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 August 7, 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 Second Quarter 2014 Results” press release dated August 7, 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: August 7, 2014     By:   /s/ Alexander Karavaev
      Alexander Karavaev
      Chief Financial Officer
EX-99.1

Exhibit 99.1

 

LOGO

QIWI ANNOUNCES SECOND-QUARTER 2014 RESULTS

Total Adjusted Net Revenue Increases 35% to RUB 2,112 Million

Adjusted Net Profit Increases 64% to RUB 899 Million or RUB 16.9 per share

QIWI Raises 2014 Guidance

Board of Directors Approves Dividend of 46 cents per share

MOSCOW, RUSSIA – August 7, 2014 – QIWI plc, (NASDAQ: QIWI) (“QIWI” or the “Company”) today announced results for the second-quarter ended June 30, 2014.

Second-Quarter 2014 Operating and Financial Highlights

 

    Total Adjusted Net Revenue increased 35% to RUB 2,112 million ($62.8 million)

 

    Adjusted EBITDA increased 62% to RUB 1,285 million ($38.2 million)

 

    Adjusted Net Profit increased 64% to RUB 899 million ($26.7 million), or RUB 16.9 per diluted share

 

    Total payment volume increased 17% to RUB 156.3 billion ($4.6 billion)

“Our second quarter results continued to be very strong,” said Sergey Solonin, QIWI’s chief executive officer. “Solid financial performance demonstrates that we proceed to execute our strategy and gain market share in the fast-growing payments markets we serve. Moreover, this quarter we have introduced new Visa Qiwi Wallet interface driving the adoption and increasing the utilization of our services. We will continue to focus on our core market segments and execute our strategy.”

Second-Quarter 2014 Results

Revenues: Total Adjusted Net Revenue for the quarter ended June 30, 2014 was RUB 2,112 million ($62.8 million), an increase of 35% compared with RUB 1,561 million in the prior year.

Payment Adjusted Net Revenue was RUB 1,562 million ($46.4 million), an increase of 57% compared with RUB 995 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 overdrafts provided to agents, cash and settlement services and advertising, was RUB 550 million ($16.4 million), a decrease of 3% compared with RUB 566 million in the prior year. Inactivity fees for the second quarter were RUB 156 million ($4.6 million) compared with RUB 224 million in the prior year. Other Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 15% compared with the same period in the prior year.

Total Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 46% compared with the same period in the prior year.


Adjusted EBITDA: For the quarter ended June 30, 2014, Adjusted EBITDA was RUB 1,285 million ($38.2 million), an increase of 62% compared with RUB 796 million in the prior year. Adjusted EBITDA growth was mainly driven by revenue growth, continued operating leverage in the business and the fact that certain marketing expenses in the amount of approximately RUB 130 million which were expected to be incurred in the second quarter were postponed to third and fourth quarters. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was 60.9% compared with 51% in the prior year. Adjusted EBITDA excluding inactivity fees was RUB 1,130 million ($33.6 million), an increase of 97% compared with RUB 573 million in the prior year. Adjusted EBITDA margin excluding inactivity fees was 57.8% compared with 42.8% in the prior year.

Adjusted Net Profit: For the quarter ended June 30, 2014, Adjusted Net Profit was RUB 899 million ($26.7 million), an increase of 64% compared with RUB 546 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 110% compared with the prior year.

Other Operating Data: For the quarter ended June 30, 2014, total payment volume was RUB 156.3 billion ($4.6 billion), an increase of 17% compared with RUB 133.5 billion in the prior year. Average payment net revenue yield was 1.00%, an increase of 25 bps compared with 0.75% in the prior year. The increase in payment volume and average net revenue yield in the second quarter was mainly driven by strong growth in the E-commerce, Financial Services and Money Remittances market segments and decrease of the QIWI Wallet upload costs through the network of kiosks by approximately 20 bps.

The total average net revenue yield was 1.35%, an increase of 18 bps as compared with 1.17% in the prior year. The total average net revenue yield excluding the effect of inactivity fees was 1.25%, an increase of 25 bps as compared with the same period in the prior year.

The number of active kiosks and terminals was 171,043, 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 15.8 million as of the end of the second quarter 2014, an increase of 1.7 million, or 12%, as compared with 14.1 million in the second quarter 2013.

