method.

These are our current views and expectations only which are based on the trends we see as of the day of this press release. If such trends were to deteriorate or improve further the impact on our business and operations could deviate from that currently expected.

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.

3Q Results

Net Revenue breakdown by segments4

 

     3Q 2020      3Q 2021      YoY     9M 2020      9M 2021      YoY     3Q 2021  
     RUB million      RUB million      %     RUB million      RUB million      %     USD million  

Total Net Revenue

     6,637        6,419        (3.3 %)      19,736        17,629        (10.7 %)      88.2  

LFL Total Net Revenue

     6,557        6,419        (2.1 %)      18,121        17,629        (2.7 %)      88.2  

Payment Services (PS)

     6,108        5,855        (4.1 %)      16,826        16,295        (3.2 %)      80.5  

PS Payment Net Revenue

     5,303        4,856        (8.4 %)      14,507        13,857        (4.5 %)      66.7  

PS Other Net Revenue

     805        999        24.1     2,320        2,438        5.1     13.7  

Consumer Financial Services (CFS)

     64        —          (100.0 %)      1,067        —          (100.0 %)      —    

Rocketbank

     16        —          (100.0 %)      549        —          (100.0 %)      —    

Corporate and Other

     449        564        25.6     1,295        1,334        3.0     7.8  

Total Net Revenue from continued operations decreased by 2.1% YoY to RUB 6,419 million ($88.2 million) driven by PS segment Net Revenue decline. Including discontinued operations of Sovest (reflected in CFS) and Rocketbank Total Net Revenue decreased by 3.3% YoY.

PS Net Revenue in 3Q 2021 was RUB 5,855 million ($80.5 million) – 4.1% lower compared to last year driven by decrease of PS Payment Net Revenue.

 

3 

Guidance is provided in Russian rubles

4 

Total Net Revenue, PS Net Revenue, PS Payment Net Revenue, PS Other Net Revenue, СFS Net Revenue, Rocketbank Net Revenue, Corporate and Other Net Revenue in this release are “non-IFRS financial measures”. Please see the section “Non-IFRS Financial Measures and Supplemental Financial Information” for more details as well as reconciliation at the end of this release.


PS Payment segment breakdown by verticals5

 

     3Q 2020     3Q 2021     YoY     9M 2020     9M 2021     YoY     3Q 2021  
     RUB     RUB     %     RUB     RUB     %     USD  

PS Payment Volume (billion)(1)

     435.4       490.5       12.6     1,152.6       1,332.1       15.6     6.7  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

E-commerce

     133.9       118.8       (11.3 %)      343.3       312.4       (9.0 %)      1.6  

Financial services

     65.2       71.8       10.1     186.5       200.5       7.5     1.0  

Money remittances

     185.9       261.1       40.5     472.4       694.9       47.1     3.6  

Telecom

     36.2       28.6       (21.0 %)      118.9       89.3       (24.9 %)      0.4  

Other

     14.3       10.2       (28.3 %)      31.5       35.0       10.9     0.1  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PS Payment Net Revenue (million)(2)

     5,303       4,856       (8.4 %)      14,506       13,857       (4.5 %)      66.7  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

E-commerce

     3,123       2,286       (26.8 %)      8,523       6,361       (25.4 %)      31.4  

Financial services

     331       134       (59.6 %)      931       462       (50.4 %)      1.8  

Money remittances

     1,605       2,316       44.3     4,274       6,553       53.3     31.8  

Telecom

     143       115       (19.2 %)      573       392       (31.6 %)      1.6  

Other

     102       4       (95.7 %)      206       90       (56.4 %)      0.1  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PS Payment Net Revenue Yield(3)

     1.22     0.99     (0.23 %)      1.26     1.04     (0.22 %)      0.99
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

E-commerce

     2.33     1.93     (0.41 %)      2.48     2.04     (0.45 %)      1.93

Financial services

     0.51     0.19     (0.32 %)      0.50     0.23     (0.27 %)      0.19

Money remittances

     0.86     0.89     0.02     0.90     0.94     0.04     0.89

Telecom

     0.40     0.40     0.01     0.48     0.44     (0.04 %)      0.40

Other

     0.71     0.04     (0.67 %)      0.65     0.26     (0.40 %)      0.04
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

PS 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.

(2)

PS Payment 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.

(3)

PS Payment Net Revenue Yield is defined as PS Payment net revenue divided by Payment Services payment segment volume.

In 3Q 2021 PS Payment Net Revenue decreased by 8.4% YoY and amounted to RUB 4,856 million ($66.7 million) as a result of a decrease of PS Payment Net Revenue Yield by 23bps YoY partially compensated by an increase of the PS Payment volume by 12.6%.

PS Payment Volume increased by 12.6% to RUB 490 billion primarily due to the Money remittance and Financial services verticals.

 

   

Money Remittances vertical went up by 40.5% YoY reaching a historical high level of RUB 261 billion represented by increased volumes across key streamlines, namely (i) B2B2C payments from QIWI wallet accountholders and payouts on cards (up 110% YoY) resulting largely from the development of our product offering for self-employed and increase in peer-to-peer operations, and (ii) repayment of customers’ betting winnings on the QIWI wallet (up 29% YoY).

 

   

Volume growth in the Financial services vertical by 10.1% YoY was driven by increased bank and micro loans repayments.

 

   

E-commerce vertical Volume went down by 11.3% YoY on decrease in payment volumes to foreign merchants due to temporary restrictions imposed by the CBR6 in December 2020 and expired in May 2021 which were partially offset by increased TSUPIS operations and recovery of tourism.

 

   

Telecom volume decreased by 21.0% YoY to RUB 29 billion on lower volumes coming through MNOs7 and adverse impact of the downsizing kiosk network.

 

   

Other category comprising a broad range of merchants in utilities and other government payments as well as charity organizations to which we offer payment processing services decreased by 28.3% YoY to RUB 10 billion.

We note significant growth within the B2B and B2B2C streamlines as we continuously enhance our customer value proposition. These transactions mostly represent use-cases connected to peer-to-peer transactions, light banking, collection of proceeds services we provide to self-employed customers, etc. We believe that significant growth in revenue from peer-to-peer transactions may not be representative of revenue from such transactions in future periods.

 

5 

Please see the section “Non-IFRS Financial Measures and Supplemental Financial Information” for more details as well as reconciliation at the end of this release.

6 

Disclosed in the Report of Foreign Private Issuer on Form 6-K furnished to the SEC on December 9, 2020.

7 

Mobile network operators.


A decline in PS Payment Net Revenue Yield by 23bps to 0.99% was mainly driven by a combination of (1) decreased E-commerce Net Revenue Yield by 41bps to 1.93% and (2) lower share of E-commerce vertical in total PS volume by 6.5ppt to 24.2%, both resulting from the temporary restrictions imposed on higher-yielding cross-border payments.

