6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF A FOREIGN ISSUER

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

OF THE SECURITIES EXCHANGE ACT OF 1934

For November 20, 2019

 

 

QIWI plc

 

 

12-14 Kennedy Ave.

Kennedy Business Centre, 2nd Floor, Office 203

1087 Nicosia Cyprus

(Address of principal executive offices)

 

 

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

Form 20-F  ☒            Form 40-F  ☐

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

Yes  ☐            No  ☒

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

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

 

 

 


Exhibits

    
99.1    “QIWI Announces Third Quarter 2019 Financial Results” press release dated November 20, 2019


SIGNATURES

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

 

    QIWI PLC (Registrant)

Date: November 20, 2019

   

By:

 

/s/ Varvara Kiseleva

     

Varvara Kiseleva

     

Interim Chief Financial Officer

EX-99.1

Exhibit 99.1

LOGO

QIWI Announces Third Quarter 2019 Financial Results

Third Quarter Total Adjusted Net Revenue Increases 15% to RUB 5,993 Million and Adjusted Net Profit Increases 62% to RUB 1,893 Million or RUB 30.30 per diluted share

QIWI upgrades 2019 Guidance

Board of Directors Approves Dividends of 28 cents per share

NICOSIA, CYPRUS – November 20, 2019 – QIWI plc (NASDAQ: QIWI) (MOEX: QIWI) (“QIWI” or the “Company”) today announced results for the third quarter ended September 30, 2019.

Third Quarter 2019 Operating and Financial Highlights

 

   

Total Adjusted Net Revenue increased 15% to RUB 5,993 million ($93.0 million)

 

   

Payment Services Segment Net Revenue increased 29% to RUB 5,484 million ($85.1 million)

 

   

Adjusted EBITDA increased 54% to RUB 2,516 million ($39.1 million)

 

   

Adjusted Net Profit increased 62% to RUB 1,893 million ($29.4 million), or RUB 30.30 per diluted share

 

   

Payment Services Segment Net Profit increased 31% to RUB 3,259 million ($50.6 million) or RUB 52.15 per diluted share

 

   

Total Payment Services volume increased 32% to RUB 391.3 billion ($6.1 billion)

“Today I’m glad to share our third quarter 2019 financial results. This quarter we continue to demonstrate robust performance, especially in our Payment Services business, which delivered 29% segment net revenue growth and 31% segment net profit growth. The performance of our payment services business continues to be driven predominantly by the expansion and enhancement of the product proposition we offer to our users, merchants and partners underpinned by the secular trends in our key markets. Our results clearly emphasize the value and relevance of the payment ecosystem we have developed so far and aim to develop further,” said Sergey Solonin, QIWI’s chief executive officer. “As we continue to benefit from the strong performance and substantial cash flows generated by the Payment Services segment, which remains a core part of our business, we proceed with pursuing our strategy of building up our payment and financial services ecosystem and investing in the development of new products and projects, the majority of which also demonstrate improving operating and financial performance. We see many opportunities both in the payment space and in the adjacent markets and I believe we are well positioned to continue strengthening our ecosystem with the ultimate goal of securing a long-term growth prospects.”

Third Quarter 2019 Results

Adjusted and Segment Net Revenues: Total Adjusted Net Revenue (Total Segment Net Revenue) for the quarter ended September 30, 2019 was RUB 5,993 million ($93.0 million), an increase of 15% compared with RUB 5,230 million in the prior year. The increase was mainly driven by Payment Services and CFS Segments Net Revenue growth, which was partially offset by the decline in the SME Segment Net Revenue as well as negative Net Revenue contribution of Rocketbank Segment.


Payment Services Segment Net Revenue for the quarter ended September 30, 2019 was RUB 5,484 million ($85.1 million), an increase of 29% compared with RUB 4,257 million in the prior year.

PS Payment Adjusted Net Revenue was RUB 4,676 million ($72.6 million), an increase of 27% compared with RUB 3,668 million in the prior year. PS Payment Adjusted Net Revenue growth was predominantly driven by volume growth in E-commerce, Financial Services and Money Remittance market verticals partially offset by a slight decline in the Payment Average Adjusted Net Revenue Yield.

PS Other Adjusted Net Revenue, which is principally composed of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, and advertising, was RUB 808 million ($12.5 million), an increase of 37% compared with RUB 589 million in the prior year. Fees for inactive accounts and unclaimed payments for the third quarter ended September 30, 2019 were RUB 484 million ($7.5 million) compared with RUB 380 million for the corresponding period in the prior year which was driven primarily by growth of payment volume and number of Wallets. PS Other Adjusted Net Revenue excluding revenue from fees for inactive accounts and unclaimed payments increased 55% compared with the same period in the prior year to RUB 324 million predominantly as a result of growth of interest revenue.

Small and Medium Enterprises Segment Net Revenue which is composed of revenue from cash and settlement services related to the operations of the Tochka project for the quarter ended September 30, 2019 was RUB 200 million ($3.1 million) compared with RUB 842 million in the third quarter of the prior year. Segment Net Revenue dynamics were primarily due to the transfer of Tochka project to JSC Tochka starting from February 1, 2019, which is now recognized as an associate. As a result of this transition we no longer recognize a certain portion of Tochka project revenues associated with the information and technology service agreements with Otkritie Bank.

