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 15, 2016

 

 

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 Fourth Quarter and Full Year 2015 Financial Results” press release dated March 15, 2016


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 15, 2016     By:  

/s/ Alexander Karavaev

      Alexander Karavaev
      Chief Financial Officer
EX-99.1

Exhibit 99.1

 

LOGO

QIWI Announces Fourth Quarter and Full Year 2015 Financial Results

Fourth Quarter Total Adjusted Net Revenue Increases 8% to RUB 2,659 Million and Adjusted Net Profit

Increases 44% to RUB 860 Million or RUB 14.22 per diluted share

Full-Year 2015 Total Adjusted Net Revenue Increases 16% to RUB 10,228 Million and Adjusted Net

Profit Increases 18% to RUB 4,142 Million or RUB 71.46 per diluted share

QIWI gives 2016 Guidance

Board of Directors Approves Dividend of 50 cents per share

NICOSIA, CYPRUS – March 15, 2016 – QIWI plc, (NASDAQ: QIWI) (MOEX: QIWI) (“QIWI” or the “Company”) today announced results for the fourth quarter and year ended December 31, 2015.

Fourth Quarter 2015 Operating and Financial Highlights

 

    Total Adjusted Net Revenue increased 8% to RUB 2,659 million ($36.5 million)

 

    Adjusted EBITDA increased 34% to RUB 1,217 million ($16.7 million)

 

    Adjusted Net Profit increased 44% to RUB 860 million ($11.8 million), or RUB 14.22 per diluted share

 

    Total payment volume increased 37% to RUB 239.5 billion ($3.3 billion)

Full-Year 2015 Operating and Financial Highlights

 

    Total Adjusted Net Revenue increased 16% to RUB 10,228 million ($140.3 million)

 

    Adjusted EBITDA increased 17% to RUB 5,640 million ($77.4 million)

 

    Adjusted Net Profit increased 18% to RUB 4,142 million ($56.8 million), or RUB 71.46 per diluted share

 

    Total payment volume increased 35% to RUB 872.6 billion ($12.0 billion)

 

    Visa QIWI Wallet active accounts decreased 6% to 16.1 million

“In the fourth quarter we continued to see the pressure from both the macroeconomic slowdown in Russia resulting in weaker consumer finance market and lower demand for money remittance services due to shifting migration trends, and stricter regulation of the agents network,” said Sergey Solonin, QIWI’s chief executive officer. “Notwithstanding the challenging market and regulatory environment, we maintain high levels of operating leverage and have kept our costs under control. Although we believe that 2016 will be challenging, we are focusing on increasing the loyalty of both our consumers and merchants by offering them a broader scope of services and gaining market share in the key verticals.”

Fourth Quarter 2015 Results

Revenues: Total Adjusted Net Revenue for the quarter ended December 31, 2015 was RUB 2,659 million ($36.5 million), an increase of 8% compared with RUB 2,468 million in the prior year.


Payment Adjusted Net Revenue was RUB 1,971 million ($27.0 million), an increase of 7% compared with RUB 1,838 million in the prior year. Payment Adjusted Net Revenue growth was predominantly driven by an increase in payment volume across most verticals except Telecom, especially the E-commerce and Money Remittances market verticals, that was in turn partially offset by the declining net revenue yields primarily as a result of the acquisition and consolidation of Contact and Rapida which operate on significantly lower net revenue yields than legacy QIWI business.

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 688 million ($9.4 million), an increase of 9% compared with RUB 630 million in the prior year. The growth in the fourth quarter was mainly due to increase in inactivity fees and revenue from advertising offset by decline in cash and settlement services and revenue from rent of space of kiosks. Inactivity fees for the fourth quarter were RUB 397 million ($5.4 million) compared with RUB 183 million in the prior year as a result of changes to the write-off policy as well as consolidation of Contact and Rapida business. Other Adjusted Net Revenue excluding revenue from fees for inactive accounts decreased 35% compared with the same period in the prior year.

Total Adjusted Net Revenue excluding revenue from fees for inactive accounts decreased 1% compared with the same period in the prior year.