Any changes in the regulatory regime or in the interpretation of current regulations that affect the continuation of one or more types of transactions currently facilitated by our system may materially adversely affect our results of operations.

PS Other Net Revenue breakdown

 

     3Q 2020      3Q 2021      YoY     9M 2020      9M 2021      YoY     3Q 2021  
     RUB million      RUB million      %     RUB million      RUB million      %     USD million  

PS Other Net Revenue

     805        999        24.1     2,320        2,438        5.1     13.7  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

Fees for inactive accounts and unclaimed payments

     506        441        (12.8 %)      1,497        1,295        (13.5 %)      6.1  

Other Net Revenue

     299        558        86.8     823        1,143        38.9     7.7  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

   

 

 

 

PS Other Net Revenue increased by 24.1% YoY and stood at RUB 999 million ($13.7 million).

Fees for inactive accounts and unclaimed payments were RUB 441 million ($6.1 million) or 12.8% lower compared to 3Q 2020 due to extension of inactivity terms from 6 to 12 months as well as decreased number of QIWI wallet accounts.

Other Net Revenue largely composed of interest revenue, revenue from overdrafts provided to agents, and advertising increased by 86.8% YoY up to RUB 558 million ($7.7 million) mainly driven by higher interest revenue on more efficient cash allocation underpinned by increased interest rates.

Payment Services other operating data

 

     September 30, 2020      September 30, 2021      YoY%  

Active kiosks and terminals (units)(1)

     117,137        96,370        (17.7 %) 

Active QIWI wallet accounts (million)(2)

     19.7        14.9        (24.5 %) 

 

(1)

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.

(2)

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.

The number of active kiosks and terminals was 96,370, including Contact and Rapida physical points of service, a decrease of 17.7% compared to the previous year. The number of kiosks and terminals is generally decreasing as market evolves towards a higher share of digital payments. Nevertheless, our physical distribution network remains an important part of our omni-channel infrastructure allowing consumers to use physical currency for online payments and offering merchants access to a large pool of customers that use cash.

The number of active QIWI wallet accounts was 14.9 million as of the end of 3Q 2021, a decrease of 4.8 million YoY. The decrease primarily resulted from the introduction of limitations on the anonymous wallets and enhancement of certain KYC, identification and compliance procedures. The number of active QIWI wallets was also affected by the CBR restrictions imposed in December 2020 resulting in outflow of clients that customarily used our services specifically for payments to merchants that have become subject to the restrictions. We also note 1.3 million of QIWI wallet accounts previously created solely for the purposes of making bets via QIWI TSUPIS using other than QIWI wallet payment method. These QIWI wallets are at risk as QIWI stopped providing TSUPIS services in October 2021. We are focused on diversification of our product proposition and increase of payment volumes per QIWI wallet account. In 3Q 2021 payment volume per active QIWI wallet account8 was 92% higher YoY.

 

8 

Payment volume per active QIWI wallet account for the period is calculated as total amount of outgoing payments for the period including peer-to-peer transactions divided by number of active QIWI wallet accounts involved in transactions within the period.


Corporate and Other (CO) Net Revenue breakdown

 

     3Q 2020      3Q 2021     YoY     9M 2020      9M 2021     YoY     3Q 2021  
     RUB million      RUB million     %     RUB million      RUB million     %     USD million  

CO Net Revenue

     449        564       25.6     1,295        1,334       3.0     7.8  
  

 

 

    

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Tochka

     126        126       0.4     457        282       (38.3 %)      1.7  

ROWI

     182        295       61.8     488        670       37.4     4.1  

Flocktory

     135        152       13.2     341        412       20.8     2.1  

Corporate and Other projects

     6        (10     (262.3 %)      10        (30     (409.8 %)      (0.1

CO Net Revenue in 3Q 2021 increased by 25.6% YoY to RUB 564 million ($7.8 million) driven by ROWI, Flocktory and Other projects Net Revenue growth:

 

   

Tochka Net Revenue remained generally flat YoY and stood at RUB 126 million ($1.7 million). In the 3Q 2021 QIWI completed the sale of its 40% stake (45% economic interest) in the capital of Tochka associate to Otkritie Bank. The Company continues to work with Tochka and Otkrytie Bank on joint B2B2C projects providing a bundle of services for taxi, courier delivery, transportation companies, self-employed individuals and other users.

 

   

In 3Q 2021 QIWI Factoring business was rebranded into ROWI. ROWI Net Revenue increased by 61.8% YoY to RUB 295 million ($4.1 million) on further expansion of bank guarantees and factoring portfolios as well as launch of new products:

 

   

Bank Guarantees portfolio increased by 86% YoY to RUB 31.2 billion with average check growth by 66% to RUB 1.1 million.

 

   

Factoring portfolio increased by 83% YoY and reached RUB 7.0 billion with number of active clients going up by 48% YoY to 592.

 

   

In 3Q ROWI launched two new finance products – online loans for government contracts execution and loans for marketplaces suppliers based on sales analytics. Net Revenue of new products in 3Q 2021 reached RUB 28 million.

 

   

Flocktory Net Revenue increased by 13.2% YoY and reached RUB 152 million ($2.1 million) driven by growing number of clients and traffic-providers using Flocktory’s platform and marketing services underpinned by growth of average check.

 

   

Corporate and Other projects Net Revenue include result of operations of different projects in the start-up stage and in 3Q 2021 it amounted to RUB 10 million ($0.1 million) of loss.


Operating expenses and other non-operating income and expenses

 

     3Q 2020     3Q 2021     YoY     9M 2020     9M 2021     YoY     3Q 2021  
     RUB     RUB     %     RUB     RUB     %     USD  
     million     million    

 

    million     million    

 

    million  

Operating expenses

     (3,026     (2,874     (5.0 %)      (10,764     (8,005     (25.6 %)      (39.5

% of Net Revenue

     (45.6 %)      (44.8 %)      0.8     (54.5 %)      (45.4 %)      9.1  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Selling, general and administrative expenses

     (711     (986     38.7     (2,634     (2,147     (18.5 %)      (13.6

% of Net Revenue

     (10.7 %)      (15.4 %)      (4.6 %)      (13.3 %)      (12.2 %)      1.2  

Personnel expenses

     (1,983     (1,496     (24.6 %)      (6,204     (4,726     (23.8 %)      (20.6

% of Net Revenue

     (29.9 %)      (23.3 %)      6.6     (31.4 %)      (26.8 %)      4.6  

Depreciation, amortization & impairment

     (317     (289     (8.8 %)      (1,101     (872     (20.8 %)      (4.0

% of Net Revenue

     (4.8 %)      (4.5 %)      0.3     (5.6 %)      (4.9 %)      0.6  

Credit loss (expense)