Recent Developments

Dividend: QIWI announces that following the determination of second-quarter 2014 financial results its Board of Directors recommended a dividend of USD 46 cents per share. The dividend record date is August 18, 2014, and the Company intends to pay the dividend on August 19, 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, being Payment Adjusted Net Revenue and Other Adjusted Net Revenue, in order to highlight different revenue streams of QIWI’s business. This quarter the Company presents financials for 2013 according to new financial reporting structure. Please see below the section “Other operating data”.


2014 Guidance

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

 

    Total Adjusted Net Revenue is expected to increase by 30% to 32% over 2013

 

    Adjusted Net Profit is expected to increase by 36% to 38% 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 second 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 for international callers by dialing +1 (201) 493-6780. A replay will be available at 11:30 a.m. ET and can be accessed by dialing +1 (877) 870-5176 or +1 (858) 384-5517 for international callers; the pin number is 13587871. The replay will be available until Thursday, August 14, 2014. The call will be webcast live from the Company’s website at https://www.qiwi.ru under the Corporate Investor Relations section or directly at http://investor.qiwi.com/.

About QIWI plc.

QIWI is a leading provider of next generation payment 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 15.8 million virtual wallets, over 171,000 kiosks and terminals, and enabled merchants to accept over RUB 50 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 Corporate Development            

and Investor Relations

+7.499.709.0192

ir@qiwi.com

  

Varvara Kiseleva

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,
2013 (audited)
    As of June 30,
2014 (unaudited)
    As of June 30,
2014
 
     RUB     RUB     USD(1)  

Assets

      

Non-current assets

      

Property and equipment

     307,500        376,795        11,204   

Goodwill and other intangible assets

     2,405,645        2,319,355        68,965   

Long-term debt instruments

     1,376,862        0        0   

Long-term loans

     10,637        29,992        892   

Deferred tax assets

     183,333        220,277        6,550   

Other non-current assets

     38,394        37,943        1,128   
  

 

 

   

 

 

   

 

 

 

Total non-current assets

     4,322,371        2,984,362        88,738   
  

 

 

   

 

 

   

 

 

 

Current assets

      

Trade and other receivables

     2,772,297        1,741,567        51,785   

Short-term loans

     65,430        27,085        805   

Short-term debt instruments

     1,635,291        2,447,755        72,783   

Prepaid income tax

     60,537        41,638        1,238   

VAT and other taxes receivable

     12,478        42,837        1,274   

Cash and cash equivalents

     11,636,913        10,977,887        326,422   

Other current assets

     159,264        322,871        9,600   
  

 

 

   

 

 

   

 

 

 

Total current assets

     16,342,210        15,601,640        463,907   
  

 

 

   

 

 

   

 

 

 

Total assets

     20,664,581        18,586,002        552,645   
  

 

 

   

 

 

   

 

 

 

Equity and liabilities

      

Equity attributable to equity holders of the parent

      

Share capital

     907        955        28   

Additional paid-in capital

     1,876,104        4,522,490        134,474   

Other reserve

     337,254        581,701        17,297   

Retained earnings

     573,604        899,712        26,752   

Translation reserve

     10,757        9,010        268   
  

 

 

   

 

 

   

 

 

 

Total equity attributable to equity holders of the parent

     2,798,626        6,013,868        178,819   

Non-controlling interest

     (94,766     (124,753     (3,709
  

 

 

   

 

 

   

 

 

 

Total equity

     2,703,860        5,889,115        175,110   
  

 

 

   

 

 

   

 

 

 

Non-current liabilities

      

Long-term borrowings

     109,351        144,438        4,295   

Long-term deferred revenue

     31,629        19,268        573   

Deferred tax liabilities

     58,630        67,933        2,020   

Long-term accounts payable

     7,625        1,012        30   
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     207,235        232,651        6,918   
  

 

 

   

 

 

   

 

 

 

Current liabilities

      

Short-term borrowings

     635        1,780        53   

Trade and other payables

     16,768,973        11,383,718        338,489   

Amounts due to customers and amounts due to banks

     831,226        921,411        27,398   

Income tax payable

     10,823        22,883        680   

VAT and other taxes payable

     95,403        107,435        3,195   

Deferred revenue

     46,233        26,970        802   

Other current liabilities

     193        39        1   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     17,753,486        12,464,236        370,617   
  

