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 May 21, 2014

 

 

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  x            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   x

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

EXHIBIT 99.1 TO THIS REPORT ON FORM 6-K IS INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-190918) OF QIWI PLC AND IN THE OUTSTANDING PROSPECTUS CONTAINED IN SUCH REGISTRATION STATEMENT.

 

 

 


Exhibits

    
99.1    “QIWI Announces First Quarter 2014 Results” press release dated May 21, 2014


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: May 21, 2014     By:   /s/ Alexander Karavaev
      Alexander Karavaev
      Chief Financial Officer
EX-99.1

Exhibit 99.1

 

LOGO

QIWI ANNOUNCES FIRST-QUARTER 2014 RESULTS

Total Adjusted Net Revenue Increases 46% to RUB 1,877 Million

Adjusted Net Profit Increases 72% to RUB 785 Million or RUB 14.78 per share

QIWI Raises 2014 Guidance

Board of Directors Approves Dividend of 29 cents per share

MOSCOW, RUSSIA – May 21, 2014 – QIWI plc, (NASDAQ: QIWI) (“QIWI” or the “Company”) today announced results for the first-quarter ended March 31, 2014.

First-Quarter 2014 Operating and Financial Highlights

 

    Total Adjusted Net Revenue increased 46% to RUB 1,877 million ($52.6 million)

 

    Adjusted EBITDA increased 75% to RUB 1,068 million ($29.9 million)

 

    Adjusted Net Profit increased 72% to RUB 785 million ($22.0 million), or RUB 14.78 per diluted share

 

    Total payment volume increased 20% to RUB 149.6 billion ($4.2 billion)

“I am pleased with the strong start to the year,” said Sergey Solonin, QIWI’s chief executive officer. “Our strong financial performance demonstrates that we continue to execute and gain share in the fast-growing payments markets we serve. Looking forward, we will continue to focus on our core strategies of expanding the number of participants in our network, increasing the utilization of our services, and driving the adoption of Visa QIWI Wallet.”

First-Quarter 2014 Results

Revenues: Total Adjusted Net Revenue for the quarter ended March 31, 2014 was RUB 1,877 million ($52.6 million), an increase of 46% compared with RUB 1,284 million in the prior year.

Payment Adjusted Net Revenue was RUB 1,362 million ($38.2 million), an increase of 51% compared with RUB 900 million in the prior year. Payment Adjusted Net Revenue growth was predominantly driven by an increase in payment volume and net revenue yield in the E-commerce, Financial Services and Money Remittances market segments.

Other Adjusted Net Revenue, which is principally composed of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, cash and settlement services, and advertising, was RUB 515 million ($14.4 million), an increase of 34% compared with RUB 383 million in the prior year. Inactivity fees for the first quarter were RUB 127 million ($3.6 million) compared with RUB 55 million in the prior year. Other Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 18% compared with the same period in the prior year.

Total Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 42% compared with the same period in the prior year.


Adjusted EBITDA: For the quarter ended March 31, 2014, Adjusted EBITDA was RUB 1,068 million ($29.9 million), an increase of 75% compared with RUB 611 million in the prior year. Adjusted EBITDA growth was mainly driven by revenue growth and continued operating leverage in the business. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was 56.9% compared with 47.6% in the prior year. Adjusted EBITDA excluding inactivity fees was RUB 941 million ($26.4 million), an increase of 69% compared with RUB 556 million in the prior year. Adjusted EBITDA margin excluding inactivity fees was 53.8% compared with 45.2% in the prior year.

Adjusted Net Profit: For the quarter ended March 31, 2014, Adjusted Net Profit was RUB 785 million ($22.0 million), an increase of 72% compared with RUB 455 million in the prior year. The increase in Adjusted Net Profit was primarily driven by the same factors impacting Adjusted EBITDA. Adjusted Net Profit excluding inactivity fees (net of tax) increased 66% compared with the prior year.

Other Operating Data: For the quarter ended March 31, 2014, total payment volume was RUB 149.6 billion ($4.2 billion), an increase of 20% compared with RUB 124.5 billion in the prior year. Average payment net revenue yield was 0.91%, an increase of 19 bps compared with 0.72% in the prior year. The increase in payment volume and average net revenue yield in the first quarter was mainly driven by strong growth in the E-commerce, Financial Services and Money Remittances market segments.