Adjusted EBITDA: For the quarter ended December 31, 2015, Adjusted EBITDA was RUB 1,217 million ($16.7 million), an increase of 34% compared with RUB 911 million in the prior year. Adjusted EBITDA growth resulted mainly from lower marketing spend as compared to a prior year and efficient cost control, although the growth was offset by increase in bad debt expense from RUB 95 million in 2014 to RUB 288 in 2015 due to an increase in reserves for receivables from several of QIWI’s agents who have shown signs of financial instability. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was 45.8% compared with 36.9% in the prior year. Adjusted EBITDA excluding inactivity fees was RUB 820 million ($11.2 million), an increase of 13% compared with RUB 727 million in the prior year. Adjusted EBITDA margin excluding inactivity fees was 36.3% compared with 31.8% in the prior year.

Adjusted Net Profit: For the quarter ended December 31, 2015, Adjusted Net Profit was RUB 860 million ($11.8 million), an increase of 44% compared with RUB 597 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 20% compared with the prior year.

Other Operating Data: For the quarter ended December 31, 2015, total payment volume was RUB 239.5 billion ($3.3 billion), an increase of 37% compared with RUB 175.2 billion in the prior year. Payment volume increased across most verticals driven largely by Contact and Rapida businesses consolidation. Payment average net revenue yield was 0.82%, a decrease of 23 bps compared with 1.05% in the prior year primarily due to the consolidation of lower yielding Contact and Rapida businesses.

Total average Net Revenue Yield was 1.11%, a decrease of 30 bps as compared with 1.41% in the prior year. Total average Net Revenue Yield excluding the effect of inactivity fees was 0.94%, a decrease of 36 bps as compared with the same period in the prior year.


Full-Year 2015 Results

Revenues: Total Adjusted Net Revenue for the year ended December 31, 2015 was RUB 10,228 million ($140.3 million), an increase of 16% compared with RUB 8,836 million in the prior year.

Payment Adjusted Net Revenue was RUB 7,522 million ($103.2 million), an increase of 15% compared with RUB 6,515 million in the prior year. Payment Adjusted Net Revenue growth was predominantly driven by an increase in payment volume across all verticals especially the E-commerce and Money Remittances market verticals, that was in turn partially offset by the declining net revenue yields primarily as a result of the acquisition and consolidation of Contact and Rapida which operate on significantly lower net revenue yields than legacy QIWI business.

Other Adjusted Net Revenue was RUB 2,706 million ($37.1 million), an increase of 17% compared with RUB 2,321 million in the prior year. Revenue from fees for inactive accounts was RUB 1,113 million ($15.3 million) in 2015 compared to RUB 656 million in the prior year due to the same reasons discussed for the fourth quarter. Other Adjusted Net Revenue excluding revenue from fees for inactive accounts decreased 4% compared with the same period in the prior year.

Total Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 11% compared with the same period in the prior year.

Adjusted EBITDA: For the year ended December 31, 2015, Adjusted EBITDA was RUB 5,640 million ($77.4 million), an increase of 17% compared with RUB 4,818 million in the prior year. Adjusted EBITDA growth was mainly driven by revenue growth and operating leverage in the business. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was 55.1% compared with 54.5% in the prior year. Adjusted EBITDA excluding inactivity fees was RUB 4,528 million ($62.1 million), an increase of 9% compared with RUB 4,161 million in the prior year. Adjusted EBITDA margin excluding inactivity fees was 49.7% compared with 51.0% in the prior year.

Adjusted Net Profit: For the year ended December 31, 2015, Adjusted Net Profit was RUB 4,142 million ($56.8 million), an increase of 18% compared with RUB 3,496 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 9% compared with the prior year.

Other Operating Data: For the year ended December 31, 2015, total payment volume was RUB 872.6 billion ($12.0 billion), an increase of 35% compared with RUB 645.4 billion in the prior year. Payment volume increased across all verticals driven largely by consolidation of Contact and Rapida businesses as well as organic growth in E-commerce and Money Remittance market verticals. Average payment net revenue yield was 0.86%, a decrease of 15 bps compared with 1.01% in the prior year primarily due to the consolidation of lower yielding Contact and Rapida businesses.

The total average Net Revenue Yield was 1.17%, a decrease of 20 bps as compared with 1.37% in the prior year. The total average Net Revenue Yield excluding the effect of inactivity fees was 1.04%, a decrease of 23 bps as compared with the same period in the prior year.