 

 

   

 

 

   

 

 

 

Total equity and liabilities

     20,664,581        18,586,002        552,645   
  

 

 

   

 

 

   

 

 

 

 

(1)  Calculated using a ruble to U.S. dollar exchange rate of RUB 33.6306 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2014.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in thousands, except per share data)

 

     Three months ended (unaudited)  
     June 30, 2013     June 30, 2014     June 30, 2014  
     RUB     RUB     USD(1)  

Revenue

     2,879,462        3,488,438        103,727   

Operating costs and expenses:

      

Cost of revenue (exclusive of depreciation and amortization)

     1,527,041        1,746,565        51,933   

Selling general and administrative expenses

     645,374        628,464        18,687   

Depreciation and amortization

     26,791        80,583        2,396   

Profit from operations

     680,256        1,032,826        30,711   
  

 

 

   

 

 

   

 

 

 

Other income

     46,951        35,664        1,060   

Other expenses

     (4,823     (3,487     (104

Foreign exchange gain / (loss) net

     4,230        (96,410     (2,867

Share of loss of associates

     (71,205     (3,808     (113

Impairment of investment in associates

     (21,540     —          —     

Interest income

     4,387        —          —     

Interest expense

     (5,608     (10,439     (310
  

 

 

   

 

 

   

 

 

 

Profit before tax

     632,648        954,346        28,377   

Income tax expense

     (179,255     (238,510     (7,092
  

 

 

   

 

 

   

 

 

 

Net profit

     453,393        715,836        21,285   
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     460,078        727,540        21,633   

Non-controlling interests

     (6,685     (11,704     (348

Other comprehensive income

      

Exchange differences on translation of foreign operations

     (3,903     (473     (14
  

 

 

   

 

 

   

 

 

 

Total comprehensive income net of tax attributable to:

     449,490        715,363        21,271   
  

 

 

   

 

 

   

 

 

 

Equity holders of the parent

     459,933        720,005        21,409   

Non-controlling interests

     (10,443     (4,642     (138

Earnings per share:

      

Basic profit attributable to ordinary equity holders of the parent

     8.84        13.88        0.41   

Diluted profit attributable to ordinary equity holders of the parent

     8.83        13.66        0.41   

 

(1)  Calculated using a ruble to U.S. dollar exchange rate of RUB 33.630 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2014.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in thousands, except per share data)

 

     Six months ended (unaudited)  
     June 30, 2013     June 30, 2014     June 30, 2014  
     RUB     RUB     USD(1)  

Revenue

     5,412,158        6,747,900        200,645   

Operating costs and expenses:

      

Cost of revenue (exclusive of depreciation and amortization)

     3,003,471        3,434,698        102,129   

Selling general and administrative expenses

     1,188,280        1,210,652        35,998   

Depreciation and amortization

     52,945        164,877        4,903   

Profit from operations

     1,167,462        1,937,673        57,616   
  

 

 

   

 

 

   

 

 

 

Other income

     58,007        36,039        1,072   

Other expenses

     (5,921     (8,493     (253

Foreign exchange gain / (loss) net

     6,833        (98,463     (2,928

Share of loss of associates

     (78,896     (11,119     (331

Impairment of investment in associates

     (21,540     (2,903     (86

Interest income

     8,534        712        21   

Interest expense

     (11,861     (21,011     (625
  

 

 

   

 

 

   

 

 

 

Profit before tax

     1,122,618        1,832,435        54,486   

Income tax expense

     (315,563     (428,422     (12,739
  

 

 

   

 

 

   

 

 

 

Net profit

     807,055        1,404,013        41,748   
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     825,412        1,431,875        42,576   

Non-controlling interests

     (18,357     (27,862     (828

Other comprehensive income

      

Exchange differences on translation of foreign operations

     (6,010     (3,485     (104
  

 

 

   

 

 

   

 

 

 

Total comprehensive income net of tax attributable to:

     801,045        1,400,528        41,644   
  

 

 

   

 

 

   

 

 

 

Equity holders of the parent

     823,908        1,430,128        42,524   

Non-controlling interests

     (22,863     (29,600     (880

Earnings per share:

      

Basic profit attributable to ordinary equity holders of the parent

     15.87        27.38        0.81   

Diluted profit attributable to ordinary equity holders of the parent

     15.85        26.94        0.80   

 

(1)  Calculated using a ruble to U.S. dollar exchange rate of RUB 33.630 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2014.