     (15     (103     586.7     (825     (260     (68.5 %)      (1.4

% of Net Revenue

     (0.2 %)      (1.6 %)      (1.4 %)      (4.2 %)      (1.5 %)      2.7  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other non-operating income and expenses excluding gain on disposal of an associate

     321       36       (88.8 %)      (441     200       (145.4 %)      0.5  

% of Net Revenue

     4.8     0.6     (4.3 %)      (2.2 %)      1.1     3.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Share of gain of an associate and a joint venture

     256       —         (100.0 %)      495       306       (38.2 %)      —    

% of Net Revenue

     3.9     0.0     (3.9 %)      2.5     1.7     (0.8 %)   

Foreign exchange loss, net

     125       3       (97.6 %)      (130     (39     (70.0 %)      0.0  

% of Net Revenue

     1.9     0.0     (1.8 %)      (0.7 %)      (0.2 %)      0.4  

Interest income and expenses, net

     (23     2       108.7     (88     (25     71.6     0.0  

% of Net Revenue

     (0.3 %)      0.0     0.4     (0.4 %)      (0.1 %)      0.3  

Other income and expenses, net

     (37     31       183.8     (718     (42     94.2     0.4  

% of Net Revenue

     (0.6 %)      0.5     1.0     (3.6 %)      (0.2 %)      3.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Gain on disposal of an associate

     —         6,213         —         6,213         85.4  

% of Net Revenue

       96.8         35.2    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating expenses went down by 5.0% YoY to RUB 2,874 million ($39.5 million) and improved by 82bps to 44.8% as percent of Total Net Revenue driven by divestiture of Rocketbank project that offset Total Net Revenue decline due to temporary restrictions imposed on cross-border payments.

Selling, general and administrative expenses increased by 38.7% to RUB 986 million ($13.6 million). SG&A expenses as percent of Total Net Revenue increased by 4.6ppt YoY to 15.4% primarily due to (i) advisory services for market research while reviewing Company’s strategy and (ii) higher tax expenses as a result of increased share of operations with financial companies which are non-deductible for VAT purposes.

Personnel expenses decreased by 24.6% YoY to RUB 1,496 million ($20.6 million) and improved by 6.6ppt to 23.3% as percent of Total Net Revenue primarily driven by divestiture of Rocketbank project.

Depreciation, amortization and impairment decreased by 27bps YoY to 4.5% as percent of Total Net Revenue driven by divestiture of Rocketbank project.

Credit loss increased by 1.4ppt YoY to 1.6% as percent of Total Net Revenue driven by provisions accrued in 3Q 2021 resulting from ROWI business portfolio growth and other factors.

Other non-operating income and expenses excluding gain on disposal of an associate in 3Q decreased by 88.8% YoY to RUB 36 million ($0.5 million) mainly driven by (i) no contribution from Tochka equity pick up due to sales of stake in the project, and (ii) lower forex exchange gain driven by currency rates fluctuations. Other insignificant changes are driven by divestiture of Rocketbank project.

Gain on disposal of an associate in the 3Q 2021 resulted from sale of stake in Tochka and stood at RUB 6.2 billion including: (i) base deal amount of RUB 4.95 billion, (ii) accrued expected performance adjustment gain contingent on Tochka’s earnings for the year 2021 in the amount of RUB 2.7 billion, (iii) dividends received in 3Q in the amount of RUB 0.5 billion, and (iv) less carrying amount of disposed investment in the amount of RUB 1.95 billion. Contingent amount is expected to be received in 2Q 2022.


Income tax expense

Income tax expense increased by 7.8% YoY to RUB 958 million mainly resulting from divesture of SOVEST and Rocketbank projects. Effective tax rate in 3Q 2021 was 12.8ppt lower YoY and stood at 9.8% as a result of recognition of non-taxable gain on disposal of Tochka.

Profitability results

 

     3Q 2020     3Q 2021     YoY     9M 2020     9M 2021     YoY     3Q 2021  
     RUB million     RUB million     %     RUB million     RUB million     %     USD million  

Adjusted EBITDA

     4,020       3,834       (4.6 %)      10,223       10,504       2.7     52.7  

Adjusted EBITDA margin, %

     60.6     59.7     (0.8 %)      51.8     59.6     7.8     59.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     3,275       2,705       (17.4 %)      7,785       7,470       (4.0 %)      37.2  

Adjusted Net Profit margin, %

     49.3     42.1     (7.2 %)      39.4     42.4     2.9     42.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Payment Services

     3,633       3,231       (11.1 %)      9,927       8,753       (11.8 %)      44.4  

PS Net Profit margin, %

     59.5     55.2     (4.3 %)      59.0     53.7     (5.3 %)      55.2

Consumer Financial Services

     (137     —         (100.0 %)      (793     —         (100.0 %)      —    

Rocketbank

     (165     —         (100.0 %)      (781     —         (100.0 %)      —    

Corporate and Other (CO)

     (56     (526     (848.2 %)      (568     (1,283     (125.8 %)      (7.2
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tochka

     281       5       (98.3 %)      590       328       (44.4 %)      0.1  

ROWI

     72       122       69.7     164       156       (4.6 %)      1.7  

Flocktory

     44       (6 )       (114.3 %)      57       (109 )       (291.7 %)      (0.1

Corporate and Other projects

     (453     (647     (42.7 %)      (1,378     (1,658     (20.3 %)      (8.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA decreased by 4.6% YoY to RUB 3,834 million ($52.7 million) driven by Total Net Revenue decline and modest Adjusted EBITDA margin decline by 84bps to 59.7%. Adjusted EBITDA margin decreased mainly due to PS Payment Net Revenue decline partially offset by optimization measures resulting from divesture of Rocketbank project.

Adjusted Net Profit in 3Q 2021 decreased by 17.4% YoY to RUB 2,705 million ($37.2 million). Adjusted Net Profit margin declined by 7.2ppt and stood at 42.1% driven by (i) Adjusted EBITDA dynamics, (ii) no share gain from Tochka associate, and (iii) lower forex exchange gain.

Payment Services Net Profit decreased by 11.1% YoY to RUB 3,231 million ($44.4 million) as a result of a combination of PS Net Revenue decline by 4.1% YoY mainly due to temporary restrictions imposed on higher-yielding cross-border payments and PS Net Profit margin contraction by 4.3ppt to 55.2% primarily driven by higher tax expenses due to changing base for VAT and adverse forex exchange impact.