The number of active kiosks and terminals was 172,269 (including approximately 25,000 additional Contact and Rapida physical points of service which are located in retail stores and bank branches across Russia and the CIS), a decrease of 5% compared with the prior year, primarily resulting from enhanced controls that the Central Bank of Russia has implemented over the agents. The number of active Visa Qiwi Wallet accounts was 16.1 million as of the end of 2015, a decrease of 1.1 million, or 6%, as compared with 17.2 million in 2014. The decrease was driven mainly by the lower marketing spend in 2015 as compared to 2014, as well as the decrease in the kiosk network in Russia in the second half of 2015 and overall economic downturn affecting consumer activity.


Recent Developments

Dividend: Following the determination of fourth quarter 2015 financial results and given that there are currently no potential M&A opportunities which require a significant capital allocation, our Board of Directors recommended a dividend of USD50 cents per share. The dividend record date is March 29, 2016, and the Company intends to pay the dividend on March 31, 2016. The holders of ADSs will receive the dividend shortly thereafter.

We continue to pursue certain M&A targets, thus our view on dividends distribution throughout 2016 is subject to change.

Impact of Contact and Rapida: Starting June 1st 2015 we consolidate financial results of Contact and Rapida in our financial statements which are presented in the Annex below. Contact and Rapida have become a strong addition to the core business of QIWI contributing to Money Remittance, Financial Services and E-commerce market verticals as well as significantly increasing our share of the Russian money remittance market, broadening our merchant relationships and consumer base and strengthening our team. The integration is going in accordance with the plan.

Regulation by the Central Bank of Russia: Our kiosk network in Russia was affected by the enhanced controls that the Central Bank of Russia has implemented to ensure compliance by the agents with legislation that requires them to remit their proceeds to special accounts, as disclosed in our Form 6-K filed on November 2, 2015.

Although through reducing the size of our network, this adversely affects the availability and convenience of our services to consumers in the short-term, we continue to believe that increased transparency in the kiosk market will ultimately allow us to improve our market share and strengthen our competitive advantages.

2016 Guidance1

QIWI provides its guidance in respect of 2016 outlook:

 

    Total Adjusted Net Revenue is expected to increase by 5% to 8% over 2015

 

    Adjusted Net Profit is expected to increase by 7% to 12% over 2015

The overall macroeconomic conditions continue to adversely affect the purchasing power of Russian population as high inflation combined with decreasing real wages put pressure on the disposable income. This in turn leads to the overall decrease in consumer spending and consequently our payment volumes, especially in Financial Services market vertical, which is impacted by several factors including lack of refinancing options for the consumers, and aforementioned decrease in real disposable income.

We have also noted negative trends in Money Remittance market due to shifting migration trends. We anticipate that downward trends and weaker demand for money remittance services can negatively affect our volumes and revenues in this category.

 

1  Guidance is provided in Russian rubles


Earnings Conference Call and Audio Webcast

QIWI will host a conference call to discuss fourth quarter and full year 2015 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 13631938. The replay will be available until Tuesday, March 22, 2016. 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 16.1 million virtual wallets, over 172,000 kiosks and terminals, and enabled merchants to accept over RUB 70 billion cash and electronic payments monthly from over 67 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

+357.25028091

ir@qiwi.com

  

Varvara Kiseleva

Investor Relations

+357.25028091

ir@qiwi.com


QIWI plc.

Consolidated Statement of Financial Position

(in thousands)

 

     As of December 31,
2014
    As of December 31,
2015
     As of December 31,
2015
 
     RUB     RUB      USD(1)  

Assets

       

Non-current assets

       

Property and equipment

     379,943        365,869         5,020   

Goodwill and other intangible assets

     2,367,623        12,253,988         168,132   

Long-term debt instruments

     1,806,295        1,562,620         21,440   

Long-term loans

     52,648        22,959         315   

Other non-current assets

     42,455        53,027         728   

Deferred tax assets

     239,571        303,876         4,169   
  

 

 

   

 

 

    

 

 

 

Total non-current assets

     4,888,535        14,562,339         199,804   
  

 

 

   

 

 

    

 

 

 

Current assets

       

