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 March 12, 2015

 

 

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):

 

 

 


Exhibits

 

99.1 “QIWI Announces Fourth Quarter and Full-Year 2014 Results” press release dated March 12, 2015


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: March 12, 2015 By:

/s/ Alexander Karavaev

Alexander Karavaev
Chief Financial Officer
EX-99.1

Exhibit 99.1

 

LOGO

QIWI ANNOUNCES FOURTH-QUARTER AND FULL-YEAR 2014 RESULTS

Fourth-Quarter Total Adjusted Net Revenue Increases 45% to RUB 2,468 Million and Adjusted Net Profit

Increases 5% to RUB 597 Million or RUB 10.84 per diluted share

Full-Year 2014 Total Adjusted Net Revenue Increases 43% to RUB 8,836 Million and Adjusted Net Profit

Increases 61% to RUB 3,496 Million or RUB 64.53 per diluted share

QIWI gives 2015 Guidance

MOSCOW, RUSSIA – March 12, 2015 – QIWI plc, (NASDAQ: QIWI) (“QIWI” or the “Company”) today announced results for the fourth-quarter and year ended December 31, 2014.

Fourth-Quarter 2014 Operating and Financial Highlights

 

    Total Adjusted Net Revenue increased 45% to RUB 2,468 million ($43.9 million)

 

    Adjusted EBITDA increased 24% to RUB 911 million ($16.2 million)

 

    Adjusted Net Profit increased 5% to RUB 597 million ($10.6 million), or RUB 10.84 per diluted share

 

    Total payment volume increased 10% to RUB 175.2 billion ($3.1 billion)

Full-Year 2014 Operating and Financial Highlights

 

    Total Adjusted Net Revenue increased 43% to RUB 8,836 million ($157.1 million)

 

    Adjusted EBITDA increased 62% to RUB 4,818 million ($85.6 million)

 

    Adjusted Net Profit increased 61% to RUB 3,496 million ($62.1 million), or RUB 64.53 per diluted share

 

    Total payment volume increased 15% to RUB 645.2 billion ($11.5 billion)

 

    Visa QIWI Wallet active accounts increased 12% to 17.2 million

“I am very pleased with our solid fourth quarter results,” said Sergey Solonin, QIWI’s chief executive officer. “Our financial and operational performance demonstrates resilience to macroeconomic situation. This quarter we have continued to invest in various marketing activities, which have underpinned continued growth in Visa Qiwi Wallet accounts. We see plenty of opportunities ahead, especially in gaining market share in the key verticals, and will continue to focus on our core market verticals and execute our strategy.”

Fourth-Quarter 2014 Results

Revenues: Total Adjusted Net Revenue for the quarter ended December 31, 2014 was RUB 2,468 million ($43.9 million), an increase of 45% compared with RUB 1,700 million in the prior year.

Payment Adjusted Net Revenue was RUB 1,838 million ($32.7 million), an increase of 41% compared with RUB 1,305 million in the prior year. Payment Adjusted Net Revenue growth was predominantly driven by an increase in payment volume in the E-commerce and Money Remittances market verticals and net revenue yield in the E-commerce, Financial Services and Money Remittances market verticals, slightly offset by a decrease in payment volume and net revenue yield in the Telecom market vertical.


Other Adjusted Net Revenue, which is principally composed of revenue from inactivity fees, interest revenue and gain from currency swaps and overdrafts provided to agents, revenue from rent of space for kiosks and sale of kiosks, cash and settlement services and advertising, was RUB 630 million ($11.2 million), an increase of 59% compared with RUB 395 million in the prior year. The growth in the fourth quarter was mainly due to increase in net revenue from sales of kiosks and rent of space for kiosks. Inactivity fees for the fourth quarter were RUB 183 million ($3.3 million) compared with RUB 137 million in the prior year. Other Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 73% 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 December 31, 2014, Adjusted EBITDA was RUB 911 million ($16.2 million), an increase of 24% compared with RUB 733 million in the prior year. Adjusted EBITDA growth was mainly offset by heavy marketing and advertising expenses which amounted to RUB 400 million in the fourth quarter 2014 as compared to RUB 125 million in the prior year. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was 36.9% compared with 43.1% in the prior year. Adjusted EBITDA excluding inactivity fees was RUB 727 million ($12.9 million), an increase of 22% compared with RUB 596 million in the prior year. Adjusted EBITDA margin excluding inactivity fees was 31.8% compared with 38.1% in the prior year. The substantial amount of marketing spent in fourth quarter 2014 was unusually high, due to launch of the vast majority of advertising and promotion campaigns, which we originally planned to spread more evenly throughout the year. Moving forward our intention is to spread marketing and advertising campaigns and thus the budget more evenly, therefore we assume EBITDA margin for the full year 2014 to be more representative then the EBITDA margin for the fourth quarter of 2014.