Adjusted EBITDA: For the quarter ended September 30, 2019, Adjusted EBITDA was RUB 2,516 million ($39.1 million), an increase of 54% compared with RUB 1,633 million in the prior year. The adjusted EBITDA increase was driven by Total Adjusted Net Revenue growth as well as a decline in payroll and related taxes (related to the cost of revenue) (excluding effect of share based payments) to RUB 790 million for the quarter ended September 30, 2019 as compared to RUB 1,014 million for same period in the prior year and advertising, client acquisition and related expenses driven mostly by the transfer of Tochka project. The growth was partially offset by an increase of compensation to employees and related taxes (related to the SG&A expenses)(excluding effect of share-based payments) to RUB 997 million for the quarter ended September 30, 2019 as compared to RUB 799 million for same period in the prior year resulting from a personnel expense growth predominantly in payment services segment and corporate and other category. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was 42.0% for the quarter ended September 30, 2019 compared with 31.2% for the same period in the prior year.

Adjusted and Segment Net Profit: For the quarter ended September 30, 2019, Adjusted Net Profit (Total Segment Net Profit) was RUB 1,893 million ($29.4 million), an increase of 62% compared with RUB 1,170 million in the prior year. The growth of Adjusted Net Profit was primarily driven by the same factors impacting Adjusted EBITDA as well as by a net foreign exchange gain1 as compared to the net foreign exchange loss for the same period in the prior year.

 

1 

Foreign exchange gain/loss is calculated as total foreign exchange gain/loss, net recognized in the statement of comprehensive income excluding the effect of foreign exchange gain/loss on June 2014 offering proceeds


For the quarter ended September 30, 2019, Payment Services Segment Net Profit was RUB 3,259 million ($50.6 million), an increase of 31% compared with RUB 2,487 million in the prior year driven by Payment Services Segment Net Revenue slightly offset by growth of payroll, compensation to employees and related taxes (excluding effect of share based payments).

The Consumer Financial Services Segment Net Loss for the third quarter 2019 was RUB 424 million ($6.6 million) as compared to a Net Loss of RUB 699 million for the same period of the prior year resulting primarily from Segment Net Revenue growth driven by the improving monetization and expansion of the operations of the SOVEST project.

The Small and Medium Enterprises Net Profit was RUB 156 million ($2.4 million) as compared to a Net Loss of RUB 80 million in the prior year. The net profit growth was primarily driven by the development and scaling of the Tochka business.

Rocketbank Segment Net Loss was RUB 632 million ($9.8 million), an increase of 107% compared with the net loss of RUB 305 million in the prior year primarily driven by the expenses incurred in connection with the transfer of the operations of Rocketbank to QIWI and its subsequent development.

Payment Services Other Operating Data: For the quarter ended September 30, 2019, Payment Services Segment payment volume was RUB 391.3 billion ($6.1 billion), an increase of 32% compared with RUB 297.1 billion in the prior year. The increase in payment volume was driven by growth in E-commerce, Financial Services and Money Remittances market verticals resulting largely from the development of certain payment solutions for merchants including betting merchants, new contracts and new projects targeting the self-employed market as well as secular growth in some of our key categories. Payment Average Adjusted Net Revenue Yield was 1.20%, decreasing slightly as compared with 1.23% in the prior year.

Payment Services Segment Net Revenue Yield was 1.40%, a decrease of 3 bps as compared with 1.43% in the prior year.

Consumer Financial Services Other Operating Data: For the quarter ended September 30, 2019, Consumer Financial Services Segment payment volume was RUB 7.2 billion ($0.1 billion). CFS payment volume increased by 54% as compared to the RUB 4.7 billion for the third quarter of 2018, while CFS Segment Net Revenue Yield increased to 5.13% driven primarily by the introduction of the consumes paid value added options.

Recent Developments

Rocketbank Sale: In August 2017, we executed a series of transactions to acquire the brands, software and hardware of Tochka and Rocketbank from Otkritie Bank. In July 2018, we finalized the acquisition of Rocketbank and, by the end of 2018, completed the transfer of Rocketbank’s customers, personnel and business processes into QIWI. Throughout the first half of 2019, we reviewed a number of strategic opportunities for the development of Rocketbank’s business as either a part of our broader ecosystem or as a standalone project. A final strategic plan for Rocketbank was presented to and reviewed by the Board of Directors of the Company. In August 2019, having duly considered the proposed strategy and required financing, our Board of the Directors concluded that Rocketbank’s business plan had an investment profile and financing requirements that are not compatible with QIWI’s risk appetite and that the business had limited potential synergies with the core business of the Company. The Board of Directors has further requested that management investigates the potential for a partial or complete sale of Rocketbank. As a result, over the past few months we have begun exploring market opportunities and have recently hired a financial advisor to assist us with the process.


Dividend: In accordance with the decision of the Board of Directors, the Company aims to distribute between 65% to 85% of its adjusted net profit for 2019 starting from the first quarter 2019.

Following the determination of the third quarter 2019 financial results, our Board of Directors approved a dividend of USD 28 cents per share. The dividend record date is December 2, 2019, and the Company intends to pay the dividend on December 5, 2019. The holders of ADSs will receive the dividend shortly thereafter.

The Board of Directors reserves the right to distribute the dividends on a quarterly basis, as it deems necessary so that the total annual payout is in accordance with the target range provided, though the payout ratios for each of the quarters may vary and be outside of this range. It remains the long-term intention of the Company to distribute all excess cash to the shareholders.

2019 Guidance2

QIWI upgrades its Total Adjusted Net Revenue, Payment Services Segment Net Revenue and Adjusted Net Profit guidance in respect of 2019 outlook:

 

   

Total Adjusted Net Revenue is expected to increase by 15% to 19% over 2018;

 

   

Payment Services Segment Net Revenue is expected to increase by 25% to 29% over 2018;

 

   

Adjusted Net Profit is expected to increase by 45% to 55% over 2018.