QIWI plc.

Consolidated Cash Flow Statement

(in thousands, except per share data)

 

     Six months ended  
     June 30, 2013     June 30, 2014        
     (unaudited)     (unaudited)     June 30, 2014  
     RUB     RUB     USD(1)  

Cash flows from operating activities

      

Profit before tax

     1,122,618        1,832,435        54,486   
  

 

 

   

 

 

   

 

 

 

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

      

Depreciation and amortization

     52,945        164,877        4,903   

Loss on disposal of property and equipment

     6,314        1,318        39   

Foreign exchange loss, net

     824        98,463        2,928   

Interest income, net

     (177,195     (142,633     (4,241

Bad debt expense, net

     124,850        84,951        2,526   

Share of loss of associates

     78,896        11,119        331   

Impairment of investment in associates

     21,540        2,903        86   

Share-based payments

     116,041        239,280        7,115   

Other

     2,657        4,186        124   
  

 

 

   

 

 

   

 

 

 

Operating profit before changes in working capital

     1,349,490        2,296,899        68,297   
  

 

 

   

 

 

   

 

 

 

Drease in trade and other receivables

     629,935        955,305        28,405   

Increase in other assets

     (67,605     (166,158     (4,941

(Increase)/Decrease in amounts due to customers and amounts due to banks

     (207,188     90,185        2,682   

Decrease in accounts payable and accruals

     (5,277,082     (5,304,276     (157,720

Loans issued/ (settled) from banking operations

     136,533        (12,534     (373
  

 

 

   

 

 

   

 

 

 

Cash used in operations

     (3,435,917     (2,140,579     (63,649
  

 

 

   

 

 

   

 

 

 

Interest received

     290,824        196,787        5,851   

Interest paid

     (8,912     (14,627     (435

Income tax paid

     (323,063     (425,104     (12,640
  

 

 

   

 

 

   

 

 

 

Net cash flow used in operating activities

     (3,477,068     (2,383,523     (70,873
  

 

 

   

 

 

   

 

 

 

Cash flows used in investing activities

      

Loans to associates

     —          (14,022     (417

Payments for assignment of loans

     —          (45,375     (1,349

Purchase of property and equipment

     (29,487     (196,646     (5,847

Purchase of intangible assets

     (9,584     (15,438     (459

Loans issued

     (13,369     (12,441     (370

Repayment of loans issued

     9,421        866        26   

Purchase of debt instruments

     (1,899,952     (706,846     (21,018

Proceeds from settlement of debt instruments

     1,654,016        1,242,313        36,940   
  

 

 

   

 

 

   

 

 

 

Net cash flow used in/generated from investing activities

     (288,955     252,411        7,505   
  

 

 

   

 

 

   

 

 

 

Cash flows generated from financing activities

      

Issue of share capital

     —          2,646,432        78,690   

Exercise of options

     —          5,167        154   

Proceeds from borrowings

     14,912        29,408        874   

Repayment of borrowings

     —          (1,389     (41

Dividends paid to owners of the Group

     (773,719     (1,105,939     (32,885

Dividends paid to non-controlling shareholders

     (2,098     (2,170     (65

Underwriters’ commission

     72,835        —          —     

Distribution of underwriters’ commission

     (67,643     —          —     

Transactions with non-controlling interest

     —          1,783        53   
  

 

 

   

 

 

   

 

 

 

Net cash flow used in/ generated from financing activities

     (755,713     1,573,292        46,781   
  

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (3,534     (101,206     (3,009
  

 

 

   

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (4,525,270     (659,026     (19,596
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the beginning

     9,943,160        11,636,913        346,017   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end

     5,417,890        10,977,887        326,422   
  

 

 

   

 

 

   

 

 

 

 

(1)  Calculated using a ruble to U.S. dollar exchange rate of RUB 33.630 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 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 such non-IFRS financial measures as included 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  
     June 30, 2013     June 30, 2014     June 30, 2014  
     RUB     RUB     USD(1)  