Adjusted Net Profit: For the quarter ended December 31, 2014, Adjusted Net Profit was RUB 597 million ($10.6 million), an increase of 5% compared with RUB 567 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) decreased 1% compared with the prior year.

Other Operating Data: For the quarter ended December 31, 2014, total payment volume was RUB 175.2 billion ($3.1 billion), an increase of 10% compared with RUB 159.3 billion in the prior year. Average payment net revenue yield was 1.05%, an increase of 23 bps compared with 0.82% in the prior year. The increase in payment volume and average payment net revenue yield in the fourth quarter was mainly driven by strong growth in the E-commerce, Financial Services and Money Remittances market verticals.

The total average Net Revenue Yield was 1.41%, an increase of 34 bps as compared with 1.07% in the prior year. The total average Net Revenue Yield excluding the effect of inactivity fees was 1.31%, an increase of 33 bps as compared with the same period in the prior year.

Full-Year 2014 Results

Revenues: Total Adjusted Net Revenue for the year ended December 31, 2014 was RUB 8,836 million ($157.0 million), an increase of 43% compared with RUB 6,168 million in the prior year.


Payment Adjusted Net Revenue was RUB 6,515 million ($115.8 million), an increase of 51% compared with RUB 4,320 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 verticals, slightly offset by a decrease in payment volume and net revenue yield in the Telecom market vertical.

Other Adjusted Net Revenue, which is principally composed of revenue from inactivity fees, interest revenue and gain from currency swaps and overdrafts provided to agents, revenue from rent of space for kiosks and sale of kiosks, cash and settlement services and advertising, was RUB 2,321 million ($41.2 million), an increase of 26% compared with RUB 1,848 million in the prior year. Revenue from fees for inactive accounts was RUB 656 million ($11.7 million) in 2014 compared to RUB 549 million in the prior year. Other Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 28% 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 year ended December 31, 2014, Adjusted EBITDA was RUB 4,818 million ($85.6 million), an increase of 62% compared with RUB 2,978 million in the prior year. Adjusted EBITDA growth was mainly driven by revenue growth and significant operating leverage in the business. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was 54.5% compared with 48.3% in the prior year. Adjusted EBITDA excluding inactivity fees was RUB 4,161 million ($74.1 million), an increase of 71% compared with RUB 2,429 million in the prior year. Adjusted EBITDA margin excluding inactivity fees was 51.0% compared with 43.2% in the prior year.

Adjusted Net Profit: For the year ended December 31, 2014, Adjusted Net Profit was RUB 3,496 million ($62.1 million), an increase of 62% compared with RUB 2,174 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 71% compared with the prior year.

Other Operating Data: For the year ended December 31, 2014, total payment volume was RUB 645.4 billion ($11.5 billion), an increase of 15% compared with RUB 560.5 billion in the prior year. Average payment net revenue yield was 1.01%, an increase of 24 bps compared with 0.77% in the prior year. The increase in payment volume and average net revenue yield in 2014 was mainly driven by strong growth in the E-commerce, Financial Services and Money Remittances market verticals.

The total average Net Revenue Yield was 1.37%, an increase of 27 bps as compared with 1.10% in the prior year. The total average Net Revenue Yield excluding the effect of inactivity fees was 1.27%, an increase of 27 bps as compared with the same period in the prior year.

The number of active kiosks and terminals was 181,148, an increase of 8% compared with the prior year, primarily driven by execution of new rental agreements with certain federal retail networks. The number of active Visa Qiwi Wallet accounts was 17.2 million as of the end of 2014, an increase of 1.8 million, or 12%, as compared with 15.4 million in 2013.


Recent Developments

Dividend: In light of the current geopolitical concerns around Russia and its negative impact on the economy and liquidity management believes it is prudent not to declare a dividend for the fourth quarter. We will revisit this decision each quarter moving forward with an intention to return to our historical payout levels.