Trade and other receivables

     5,305,275        5,091,542         69,859   

Short-term loans

     31,588        340,420         4,671   

Short-term debt instruments

     2,132,887        1,338,365         18,363   

Prepaid income tax

     89,239        96,687         1,327   

VAT and other taxes receivable

     51,078        26,018         357   

Cash and cash equivalents

     17,079,965        19,363,204         265,675   

Other current assets

     345,688        758,920         10,413   
  

 

 

   

 

 

    

 

 

 

Total current assets

     25,035,720        27,015,156         370,665   
  

 

 

   

 

 

    

 

 

 

Assets of disposal group classified as held for sale

     125,867        —           —     
  

 

 

   

 

 

    

 

 

 

Total assets

     30,050,122        41,577,495         570,469   
  

 

 

   

 

 

    

 

 

 

Equity and liabilities

       

Equity attributable to equity holders of the parent

       

Share capital

     963        1,137         16   

Additional paid-in capital

     1,876,104        1,876,104         25,741   

Share premium

     3,044,303        12,068,267         165,584   

Other reserve

     764,243        839,953         11,525   

Retained earnings

     2,683,805        7,176,540         98,467   

Translation reserve

     204,337        460,848         6,323   
  

 

 

   

 

 

    

 

 

 

Total equity attributable to equity holders of the parent

     8,573,755        22,422,849         307,655   

Non-controlling interest

     (239,385     12,734         175   
  

 

 

   

 

 

    

 

 

 

Total equity

     8,334,370        22,435,583         307,830   
  

 

 

   

 

 

    

 

 

 

Non-current liabilities

       

Long-term borrowings

     41,981        —           —     

Other non-current liabilities

     9,381        2,403         33   

Deferred tax liabilities

     37,758        1,138,182         15,617   
  

 

 

   

 

 

    

 

 

 

Total non-current liabilities

     89,120        1,140,585         15,650   
  

 

 

   

 

 

    

 

 

 

Current liabilities

       

Trade and other payables

     20,179,673        15,295,162         209,859   

Amounts due to customers and amounts due to banks

     1,001,286        2,243,108         30,777   

Income tax payable

     11,290        334,346         4,587   

VAT and other taxes payable

     127,733        119,055         1,634   

Deferred revenue

     52,008        6,747         93   

Other current liabilities

     1,117        2,909         40   
  

 

 

   

 

 

    

 

 

 

Total current liabilities

     21,373,107        18,001,327         246,989   
  

 

 

   

 

 

    

 

 

 

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

     253,525        —           —     
  

 

 

   

 

 

    

 

 

 

Total equity and liabilities

     30,050,122        41,577,495         570,469   
  

 

 

   

 

 

    

 

 

 

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 72.883 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2015.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in thousands, except per share data)

 

     Three months ended (unaudited)  
     December 31, 2014     December 31, 2015     December 31, 2015  
     RUB     RUB     USD(1)  

Revenue

     4,148,652        4,857,820        66,652   

Operating costs and expenses:

      

Cost of revenue (exclusive of depreciation and amortization)

     2,055,912        2,520,494        34,583   

Selling general and administrative expenses

     1,255,161        1,146,184        15,726   

Depreciation and amortization

     95,315        221,082        3,033   

Profit from operations

     742,264        970,060        13,310   
  

 

 

   

 

 

   

 

 

 

Gain from disposal of subsidiaries

     —          (70,579     (968

Other income

     1,353        4,990        68   

Other expenses

     (20,107     (32,489     (446

Foreign exchange gain

     2,129,776        994,048        13,639   

Foreign exchange loss

     (634,819     (439,008     (6,023

Share of loss of associates

     (3,313     —          —     

Interest income

     639        13,366        183   

Interest expense

     (11,151     (31,668     (435
  

 

 

   

 

 

   

 

 

 

Profit before tax

     2,204,642        1,408,720        19,329   

Income tax expense

     (196,950     (138,827     (1,905
  

 

 

   

 

 

   

 

 

 

Net profit

     2,007,692        1,269,893        17,424   
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     2,023,897        1,267,347        17,389   

Non-controlling interests

     (16,206     2,546        35   

Other comprehensive income

      

Exchange differences on translation of foreign operations

      

Differences arising during the year

     86,507        143,849        1,974   
  

 