Revenue

     2,879        3,488        103.7   

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

     1,527        1,747        51.9   

Plus: Compensation to employees and related taxes

     209        370        11.0   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     1,561        2,112        62.8   
  

 

 

   

 

 

   

 

 

 

Payment Revenue(2)

     2,239        2,804        83.4   

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

     1,413        1,539        45.8   

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

     169        297        8.8   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

     995        1,562        46.4   
  

 

 

   

 

 

   

 

 

 

Other Revenue(5)

     640        685        20.4   

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

     115        208        6.2   

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

     41        73        2.2   
  

 

 

   

 

 

   

 

 

 

Other Adjusted Net Revenue

     566        550        16.4   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

     995        1,562        46.4   

E-commerce

     273        451        13.4   

Financial services

     221        468        13.9   

Money remittances

     98        240        7.1   

Telecom

     326        310        9.2   

Other

     77        92        2.7   

Other Adjusted Net Revenue

     566        550        16.4   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     1,561        2,112        62.8   
  

 

 

   

 

 

   

 

 

 

Net Profit

     453        716        21.3   
  

 

 

   

 

 

   

 

 

 

Plus:

      

Depreciation and amortization

     27        81        2.4   

Other income

     (47     (36     (1.1

Other expenses

     5        3        0.1   

Foreign exchange (loss) gain, net

     (4     96        2.9   

Share of loss of associates

     71        4        0.1   

Impairment of investment in associates

     22        —          —     

Interest income

     (4     —          —     

Interest expenses

     6        10        0.3   

Income tax expenses

     179        239        7.1   

Offering expenses

     94        45        1.3   

Income from depositary

     (44     (33     (1.0

Share-based payments expenses

     38        160        4.8   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     796        1,285        38.2   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

     51.0     60.9     60.9

Net profit

     453        716        21.3   

Amortization of fair value adjustments

     5        13        0.4   

Offering expenses

     94        45        1.3   

Income from depositary

     (44     (33     (1.0

Share-based payments expenses

     38        160        4.8   

Effect of taxation of the above items

     (1     (3     (0.1
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     546        899        26.7   
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

      

Basic

     10.51        17.14        0.51   

Diluted

     10.50        16.87        0.50   

Shares used in computing Adjusted Net Profit per share

      

Basic

     52,000        52,425        52,425   

Diluted

     52,072        53,253        53,253   


 

(1)  Calculated using a ruble to U.S. dollar exchange rate of RUB 33.630 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 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.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)

 

     Six months ended  
     June 30,
2013
    June 30,
2014
    June 30,
2014
 
     RUB     RUB     USD(1)  

Revenue

     5,412        6,748        200.6   

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

     3,003        3,435        102.1   

Plus: Compensation to employees and related taxes

     436        676        20.1   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     2,845        3,989        118.6   
  

 

 

   

 

 

   

 

 

 

Payment Revenue(2)

     4,323        5,432        161.5   

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

     2,784        3,052        90.7   

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

     357        544        16.2   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

     1,896        2,924        86.9   
  

 

 

   

 

 

   

 

 

 

Other Revenue(5)

     1,089        1,316        39.1   

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

     219        383        11.4   

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

     79        132        3.9   
  

 

 

   

 

 

   

 

 

 

Other Adjusted Net Revenue

     949        1,065        31.7   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

     1,896        2,924        86.9   

E-commerce

     522        831        24.7   

Financial services

     409        844        25.1   

Money remittances

     169        425        12.6   

Telecom

     641        623        18.5   

Other

     154        203        6.0   

Other Adjusted Net Revenue

     949        1,065        31.7   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     2,845        3,989        118.6   
  

 

 

   

 

 

   

 

 

 

Net Profit

     807        1,404        41.7   
  

 

 

   

 

 

   

 

 

 

Plus:

      

Depreciation and amortization

     53        165        4.9   

Other income

     (58     (36     (1.1

Other expenses

     6        8        0.3   

Foreign exchange (loss) gain, net

     (7     98        2.9   

Share of loss of associates

     79        11        0.3   

Impairment of investment in associates

     22        3        0.1   

Interest income

     (9     (1     (0.0

Interest expenses

     12        21        0.6   

Income tax expenses

     316        428        12.7   

Offering expenses

     114        45        1.3   

Income from depositary

     (44     (33     (1.0

Share-based payments expenses

     116        239        7.1   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     1,407        2,354        70.0   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