CO Net Loss in 3Q 2021 increased to RUB 526 million ($7.2 million) driven primarily by the following factors:

 

   

Corporate and Other projects Net Loss in 3Q 2021 increased by 42.7% YoY to RUB 647 million mainly due to advisory services for market research while reviewing Company’s strategy, increased costs for insurance of Directors and Officers and higher income tax expenses.

 

   

Tochka Net Profit decreased to RUB 5 million followed by sale of QIWI stake in the project.

 

   

ROWI Net Profit increased by 69.7% YoY to RUB 122 million as a result of project scale up reflected in portfolio growth.

 

   

Floctory Net Loss in 3Q 2021 stood at RUB 6 million primarily driven by (i) increased personnel expenses mainly due to selective review of salaries and new hires, and (ii) negative forex exchange impact.


Consolidated cash flow statement

 

     9M 2020     9M 2021     YoY     9M 2021  
     RUB million     RUB million     %     USD million  

Net cash generated from operating activities before changes in working capital

     8,724       8,762       0.4     120.4  

Change in working capital

     (6,012     (13,672     127.4     (187.9

Net interest and income tax paid

     735       (16     (102.2 %)      (0.2
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow used in operating activities

     3,447       (4,926     (242.9 %)      (67.7

Net cash received from investing activities

     684       (33     (104.8 %)      (0.5

Net cash used in from financing activities

     (3,438     (4,805     39.8     (66.0

Effect of exchange rate changes on cash and cash equivalents

     1,411       (140     (109.9 %)      (1.9
  

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     2,104       (9,904     (570.7 %)      (136.1
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the beginning of the period

     42,101       47,382       12.5     651.2  
  

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     44,205       37,478       (15.2 %)      515.1  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net cash generated from operating activities before changes in working capital for 9M 2021 slightly increased by 0.4% YoY to RUB 8,762 million ($120.4 million) as decrease in Net Revenue by 10.7% YoY due to temporary suspension of cross-border operations was compensated by improved profitability on divesture of loss making SOVEST and Rocketbank projects. Net cash flow used in operating activities for 9M 2021 stood at RUB 4,926 million ($67.7 million) driven by significant changes in working capital and increased income tax paid. Change in working capital for 9M 2021 resulted in cash outflow of RUB 13,672 million primarily due to (i) lower accounts payable and accruals of RUB 10,444 million resulted from discontinuation of payments to foreign merchants on the back of the temporary CBR prescriptions related to cross-border operations; (ii) decrease in customer accounts and amounts due to banks in the amount of RUB 4,163 million driven predominantly due to the wind-down of Rocketbank and seasonality; (iii) increase in loans issued from banking operations of RUB 2,418 million mainly related to ROWI business development, and (iv) decrease in trade and other receivables by RUB 2,125 million mainly due to seasonal factor. Net interest and income tax paid increased by RUB 751 million mainly resulting from divesture of loss making SOVEST and Rocketbank projects.

Net cash flow used in investing activities for 9M 2021 stood at RUB 33 million ($0.5 million). The net cash outflow was primarily driven by purchase of debt securities in the amount of RUB 8.1 billion, which was partially offset by proceeds from sale of Tochka of RUB 4.95 billion.

Net cash flow used in financing activities for 9M 2021 increased by 39.8% YoY to RUB 4,805 million ($66.0 million). The increase in net cash outflow was primarily driven by (i) repayment of borrowings of RUB 649 million and (ii) higher dividend payments during 9M 2021 by RUB 621 million compared to the same period of last year due to an increase of distributable profit and lower payout ratio in 2020 due to the COVID-19 outbreak.

As a result of factors described above cash and cash equivalents as of September 30, 2021 were RUB 37,478 million ($515.1 million) – a decrease by 15.2% compared to September 30, 2020.

Dividends

In March 2021, the Board of Directors has approved a target dividend payout ratio for 2021. In accordance with the decision of the Board of Directors, the Company aims to distribute at least 50% of Group Adjusted Net Profit for 2021.

Following the determination of 3Q 2021 financial results and taking into consideration the current operating environment, the Board of Directors approved a dividend of USD 30 cents per share. The dividend record date is December 6, 2021, and the Company intends to pay the dividend on December 8, 2021. The holders of ADSs will receive the dividend shortly thereafter.

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.


Recent Developments

Betting industry regulation

Since 2016, we have been operating an Interactive Bets Accounting Center (TSUPIS), which we established together with one of the self-regulated associations of bookmakers in order to enable us to accept electronic bets on behalf of sports betting companies and process related payments. In December 2020, a new law was adopted, establishing a Unified Gambling Regulator as a new governmental agency with broad authority to oversee the betting market, and creating the role of a single Unified Interactive Bets Accounting Center (ETSUP). QIWI made a proposal to serve as the ETSUP but it was not successful. Since October 2021, the newly-appointed ETSUP solely processes betting operations replacing both TSUPIS operators. As a result, QIWI lost the ability to generate volume and income directly related to TSUPIS business in Russia starting from 4Q 2021. It will most likely also affect our acquiring services provided to sports betting companies in a bundle with TSUPIS operations. At the same time, part of the betting revenues generated from QIWI wallet services, including commissions for betting accounts top-ups and winning payouts are expected to be retained. We note that there can be no assurance that recent changes will not have adverse impact on the overall usage of QIWI wallet.

The combined betting stream for 9M 2021 represented 26% (or RUB 351.6 billion) of PS Payment Volume and 38% (or RUB 5,225 million) of PS Payment Net Revenue. QIWI’s TSUPIS business and related acquiring services for 9M 2021 accounted 23% (or RUB 3,246 million) of PS Payment Net Revenue.

We are looking for different options to share our expertise and technologies to transform and secure our place on the new betting landscape.

Earnings Conference Call and Audio Webcast

QIWI will host a conference call to discuss 3Q 2021 financial results today at 8:30 a.m. ET. (1:30 p.m. London time; 4:30 p.m. Moscow time)

Hosting the call will be (i) Andrey Protopopov, CEO, (ii) Alexey Mashchenkov, CFO and (iii) Elena Nikonova, Deputy CFO for Corporate Finance.

To participate in the conference call, please use the following details:

 

Live call   

Toll Free (US)

Toll International

Toll Free (Russia)

  

+1 (877) 407-3982

+1 (201) 493-6780

88 00 100 6268

Replay   

Toll Free (US)

Toll International

  

+1 (844) 512-2921

+1 (412) 317-6671

   available since Tuesday, November 23, 2021, 11:30 a.m. ET till Tuesday, December 7, 2021
Confirmation Code    13724831   

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.

For over 20 years we stood at the fore point of fintech innovations to facilitate and secure digitalization of payments. Our mission is to connect our clients providing unique financial and technological solutions to make the impossible accessible and simple.