The total average Net Revenue Yield was 1.26%, an increase of 23 bps as compared with 1.03% in the prior year. The total average Net Revenue Yield excluding the effect of inactivity fees was 1.17%, an increase of 18 bps as compared with the same period in the prior year.

The number of active kiosks and terminals was 167,713, an increase of 1% compared with the prior year, primarily driven by an increase in self-service kiosks partially offset by a decrease in other terminals. The number of active Visa Qiwi Wallet accounts was 15.6 million in the first quarter 2014, an increase of 2.6 million, or 20%, as compared with 13.0 million in the first quarter 2013.

Recent Developments

Dividend: QIWI announces that following the determination of first-quarter 2014 financial results its Board of Directors recommended a dividend of USD 29 cents per share. The dividend record date is June 1, 2014, and the Company intends to pay the dividend on June 3, 2014. The holders of ADSs will receive the dividend shortly thereafter.

Changes in Company Reporting: Beginning January 1, 2014, QIWI revised its financial reporting structure such that it has one financial reporting segment. The Company decided to consolidate the Company’s previous financial reporting segments, Visa QIWI Wallet and QIWI Distribution, in order to better reflect QIWI’s underlying business in light of the growing interconnectedness and interrelation between Visa QIWI Wallet and QIWI Distribution. In addition, in order to provide additional transparency into its core payments-related businesses, QIWI began reporting two components of Total Adjusted Net Revenue, Payment Adjusted Net Revenue and Other Adjusted Net Revenue, in order to highlight different revenue streams of QIWI’s business. Payment Adjusted Net Revenue is also reported according to five market segments or market verticals: i) E-commerce, ii) Financial Services, iii) Money Remittances, iv) Telecom and v) Other. QIWI concluded that presenting its financial information and other operating data in this way would be more appropriate for securities analysts, investors and other interested parties to develop an understanding and evaluate the performance of QIWI’s underlying business. For a reconciliation of Total Adjusted Net Revenue, Payment Adjusted Net Revenue and Other Adjusted Net Revenue to gross revenue as included in this earnings release, please see “Non-IFRS Financial Measures and Supplemental Financial Information.”


2014 Guidance

QIWI is upgrading its 2014 outlook as compared to its previously announced outlook:

 

    Total Adjusted Net Revenue is expected to increase by 24% to 26% over 2013

 

    Adjusted Net Profit is expected to increase by 27% to 29% over 2013

This guidance reflects QIWI’s current and preliminary view, which is subject to change.

Earnings Conference Call and Audio Webcast

QIWI will host a conference call to discuss first quarter 2014 financial results today at 8:30 a.m. ET. Hosting the call will be Sergey Solonin, chief executive officer, and Alexander Karavaev, chief financial officer. The conference call can be accessed live over the phone by dialing +1 (877) 407-3982 or +1 (201) 493-6780 for international callers. A replay will be available today at 11:30 a.m. ET and can be accessed by dialing +1 (877) 870-5176 or +1 (858) 384-5517 for international callers; the pin number is 13579946. The replay will be available until Wednesday May 28. The call will be webcast live from QIWI’s website at https://www.qiwi.ru under the Investor Relations section or directly at http://investor.qiwi.com/.

About QIWI plc.

QIWI is a leading provider of next generation payment services in Russia and the CIS. It has an integrated proprietary network that enables payment services across physical, online and mobile channels. It has deployed over 15.5 million virtual wallets, over 167,000 kiosks and terminals, and enabled merchants to accept over RUB 49 billion cash and electronic payments monthly from over 70 million consumers using its network at least once a month. QIWI’s consumers can use cash, stored value and other electronic payment methods to order and pay for goods and services across physical or online environments interchangeably.


Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding expected total adjusted net revenue, adjusted net profits and net revenue yield, dividend payments, the growth of Visa QIWI Wallet, payment volume growth, and growth in QIWI’s distribution network. 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, competition, a decline in average net revenue yield, fees levied on QIWI’s consumers, regulation, QIWI’s ability to grow Visa QIWI Wallet, QIWI’s ability to expand geographically and other risks identified under the Caption “Risk Factors” in QIWI’s Annual Report on Form 20-F and in other reports QIWI files with the U.S. Securities and Exchange Commission. QIWI undertakes no obligation to revise any forward-looking statements or to report future events that may affect such forward-looking statements unless QIWI is required to do so by law.