 

   

 

 

   

 

 

 

Total comprehensive income net of tax

     2,094,199        1,413,742        19,397   
  

 

 

   

 

 

   

 

 

 

attributable to:

      

Equity holders of the parent

     2,176,919        1,409,647        19,341   

Non-controlling interests

     (82,721     4,095        56   

Earnings per share:

      

Basic profit attributable to ordinary equity holders of the parent

     37.13        20.98        0.29   

Diluted profit attributable to ordinary equity holders of the parent

     36.72        20.97        0.29   

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 72.883 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2015.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in thousands, except per share data)

 

     Full Year ended  
     December 31, 2014     December 31, 2015     December 31, 2015  
     RUB     RUB     USD(1)  

Revenue

     14,718,727        17,716,967        243,088   

Operating costs and expenses:

      

Cost of revenue (exclusive of depreciation and amortization)

     7,273,099        8,695,104        119,302   

Selling general and administrative expenses

     3,082,177        3,469,039        47,597   

Depreciation and amortization

     353,400        688,666        9,449   

Profit from operations

     4,010,051        4,864,158        66,739   
  

 

 

   

 

 

   

 

 

 

Loss from disposal of subsidiaries

     —          (37,984     (521

Other income

     42,253        19,961        274   

Other expenses

     (29,572     (43,439     (596

Foreign exchange gain

     3,359,207        2,800,716        38,428   

Foreign exchange loss

     (1,428,478     (1,359,530     (18,654

Share of loss of associates

     (26,583     —          —     

Impairment of investment in associates

     (24,634     —          —     

Interest income

     1,692        16,198        222   

Interest expense

     (41,513     (109,312     (1,500
  

 

 

   

 

 

   

 

 

 

Profit before tax

     5,862,423        6,150,768        84,392   

Income tax expense

     (894,506     (877,006     (12,033
  

 

 

   

 

 

   

 

 

 

Net profit

     4,967,917        5,273,762        72,359   
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     5,024,140        5,187,414        71,175   

Non-controlling interests

     (56,223     86,348        1,185   

Other comprehensive income

      

Exchange differences on translation of foreign operations

      

Differences arising during the year

     105,789        230,641        3,165   

Accumulated exchange differences reclassified to earnings upon disposal of foreign operations

     —          56,107        770   
  

 

 

   

 

 

   

 

 

 

Total comprehensive income net of tax

     5,073,706        5,560,510        76,294   
  

 

 

   

 

 

   

 

 

 

attributable to:

      

Equity holders of the parent

     5,217,720        5,443,925        74,694   

Non-controlling interests

     (144,014     116,585        1,600   

Earnings per share:

      

Basic profit attributable to ordinary equity holders of the parent

     94.09        89.72        1.23   

Diluted profit attributable to ordinary equity holders of the parent

     92.73        89.49        1.23   

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 72.883 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2015.


QIWI plc.

Consolidated Statement of Cash Flows

(in thousands)

 

     Full Year ended  
     December 31, 2014(1)     December 31, 2015     December 31, 2015  
     RUB     RUB     USD(1)  

Cash flows from operating activities

      

Profit before tax

     5,862,423        6,150,768        84,392   
  

 

 

   

 

 

   

 

 

 

Adjustments to reconcile profit before income tax to net cash flow (used in)/generated from operating activities

      

Depreciation and amortization

     353,400        688,666        9,449   

Loss on disposal of property and equipment

     3,557        9,493        130   

Impairment of investment in associates

     24,634        —          —     

Foreign exchange gain, net

     (1,930,729     (1,441,186     (19,774

Interest income, net

     (412,852     (559,080     (7,671

Bad debt expense, net

     150,633        361,848        4,965   

Share of loss of associates

     26,583        —          —     

Share-based payments

     421,822        87,645        1,203   

Loss from disposal of subsidiaries, net

     —          37,984        521   

Gain from sale of investments

     —          (7,089     (97

Other

     14,721        (2,640     (36
  

 

 

   

 

 

   

 

 

 

Operating profit before changes in working capital

     4,514,192        5,326,409        73,082   
  

 

 

   

 

 

   

 

 

 