M&A: From time to time, we have evaluated and expect to continue to evaluate possible acquisition transactions, partnerships or joint ventures on an on-going basis, some of which may be material. At any time, including currently, we may be engaged in discussions or negotiations or diligence evaluations with respect to possible acquisitions, partnerships or joint ventures or may have entered into non-binding documents in relation to such transactions. As part of our strategy, we intend to continue our disciplined approach to identifying, executing and integrating strategic acquisitions.

2015 Guidance1

QIWI provides its guidance in respect of 2015 outlook:

 

    Total Adjusted Net Revenue is expected to increase by 12% to 16% over 2014

 

    Adjusted Net Profit is expected to increase by 12% to 16% over 2014

We have started to note the effects of the macroeconomic slowdown in Russia in the second half of 2014 and especially in Q4, which we believe can be long lasting and could have a significant negative effect on both consumer spending and the banking system in Russia and, accordingly, on our business in the future. The extent of the slowdown, and if that were to result in a full scale banking crisis, is yet to be assessed. We, therefore, do not currently have enough visibility on our Total Adjusted Net Revenue and Adjusted Net Profit in 2015. We provide the 2015 guidance based on our current understanding of the macroeconomic situation, which is subject to change. We reserve the right to revisit our 2015 guidance in case we see the situation changing throughout the year. Expected growth of Adjusted Net Profit equals to the expected growth of Adjusted Net Revenue as a consequence of our desire and commitment to invest into new products and gain market share in 2015.

Earnings Conference Call and Audio Webcast

QIWI will host a conference call to discuss fourth quarter and full year 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 13602442. The replay will be available until Thursday, March 19, 2015. 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/.

 

 

1  Guidance is provided in Russian rubles


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 17.2 million virtual wallets, over 181,000 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 profit and net revenue yield, dividend payments, payment volume growth, and growth of physical and virtual distribution channels. 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 physical and virtual distribution channels, QIWI’s ability to expand geographically and other risks identified under the Caption “Risk Factors” in QIWI’s Annual Report on Form 20-F and in other reports QIWI files with the U.S. Securities and Exchange Commission. QIWI undertakes no obligation to revise any forward-looking statements or to report future events that may affect such forward-looking statements unless QIWI is required to do so by law.

Contact

 

Yakov Barinskiy

Head of 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,
    As of
December 31,
    As of
December 31,
 
     2013     2014     2014  
     RUB     RUB     USD(1)  

Assets

      

Non-current assets

      

Property and equipment

     307,500        379,943        6,754   

Goodwill and other intangible assets

     2,405,645        2,367,623        42,085   

Long-term debt instruments

     1,376,862        1,806,295        32,107   

Long-term loans

     10,637        52,648        936   

Other non-current assets

     38,394        42,455        755   

Deferred tax assets

     183,333        239,571        4,258   
  

 

 

   

 

 

   

 

 

 

Total non-current assets

  4,322,371      4,888,535      86,895   
  

 

 

   

 

 

   

 

 

 

Current assets

Trade and other receivables

  2,772,297      5,305,275      94,303   

Short-term loans

  65,430      31,588      561   

Short-term debt instruments

  1,635,291      2,132,887      37,913   

Prepaid income tax

  60,537      89,239      1,586   

VAT and other taxes receivable

  12,478      51,078      908   

Cash and cash equivalents

  11,636,913      17,079,965      303,601   

Other current assets

  159,264      345,688      6,145   
  

 

 

   

 

 

   

 

 

 

Total current assets

  16,342,210      25,035,720      445,016   
  

 

 

   

 

 

   

 

 

 

Assets of disposal group classified as held for sale

  —        125,867      2,237   
  

 

 

   

 

 

   

 

 

 

Total assets

  20,664,581      30,050,122      534,148   
  

 

 

   

 

 

   

 

 

 

Equity and liabilities

Equity attributable to equity holders of the parent

Share capital

  907      963      17   

Additional paid-in capital

  1,876,104      1,876,104      33,348   

Share premium

  —        3,044,303      54,113   

Other reserve

  337,254      764,243      13,585   

Retained earnings

  573,604      2,683,805      47,705   

Translation reserve

  10,757      204,337      3,632   
  

 

 

   

 

 

   

 

 

 

Total equity attributable to equity holders of the parent

  2,798,626      8,573,755      152,401   

Non-controlling interest

  (94,766   (239,385   (4,255
  

 

 

   

 

 

   

 

 

 

Total equity

  2,703,860      8,334,370      148,146   
  

 

 

   

 

 

   

 

 

 