Contact

Yakov Barinskiy

Head of Investor Relations

+7.499.709.0192

ir@qiwi.com


QIWI plc.

Consolidated Statement of Financial Position

(in thousands, except per share data)

 

     As of December 31,     As of March 31,     As of March 31,  
     2013 (audited)     2014 (unaudited)     2014  
     RUB     RUB     USD(1)  

Assets

      

Non-current assets

      

Property and equipment

     307,500        326,230        9,141   

Goodwill and other intangible assets

     2,405,645        2,375,818        66,574   

Long-term debt instruments

     1,376,862        1,652,483        46,305   

Long-term loans

     10,637        24,177        677   

Deferred tax assets

     183,333        214,301        6,005   

Other non-current assets

     38,394        38,614        1,082   
  

 

 

   

 

 

   

 

 

 

Total non-current assets

     4,322,371        4,631,623        129,785   
  

 

 

   

 

 

   

 

 

 

Current assets

      

Trade and other receivables

     2,772,297        2,165,402        60,678   

Short-term loans

     65,430        60,188        1,687   

Short-term debt instruments

     1,635,291        825,472        23,131   

Prepaid income tax

     60,537        60,406        1,693   

VAT and other taxes receivable

     12,478        38,715        1,085   

Cash and cash equivalents

     11,636,913        8,127,674        227,749   

Other current assets

     159,264        189,244        5,303   
  

 

 

   

 

 

   

 

 

 

Total current assets

     16,342,210        11,467,101        321,324   
  

 

 

   

 

 

   

 

 

 

Total assets

     20,664,581        16,098,724        451,109   
  

 

 

   

 

 

   

 

 

 

Equity and liabilities

      

Equity attributable to equity holders of the parent

      

Share capital

     907        909        25   

Additional paid-in capital

     1,909,172        1,876,104        52,571   

Other reserve

     304,186        421,355        11,807   

Retained earnings

     573,604        1,277,939        35,810   

Translation reserve

     10,757        16,545        464   
  

 

 

   

 

 

   

 

 

 

Total equity attributable to equity holders of the parent

     2,798,626        3,592,852        100,677   

Non-controlling interest

     (94,766     (121,894     (3,416
  

 

 

   

 

 

   

 

 

 

Total equity

     2,703,860        3,470,958        97,261   
  

 

 

   

 

 

   

 

 

 

Non-current liabilities

      

Long-term borrowings

     109,351        142,560        3,995   

Long-term deferred revenue

     31,629        27,943        783   

Deferred tax liabilities

     58,630        47,298        1,325   

Long-term accounts payable

     7,625        —          —     
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     207,235        217,801        6,103   
  

 

 

   

 

 

   

 

 

 

Current liabilities

      

Short-term borrowings

     635        315,805        8,849   

Trade and other payables

     16,768,973        11,122,414        311,666   

Amounts due to customers and amounts due to banks

     831,226        758,758        21,261   

Income tax payable

     10,823        82,098        2,301   

VAT and other taxes payable

     95,403        97,674        2,737   

Deferred revenue

     46,233        31,007        869   

Other current liabilities

     193        2,209        62   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     17,753,486        12,409,965        347,745   
  

 

 

   

 

 

   

 

 

 

Total equity and liabilities

     20,664,581        16,098,724        451,109   
  

 

 

   

 

 

   

 

 

 

 

(1)  Calculated using a ruble to U.S. dollar exchange rate of RUB 35.687 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of March 31, 2014.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in thousands, except per share data)

 

     Three months ended (unaudited)  
     March 31, 2013     March 31, 2014     March 31, 2014  
     RUB     RUB     USD(1)  

Revenue

     2,532,696        3,259,462        91,335   

Operating costs and expenses:

      

Cost of revenue (exclusive of depreciation and amortization)

     1,476,430        1,688,133        47,304   

Selling general and administrative expenses

     542,906        582,188        16,314   

Depreciation and amortization

     26,154        84,294        2,362   

Profit from operations

     487,206        904,847        25,355   
  

 

 

   

 

 

   

 

 

 