     49.4     59.0     59.0

Net profit

     807        1,404        41.7   

Amortization of fair value adjustments

     11        35        1.0   

Offering expenses

     114        45        1.3   

Income from depositary

     (44     (33     (1.0

Share-based payments expenses

     116        239        7.1   

Effect of taxation of the above items

     (2     (7     (0.2
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     1,002        1,683        50.0   
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

      

Basic

     19.27        32.18        0.96   

Diluted

     19.25        31.67        0.94   

Shares used in computing Adjusted Net Profit per share

      

Basic

     52,000        52,302        52,302   

Diluted

     52,061        53,141        53,141   


 

(1)  Calculated using a ruble to U.S. dollar exchange rate of RUB 33.630 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 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  
     June 30,
2013
    June 30,
2014
    June 30,
2014
 
     RUB     RUB     USD (1)  

Payment volume (billion)(2)

     133.5        156.3        4.6   
  

 

 

   

 

 

   

 

 

 

E-commerce

     15.2        17.8        0.5   

Financial services

     33.5        48.4        1.4   

Money remittances

     7.9        15.3        0.5   

Telecom

     65.6        62.5        1.9   

Other

     11.2        12.3        0.4   
  

 

 

   

 

 

   

 

 

 

Payment adjusted net revenue (million)(3)

     995.5        1,561.6        46.4   
  

 

 

   

 

 

   

 

 

 

E-commerce

     273.4        450.9        13.4   

Financial services

     221.1        468.3        13.9   

Money remittances

     97.9        240.3        7.1   

Telecom

     326.5        310.3        9.2   

Other

     76.6        91.8        2.7   
  

 

 

   

 

 

   

 

 

 

Payment average net revenue yield

     0.7     1.0     1.0
  

 

 

   

 

 

   

 

 

 

E-commerce

     1.80     2.53     2.5

Financial services

     0.66     0.97     1.0

Money remittances

     1.23     1.57     1.6

Telecom

     0.50     0.50     0.5

Other

     0.69     0.75     0.7
  

 

 

   

 

 

   

 

 

 

Total average Net Revenue Yield

     1.17     1.35     1.35

Active kiosks and terminals (units)

     169,481        171,043        171,043   

Active Qiwi Wallet accounts(4)

     14.1        15.8        15.8  

 

(1)  Calculated using a ruble to U.S. dollar exchange rate of RUB 33.630 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 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. The methodology of payment volumes allocation between different market segments in QIWI’s international operations (including Kazachstan) may differ from the methodology used by QIWI’s Russian operations. We therefore retain the right to restate the presented volumes, net revenues and net revenue yields data in case the methodology of QIWI’s international operations will be brought in conformity with the methodology of QIWI’s Russian operations.
(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.


QIWI plc.

Other Operating Data

 

     Six months ended  
     June 30,
2013
    June 30,
2014
    June 30,
2014
 
     RUB     RUB     USD (1)  

Payment volume (billion)(2)

     258.0        305.9        9.1   
  

 

 

   

 

 

   

 

 

 

E-commerce

     29.7        35.3        1.0   

Financial services

     64.6        95.7        2.8   

Money remittances

     14.0        28.5        0.8   

Telecom

     127.2        121.0        3.6   

Other

     22.4        25.5        0.8   
  

 

 

   

 

 

   

 

 

 

Payment adjusted net revenue (million)(3)

     1,896.0        2,923.9        86.9   
  

 

 

   

 

 

   

 

 

 

E-commerce

     522.1        830.6        24.7   

Financial services

     409.4        843.7        25.1   

Money remittances

     169.1        424.5        12.6   

Telecom

     640.9        622.6        18.5   

Other

     154.5        202.6        6.0   
  

 

 

   

 

 

   

 

 

 

Payment average net revenue yield

     0.7     1.0     1.0
  

 

 

   

 

 

   

 

 

 

E-commerce

     1.8     2.4     2.4

Financial services

     0.6     0.9     0.9

Money remittances

     1.2     1.5     1.5

Telecom

     0.5     0.5     0.5

Other

     0.7     0.8     0.8
  

 

 

   