Non-current liabilities

Long-term borrowings

  109,351      41,981      746   

Long-term deferred revenue

  31,629      8,394      149   

Long-term accounts payable

  7,625      987      18   

Deferred tax liabilities

  58,630      37,758      671   
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

  207,235      89,120      1,584   
  

 

 

   

 

 

   

 

 

 

Current liabilities

Short-term borrowings

  635      1,061      19   

Trade and other payables

  16,768,973      20,179,673      358,699   

Amounts due to customers and amounts due to banks

  831,226      1,001,286      17,798   

Income tax payable

  10,823      11,290      201   

VAT and other taxes payable

  95,403      127,733      2,270   

Deferred revenue

  46,233      52,008      924   

Other current liabilities

  193      56      1   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

  17,753,486      21,373,107      379,912   
  

 

 

   

 

 

   

 

 

 

Liabilities directly associated with the assets of a disposal group classified as held for sale

  —        253,525      4,506   
  

 

 

   

 

 

   

 

 

 

Total equity and liabilities

  20,664,581      30,050,122      534,148   
  

 

 

   

 

 

   

 

 

 

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 2014.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in thousands, except per share data)

 

     Three months ended (unaudited)  
     December 31, 2013(1)     December 31, 2014     December 31, 2014  
     RUB     RUB     USD(2)  

Revenue

     3,278,649        4,148,652        73,743   

Operating costs and expenses:

      

Cost of revenue (exclusive of depreciation and amortization)

     1,833,149        2,055,912        36,544   

Selling general and administrative expenses

     805,670        1,255,161        22,311   

Depreciation and amortization

     32,046        95,315        1,694   

Goodwill impairment

     2        —          —     

Profit from operations

     607,782        742,264        13,194   
  

 

 

   

 

 

   

 

 

 

Other income

  30,415      1,353      24   

Other expenses

  (2,298   (20,107   (357

Foreign exchange gain

  9,654      2,129,776      37,857   

Foreign exchange loss

  (5,635   (634,819   (11,284

Share of loss of associates

  —        (3,313   (59

Impairment of investment in associates

  —        —        —     

Interest income

  8,830      639      11   

Interest expense

  (9,307   (11,151   (198
  

 

 

   

 

 

   

 

 

 

Profit before tax

  639,441      2,204,642      39,188   

Income tax expense

  (144,413   (196,950   (3,501
  

 

 

   

 

 

   

 

 

 

Net profit

  495,028      2,007,692      35,687   
  

 

 

   

 

 

   

 

 

 

Attributable to:

Equity holders of the parent

  505,043      2,023,897      35,975   

Non-controlling interests

  (10,015   (16,206   (288

Other comprehensive income

Exchange differences on translation of foreign operations

  13,941      86,507      1,538   
  

 

 

   

 

 

   

 

 

 

Total comprehensive income net of tax

  508,969      2,094,199      37,225   
  

 

 

   

 

 

   

 

 

 

attributable to:

Equity holders of the parent

  520,325      2,176,919      38,695   

Non-controlling interests

  (11,356   (82,721   (1,470

Earnings per share:

Basic profit attributable to ordinary equity holders of the parent

  9.69      37.13      0.66   

Diluted profit attributable to ordinary equity holders of the parent

  9.53      36.72      0.65   

 

(1) The amounts shown here do not correspond to the financial statements for the year ended December 31, 2013 and reflect immaterial reclassifications made to prior period to conform to current period presentation.
(2) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 2014.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in thousands, except per share data)

 

     Full Year ended  
     December 31, 2013(1)     December 31, 2014     December 31, 2014  
     RUB     RUB     USD(2)  

Revenue

     11,666,050        14,718,727        261,629   

Operating costs and expenses:

      

Cost of revenue (exclusive of depreciation and amortization)

     6,396,499        7,273,099        129,281   

Selling general and administrative expenses

     2,678,299        3,082,177        54,786   

Depreciation and amortization

     113,100        353,400        6,282   

Goodwill impairment

     5,479        —          —     

Profit from operations

     2,472,673        4,010,051        71,280   
  

 

 

   

 

 

   

 

 

 

Other income

  91,196      42,253      751   

Other expenses

  (20,089   (29,572   (526

Foreign exchange gain

  78,516      3,359,207      59,711   

Foreign exchange loss

  (70,495   (1,428,478   (25,392

Share of loss of associates

  (78,896   (26,583   (473

Impairment of investment in associates

  (21,540   (24,634   (438

Interest income

  22,204      1,692      30   

Interest expense

  (28,686   (41,513   (738
  

 