QIWI is a leading provider of cutting-edge payment and financial services in Russia and the CIS. We offer a wide range of products under several directions: QIWI payment and financial services ecosystem for merchants and B2C clients across digital use-cases, ROWI digital structured financial products for SME, Flocktory services in marketing automation and advertising technologies, and several other startups.

QIWI has an integrated proprietary network that enables payment services across online, mobile and physical channels and provides access to financial services for retail customers and B2B partners. Our network allows over 27 million of customers and partners to accept and transfer RUB 148 billion of cash and electronic payments monthly. Company’s money remittance payment platform connects businesses and people from over 185 countries via over 670 thousand service points. Our customers and partners can use cash, stored value, prepaid cards and other electronic payment methods in order to pay for goods and services or transfer money across virtual or physical environments interchangeably, as well as employ QIWI’s open API infrastructure and highly customizable, sophisticated payment solutions to serve their business or personal needs. Our ROWI brand serves businesses with digital factoring, bank guarantees and other financial solutions for SMEs.

For the FY 2020 QIWI had revenue of RUB 40.6 billion and an Adjusted EBITDA of RUB 13.8 billion. QIWI’s American depositary shares are traded on the NASDAQ and Moscow Exchange (ticker: QIWI). QIWI has a credit rating from Standard & Poor’s of BB-/B.

For more information, visit investor.qiwi.com.

Contact

 

Investor Relations

+357.25028091

ir@qiwi.com

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 development of our ROWI and Flocktory businesses, the impact of the COVID-19 pandemic and related public health measures on our business, merchants, customers, and employees, the impact of the restrictions imposed on us by the CBR on December 7, 2020, in particular with respect to payments to foreign merchants, developments in the betting industry in the Russian Federation and its regulation, and others. 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, growth in each of our market verticals, competition, the introduction of new products and services and their acceptance by consumers, QIWI’s ability to estimate the market risk and capital risk associated with new projects, a decline in net revenue yield, regulation, QIWI’s ability to grow physical and virtual distribution channels, cyberattacks and security vulnerabilities in QIWI’s products and services, QIWI’s ability to expand geographically, the risk that new projects will not perform in accordance with its expectations 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,
2020
     As of September 30,
2021 (unaudited)
     As of September 30,
2021 (unaudited)
 
     RUB      RUB      USD  

Assets

        

Non-current assets

        

Property and equipment

     1,893        1,476        20.3  

Goodwill and other intangible assets

     10,813        10,546        144.9  

Investments in associates

     1,635        —          —    

Long-term debt securities and deposits

     3,495        1,117        15.4  

Long-term loans

     214        641        8.8  

Other non-current assets

     112        133        1.8  

Deferred tax assets

     209        202        2.8  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     18,371        14,115        194.0  
  

 

 

    

 

 

    

 

 

 

Current assets

        

Trade and other receivables

     7,445        7,713        106.0  

Short-term loans

     5,799        7,798        107.2  

Short-term debt securities and deposits

     2,888        10,260        141.0  

Prepaid income tax

     197        27        0.4  

Other current assets

     1,202        1,077        14.8  

Cash and cash equivalents

     47,382        37,478        515.1  

Assets held for sale

     31        —          —    
  

 

 

    

 

 

    

 

 

 

Total current assets

     64,944        64,353        884.4  
  

 

 

    

 

 

    

 

 

 

Total assets

     83,315        78,468        1,078.4  
  

 

 

    

 

 

    

 

 

 

Equity and liabilities

        

Equity attributable to equity holders of the parent

        

Share capital

     1        1        0.0  

Additional paid-in capital

     1,876        1,876        25.8  

Share premium

     12,068        12,068        165.9  

Other reserve

     2,575        2,559        35.2  

Retained earnings

     14,602        24,131        331.6  

Translation reserve

     554        540        7.4  
  

 

 

    

 

 

    

 

 

 

Total equity attributable to equity holders of the parent

     31,676        41,175        565.9  
  

 

 

    

 

 

    

 

 

 

Non-controlling interests

     96        103        1.4  
  

 

 

    

 

 

    

 

 

 

Total equity

     31,772        41,278        567.3  
  

 

 

    

 

 

    

 

 

 

Non-current liabilities

        

Long term debt

     4,923        4,942        67.9  

Long-term deferred income

     —          750        10.3  

Long-term lease liabilities

     762        346        4.8  

Other non-current liabilities

     80        79        1.1  

Deferred tax liabilities

     1,161        1,417        19.5  
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     6,926        7,534        103.5  
  

 

 

    

 

 

    

 

 

 

Current liabilities

        

Trade and other payables

     29,528        19,060        262.0  

Customer accounts and amounts due to banks

     12,301        8,136        111.8  

Short-term debt

     1,640        991        13.6  

Short-term lease liability

     354        301        4.1  

VAT and other taxes payable

     147        184        2.5  

Other current liabilities

     647        984        13.5  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     44,617        29,656        407.6  
  

 

 

    

 

 

    

 

 

 

Total equity and liabilities

     83,315        78,468        1,078.4  
  

 

 

    

 

 

    

 

 

 


QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

 

     Three months ended (unaudited)  
     September 30, 2020     September 30, 2021     September 30, 2021  
     RUB(1)     RUB     USD  

Continuing operations

      

Revenue:

     10,833       11,746       161.4  

Payment processing fees

     9,348       9,667       132.9  

Interest revenue calculated using the effective interest rate

     476       962       13.2  

Fees from inactive accounts and unclaimed payments

     506       441       6.1  

Other revenue

     503       676       9.3  

Operating costs and expenses:

     (7,031     (8,201     (112.7

Cost of revenue (exclusive of items shown separately below)

     (4,424     (5,327     (73.2

Selling, general and administrative expenses

     (669     (986     (13.6

Personnel expenses

     (1,645     (1,496     (20.6

Depreciation and amortization

     (273     (277     (3.8

Credit loss expense

     (20     (103     (1.4

Impairment of non-current assets

     —         (12     (0.2
  

 

 

   

 

 

   

 

 

 

Profit from operations

     3,802       3,545       48.7  
  

 

 

   

 

 

   

 

 

 

Gain on disposal of an associate

     —         6,213       85.4  

Share of gain of an associate and a joint venture

     256       —         —    

Foreign exchange gain/(loss), net (2)

     134       3       0.0  

Interest income and expenses, net

     (13     2       0.0  

Other income and expenses, net

     17       31       0.4  
  

 

 

   

 

 

   

 

 

 

Profit before tax from continuing operations

     4,196       9,794       134.6  
  

 

 

   

 

 

   

 

 

 

Income tax expense

     (908     (958     (13.2
  

 

 

   

 

 

   

 

 

 

Net profit from continuing operations

     3,288       8,836       121.4  
  

 

 