QIWI reiterates its Payment Services Segment Net Profit guidance in respect of 2019 outlook:

 

   

Payment Services Segment Net Profit is expected to increase by 25% to 29% over 2018.

For the purpose of the guidance in respect of 2019 outlook we would like to outline the following considerations:

We have ceased to recognize the portion of Tochka revenues associated with information and technology service agreements with Otkritie Bank for providing services to Tochka clients that have their accounts with Otkritie Bank starting from February 1, 2019 following the transfer of the Tochka operations to JSC Tochka. Such revenues were recognized in full for the full year 2018; however, they will only be recognized for one month in 2019. For the avoidance of doubt, only the revenues related to Tochka clients that have their accounts with QIWI bank will be recognized as QIWI group revenues in 2019. We will correspondingly account JCS Tochka as an associate going forward.

The Company reserves the right to revise guidance in the course of the year.

Earnings Conference Call and Audio Webcast

QIWI will host a conference call to discuss third quarter 2019 financial results today at 8:30 a.m. ET. Hosting the call will be Sergey Solonin, chief executive officer, Andrey Protopopov, chief executive officer of Payment Services Segment, and Varvara Kiseleva, interim 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 (844) 512-2921

 

2 

Guidance is provided in Russian rubles


or +1 (412) 317-6671 for international callers; the pin number is 13696469. The replay will be available until Wednesday, December 4, 2019. 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 and financial services in Russia and the CIS. It has an integrated proprietary network that enables payment services across online, mobile and physical channels. It has deployed over 22.3 million virtual wallets, over 136,000 kiosks and terminals, and enabled merchants and customers to accept and transfer over RUB 117 billion cash and electronic payments monthly connecting over 43 million consumers using its network at least once a month. QIWI’s consumers can use cash, stored value and other electronic payment methods in order to pay for goods and services or transfer money across virtual or physical 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, growth of physical and virtual distribution channels, trends in each of our market verticals and statements regarding the development of our Consumer Financial Services segment, including our SOVEST business, the development of our Small and Medium Enterprises segment, including our Tochka business, the development of our Rocketbank segment, as well as the development of other new projects. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance or achievements of QIWI plc. to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Various factors that could cause actual future results and other future events to differ materially from those estimated by management include, but are not limited to, the macroeconomic conditions of the Russian Federation and in each of the international markets in which we operate, growth in each of our market verticals, competition, the introduction of new products and services and their acceptance by consumers, QIWI’s ability to estimate the market risk and capital risk associated with new projects, a decline in net revenue yield, regulation, QIWI’s ability to grow physical and virtual distribution channels, cyberattacks and security vulnerabilities in QIWI’s products and services, QIWI’s ability to expand geographically, the risk that new projects will not perform in accordance with its expectations and other risks identified under the Caption “Risk Factors” in QIWI’s Annual Report on Form 20-F and in other reports QIWI files with the U.S. Securities and Exchange Commission. QIWI undertakes no obligation to revise any forward-looking statements or to report future events that may affect such forward-looking statements unless QIWI is required to do so by law.


Contact

Varvara Kiseleva

Investor Relations

+357.25028091

ir@qiwi.com


QIWI plc.

Consolidated Statement of Financial Position

(in millions)

 

     As of December 31,
2018 (audited)
     As of September 30,
2019 (unaudited)
     As of September 30,
2019 (unaudited)
 
     RUB      RUB      USD(1)  

Assets

        

Non-current assets

        

Property and equipment

     1,074        2,708        42  

Goodwill and other intangible assets

     10,846        10,091        157  

Investments in associates

     812        920        14  

Investments in joint venture

     836        820        13  

Long-term debt securities and deposits

     497        3,098        48  

Long-term loans

     230        206        3  

Other non-current assets

     110        53        1  

Deferred tax assets

     157        239        4  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     14,562        18,135        282  
  

 

 

    

 

 

    

 

 

 

Current assets

        

Trade and other receivables

     8,042        6,273        97  

Short-term loans

     6,890        8,161        127  

Short-term debt securities and deposits

     1,432        1,116        17  

Cash and cash equivalents

     40,966        35,789        556  

Prepaid income tax

     112        33        1  

Other current assets

     929        940        15  
  

 

 

    

 

 

    

 

 

 

Total current assets

     58,371        52,312        812  
  

 

 

    

 

 

    

 

 

 

Assets held for sale

     90        9        0  
  

 

 

    

 

 

    

 

 

 

Total assets

     73,023        70,456        1,094  
  

 

 

    

 

 

    

 

 

 

Equity and liabilities

        

Equity attributable to equity holders of the parent

        

Share capital

     1        1        0  

Additional paid-in capital

     1,876        1,876        29  

Share premium

     12,068        12,068        187  

Other reserve

     2,097        2,503        39  

Retained earnings

     9,091        11,113        173  

Translation reserve

     513        324        5  
  

 

 

    

 

 

    

 

 

 

Total equity attributable to equity holders of the parent

     25,646        27,885        433  

Non-controlling interests

     60        55        1  
  

 

 

    

 

 

    

 

 

 

Total equity

     25,706        27,940        434  
  

 

 

    

 

 

    

 

 

 

Non-current liabilities

        

Long-term lease liability

     —          1,016        16  

Long-term customer accounts

     237        363        6  

Other non-current liabilities

     —          15        0  

Deferred tax liabilities

     744        724        11  
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     981        2,118        33  
  

 

 

    

 

 

    

 

 

 

Current liabilities

        