 

   

 

 

   

 

 

 

Profit before tax

  2,444,883      5,862,423      104,206   

Income tax expense

  (609,509   (894,506   (15,900
  

 

 

   

 

 

   

 

 

 

Net profit

  1,835,374      4,967,917      88,306   
  

 

 

   

 

 

   

 

 

 

Attributable to:

Equity holders of the parent

  1,873,226      5,024,140      89,305   

Non-controlling interests

  (37,852   (56,223   (999

Other comprehensive income

Exchange differences on translation of foreign operations

  4,561      105,789      1,880   
  

 

 

   

 

 

   

 

 

 

Total comprehensive income net of tax

  1,839,935      5,073,706      90,186   
  

 

 

   

 

 

   

 

 

 

attributable to:

Equity holders of the parent

  1,883,278      5,217,720      92,746   

Non-controlling interests

  (43,343   (144,014   (2,560

Earnings per share:

Basic profit attributable to ordinary equity holders of the parent

  36.00      94.09      1.67   

Diluted profit attributable to ordinary equity holders of the parent

  35.70      92.73      1.65   

 

(1) The amounts shown here do not correspond to the financial statements for the year ended December 31, 2013 and reflect immaterial reclassifications made to prior period to conform to current period presentation.
(2) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 2014.


QIWI plc.

Consolidated Cash Flow Statement

(in thousands, except per share data)

 

     Full Year ended  
     December 31, 2013     December 31, 2014     December 31, 2014  
     RUB     RUB     USD(1)  

Cash flows from operating activities

      

Profit before tax

     2,444,883        5,862,423        104,206   
  

 

 

   

 

 

   

 

 

 

Adjustments to reconcile profit before income tax to net cash

flows generated from operating activities

Depreciation and amortization

  113,100      353,400      6,282   

Loss/(gain) on disposal of property and equipment

  12,739      3,557      63   

Impairment of investment in associates

  21,540      24,634      438   

Impairment of intangible assets and goodwill

  5,479      —        —     

Foreign exchange loss, net

  (8,021   (1,930,729   (34,319

Interest income, net

  (346,013   (412,852   (7,339

Bad debt expense

  266,711      150,633      2,678   

Share of loss of associates

  78,896      26,583      473   

Share-based payments

  230,937      421,822      7,498   

Other

  4,609      14,721      262   
  

 

 

   

 

 

   

 

 

 

Operating profit before changes in working capital

  2,824,860      4,514,192      80,241   
  

 

 

   

 

 

   

 

 

 

(Increase)/decrease in trade and other receivables

  508,751      (2,745,399   (48,800

Increase in other assets

  (92,553   (232,422   (4,131

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

  (102,750   170,060      3,023   

Increase in accounts payable and accruals

  1,593,765      3,621,895      64,380   

Loans (issued)/repaid from banking operations

  257,194      (35,184   (625
  

 

 

   

 

 

   

 

 

 

Cash generated from operations

  4,989,267      5,293,142      94,087   
  

 

 

   

 

 

   

 

 

 

Interest received

  467,205      491,150      8,730   

Interest paid

  (24,194   (29,114   (518

Income tax paid

  (706,512   (1,000,002   (17,775
  

 

 

   

 

 

   

 

 

 

Net cash flow from operating activities

  4,725,766      4,755,176      84,524   
  

 

 

   

 

 

   

 

 

 

Cash flow from investing activities

Acquisitions of shares in subsidiaries, net of cash acquired

  (44   —        —     

Contribution to associates

  —        (26,357   (469

Payments for assignment of loans

  (90,750   (90,750   (1,613

Net cash inflow on disposal of subsidiaries

  4,000      —        —     

Purchase of property and equipment

  (182,823   (294,402   (5,233

Proceeds from sale of property and equipment

  6,848      —        —     

Purchase of intangible assets

  (192,385   (218,160   (3,878

Loans issued

  (24,508   (60,493   (1,075

Repayment of loans issued

  29,715      49,590      881   

Purchase of debt instruments

  (2,862,535   (2,553,313   (45,386

Proceeds from settlement of debt instruments

  2,111,902      1,591,485      28,289   
  

 

 

   

 

 

   

 

 

 

Net cash flow used in investing activities

  (1,200,580   (1,602,400   (28,483
  

 

 

   

 

 

   

 

 

 