   

 

 

   

 

 

 

Discontinued operations

      

Loss after tax from discontinued operations

     (245     —         —    
  

 

 

   

 

 

   

 

 

 

Net profit

     3,043       8,836       121.4  
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     3,014       8,787       120.8  

Non-controlling interests

     29       49       0.7  

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

     116       10       0.1  

Debt securities at fair value through other comprehensive income (FVOCI):

      

Net gains arising during the period, net of tax

     —         (21     (0.3

Net gains recycled to profit or loss upon disposal

     —         (2     (0.0

Total other comprehensive income/(loss), net of tax

     116       (13     (0.2
  

 

 

   

 

 

   

 

 

 

Total comprehensive income, net of tax effect of nil

     3,159       8,823       121.3  
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     3,128       8,774       120.6  

Non-controlling interests

     31       49       0.7  

Earnings per share:

      

Basic, profit attributable to ordinary equity holders of the parent

     48.36       140.71       1.93  

Diluted, profit attributable to ordinary equity holders of the parent

     48.29       140.71       1.93  

Earnings per share for continuing operations

      

Basic, profit from continuing operations attributable to ordinary equity holders of the parent

     52.29       140.71       1.93  

Diluted, profit from continuing operations attributable to ordinary equity holders of the parent

     52.22       140.71       1.93  

 

 

(1)

Following the divestiture of SOVEST and the wind-down of Rocketbank, certain amounts have been reclassified to Discontinued operations in order to conform to the current period’s presentation.

(2)

Starting December 31, 2020, we present foreign exchange gain and foreign exchange loss on a netted basis. This change in presentation was implemented to make our financial statements comparable with industry peers.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

 

     Nine months ended (unaudited)  
     September 30, 2020     September 30, 2021     September 30, 2021  
     RUB(1)     RUB     USD  

Continuing operations

      

Revenue:

     29,663       31,793       437.0  

Payment processing fees

     25,079       26,444       363.4  

Interest revenue calculated using the effective interest rate

     1,687       2,305       31.7  

Fees from inactive accounts and unclaimed payments

     1,497       1,295       17.8  

Other revenue

     1,400       1,749       24.0  

Operating costs and expenses:

     (18,950     (22,169     (304.7

Cost of revenue (exclusive of items shown separately below)

     (11,777     (14,164     (194.7

Selling, general and administrative expenses

     (1,872     (2,147     (29.5

Personnel expenses

     (4,422     (4,726     (65.0

Depreciation and amortization

     (802     (848     (11.7

Credit loss expense

     (45     (260     (3.6

Impairment of non-current assets

     (32     (24     (0.3
  

 

 

   

 

 

   

 

 

 

Profit from operations

     10,713       9,624       132.3  
  

 

 

   

 

 

   

 

 

 

Gain on disposal of an associate

       6,213       85.4  

Share of gain of an associate and a joint venture

     495       306       4.2  

Foreign exchange gain/(loss), net (2)

     (105     (39     (0.5

Interest income and expenses, net

     (57     (25     (0.3

Other income and expenses, net

     (6     (42     (0.6
  

 

 

   

 

 

   

 

 

 

Profit before tax from continuing operations

     11,040       16,037       220.4  
  

 

 

   

 

 

   

 

 

 

Income tax expense

     (2,253     (2,614     (35.9
  

 

 

   

 

 

   

 

 

 

Net profit from continuing operations

     8,787       13,423       184.5  
  

 

 

   

 

 

   

 

 

 

Discontinued operations

      

Loss after tax from discontinued operations

     (2,308     —         —    
  

 

 

   

 

 

   

 

 

 

Net profit

     6,479       13,423       184.5  
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     6,417       13,348       183.5  

Non-controlling interests

     62       75       1.0  

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

     269       (14     (0.2

Debt securities at fair value through other comprehensive income (FVOCI):

      

Net gains arising during the period, net of tax

     32       (21     (0.3

Net gains recycled to profit or loss upon disposal

     (47     (2     (0.0

Total other comprehensive income/(loss), net of tax

     254       (37     (0.5
  

 

 

   

 

 

   

 

 

 

Total comprehensive income, net of tax effect of nil

     6,733       13,386       184.0  
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     6,658       13,311       182.9  

Non-controlling interests

     75       75       1.0  

Earnings per share:

      

Basic, profit attributable to ordinary equity holders of the parent

     103.16       213.81       2.94  

Diluted, profit attributable to ordinary equity holders of the parent

     102.94       213.72       2.94  

Earnings per share for continuing operations

      

Basic, profit from continuing operations attributable to ordinary equity holders of the parent

     140.27       213.81       2.94  

Diluted, profit from continuing operations attributable to ordinary equity holders of the parent

     139.96       213.72       2.94  

 

(1)

Following the divestiture of SOVEST and the wind-down of Rocketbank, certain amounts have been reclassified to Discontinued operations in order to conform to the current period’s presentation.

(2)

Starting December 31, 2020, we present foreign exchange gain and foreign exchange loss on a netted basis. This change in presentation was implemented to make our financial statements comparable with industry peers.


QIWI plc.

Consolidated Statement of Cash Flows

(in millions)

     Nine months ended (unaudited)  
     September 30, 2020     September 30, 2021     September 30, 2021  
     RUB     RUB     USD(1)  

Operating activities

      

Profit before tax from continuing operations

     11,040       16,037       220.4  

Loss before tax from discontinued operations

     (2,509     —         —    

Profit before tax

     8,531       16,037       220.4  
  

 

 

   

 

 

   

 

 

 

Adjustments to reconcile profit before tax to net cash flows generated from operating activities

      

Depreciation and amortization

     967       848       11.7  

Foreign exchange loss, net

     130       39       0.5  

Interest income, net

     (2,145     (1,898     (26.1

Credit loss expense

     825       260       3.6  

Share of gain of an associate and a joint venture

     (495     (306     (4.2

Loss on forward contract to sell Sovest loans’ portfolio

     712       —         —    

Gain on disposal of an associate

       (6,213     (85.4

Impairment of non-current assets

     134       24       0.3  

Other

     65       (29     (0.4

Changes in operating assets and liabilities:

      

Decrease in trade and other receivables

     1,222       2,125       29.2  

Decrease/(increase) in other assets

     (115     86       1.2  

Decrease in customer accounts and amounts due to banks

     (11,437     (4,163     (57.2

Decrease in accounts payable and accruals

     (1,243     (10,444     (143.5

(Decrease)/Increase in other liabilities

     (432     1,142       15.7  

Decrease/(increase) in loans issued from banking operations

     5,993       (2,418     (33.2
  

 

 

   

 

 

   

 

 

 

Cash used in operations

     2,712       (4,910     (67.5
  

 