 

 

   

 

 

 

Total average Net Revenue Yield

     1.10     1.30     1.30

Active kiosks and terminals (units)

     169,481        171,043        171,043   

Active Qiwi Wallet accounts(4)

     14.1        15.8        15.8  

 

(1)  Calculated using a ruble to U.S. dollar exchange rate of RUB 33.630 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 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. The methodology of payment volumes allocation between different market segments in QIWI’s international operations (including Kazachstan) may differ from the methodology used by QIWI’s Russian operations. We therefore retain the right to restate the presented volumes, net revenues and net revenue yields data in case the methodology of QIWI’s international operations will be brought in conformity with the methodology of QIWI’s Russian operations.
(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.


QIWI plc.

Other Operating Data

 

     Quarter ended              
     March 31,
2013
    June 30,
2013
    September 30,
2013
    December 31,
2013
    FY
2013
    FY
2013
 
     RUB     RUB     RUB     RUB     RUB     USD (1)  

Payment volume (billion)(2)

     124.5        133.5        143.2        159.3        560.5        17.1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

E-commerce

     14.6        15.2        15.3        17.9        62.9        1.9   

Financial services

     31.1        33.5        38.0        47.4        150.1        4.6   

Money remittances

     6.0        7.9        9.4        12.2        35.6        1.1   

Telecom

     61.5        65.6        70.3        67.6        265.0        8.1   

Other

     11.3        11.2        10.2        14.3        46.9        1.4   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Revenue

     2,533        2,879        2,975        3,279        11,666        356   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

     1,476        1,527        1,560        1,833        6,396        195   

Plus: Compensation to employees and related taxes

     227        209        207        255        898        27   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     1,284        1,561        1,622        1,700        6,168        188   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Payment Revenue(3)

     2,082        2,243        2,381        2,679        9,385        287   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Minus: Cost of payment revenue (exclusive of depreciation and amortization)(5)

     1,372        1,414        1,434        1,569        5,789        176.9   

Plus: Compensation to employees and related taxes allocated to payment revenue(6)

     190        167        172        195        724        22.1   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Payment adjusted net revenue (million)(4)

     900        996        1,119        1,305        4,320        132   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

E-commerce

     249        273        311        374        1,207        37   

Financial services

     188        221        264        337        1,010        31   

Money remittances

     71        98        123        158        450        14   

Telecom

     314        327        350        341        1,332        41   

Other

     78        77        72        95        322        10   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other Revenue(7)

     451        637        594        600        2,281        70   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Minus: Cost of other revenue (exclusive of depreciation and amortization)(8)

     105        113        126        263        607        18.5   

Plus: Compensation to employees and related taxes allocated to other revenue(6)

     37        42        35        60        174        5.3   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other Adjusted Net Revenue

     383        566        503        395        1,848        56   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Payment average net revenue yield

     0.7     0.7     0.8     0.8     0.8     0.8
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

E-commerce

     1.7     1.8     2.0     2.1     1.9     1.9

Financial services

     0.6     0.7     0.7     0.7     0.7     0.7

Money remittances

     1.2     1.2     1.3     1.3     1.3     1.3

Telecom

     0.5     0.5     0.5     0.5     0.5     0.5

Other

     0.7     0.7     0.7     0.7     0.7     0.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total average net revenue yield

     1.03     1.17     1.13     1.07     1.10     1.1
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


 

(1)  Calculated using a ruble to U.S. dollar exchange rate of RUB 32.729 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2013.
(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. The methodology of payment volumes allocation between different market segments in QIWI’s international operations (including Kazachstan) may differ from the methodology used by QIWI’s Russian operations. We therefore retain the right to restate the presented volumes, net revenues and net revenue yields data in case the methodology of QIWI’s international operations will be brought in conformity with the methodology of QIWI’s Russian operations.
(3)  Payment revenue primarily consists of the merchant and consumer fees charged for the payment transactions.
(4)  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.
(5)  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.
(6)  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.
(7)  Other revenue primarily consists of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, cash and settlement services and advertising.
(8)  Cost of other revenue (exclusive of depreciation and amortization) primarily consists of direct costs associated with other revenue and other costs, including but not limited to: compensation to employees and related taxes allocated to other revenue, costs of call-centers and advertising commissions.