Trade and other payables

     27,499        20,962        325  

Customer accounts and amounts due to banks

     17,868        18,131        281  

Short-term lease liability

     —          322        5  

VAT and other taxes payable

     428        234        4  

Income tax payable

     10        11        0  

Other current liabilities

     531        738        11  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     46,336        40,398        627  
  

 

 

    

 

 

    

 

 

 

Total equity and liabilities

     73,023        70,456        1,094  
  

 

 

    

 

 

    

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 64.4156 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2019.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

 

     Three months ended (unaudited)  
     As of September 30,
2018
    As of September 30,
2019
    As of September 30,
2019
 
     RUB     RUB     USD(1)  

Revenue:

     7,943       10,142       157  

Payment processing fees

     6,025       7,918       123  

Interest revenue calculated using the effective interest rate

     563       941       15  

Fees from inactive accounts and unclaimed payments

     380       484       8  

Other revenue

     975       799       12  

Operating costs and expenses:

     6,890       8,676       135  

Cost of revenue (exclusive of depreciation and amortization)

     3,881       4,989       77  

Selling, general and administrative expenses

     2,552       2,593       40  

Depreciation and amortization

     221       389       6  

Credit loss expense(2)

     236       179       3  

Impairment of non-current assets

     —         526       8  

Profit from operations

     1,053       1,466       23  
  

 

 

   

 

 

   

 

 

 

Share of gain/(loss) of an associate and a joint venture

     —         149       2  

Other income and expenses, net

     (2     (47     (1

Foreign exchange gain

     344       164       3  

Foreign exchange loss

     (274     (97     (2

Interest income and expenses, net

     2       (7     (0
  

 

 

   

 

 

   

 

 

 

Profit before tax

     1,123       1,628       25  

Income tax expense

     (270     (440     (7
  

 

 

   

 

 

   

 

 

 

Net profit

     853       1,188       18  
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     842       1,173       18  

Non-controlling interests

     11       15       0  

Other comprehensive income

      

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

      

Foreign currency translation:

      

Exchange differences on translation of foreign operations

     108       33       1  

Debt instruments at fair value through other comprehensive income:

      

Net change in fair value

     —         9       0  

Changes in allowance for expected credit losses

     —         6       0  

Total other comprehensive income, net of tax

     108       48       1  
  

 

 

   

 

 

   

 

 

 

Total comprehensive income, net of tax attributable to:

     961       1,236       19  
  

 

 

   

 

 

   

 

 

 

Equity holders of the parent

     950       1,220       19  

Non-controlling interests

     11       16       0  

Earnings per share:

      

Basic profit attributable to ordinary equity holders of the parent

     13.74       18.96       0.29  

Diluted profit attributable to ordinary equity holders of the parent

     13.66       18.77       0.29  

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 64.4156 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2019.

(2)

Credit loss expense for three months ended September 30, 2018 was separated from of Selling, general and administrative expenses for comparative purposes as a result of the adoption of IFRS 9.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

 

     Nine months ended (unaudited)  
     As of September 30,
2018
    As of September 30,
2019
    As of September 30,
2019
 
     RUB     RUB     USD(1)  

Revenue:

     21,329       28,646       445  

Payment processing fees

     16,786       22,408       348  

Interest revenue calculated using the effective interest rate

     1,084       2,651       41  

Fees from inactive accounts and unclaimed payments

     1,009       1,400       22  

Other revenue

     2,450       2,187       34  

Operating costs and expenses:

     17,996       23,151       359  

Cost of revenue (exclusive of depreciation and amortization)

     10,396       14,196       220  

Selling, general and administrative expenses

     6,593       6,890       107  

Depreciation and amortization

     623       1,079       17  

Credit loss expense(2)

     361       460       7  

Impairment of non-current assets

     23       526       8  

Profit from operations

     3,333       5,495       85  
  

 

 

   

 

 

   

 

 

 

Share of gain/(loss) of an associate and a joint venture

     (19     78       1  

Other income and expenses, net

     (72     8       0  

Foreign exchange gain

     821       665       10  

Foreign exchange loss

     (634     (814     (13

Interest income and expenses, net

     14       (18     (0
  

 

 

   

 

 

   

 

 

 

Profit before tax

     3,443       5,414       84  

Income tax expense

     (712     (1,215     (19
  

 

 

   

 

 

   

 

 

 

Net profit

     2,731       4,199       65  
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     2,702       4,160       65  

Non-controlling interests

     29       39       1  

Other comprehensive income

      

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

      

Foreign currency translation:

      

Exchange differences on translation of foreign operations

     365       (194     (3

Debt instruments at fair value through other comprehensive income:

      

Net change in fair value

     —         9       0  

Changes in allowance for expected credit losses

     —         6       0  

Total other comprehensive income, net of tax

     365       (179     (3
  

 

 

   

 

 

   

 

 

 

Total comprehensive income, net of tax attributable to:

     3,096       4,020       62  
  

 

 

   

 

 

   

 

 

 

Equity holders of the parent

     3,067       3,986       62  

Non-controlling interests

     29       34       1  

Earnings per share:

      

Basic profit attributable to ordinary equity holders of the parent

     44.23       67.43       1.05  

Diluted profit attributable to ordinary equity holders of the parent

     43.88       66.68       1.04  

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 64.4156 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2019.

(2)

Credit loss expense for nine months ended September 30, 2018 was separated from of Selling, general and administrative expenses for comparative purposes as a result of the adoption of IFRS 9.


QIWI plc.