 

   

 

 

   

 

 

 

Interest received

     2,621       2,579       35  

Interest paid

     (421     (428     (5.9

Income tax paid

     (1,465     (2,167     (29.8
  

 

 

   

 

 

   

 

 

 

Net cash flow used in operating activities

     3,447       (4,926     (67.7
  

 

 

   

 

 

   

 

 

 

Investing activities

      

Cash paid for acquisition

     (89     (10     (0.1

Purchase of property and equipment

     (226     (208     (2.9

Proceeds from sale of an associate

       4,947       68.0  

Purchase of intangible assets

     (179     (122     (1.7

Proceeds from sale of fixed and intangible assets

     162       12       0.2  

Loans issued

     (12     (23     (0.3

Repayment of loans issued

     —         12       0.2  

Purchase of debt securities and deposits

     (2,355     (8,058     (110.7

Proceeds from sale and redemption of debt securities

     3,230       2,885       39.7  

Dividends received from an associate

     153       532       7.3  
  

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     684       (33     (0.5
  

 

 

   

 

 

   

 

 

 

Financing activities

      

Repayment of borrowings

     105       (649     (8.9

Payment of principal portion of lease liabilities

     (275     (270     (3.7

Dividends paid to owners of the Group

     (3,201     (3,822     (52.5

Dividends paid to non-controlling shareholders

     (67     (64     (0.9
  

 

 

   

 

 

   

 

 

 

Net cash (used in)/generated from financing activities

     (3,438     (4,805     (66.0
  

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     1,411       (140     (1.9
  

 

 

   

 

 

   

 

 

 

Net increase in cash and cash equivalents

     2,104       (9,904     (136.1
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the beginning of the period

     42,101       47,382       651.2  
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     44,205       37,478       515.1  
  

 

 

   

 

 

   

 

 

 


Non-IFRS Financial Measures and Supplemental Financial Information

This release presents Total Net Revenue, PS Payment Net Revenue, PS Other 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 Net Revenue, PS Payment Net Revenue and PS Other 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 Net Revenue, PS Payment Net Revenue, PS Other Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit, and Adjusted Net Profit per share, including a quantitative reconciliation of Total Net Revenue, PS Payment Net Revenue, PS Other 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 Net Revenue, PS Payment Net Revenue and PS Other 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.

We define non-IFRS financial measures as follows:

 

 

“Adjusted EBITDA” as Net profit plus: (1) depreciation and amortization (2) other income and expenses (3) foreign exchange gain/loss (4) gain on disposal of an associate (5) share of gain of an associate and a joint venture (6) Interest income and expenses (7) Offering expenses (8) loss from sale of Sovest loans’ portfolio (9) share-based payment expenses (10) impairment of non-current assets

 

 

“Adjusted Net profit” as Net profit plus: (1) fair value adjustments recorded on business combinations and their amortization (2) impairment of non-current assets (3) share-based payment expenses (4) offering expenses (5) gain on disposal of an associate (6) loss from sale of Sovest loans’ portfolio (7) effect of taxation of the above items

 

 

“Adjusted EBITDA Margin” as Adjusted EBITDA divided by Total Net Revenue.

 

 

“Adjusted Net profit Margin” as Adjusted Net profit divided by Total Net Revenue.

QIWI presents PS Payment segment breakdown by verticals and we define these measures as follows:

 

   

PS Payment Net Revenue is the Net Revenue consisting of the merchant and consumer fees collected for the payment transactions.

 

   

E-commerce payment 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 net revenue primarily consists of fees charged for payments accepted on behalf of our bank partners and microfinance companies.

 

   

Money Remittance payment 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 net revenue primarily consists of fees charged for payments to MNOs, internet services providers and pay television providers.

 

   

Other payment 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 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)  
    September 30, 2020     September 30, 2021     September 30, 2021  
    RUB(1)     RUB     USD  

Revenue (2)

    11,087       11,746       161.4  

Minus: Cost of revenue (exclusive of depreciation and amortization) (3)

    4,450       5,327       73.2  
 

 

 

   

 

 

   

 

 

 

Total Net Revenue

    6,637       6,419       88.2  
 

 

 

   

 

 

   

 

 

 

Segment Net Revenue

     

Payment Services Segment Revenue

    10,398       10,902       149.8  

PS Payment Revenue (4)

    9,348       9,667       132.9  

Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(5)

    4,045       4,811       66.1  
 

 

 

   

 

 

   

 

 

 

PS Payment Adjusted Net Revenue

    5,303       4,856       66.7  
 

 

 

   

 

 

   

 

 

 

PS Other Revenue (6)

    1,050       1,235       17.0  

Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(7)

    245       236       3.2  
 

 

 

   

 

 

   

 

 

 

PS Other Adjusted Net Revenue

    805       999       13.7  
 

 

 

   

 

 

   

 

 

 

Payment Services Segment Net Revenue

    6,108       5,855       80.5  
 

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Revenue

    72       —         —    

Minus: Cost of CFS revenue (exclusive of depreciation and amortization)

    8       —         —    
 

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Net Revenue

    64       —         —    
 

 

 

   

 

 

   

 

 

 

Rocketbank Revenue

    26       —         —    

Minus: Cost of Rocketbank revenue (exclusive of depreciation and amortization)

    10       —         —    
 

 

 

   

 

 

   

 

 

 

Rocketbank Net Revenue

    16       —         —    
 

 

 

   

 

 

   

 

 

 

Corporate and Other Category Revenue

    591       844       11.6  

Minus: Cost of CO revenue (exclusive of depreciation and amortization)

    142       280       3.8  
 

 

 

   

 

 

   

 

 

 

Corporate and Other Category Net Revenue

    449       564       7.8  
 

 

 

   

 

 

   

 

 

 

Total Segment Net Revenue

    6,637       6,419       88.2  
     
     
 

 

 

   

 

 

   

 

 

 

Net Profit

    3,043       8,836       121.4  
 

 

 

   

 

 

   

 

 

 

Plus:

     

Depreciation and amortization

    317       277       3.8  

Other income and expenses, net

    (17     (31     (0.4

Foreign exchange (gain)/loss, net

    (125     (3     (0.0

Gain on disposal of an associate(9)

      (6,213     (85.4

Share of gain of an associate and a joint venture

    (256     —         —    

Interest income and expenses, net

    23       (2     (0.0

Income tax expenses

    889       958       13.2  

Offering expenses

    55       —         —    

Loss from sale of Sovest loans’ portfolio

    54       —      

Share-based payment expenses

    37       —         —    

Impairment of non-current assets

    —         12       0.2  
 

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

    4,020       3,834       52.7  
 

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

    60.6     59.7     59.7
     
     
 

 

 

   

 

 

   

 

 