(Increase)/decrease in trade and other receivables

     (2,745,399     2,247,900        30,843   

(Increase)/decrease in other assets

     (232,422     128,489        1,763   

Increase in amounts due to customers and amounts due to banks

     170,060        409,004        5,612   

Increase/(decrease) in accounts payable and accruals

     3,621,895        (8,882,698     (121,876

Loans issued/(repaid) from banking operations

     (35,184     39,901        547   
  

 

 

   

 

 

   

 

 

 

Cash (used in)/generated from operations

     5,293,142        (730,995     (10,030
  

 

 

   

 

 

   

 

 

 

Interest received

     491,150        716,171        9,826   

Interest paid

     (29,114     (180,899     (2,482

Income tax paid

     (1,000,002     (811,085     (11,129
  

 

 

   

 

 

   

 

 

 

Net cash flow (used in)/generated from operating activities

     4,755,176        (1,006,808     (13,814
  

 

 

   

 

 

   

 

 

 

Cash flows used in investing activities

      

Cash acquired upon/(used in) business combination

     —          3,180,605        43,640   

Contribution to associates without change in ownership

     (26,357     —          —     

Payment for assignment of loans

     (90,750     —          —     

Purchase of available-for-sale investments

     —          (5,627     (77

Proceeds from sale of investments

     —          7,557        104   

Net cash inflow/(outflow) on disposal of subsidiaries

     —          (57,498     (789

Purchase of property and equipment

     (294,402     (87,746     (1,204

Purchase of intangible assets

     (218,160     (221,973     (3,046

Loans issued

     (60,493     (780,335     (10,707

Repayment of loans issued

     49,590        457,746        6,281   

Purchase of debt instruments

     (2,553,313     (981,847     (13,472

Proceeds from settlement of debt instruments

     1,591,485        2,045,478        28,065   
  

 

 

   

 

 

   

 

 

 

Net cash flow (used in)/generated from investing activities

     (1,602,400     3,556,360        48,795   
  

 

 

   

 

 

   

 

 

 

Cash flows generated from financing activities

      

Issue of share capital

     3,044,357        —          —     

Exercise of options

     5,167        —          —     

Proceeds from borrowings

     71,747        57,986        796   

Repayment of borrowings

     (672     (1,251,928     (17,177

Transactions with non-controlling interest

     1,783        —          —     

Dividends paid to owners of the Group

     (2,940,714     (698,912     (9,590

Dividends paid to non-controlling shareholders

     (2,388     —          —     

Net cash flow generated from/(used in) financing activities

     179,280        (1,892,854     (25,971
  

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     2,125,816        1,611,721        22,114   
  

 

 

   

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     5,457,872        2,268,419        31,124   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the beginning of the period

     11,636,913        17,094,785        234,551   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     17,094,785        19,363,204        265,675   
  

 

 

   

 

 

   

 

 

 

 

(1) The amounts shown here differ immaterially from the financial statements for the year ended December 31, 2014 and reflect insignificant adjustments made to prior period for cash in held-for-sale assets.
(2) Calculated using a ruble to U.S. dollar exchange rate of RUB 72.883 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2015.


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 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.


QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)

 

     Three months ended (unaudited)  
     December 31, 2014     December 31, 2015     December 31, 2015  
     RUB     RUB     USD(1)  

Revenue

     4,149        4,858        66.7   

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

     2,056        2,520        34.6   

Plus: Compensation to employees and related taxes

     376        322        4.4   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     2,468        2,659        36.5   
  

 

 

   

 

 

   

 

 

 

Payment Revenue(2)

     3,161        3,878        53.2   

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

     1,609        2,164        29.7   

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

     286        257        3.5   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

     1,838        1,971        27.0   
  

 

 

   

 

 

   

 

 

 

Other Revenue(5)

     988        980        13.4   

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

     447        356        4.9   

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

     90        65        0.9   
  

 

 

   

 

 

   

 

 

 

Other Adjusted Net Revenue

     630        688        9.4   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

     1,838        1,971        27.0   

E-commerce

     648        767        10.5   

Financial services

     487        339        4.7   

Money remittances

     322        509        7.0   

Telecom

     264        230        3.2   

Other

     116        125        1.7   

Other Adjusted Net Revenue

     630        688        9.4   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     2,468        2,659        36.5   
  

 