Consolidated Statement of Cash Flows

(in millions)

 

     Nine months ended (unaudited)  
     As of September 30,
2018
    As of September 30,
2019
    As of September 30,
2019
 
     RUB     RUB     USD(1)  

Cash flows from operating activities

      

Profit before tax

     3,443       5,414       84  
  

 

 

   

 

 

   

 

 

 

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

      

Depreciation and amortization

     623       1,079       17  

Foreign exchange loss/(gain), net

     (187     149       2  

Interest income, net

     (1,038     (2,113     (33

Credit loss expense

     361       460       7  

Share of (gain) / loss of an associate and a joint venture

     19       (78     (1

Share-based payments

     519       391       6  

Loss from initial recognition

     103       151       2  

Impairment of non-current assets

     23       526       8  

Other

     66       65       1  
  

 

 

   

 

 

   

 

 

 

Operating profit before changes in working capital

     3,932       6,044       94  
  

 

 

   

 

 

   

 

 

 

Decrease in trade and other receivables

     335       1,355       21  

(Increase)/decrease in other assets

     (316     9       0  

Increase in customer accounts and amounts due to banks

     8,725       157       2  

Increase/(Decrease) in accounts payable and accruals

     742       (5,638     (88

Increase in loans issued from banking operations

     (3,200     (1,387     (22
  

 

 

   

 

 

   

 

 

 

Cash received from operations

     10,218       540       8  
  

 

 

   

 

 

   

 

 

 

Interest received

     871       2,615       41  

Interest paid

     (78     (109     (2

Income tax paid

     (476     (1,266     (20
  

 

 

   

 

 

   

 

 

 

Net cash flow received from operating activities

     10,535       1,780       28  
  

 

 

   

 

 

   

 

 

 

Cash flows used in investing activities

      

Cash inflow from business combination

     234       —         —    

Cash investment in associate and joint control companies

     (21     (200     (3

Purchase of property and equipment

     (564     (594     (9

Purchase of intangible assets

     (247     (235     (4

Proceeds from sale of fixed and intangible assets

     —         173       3  

Loans issued

     (135     (353     (5

Repayment of loans issued

     3       33       1  

Purchase of debt securities and funds depositing

     (810     (3,686     (57

Proceeds from sale and redemption of debt instruments

     672       1,412       22  
  

 

 

   

 

 

   

 

 

 

Net cash flow used in investing activities

     (868     (3,450     (54
  

 

 

   

 

 

   

 

 

 

Cash flows used in financing activities

      

Repayment of borrowings and lease liabilities

     —         (371     (6

Dividends paid to owners of the Company

     —         (2,278     (35

Dividends paid to non-controlling shareholders

     (27     (39     (1
  

 

 

   

 

 

   

 

 

 

Net cash flow used in financing activities

     (27     (2,688     (42
  

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     813       (819     (13

Effect of change in expected credit loss on cash and cash equivalents

     (7     —         —    
  

 

 

   

 

 

   

 

 

 

Net increase\(decrease) in cash and cash equivalents

     10,446       (5,177     (80
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the beginning of the period

     18,435       40,966       636  
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     28,881       35,789       556  
  

 

 

   

 

 

   

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 64.4156 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2019.


QIWI plc.

Reporting Segments Data

 

     Three months ended (unaudited)  
     As of September 30,
2018
    As of September 30,
2019
    As of September 30,
2019
 
     RUB     RUB     USD (1)  

Total Segment Net Revenue(2)

     5,230       5,993       93.0  
  

 

 

   

 

 

   

 

 

 

Payment Services

     4,257       5,484       85.1  

Consumer Financial Services

     125       369       5.7  

Small and Medium Enterprises

     842       200       3.1  

Rocketbank

     (23     (128     (2.0

Corporate and Other

     29       68       1.0  
  

 

 

   

 

 

   

 

 

 

Total Segment Net Profit(3)

     1,170       1,893       29.4  
  

 

 

   

 

 

   

 

 

 

Payment Services

     2,487       3,259       50.6  

Consumer Financial Services

     (699     (424     (6.6

Small and Medium Enterprises

     (80     156       2.4  

Rocketbank

     (305     (632     (9.8

Corporate and Other

     (233     (466     (7.2
  

 

 

   

 

 

   

 

 

 
     Nine months ended (unaudited)  
     As of September 30,
2018
    As of September 30,
2019
    As of September 30,
2019
 
     RUB     RUB     USD (1)  

Total Segment Net Revenue(2)

     13,839       16,923       262.7  
  

 

 

   

 

 

   

 

 

 

Payment Services

     11,757       15,478       240.3  

Consumer Financial Services

     186       870       13.5  

Small and Medium Enterprises

     1,859       797       12.4  

Rocketbank

     (23     (423     (6.6

Corporate and Other

     60       201       3.1  
  

 

 

   

 

 

   

 

 

 

Total Segment Net Profit(3)

     3,123       5,511       85.6  
  

 

 

   

 

 

   

 

 

 

Payment Services

     6,946       9,453       146.7  

Consumer Financial Services

     (2,080     (1,391     (21.6

Small and Medium Enterprises

     (496     167       2.6  

Rocketbank

     (475     (1,633     (25.3

Corporate and Other

     (772     (1,085     (16.8
  

 

 

   

 

 

   

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 64.4156 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2019.

(2)

For the three and nine months ended September 30, 2018 and September 30, 2019 Total Adjusted Net Revenue is equal to Total Segment Net Revenue

(3)

For the three and nine months ended September 30, 2018 and September 30 Total Adjusted Net Profit is equal to Total Segment Net Profit


Non-IFRS Financial Measures and Supplemental Financial Information

This release presents Total Adjusted Net Revenue, PS Payment Adjusted Net Revenue, PS 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, PS Payment Adjusted Net Revenue and PS 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, PS Payment Adjusted Net Revenue, PS 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, PS Payment Adjusted Net Revenue, PS 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, PS Payment Adjusted Net Revenue and PS 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.