 

Net profit

    3,043       8,836       121.4  
 

 

 

   

 

 

   

 

 

 

Fair value adjustments recorded on business combinations and their amortization(8)

    87       84       1.2  

Impairment of non-current assets

    —         12       0.2  

Share-based payment expenses

    37       —         —    

Offering expenses

    55       —         —    

Gain on disposal of an associate(9)

    —         (6,213     (85.4

Loss from sale of Sovest loans’ portfolio

    54         —    

Effect of taxation of the above items

    (1     (14     (0.2
 

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

    3,275       2,705       37.2  
 

 

 

   

 

 

   

 

 

 
     

Adjusted Net Profit per share:

     

Basic

    52.55       43.32       0.60  

Diluted

    52.48       43.32       0.60  
     

Weighted-average number of shares used in computing Adjusted Net Profit per share

     

Basic

    62,324       62,449       62,449  

Diluted

    62,404       62,449       62,449  


 

(1)

The results presented in Reconciliation differ from IFRS results due to Rocketbank and CFS results are presented as discontinued operations in IFRS.

(2)

Including revenue from discontinued operations of RUB 254 million for the third quarter ended September 30, 2020.

(3)

Including cost of revenue from discontinued operations of RUB 26 million for the third quarter ended September 30, 2020.

(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: 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)

Gain on disposal of an associate in the 3Q 2021 in the amount of 6.2 billion including: (i) base deal amount of RUB 4.95 billion from sale of stake in Tochka, (ii) accrued expected performance adjustment gain contingent on Tochka’s earnings for the year 2021 in the amount of RUB 2.7 billion, (iii) dividends received in 3Q in the amount of RUB 0.5 billion, and (iv) less carrying amount of disposed investment in the amount of RUB 1.95 billion. Contingent amount is expected to be received in 2Q 2022.


QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)

 

    Nine months ended (unaudited)  
    September 30, 2020     September 30, 2021     September 30, 2021  
    RUB(1)     RUB     USD  

Revenue (2)

    32,277       31,793       436.9  

Minus: Cost of revenue (exclusive of depreciation and amortization) (3)

    12,541       14,164       194.7  
 

 

 

   

 

 

   

 

 

 

Total Net Revenue

    19,736       17,629       242.3  
 

 

 

   

 

 

   

 

 

 

Segment Net Revenue

     

Payment Services Segment Revenue

    28,214       29,594       406.7  

PS Payment Revenue (4)

    25,079       26,444       363.4  

Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(5)

    10,572       12,587       173.0  
 

 

 

   

 

 

   

 

 

 

PS Payment Adjusted Net Revenue

    14,507       13,857       190.4  
 

 

 

   

 

 

   

 

 

 

PS Other Revenue (6)

    3,135       3,150       43.3  

Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(7)

    816       712       9.8  
 

 

 

   

 

 

   

 

 

 

PS Other Adjusted Net Revenue

    2,320       2,438       33.5  
 

 

 

   

 

 

   

 

 

 

Payment Services Segment Net Revenue

    16,826       16,295       224.0  
 

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Revenue

    1,198       —         —    

Minus: Cost of CFS revenue (exclusive of depreciation and amortization)

    131       —         —    
 

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Net Revenue

    1,067       —         —    
 

 

 

   

 

 

   

 

 

 

Rocketbank Revenue

    1,151       —         —    

Minus: Cost of Rocketbank revenue (exclusive of depreciation and amortization)

    604       —         —    
 

 

 

   

 

 

   

 

 

 

Rocketbank Net Revenue

    548       —         —    
 

 

 

   

 

 

   

 

 

 

Corporate and Other Category Revenue

    1,714       2,199       30.2  

Minus: Cost of CO revenue (exclusive of depreciation and amortization)

    419       865       11.9  
 

 

 

   

 

 

   

 

 

 

Corporate and Other Category Net Revenue

    1,295       1,334       18.3  
 

 

 

   

 

 

   

 

 

 

Total Segment Net Revenue

    19,736       17,629       242.3  
     
     
 

 

 

   

 

 

   

 

 

 

Net Profit

    6,479       13,423       184.5  
 

 

 

   

 

 

   

 

 

 

Plus:

     

Depreciation and amortization

    967       848       11.7  

Other income and expenses, net

    6       42       0.6  

Foreign exchange (gain)/loss, net

    130       39       0.5  

Gain on disposal of an associate(9)

      (6,213     (85.4

Share of gain of an associate and a joint venture

    (495     (306     (4.2

Interest income and expenses, net

    88       25       0.3  

Income tax expenses

    2,052       2,614       35.9  

Offering expenses

    65       —         —    

Loss from sale of Sovest loans’ portfolio

    712       —         —    

Share-based payment expenses

    85       8       0.1  

Impairment of non-current assets

    134       24       0.3  
 

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

    10,223       10,504       144.4  
 

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

    51.8     59.6     59.6
     
     
 

 

 

   

 

 

   

 

 

 

Net profit

    6,479       13,423       184.5  
 

 

 

   

 

 

   

 

 

 

Fair value adjustments recorded on business combinations and their amortization(8)

    256       252       3.5  

Impairment of non-current assets

    134       24       0.3  

Share-based payment expenses

    85       8       0.1  

Offering expenses

    65       —         —    

Gain on disposal of an associate(9)

    —         (6,213     (85.4

Loss from sale of Sovest loans’ portfolio

    712       —         —    

Effect of taxation of the above items

    54       (24     (0.3
 

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

    7,785       7,470       102.7  
 

 

 

   

 

 

   

 

 

 
     

Adjusted Net Profit per share:

     

Basic

    125.16       119.66       1.64  

Diluted

    124.88       119.60       1.64  
     

Weighted-average number of shares used in computing Adjusted Net Profit per share:

     

Basic

    62,200       62,428       62,428  

Diluted

    62,340       62,456       62,456  


 

(1)

The results presented in Reconciliation differ from IFRS results due to Rocketbank and CFS results are presented as discontinued operations in IFRS.

(2)

Including revenue from discontinued operations of RUB 2,614 million for the nine months ended September 30, 2020.

(3)

Including cost of revenue from discontinued operations of RUB 764 million for the nine months ended September 30, 2020.

(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: 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)

Gain on disposal of an associate in the 9M 2021 in the amount of 6.2 billion including: (i) base deal amount of RUB 4.95 billion from sale of stake in Tochka, (ii) accrued expected performance adjustment gain contingent on Tochka’s earnings for the year 2021 in the amount of RUB 2.7 billion, (iii) dividends received in 3Q in the amount of RUB 0.5 billion, and (iv) less carrying amount of disposed investment in the amount of RUB 1.95 billion. Contingent amount is expected to be received in 2Q 2022.