Impairment of investment in associates

     —          (2,903     (81

Other income

     11,056        375        11   

Other expenses

     (1,098     (5,006     (140

Foreign exchange gain / (loss) net

     2,603        (2,053     (58

Share of loss of associates

     (7,691     (7,311     (205

Interest income

     4,147        712        20   

Interest expense

     (6,253     (10,572     (296
  

 

 

   

 

 

   

 

 

 

Profit before tax

     489,970        878,089        24,605   

Income tax expense

     (136,308     (189,912     (5,322
  

 

 

   

 

 

   

 

 

 

Net profit

     353,662        688,177        19,284   
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Epuity holders of the parent

     365,334        704,335        19,736   

Non-controlling interests

     (11,672     (16,158     (453

Other comprehensive income to be reclassified to profit or loss in subsequent periods

      

Exchange differences on translation of foreign operations

     (2,107     (3,012     (84
  

 

 

   

 

 

   

 

 

 

Total comprehensive income net of tax attributable to:

     351,555        685,165        19,199   
  

 

 

   

 

 

   

 

 

 

Epuity holders of the parent

     363,975        710,123        19,899   

Non-controlling interests

     (12,420     (24,958     (699

Earnings per share:

      

Basic profit attributable to ordinary equity holders of the parent

     7.03        13.50        0.38   

Diluted profit attributable to ordinary equity holders of the parent

     7.02        13.27        0.37   

 

(1)  Calculated using a ruble to U.S. dollar exchange rate of RUB 35.687 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of March 31, 2014.


QIWI plc.

Consolidated Cash Flow Statement

(in thousands, except per share data)

 

     Three months ended  
     March 31, 2013     March 31, 2014        
     (unaudited)     (unaudited)     March 31, 2014  
     RUB     RUB     USD(1)  

Cash flows from operating activities

      

Profit before tax

     489,970        878,089        24,605   
  

 

 

   

 

 

   

 

 

 

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

      

Depreciation and amortization

     26,154        84,294        2,362   

Loss on disposal of property and equipment

     2,854        1,301        36   

Impairment of investment in associates

     —          2,903        81   

Foreign exchange loss (gain), net

     (33     2,053        58   

Interest income, net

     (83,897     (63,733     (1,786

Bad debt expense, net

     51,908        62,435        1,750   

Share of loss of associates

     7,691        7,311        205   

Share-based payments

     77,683        78,933        2,212   

Other

     1,255        1,023        29   
  

 

 

   

 

 

   

 

 

 

Operating profit before changes in working capital

     573,585        1,054,609        29,552   
  

 

 

   

 

 

   

 

 

 

Drease in trade and other receivables

     1,173,576        526,911        14,765   

Increase in other assets

     (1,298     (31,221     (875

Decrease in amounts due to customers and amounts due to banks

     (251,959     (72,468     (2,031

Decrease in accounts payable and accruals

     (5,958,937     (5,655,583     (158,477

Loans issued from banking operations

     (26,024     (4,004     (112
  

 

 

   

 

 

   

 

 

 

Cash used in operations

     (4,491,057     (4,181,756     (117,179
  

 

 

   

 

 

   

 

 

 

Interest received

     155,830        73,103        2,048   

Interest paid

     (3,849     (6,575     (184

Income tax paid

     (128,216     (160,806     (4,506
  

 

 

   

 

 

   

 

 

 

Net cash flow used in operating activities

     (4,467,292     (4,276,034     (119,820
  

 

 

   

 

 

   

 

 

 

Cash flows used in investing activities

      

Contribution to associates without change in ownership

     —          (10,214     (286

Payments for assignment of loans

     —          (8,471     (237

Purchase of property and equipment

     (10,972     (66,032     (1,850

Purchase of intangible assets

     (1,453     (14,799     (415

Loans issued

     (11,262     (11,325     (317

Repayment of loans issued

     4,321        720        20   

Purchase of debt instruments

     (1,499,952     (706,846     (19,807

Proceeds from settlement of debt instruments

     979,316        1,242,313        34,811   
  

 

 

   

 

 

   

 

 

 

Net cash flow used in/generated from investing activities

     (540,002     425,346        11,919   
  

 

 

   

 

 

   

 

 

 

Cash flows generated from financing activities

      

Exercise of options

     —          5,168        145   

Proceeds from borrowings

     8,870        336,206        9,421   

Repayment of borrowings

     —          (672     (19
  

 

 

   

 

 

   

 

 

 

Net cash flow generated from financing activities

     8,870        340,702        9,547   
  

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     2,260        747        21   
  

 

 

   

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (4,996,164     (3,509,239     (98,334
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the beginning

     9,943,160        11,636,913        326,083   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end

     4,946,996        8,127,674        227,749   
  

 

 

   

 

 

   

 

 

 

 

(1)  Calculated using a ruble to U.S. dollar exchange rate of RUB 35.687 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of March 31, 2014.