PS 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, betting, 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, card-to-card transfers and certain wallet-to-wallet transfers. 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. PS Other Adjusted Net Revenue primarily consists of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, rent of space for kiosks, cash and settlement services and advertising.


QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)

 

    Three months ended (unaudited)  
    September 30, 2018     September 30, 2019     September 30, 2019  
    RUB     RUB     USD(1)  

Revenue

    7,943       10,142       157.4  

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

    3,881       4,989       77.5  

Plus: Payroll and related taxes

    1,168       840       13.0  
 

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

    5,230       5,993       93.0  
 

 

 

   

 

 

   

 

 

 

Segment Net Revenue

     

Payment Services Segment Revenue

    6,838       8,991       139.6  

PS Payment Revenue (2)

    6,025       7,918       123  

Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(3)

    2,735       3,614       56  

Plus: Compensation to employees and related taxes allocated to PS Payment Revenue(4)

    378       372       6  
 

 

 

   

 

 

   

 

 

 

PS Payment Adjusted Net Revenue

    3,668       4,676       72.6  
 

 

 

   

 

 

   

 

 

 

PS Other Revenue (5)

    813       1,075       17  

Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(6)

    274       318       5  

Plus: Compensation to employees and related taxes allocated to PS Other Revenue(4)

    50       51       1  
 

 

 

   

 

 

   

 

 

 

PS Other Adjusted Net Revenue

    589       808       12.5  
 

 

 

   

 

 

   

 

 

 

Payment Services Segment Net Revenue

    4,257       5,484       85.2  
 

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Revenue

    160       438       6.8  

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

    212       200       3.1  

Plus: Compensation to employees and related taxes

    177       131       2.0  
 

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Net Revenue

    125       369       5.7  
 

 

 

   

 

 

   

 

 

 

SME Revenue

    895       245       3.8  

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

    438       49       0.8  

Plus: Compensation to employees and related taxes

    384       4       0.1  
 

 

 

   

 

 

   

 

 

 

SME Net Revenue

    842       200       3.1  
 

 

 

   

 

 

   

 

 

 

Rocketbank Revenue

    7       344       5.3  

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

    172       693       10.8  

Plus: Compensation to employees and related taxes

    142       221       3.4  
 

 

 

   

 

 

   

 

 

 

Rocketbank Net Revenue

    (23     (128     (2.0
 

 

 

   

 

 

   

 

 

 

Corporate and Other Category Revenue

    43       124       1.9  

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

    51       113       1.8  

Plus: Compensation to employees and related taxes

    37       57       0.9  
 

 

 

   

 

 

   

 

 

 

Corporate and Other Category Net Revenue

    29       68       1.1  
 

 

 

   

 

 

   

 

 

 

Total Segment Net Revenue

    5,230       5,993       93.0  
 

 

 

   

 

 

   

 

 

 

Net Profit

    853       1,188       18.4  
 

 

 

   

 

 

   

 

 

 

Plus:

     

Depreciation and amortization

    221       389       6.0  

Other income

    2       47       0.7  

Foreign exchange gain

    (344     (164     (2.5

Foreign exchange loss

    274       97       1.5  

Loss on set up of associate

    —         (149     (2.3

Impairment of non-current assets

    —         526       8.2  

Interest (income)/expenses

    (2     7       0.1  

Income tax expenses

    270       440       6.8  

Share-based payments expenses

    359       135       2.1  
 

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

    1,633       2,516       39.1  
 

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

    31.2     42.0     42.0

Net profit

    853       1,188       18.4  

Amortization of fair value adjustments(7)

    78       105       1.6  

Share-based payments expenses

    359       135       2.1  

Foreign Exchange loss/(gain) on June 2014 offering proceeds(8)

    (105     (53     (0.8

Impairment of non-current assets

    —         526       8.2  

Effect of taxation of the above items

    (15     (8     (0.1
 

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

    1,170       1,893       29.4  
 

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

     

Basic

    19.10       30.59       0.47  

Diluted

    18.99       30.30       0.47  

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

     

Basic

    61,276       61,876       61,876  

Diluted

    61,634       62,483       62,483  


 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 64.4156 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2019.

(2)

PS Payment Revenue represents payment processing fees, which primarily consists of the merchant and consumer fees charged for the payment transactions.

(3)

Cost of PS Payment Revenue (exclusive of depreciation and amortization) primarily consists of transaction costs to acquire payments from our customers payable to agents, mobile operators, international payment systems and other parties.

(4)

The Company does not record the compensation to employees and related taxes within cost of revenue separately for PS Payment Revenue and PS Other Revenue; therefore, it has been allocated between PS Payment Revenue and PS Other Revenue in proportion to the relevant revenue amounts for the purposes of the reconciliation presented above.

(5)

PS Other Revenue primarily consists of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, rent of space for kiosks, cash and settlement services and advertising.

(6)

Cost of PS Other Revenue (exclusive of depreciation and amortization) primarily consists of direct costs associated with other revenue and other costs, including but not limited to: compensation to employees and related taxes allocated to PS Other Revenue and costs of call-centers and advertising commissions.

(7)

Amortization of fair value adjustments primarily includes the effect of the acquisition of control in Contact and Rapida.