Cash flows generated from financing activities

Issue of share capital

  —        3,044,357      54,114   

Exercise of options

  —        5,167      92   

Proceeds from borrowings

  34,068      71,747      1,275   

Repayment of borrowings

  (2,526   (672   (12

Transactions with non-controlling interest

  —        1,783      32   

Dividends paid to owners of the Group

  (1,881,082   (2,940,714   (52,272

Dividends paid to non-controlling shareholders

  (2,098   (2,388   (42

Compensation from underwriters

  72,836      —        —     

Distribution of underwriters’ commission

  (67,643   —        —     
  

 

 

   

 

 

   

 

 

 

Net cash flow used in/ generated from financing activities

  (1,846,445   179,280      3,187   
  

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

  15,012      2,110,996      37,523   
  

 

 

   

 

 

   

 

 

 

Net decrease in cash and cash equivalents

  1,693,753      5,443,052      96,752   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the beginning

  9,943,160      11,636,913      206,849   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end

  11,636,913      17,079,965      303,601   
  

 

 

   

 

 

   

 

 

 

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 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 (unaudited)  
     December 31, 2013(1)     December 31, 2014     December 31, 2014  
     RUB     RUB     USD(2)  

Revenue

     3,279        4,149        73.7   

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

     1,833        2,056        36.5   

Plus: Compensation to employees and related taxes

     255        376        6.7   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

  1,700      2,468      43.9   
  

 

 

   

 

 

   

 

 

 

Payment Revenue(3)

  2,679      3,161      56.2   

Minus: Cost of payment revenue (exclusive of depreciation and amortization)(4)

  1,569      1,609      28.6   

Plus: Compensation to employees and related taxes allocated to payment revenue(5)

  195      286      5.1   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

  1,305      1,838      32.7   
  

 

 

   

 

 

   

 

 

 

Other Revenue(6)

  600      988      17.6   

Minus: Cost of other revenue (exclusive of depreciation and amortization)(7)

  263      447      7.9   

Plus: Compensation to employees and related taxes allocated to other revenue(5)

  60      90      1.6   
  

 

 

   

 

 

   

 

 

 

Other Adjusted Net Revenue

  395      630      11.2   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

  1,305      1,838      32.7   

E-commerce

  374      648      11.5   

Financial services

  337      487      8.7   

Money remittances

  158      322      5.7   

Telecom

  341      264      4.7   

Other

  95      116      2.1   

Other Adjusted Net Revenue

  395      630      11.2   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

  1,700      2,468      43.9   
  

 

 

   

 

 

   

 

 

 

Net Profit

  495      2,008      35.7   
  

 

 

   

 

 

   

 

 

 

Plus:

Depreciation and amortization

  32      95      1.7   

Other income, excluding income from depositary

  (4   (1   (0.0

Other expenses

  2      20      0.4   

Foreign exchange gain

  (10   (2,130   (37.9

Foreign exchange loss

  6      635      11.3   

Share of loss of associates

  —        3      0.1   

Impairment of investment in associates

  —        —        —     

Interest income

  (9   (1   (0.0

Interest expenses

  9      11      0.2   

Income tax expenses

  144      197      3.5   

Offering expenses

  8      (13   (0.2

Income from depositary(8)

  (26   —        —     

Share-based payments expenses

  85      86      1.5   

Goodwill impairment

  —        —        —     
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  733      911      16.2   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

  43.1   36.9   36.9

Net profit

  495      2,008      35.7   

Amortization of fair value adjustments

  6      17      0.3   

Offering expenses

  8      (13   (0.2

Income from depositary

  (26   —        —     

Share-based payments expenses

  85      86      1.5   

Goodwill impairment

  —        —        —     

Effect of taxation of the above items

  (1   (4   (0.1

Foreign Exchange gain on June 2014 offering proceeds(9)

  —        (1,497   (26.6
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

  567      597      10.6   
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

Basic

  10.88      10.96      0.19   

Diluted

  10.69      10.84      0.19   

Shares used in computing Adjusted Net Profit per share

Basic

  52,115      54,503      54,503   

Diluted

  53,032      55,117      55,117   

 

(1) The amounts shown here do not correspond to the financial statements for the year ended December 31, 2013 and reflect immaterial reclassifications made to prior period to conform to current period presentation.
(2) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 2014-.
(3) Payment revenue primarily consists of the merchant and consumer fees charged for the payment transactions.
(4) 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.
(5) 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.
(6) Other revenue primarily consists of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, cash and settlement services and advertising.
(7) 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.
(8) Income from depositary is presented in the separate line in reconciliation tables for convenience purposes, while it is included in other income in financial statements.
(9) The Forex gain on SPO funds as presented in the reconciliation of Net Profit to Adjusted Net Profit differs from the Foreign exchange loss/(gain), net in the reconciliation of Net Profit to Adjusted EBITDA as the latter includes all the foreign exchange losses/(gains) for the period, while the former only include the foreign exchange gain on the US dollar amount, which we received at SPO.


QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)

 

     Full Year ended  
     December 31, 2013(1)     December 31, 2014     December 31, 2014  
     RUB     RUB     USD(2)  

Revenue

     11,666        14,719        261.6   

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

     6,396        7,273        129.3   

Plus: Compensation to employees and related taxes

     898        1,391        24.7   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

  6,168      8,836      157.1   
  

 

 

   

 

 

   

 

 

 

Payment Revenue(3)

  9,385      11,594      206.1   

Minus: Cost of payment revenue (exclusive of depreciation and amortization)(4)

  5,789      6,174      109.8   

Plus: Compensation to employees and related taxes allocated to payment revenue(5)

  724      1,096      19.5   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

  4,320      6,515      115.8   
  

 

 

   

 

 

   

 

 

 

Other Revenue(6)

  2,281      3,125      55.5   

Minus: Cost of other revenue (exclusive of depreciation and amortization)(7)

  607      1,099      19.5   

Plus: Compensation to employees and related taxes allocated to other revenue(5)

  174      295      5.2   
  

 

 

   

 

 

   

 

 

 

Other Adjusted Net Revenue

  1,848      2,321      41.3   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

  4,320      6,515      115.8   

E-commerce

  1,207      2,006      35.7   

Financial services

  1,010      1,931      34.3   

Money remittances

  450      987      17.5   

Telecom

  1,332      1,169      20.8   

Other

  322      422      7.5   

Other Adjusted Net Revenue

  1,848      2,321      41.3   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

  6,168      8,836      157.1   
  

 

 

   

 

 

   

 

 

 

Net Profit

  1,835      4,968      88.3   
  

 

 

   

 

 

   

 

 

 

Plus:

Depreciation and amortization

  113      353      6.3   

Other income, excluding income from depositary

  (21   (4   (0.1

Other expenses

  20      30      0.5   

Foreign exchange gain

  (79   (3,359   (59.7

Foreign exchange loss

  71      1,428      25.4   

Share of loss of associates

  79      27      0.5   

Impairment of investment in associates

  22      25      0.4   

Interest income

  (22   (2   (0.0

Interest expenses

  29      42      0.7   

Income tax expenses

  610      895      15.9   

Offering expenses

  155      32      0.6   

Income from depositary(8)

  (71   (38   (0.7

Share-based payments expenses

  231      422      7.5   

Goodwill impairment

  5      —        —     
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

  2,978      4,818      85.6   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

  48.3   54.5   54.5

Net profit

  1,835      4,968      88.3   

Amortization of fair value adjustments

  22      74      1.3   

Offering expenses

  155      32      0.6   

Income from depositary

  (71   (38   (0.7

Share-based payments expenses

  231      422      7.5   

Goodwill impairment

  5      —        —     

Effect of taxation of the above items

  (4   (15   (0.3

Foreign Exchange gain on June 2014 offering proceeds(9)

  —        (1,947   (34.6
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

  2,174      3,496      62.1   
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

Basic

  41.79      65.48      1.16   

Diluted

  41.44      64.53      1.15   

Shares used in computing Adjusted Net Profit per share

Basic

  52,034      53,396      53,396   

Diluted

  52,469      54,179      54,179   

 

(1) The amounts shown here do not correspond to the financial statements for the year ended December 31, 2013 and reflect immaterial reclassifications made to prior period to conform to current period presentation.
(2) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 2014.
(3) Payment revenue primarily consists of the merchant and consumer fees charged for the payment transactions.
(4) 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.
(5) 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.
(6) Other revenue primarily consists of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, cash and settlement services and advertising.
(7) 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.
(8) Income from depositary is presented in the separate line in reconciliation tables for convenience purposes, while it is included in other income in financial statements.
(9) The Forex gain on SPO funds as presented in the reconciliation of Net Profit to Adjusted Net Profit differs from the Foreign exchange loss/(gain), net in the reconciliation of Net Profit to Adjusted EBITDA as the latter includes all the foreign exchange losses/(gains) for the period, while the former only include the foreign exchange gain on the US dollar amount, which we received at SPO.