Non-IFRS Financial Measures and Supplemental Financial Information

This release presents Total Adjusted Net Revenue, Payment Adjusted Net Revenue, Other Adjusted Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit and Adjusted Net Profit per share, which are non-IFRS financial measures. You should not consider these non-IFRS financial measures as substitutes for or superior to revenue, in the case of Total Adjusted Net Revenue, Payment Adjusted Net Revenue and Other Adjusted Net Revenue; Net Profit, in the case of Adjusted EBITDA; and Adjusted Net Profit, or earnings per share, in the case of Adjusted Net Profit per share, each prepared in accordance with IFRS. Furthermore, because these non-IFRS financial measures are not determined in accordance with IFRS, they are susceptible to varying calculations and may not be comparable to other similarly titled measures presented by other companies. QIWI encourages investors and others to review our financial information in its entirety and not rely on a single financial measure. For more information regarding Total Adjusted Net Revenue, Payment Adjusted Net Revenue, Other Adjusted Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit, and Adjusted Net Profit per share, including a quantitative reconciliation of Total Adjusted Net Revenue, Payment Adjusted Net Revenue, Other Adjusted Net Revenue, Adjusted EBITDA and Adjusted Net Profit to the most directly comparable IFRS financial performance measure, which is revenue in the case of Total Adjusted Net Revenue, payment revenue in the case of Payment Adjusted Net Revenue, other revenue in the case of Other Adjusted Net Revenue and net profit in the case of Adjusted EBITDA and Adjusted Net Profit, see Reconciliation of IFRS to Non-IFRS Operating Results in this earnings release.

Payment Adjusted Net Revenue is the Adjusted Net Revenue consisting of the merchant and consumer fees collected for the payment transactions. E-commerce payment adjusted net revenue consists of fees charged to customers and merchants that buy and sell products and services online, including online games, social networks, 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. Telecom payment adjusted net revenue primarily consists of fees charged for payments to MNOs, internet services providers and pay television providers. Other payment adjusted net revenue consists of consumer and merchant fees charged for a variety of payments including multi-level-marketing, utility bills, government payments, education services and many others. Other Adjusted Net Revenue primarily consists of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, 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  
           March 31, 2014        
     March 31, 2013     (unaudited)     March 31, 2014  
     RUB     RUB     USD(1)  

Revenue

     2,533        3,259        91.3   

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

     1,476        1,688        47.3   

Plus: Compensation to employees and related taxes

     227        306        8.6   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     1,284        1,877        52.6   
  

 

 

   

 

 

   

 

 

 

Payment Revenue(2)

     2,084        2,628        73.6   

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

     1,372        1,513        42.4   

Plus: Compensation to employees and related taxes allocated to payment revenue(4)

     188        247        6.9   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

     900        1,362        38.2   
  

 

 

   

 

 

   

 

 

 

Other Revenue(5)

     449        631        17.7   

Minus: Cost of other revenue (exclusive of depreciation and amortization)(6)

     104        175        4.9   

Plus: Compensation to employees and related taxes allocated to other revenue(4)

     38        59        1.7   
  

 

 

   

 

 

   

 

 

 

Other Adjusted Net Revenue

     383        515        14.4   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

     900        1,362        38.2   

E-commerce

     249        380        10.6   

Financial services

     188        375        10.5   

Money remittances

     71        184        5.2   

Telecom

     314        312        8.8   

Other

     78        111        3.1   

Other Adjusted Net Revenue

     383        515        14.4   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     1,284        1,877        52.6   
  

 

 

   

 

 

   

 

 

 

Net Profit

     354        688        19.3   
  

 

 

   

 

 

   

 

 

 

Plus:

      