(8)

The Forex loss on SPO funds as presented in the reconciliation of Net Profit to Adjusted Net Profit differs from the Foreign exchange loss and Foreign exchange gain 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 loss/(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)

 

    Nine months ended (unaudited)  
    September 30, 2018     September 30, 2019     September 30, 2019  
    RUB     RUB     USD(1)  

Revenue

    21,329       28,646       444.7  

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

    10,396       14,196       220.4  

Plus: Payroll and related taxes

    2,906       2,473       38.4  
 

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

    13,839       16,923       262.7  
 

 

 

   

 

 

   

 

 

 

Segment Net Revenue

     

Payment Services Segment Revenue

    18,962       25,429       394.8  

PS Payment Revenue (2)

    16,786       22,408       348  

Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(3)

    7,471       10,216       159  

Plus: Compensation to employees and related taxes allocated to PS Payment Revenue(4)

    938       1,071       17  
 

 

 

   

 

 

   

 

 

 

PS Payment Adjusted Net Revenue

    10,253       13,263       205.9  
 

 

 

   

 

 

   

 

 

 

PS Other Revenue (5)

    2,176       3,022       47  

Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(6)

    793       952       15  

Plus: Compensation to employees and related taxes allocated to PS Other Revenue(4)

    122       145       2  
 

 

 

   

 

 

   

 

 

 

PS Other Adjusted Net Revenue

    1,504       2,215       34.4  
 

 

 

   

 

 

   

 

 

 

Payment Services Segment Net Revenue

    11,757       15,478       240.3  
 

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Revenue

    307       1,025       15.9  

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

    653       571       8.9  

Plus: Compensation to employees and related taxes

    532       416       6.5  
 

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Net Revenue

    186       870       13.5  
 

 

 

   

 

 

   

 

 

 

SME Revenue

    1,960       928       14.4  

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

    1,092       278       4.3  

Plus: Compensation to employees and related taxes

    990       147       2.3  
 

 

 

   

 

 

   

 

 

 

SME Net Revenue

    1,859       797       12.4  
 

 

 

   

 

 

   

 

 

 

Rocketbank Revenue

    7       957       14.9  

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

    265       1,920       29.8  

Plus: Compensation to employees and related taxes

    235       540       8.4  
 

 

 

   

 

 

   

 

 

 

Rocketbank Net Revenue

    (23     (423     (6.6
 

 

 

   

 

 

   

 

 

 

Corporate and Other Category Revenue

    93       307       4.8  

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

    122       258       4.0  

Plus: Compensation to employees and related taxes

    88       152       2.4  
 

 

 

   

 

 

   

 

 

 

Corporate and Other Category Net Revenue

    60       201       3.1  
 

 

 

   

 

 

   

 

 

 

Total Segment Net Revenue

    13,839       16,923       262.8  
 

 

 

   

 

 

   

 

 

 

Net Profit

    2,731       4,199       65.2  
 

 

 

   

 

 

   

 

 

 

Plus:

     

Depreciation and amortization

    623       1,079       16.8  

Other income and expenses, net

    72       (8     (0.1

Foreign exchange gain

    (821     (665     (10.3

Foreign exchange loss

    634       814       12.6  

Loss from associates and joint ventures

    19       (78     (1.2

Impairment of non-current assets

    —         526       8.2  

Interest (income)/expenses

    (14     18       0.3  

Income tax expenses

    712       1,215       18.9  

Share-based payments expenses

    519       391       6.1  
 

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

    4,475       7,491       116.3  
 

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

    32.3     44.3     44.3

Net profit

    2,731       4,199       65.2  

Amortization of fair value adjustments(7)

    225       302       4.7  

Share-based payments expenses

    519       391       6.1  

Foreign Exchange loss/(gain) on June 2014 offering proceeds(8)

    (308     132       2.0  

Impairment of non-current assets

    —         526       8.2  

Effect of taxation of the above items

    (44     (39     (0.6
 

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

    3,123       5,511       85.6  
 

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

     

Basic

    51.12       89.33       1.39  

Diluted

    50.72       88.34       1.37  

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

     

Basic

    61,089       61,693       61,693  

Diluted

    61,579       62,387       62,387  


 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 64.4156 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2019.

(2)

PS Payment Revenue represents payment processing fees, which primarily consists of the merchant and consumer fees charged for the payment transactions.

(3)

Cost of PS Payment Revenue (exclusive of depreciation and amortization) primarily consists of transaction costs to acquire payments from our customers payable to agents, mobile operators, international payment systems and other parties.

(4)

The Company does not record the compensation to employees and related taxes within cost of revenue separately for PS Payment Revenue and PS Other Revenue; therefore, it has been allocated between PS Payment Revenue and PS Other Revenue in proportion to the relevant revenue amounts for the purposes of the reconciliation presented above.

(5)

PS Other Revenue primarily consists of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, rent of space for kiosks, cash and settlement services and advertising.

(6)

Cost of PS Other Revenue (exclusive of depreciation and amortization) primarily consists of direct costs associated with other revenue and other costs, including but not limited to: compensation to employees and related taxes allocated to PS Other Revenue and costs of call-centers and advertising commissions.

(7)

Amortization of fair value adjustments primarily includes the effect of the acquisition of control in Contact and Rapida.

(8)

The Forex loss on SPO funds as presented in the reconciliation of Net Profit to Adjusted Net Profit differs from the Foreign exchange loss and Foreign exchange gain 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 loss/(gain) on the US dollar amount, which we received at SPO.


QIWI plc.