QIWI plc.

Other Operating Data

 

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

Payment volume (billion)(2)

     159.3        175.2        3.1   
  

 

 

   

 

 

   

 

 

 

E-commerce

  17.9      21.1      0.4   

Financial services

  47.4      46.6      0.8   

Money remittances

  12.2      21.6      0.4   

Telecom

  67.6      65.5      1.2   

Other

  14.3      20.4      0.4   
  

 

 

   

 

 

   

 

 

 

Payment adjusted net revenue (million)(3)

  1,304.9      1,837.8      32.7   
  

 

 

   

 

 

   

 

 

 

E-commerce

  374.0      648.5      11.5   

Financial services

  336.6      487.2      8.7   

Money remittances

  157.8      322.2      5.7   

Telecom

  341.4      263.6      4.7   

Other

  95.1      116.4      2.1   
  

 

 

   

 

 

   

 

 

 

Payment average net revenue yield

  0.82   1.05   1.05
  

 

 

   

 

 

   

 

 

 

E-commerce

  2.09   3.07   3.07

Financial services

  0.71   1.05   1.05

Money remittances

  1.30   1.49   1.49

Telecom

  0.50   0.40   0.40

Other

  0.67   0.57   0.57
  

 

 

   

 

 

   

 

 

 

Total average Net Revenue Yield

  1.07   1.41   1.41

Active kiosks and terminals (units)(4)

  168,236      181,148      181,148   

Active Visa Qiwi Wallet accounts(5)

  15.4      17.2      17.2   

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 2014.
(2) Payment volume by market verticals and consolidated payment volume consist of the amounts paid by our customers to merchants included in each of those market verticals less intra-group eliminations. The methodology of payment volumes allocation between different market verticals in QIWI’s international operations (including Kazakhstan) 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) We measure the numbers of our kiosks and terminals on a daily basis, with only those kiosks and terminals being taken into calculation through which at least one payment has been processed during the day, which we refer to as active kiosks and terminals. The period end numbers of our kiosks and terminals are calculated as an average of the amount of active kiosks and terminals for the last 30 days of the respective reporting period.
(5) 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

 

     Full Year ended  
     December 31, 2013     December 31, 2014     December 31, 2014  
     RUB     RUB     USD (1)  

Payment volume (billion)(2)

     560.5        645.4        11.5   
  

 

 

   

 

 

   

 

 

 

E-commerce

  62.9      75.2      1.3   

Financial services

  150.1      193.2      3.4   

Money remittances

  35.6      66.7      1.2   

Telecom

  265.0      251.3      4.5   

Other

  46.9      59.0      1.0   
  

 

 

   

 

 

   

 

 

 

Payment adjusted net revenue (million)(3)

  4,320.0      6,515.0      115.8   
  

 

 

   

 

 

   

 

 

 

E-commerce

  1,206.7      2,006.1      35.7   

Financial services

  1,009.5      1,931.4      34.3   

Money remittances

  450.2      986.5      17.5   

Telecom

  1,331.9      1,168.7      20.8   

Other

  321.7      422.3      7.5   
  

 

 

   

 

 

   

 

 

 

Payment average net revenue yield

  0.77   1.01   1.0
  

 

 

   

 

 

   

 

 

 

E-commerce

  1.92   2.67   2.67

Financial services

  0.67   1.00   1.00

Money remittances

  1.27   1.48   1.48

Telecom

  0.50   0.47   0.47

Other

  0.69   0.72   0.72
  

 

 

   

 

 

   

 

 

 

Total average Net Revenue Yield

  1.10   1.37   1.37

Active kiosks and terminals (units)(4)

  168,236      181,148      181,148   

Active Visa Qiwi Wallet accounts(5)

  15.4      17.2      17.2  

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 2014.
(2) Payment volume by market verticals consolidated payment volume consist of the amounts paid by our customers to merchants included in each of those market verticals less intra-group eliminations. The methodology of payment volumes allocation between different market verticals in QIWI’s international operations (including Kazakhstan) 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) We measure the numbers of our kiosks and terminals on a daily basis, with only those kiosks and terminals being taken into calculation through which at least one payment has been processed during the day, which we refer to as active kiosks and terminals. The period end numbers of our kiosks and terminals are calculated as an average of the amount of active kiosks and terminals for the last 30 days of the respective reporting period.
(5) 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.