 

   

 

 

   

 

 

 

Net Profit

     2,008        1,270        17.4   
  

 

 

   

 

 

   

 

 

 

Plus:

      

Depreciation and amortization

     95        221        3.0   

Other income

     (1     (5     (0.1

Other expenses

     20        32        0.4   

Foreign exchange gain

     (2,130     (994     (13.6

Foreign exchange loss

     635        439        6.0   

Share of loss of associates

     3        —          —     

Interest income

     (1     (13     (0.2

Interest expenses

     11        32        0.4   

Income tax expenses

     197        139        1.9   

Offering expenses

     (13     —          —     

Share-based payments expenses

     86        26        0.4   

Loss from disposal of subsidiaries

     —          71        1.0   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     911        1,217        16.7   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

     36.9 %      45.8 %      45.8 % 

Net profit

     2,008        1,270        17.4   

Amortization of fair value adjustments(7)

     17        104        1.4   

Offering expenses

     (13     —          —     

Share-based payments expenses

     86        26        0.4   

Effect of taxation of the above items

     (4     (20     (0.3

Gain from disposal of subsidiaries

     —          71        1.0   

Foreign Exchange gain on June 2014 offering proceeds(8)

     (1,497     (591     (8.1
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     597        860        11.8   
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

      

Basic

     10.96        14.23        0.20   

Diluted

     10.84        14.22        0.20   

Shares used in computing Adjusted Net Profit per share

      

Basic

     54,503        60,419        60,419   

Diluted

     55,117        60,451        60,451   


 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 72.883 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2015.
(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 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.
(7) Amortization of fair value adjustments includes the effect of the acquisition of control in Contact and Rapida.
(8) 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, 2014     December 31, 2015     December 31, 2015  
     RUB     RUB     USD(1)  

Revenue

     14,719        17,717        243.1   

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

     7,273        8,695        119.3   

Plus: Compensation to employees and related taxes

     1,391        1,206        16.6   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     8,836        10,228        140.3   
  

 

 

   

 

 

   

 

 

 

Payment Revenue(2)

     11,594        13,822        189.7   

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

     6,174        7,241        99.4   

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

     1,096        941        12.9   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

     6,515        7,522        103.2   
  

 

 

   

 

 

   

 

 

 

Other Revenue(5)

     3,125        3,895        53.4   

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

     1,099        1,454        19.9   

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

     295        265        3.6   
  

 

 

   

 

 

   

 

 

 

Other Adjusted Net Revenue

     2,321        2,706        37.1   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

     6,515        7,522        103.2   

E-commerce

     2,006        2,856        39.2   

Financial services

     1,931        1,373        18.8   

Money remittances

     987        1,788        24.5   

Telecom

     1,169        998        13.7   

Other

     422        507        7.0   

Other Adjusted Net Revenue

     2,321        2,706        37.1   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     8,836        10,228        140.3   
  

 

 

   

 

 

   

 

 

 

Net Profit

     4,968        5,274        72.4   
  

 

 

   

 

 

   

 

 

 

Plus:

      

Depreciation and amortization

     353        689        9.4   

Other income

     (4     (20     (0.3

Other expenses

     30        43        0.6   

Foreign exchange gain

     (3,359     (2,801     (38.4

Foreign exchange loss

     1,428        1,360        18.7   

Share of loss of associates

     27        —          —     

Impairment of investment in associates

     25        —          —     

Interest income

     (2     (16     (0.2

Interest expenses

     42        109        1.5   

Income tax expenses

     895        877        12.0   

Offering expenses

     32        —          —     

Income from depositary(7)

     (38     —          —     

Share-based payments expenses

     422        88        1.2   

Loss from disposal of subsidiaries

     —          38        0.5   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     4,818        5,640        77.4   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

     54.5     55.1     55.1

Net profit

     4,968        5,274        72.4   

Amortization of fair value adjustments(8)

     74        270        3.7   

Offering expenses

     32        —          —     

Income from depositary

     (38     —          —     

Share-based payments expenses

     422        88        1.2   

Effect of taxation of the above items

     (15     (52     (0.7

Loss from disposal of subsidiaries

     —          38        0.5   

Foreign Exchange gain on June 2014 offering proceeds(9)