Other Operating Data

 

     Three months ended (unaudited)  
     September 30, 2018     September 30, 2019     September 30, 2019  
     RUB     RUB     USD (1)  

Payment Services Segment key operating metrics

      

Payment volume (billion)(2)

     297.1       391.3       6.1  
  

 

 

   

 

 

   

 

 

 

E-commerce

     68.5       107.0       1.7  

Financial services

     64.7       88.9       1.4  

Money remittances

     108.2       143.9       2.2  

Telecom

     45.4       42.1       0.7  

Other

     10.3       9.4       0.1  
  

 

 

   

 

 

   

 

 

 

Payment adjusted net revenue (million)(3)

     3,667.3       4,676.4       72.6  
  

 

 

   

 

 

   

 

 

 

E-commerce

     2,042.2       2,658.6       41.3  

Financial services

     278.8       331.7       5.2  

Money remittances

     1,079.7       1,432.1       22.2  

Telecom

     206.5       194.9       3.0  

Other

     60.1       59.1       0.9  
  

 

 

   

 

 

   

 

 

 

Payment Average Adjusted Net Revenue Yield(4)

     1.23     1.20     1.20
  

 

 

   

 

 

   

 

 

 

E-commerce

     2.98     2.48     2.48

Financial services

     0.43     0.37     0.37

Money remittances

     1.00     1.00     1.00

Telecom

     0.46     0.46     0.46

Other

     0.58     0.63     0.63
  

 

 

   

 

 

   

 

 

 

Payment Services Segment Net Revenue Yield

     1.43     1.40     1.40

Active kiosks and terminals (units)(5)

     149,754       136,313       136,313  

Active Qiwi Wallet accounts (million)(6)

     20.8       22.3       22.3  
  

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment key operating metrics

      

Payment volume (billion)(7)

     4.7       7.2       0.1  

CFS Segment Net Revenue Yield

     2.67     5.13     5.13
  

 

 

   

 

 

   

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 64.4156 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2019.

(2)

Payment Services Segment payment volume by market verticals and consolidated payment volume consist of the amounts paid by our customers to merchants or other customers included in each of those market verticals less intra-group eliminations. 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.

(3)

PS Payment Adjusted Net Revenue is calculated as the difference between PS Payment Revenue and PS Cost of Payment Revenue (excluding D&A) plus compensation to employees and related taxes allocated to PS Payment Revenue. PS Payment Revenue primarily consists of merchant and consumer fees. Cost of PS Payment Revenue primarily consists of commission to agents.

(4)

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

(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 number of active kiosks and terminals for the last 30 days of the respective reporting period.

(6)

Active Qiwi Wallet accounts calculated on a yearly basis, i.e. an active account is an account that had at least one transaction within the last 12 months prior to the reporting date.

(7)

Consumer Financial Services segment payment volume consists of the transaction amounts paid by SOVEST card customers to merchants offline and online (including, but not limited to the partner-merchants) or withdrawn through ATMs less the amount returned for corresponding reimbursements.


QIWI plc.

Other Operating Data

 

     Nine months ended (unaudited)  
     September 30, 2018     September 30, 2019     September 30, 2019  
     RUB     RUB     USD (1)  

Payment Services Segment key operating metrics

      

Payment volume (billion)(2)

     809.2       1,088.1       16.9  
  

 

 

   

 

 

   

 

 

 

E-commerce

     178.0       300.0       4.7  

Financial services

     178.5       244.2       3.8  

Money remittances

     287.0       392.9       6.1  

Telecom

     130.0       122.3       1.9  

Other

     35.8       28.7       0.4  
  

 

 

   

 

 

   

 

 

 

Payment adjusted net revenue (million)(3)

     10,251.7       13,263.2       205.9  
  

 

 

   

 

 

   

 

 

 

E-commerce

     5,819.4       7,651.1       118.8  

Financial services

     844.0       874.5       13.6  

Money remittances

     2,801.8       4,043.3       62.8  

Telecom

     583.5       529.3       8.2  

Other

     202.9       165.0       2.6  
  

 

 

   

 

 

   

 

 

 

Payment Average Adjusted Net Revenue Yield(4)

     1.27     1.22     1.22
  

 

 

   

 

 

   

 

 

 

E-commerce

     3.27     2.55     2.55

Financial services

     0.47     0.36     0.36

Money remittances

     0.98     1.03     1.03

Telecom

     0.45     0.43     0.43

Other

     0.57     0.57     0.57
  

 

 

   

 

 

   

 

 

 

Payment Services Segment Net Revenue Yield

     1.45     1.42     1.42

Active kiosks and terminals (units)(5)

     149,754       136,313       136,313  

Active Qiwi Wallet accounts (million)(6)

     20.8       22.3       22.3  
  

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment key operating metrics

      

Payment volume (billion)(7)

     10.2       18.0       0.3  

CFS Segment Net Revenue Yield

     1.83     4.82     4.82
  

 

 

   

 

 

   

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 64.4156 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2019.

(2)

Payment Services Segment payment volume by market verticals and consolidated payment volume consist of the amounts paid by our customers to merchants or other customers included in each of those market verticals less intra-group eliminations. 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.

(3)

PS Payment Adjusted Net Revenue is calculated as the difference between PS Payment Revenue and PS Cost of Payment Revenue (excluding D&A) plus compensation to employees and related taxes allocated to PS Payment Revenue. PS Payment Revenue primarily consists of merchant and consumer fees. Cost of PS Payment Revenue primarily consists of commission to agents.

(4)

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

(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 number of active kiosks and terminals for the last 30 days of the respective reporting period.

(6)

Active Qiwi Wallet accounts calculated on a yearly basis, i.e. an active account is an account that had at least one transaction within the last 12 months prior to the reporting date.

(7)

Consumer Financial Services segment payment volume consists of the transaction amounts paid by SOVEST card customers to merchants offline and online (including, but not limited to the partner-merchants) or withdrawn through ATMs less the amount returned for corresponding reimbursements.