Depreciation and amortization

     26        84        2.4   

Other income

     (11     (0     (0.0

Other expenses

     1        5        0.1   

Foreign exchange (loss) gain, net

     (3     2        0.1   

Share of loss of associates

     8        7        0.2   

Impairment of investment in associates

     —          3        0.1   

Interest income

     (4     (1     (0.0

Interest expenses

     6        11        0.3   

Income tax expenses

     136        190        5.3   

Offering expenses

     20        —          —     

Share-based payments expenses

     78        79        2.2   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     611        1,068        29.9   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

     47.6     56.9     56.9

Net profit

     354        688        19.3   

Amortization of fair value adjustments

     6        22        0.6   

Offering expenses

     20        —          —     

Share-based payments expenses

     78        79        2.2   

Effect of taxation of the above items

     (1     (4     (0.1
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     455        785        22.0   
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

      

Basic

     8.76        15.04        0.42   

Diluted

     8.75        14.78        0.41   

Shares used in computing Adjusted Net Profit per share

      

Basic

     52,000        52,177        52,177   

Diluted

     52,048        53,078        53,078   


 

(1)  Calculated using a ruble to U.S. dollar exchange rate of RUB 35.687 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of March 31, 2014.
(2)  Payment revenue primarily consists of the merchant and consumer fees charged for the payment transactions.
(3)  Cost of payment revenue (exclusive of depreciation and amortization) primarily consists of transaction costs to acquire payments from our customers payable to agents, mobile operators, international payment systems and other parties.
(4)  The Company does not record the compensation to employees and related taxes within cost of revenue separately for payment revenue and other revenue, therefore it has been allocated between payment revenue and other revenue in proportion to the relevant revenue amounts for the purposes of the reconciliation presented above.
(5)  Other revenue primarily consists of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, cash and settlement services and advertising.
(6)  Cost of other revenue (exclusive of deprecition and amortization) primarily consists of direct costs associated with other revenue and other costs, including but not limited to: compensation to employees and related taxes allocated to other revenue, costs of call-centers and advertising comissions.


QIWI plc.

Other Operating Data

 

     Three months ended  
     March 31, 2013     March 31, 2014     March 31, 2014  
     RUB     RUB     USD (1)  

Payment volume (billion)(2)

     124.5        149.6        4.2   
  

 

 

   

 

 

   

 

 

 

E-commerce

     14.6        17.4        0.5   

Financial services

     31.1        47.3        1.3   

Money remittances

     6.0        13.1        0.4   

Telecom

     61.6        58.4        1.6   

Other

     11.3        13.2        0.4   
  

 

 

   

 

 

   

 

 

 

Payment adjusted net revenue (million)(3)

     900.5        1,362.3        38.2   
  

 

 

   

 

 

   

 

 

 

E-commerce

     248.7        379.7        10.6   

Financial services

     188.3        375.4        10.5   

Money remittances

     71.2        184.2        5.2   

Telecom

     314.4        312.3        8.8   

Other

     77.9        110.7        3.1   
  

 

 

   

 

 

   

 

 

 

Payment average net revenue yield

     0.72     0.91     0.91
  

 

 

   

 

 

   

 

 

 

E-commerce

     1.71     2.18     2.18

Financial services

     0.61     0.79     0.79

Money remittances

     1.18     1.40     1.40

Telecom

     0.51     0.53     0.53

Other

     0.69     0.84     0.84
  

 

 

   

 

 

   

 

 

 

Total average Net Revenue Yield

     1.03     1.26     1.26

Active kiosks and terminals (units)

     166,154        167,713        167,713   

Active Qiwi Wallet accounts(4)

     13.0        15.6        15.6   

 

(1)  Calculated using a ruble to U.S. dollar exchange rate of RUB 35.687 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of March 31, 2014.
(2)  Payment volume by market segments and consolidated payment volume consist of the amounts paid by our customers to merchants included in each of those market segments less intra-group eliminations.
(3)  Payment Adjusted Net Revenue is calculated as the difference between Payment Gross Revenue and Payment Costs. Payment Gross Revenue primarily consists of merchant and consumer fees. Payment Costs primarily consist of commission to agents.
(4)  Active VISA Qiwi Wallet accounts calculated on a yearly basis, i.e. an active account is an account that had at least one transaction within the last 12 months from the reporting date.

In this release, Russian ruble (RUB) amounts have been translated into U.S. dollars at a rate of RUB 35.687 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of March 31, 2014.