     (1,947     (1,476     (20.3
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     3,496        4,142        56.8   
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

      

Basic

     65.48        71.64        0.98   

Diluted

     64.53        71.46        0.98   

Shares used in computing Adjusted Net Profit per share

      

Basic

     53,396        57,819        57,819   

Diluted

     54,179        57,967        57,967   


 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 72.883 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2015.
(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 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.
(7) 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.
(8) Amortization of fair value adjustments includes the effect of the acquisition of control in Contact and Rapida.
(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, 2014     December 31, 2015     December 31, 2015  
     RUB     RUB     USD (1)  

Payment volume (billion)(2)(3)

     175.2        239.5        3.3   
  

 

 

   

 

 

   

 

 

 

E-commerce

     21.1        33.2        0.5   

Financial services

     46.6        72.4        1.0   

Money remittances

     21.6        47.4        0.7   

Telecom

     65.5        56.6        0.8   

Other

     20.4        29.7        0.4   
  

 

 

   

 

 

   

 

 

 

Payment adjusted net revenue (million)(4)

     1,837.8        1,971.0        27.0   
  

 

 

   

 

 

   

 

 

 

E-commerce

     648.5        767.2        10.5   

Financial services

     487.2        339.4        4.7   

Money remittances

     322.2        509.4        7.0   

Telecom

     263.6        229.7        3.2   

Other

     116.4        125.3        1.7   
  

 

 

   

 

 

   

 

 

 

Payment average net revenue yield

     1.05     0.82     0.82
  

 

 

   

 

 

   

 

 

 

E-commerce

     3.07     2.31     2.31

Financial services

     1.05     0.47     0.47

Money remittances

     1.49     1.07     1.07

Telecom

     0.40     0.41     0.41

Other

     0.57     0.42     0.42
  

 

 

   

 

 

   

 

 

 

Total average Net Revenue Yield

     1.41     1.11     1.11

Active kiosks and terminals (units)(5)

     181,148        172,269        172,269   

Active Qiwi Wallet accounts (million)(6)

     17.2        16.1        16.1   

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 72.883 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2015.
(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 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 Contact and Rapida may differ from the methodology used by QIWI. We therefore retain the right to restate the presented volumes, net revenues and net revenue yields data in case the methodology of Contact and Rapida will be brought in conformity with the methodology used by QIWI.
(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) 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.
(6) 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, 2014     December 31, 2015     December 31, 2015  
     RUB     RUB     USD (1)  

Payment volume (billion)(2)(3)

     645.4        872.6        12.0   
  

 

 

   

 

 

   

 

 

 

E-commerce

     75.2        115.2        1.6   

Financial services

     193.2        241.1        3.3   

Money remittances

     66.7        164.2        2.3   

Telecom

     251.3        252.3        3.5   

Other

     59.0        99.8        1.4   
  

 

 

   

 

 

   

 

 

 

Payment adjusted net revenue (million)(4)

     6,515.0        7,522        103.2   
  

 

 

   

 

 

   

 

 

 

E-commerce

     2,006.1        2,856.1        39.2   

Financial services

     1,931.4        1,373.1        18.8   

Money remittances

     986.5        1,788.3        24.5   

Telecom

     1,168.7        997.9        13.7   

Other

     422.3        507.0        7.0   
  

 

 

   

 

 

   

 

 

 

Payment average net revenue yield

     1.01     0.86     0.86
  

 

 

   

 

 

   

 

 

 

E-commerce

     2.67     2.48     2.48

Financial services

     1.00     0.57     0.57

Money remittances

     1.48     1.09     1.09

Telecom

     0.47     0.40     0.40

Other

     0.72     0.51     0.51
  

 

 

   

 

 

   

 

 

 

Total average Net Revenue Yield

     1.37     1.17     1.17

Active kiosks and terminals (units)(5)

     181,148        172,269        172,269   

Active Qiwi Wallet accounts (million)(6)

     17.2        16.1        16.1  

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 72.883 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2015.
(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 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 Contact and Rapida may differ from the methodology used by QIWI. We therefore retain the right to restate the presented volumes, net revenues and net revenue yields data in case the methodology of Contact and Rapida will be brought in conformity with the methodology used by QIWI.
(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) 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.
(6) 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.