Form 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

REPORT OF A FOREIGN ISSUER

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

OF THE SECURITIES EXCHANGE ACT OF 1934

For August 19, 2021

 

 

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 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 Second Quarter 2021 Financial Results” press release dated August 19, 2021
99.2    Interim condensed consolidated financial statements (unaudited) of QIWI plc for the six months ended June 30, 2021
99.3    Acknowledgment letter of Ernst & Young LLC


SIGNATURES

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

 

    QIWI PLC (Registrant)
Date: August 19, 2021     By:  

/s/ Elena Nikonova

      Elena Nikonova
      Interim Chief Financial Officer
EX-99.1

Exhibit 99.1

 

LOGO

QIWI Announces Second Quarter 2021 Financial Results

Second Quarter Total Net Revenue amounted to RUB 6,049 million (3% YoY increase for continued operations)

Adjusted Net Profit amounted to RUB 2,704 million (2% decrease YoY) or RUB 43.30 per diluted share

QIWI upgraded FY 2021 guidance

Board of Directors approved dividends of 30 cents per share

NICOSIA, CYPRUS – August 19, 2021 – QIWI plc (NASDAQ: QIWI) (MOEX: QIWI) (“QIWI” or the “Company”), a leading provider of next generation payment and financial services in Russia and the CIS, today announced its financial results for the second quarter ended June 30, 2021.

2Q 2021 Financial Highlights

Group results

 

   

Total Net Revenue from continued operations increased by 3% YoY to RUB 6,049 million ($83.6 million). Including discontinued operations Total Net Revenue decreased by 12% YoY.

 

   

Adjusted EBITDA decreased by 1% YoY and stood at RUB 3,850 million ($53.2 million). Adjusted EBITDA margin improved by 6.6ppt and reached 63.7%

 

   

Adjusted Net Profit decreased by 2% YoY to RUB 2,704 million ($37.4 million), or RUB 43.30 per diluted share. Adjusted Net Profit margin went up by 4.4ppt to 44.7%

Payment Services (PS) segment results

 

   

Total PS volume increased by 32% YoY to RUB 457.6 billion ($6.3 billion)

 

   

PS Net Revenue increased by 5% YoY to RUB 5,678.1 million ($78.5 million)

 

   

PS Net Profit decreased by 6% YoY to RUB 3,042 million ($42.0 million). PS Net Profit margin decreased by 6.5ppt to 53.6%

Key events in 2Q 2021 and after the reported period

 

   

The Board of Directors comprised of seven members, including three independent non-executive directors, was elected at the Company’s AGM. Sergey Solonin was elected Chairman of the Board of Directors

 

   

Andrey Protopopov was appointed as CEO of the Company and became a member of the Board of Directors

 

   

The Board of Directors approved an interim dividend for 2Q 2021 in the amount of 30 cents per share

 

   

QIWI entered into a definitive agreement to sell its 40% stake (45% economic interest) in Tochka for RUB 4.95 billion, subject to performance adjustments depending on Tochka’s FY 2021 audited results1. The Closing is subject to the approval of the Federal Antimonopoly Service of the Russian Federation (“FAS Approval”) and is expected to take place in 3Q 2021.

Andrey Protopopov, QIWI’s CEO commented:

“Despite overall challenging environment we managed to deliver another quarter of strong results coming above our initial expectations. Our focus on the key niches, high standards of service and operational efficiency pays off with growing volumes and sustainable margins.

 

1 

For more details please refer to the respective press release disclosed at Company’s website:

    

https://investor.qiwi.com/news-releases/news-release-details/qiwi-announces-sale-its-stake-tochka-project


I’m pleased with the developments in our core Payment Services segment, which shows sound volume growth of 32% and net revenue growth of 7% YoY despite negative effect from temporary block of cross-border payments. Our Money Remittance vertical volume reached record highs and E-commerce vertical demonstrated growth year over year. We were well prepared for the Euro 2020 football championship and observed solid volumes across our key strategic directions on the back of our continuous efforts to improve customer value proposition. The team is progressing well on launch of new products, signing new partnerships and onboarding of new merchants. I also look forward, with enthusiasm, to the developments in B2B segment via our Factoring PLUS project where we continued to expand our portfolios and launched credit products for contracts execution and for market places. We are constantly enhancing our product portfolio mix and look for new opportunities that emerge on the market.

Despite the headwinds we face, we are committed to achieving our goals. I believe, together with our professional team, we are able to deliver sustainable and profitable long-term growth to our shareholders.”

2Q Results

Net Revenue breakdown by segments

 

     2Q 2020      2Q 2021      YoY change     2Q 2021  
     RUB million      RUB million      RUB million     %     USD(1)  

Total Net Revenue

     6,839        6,049        (790     (11.6 %)      83.6  

Payment Services (PS)

     5,397        5,678        282       5.2     78.5  

PS Payment Net Revenue

     4,609        4,933        324       7.0     68.2  

PS Other Net Revenue

     788        745        (42     (5.4 %)      10.3  

Consumer Financial Services (CFS)

     437        —          (437     (100.0 %)      —    

Rocketbank

     509        —          (509     (100.0 %)      —    

Corporate and Other

     496        371        (125     (25.1 %)      5.1  

 

(1)

Throughout this release dollar translation calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

Total Net Revenue from continued operations increased by 2.6% YoY to RUB 6,049 million ($83.6 million) driven by PS segment Net Revenue growth. Including discontinued operations of Sovest (reflected in CFS) and Rocketbank Total Net Revenue decreased by 11.6% YoY.

PS Net Revenue in 2Q 2021 was RUB 5,678 million ($78.5 million) – 5.2% higher compared to last year driven by PS Payment Net Revenue increase.

PS Payment segment breakdown by verticals


 

     2Q 2020     2Q 2021     YoY change     2Q 2021  
     RUB     RUB     RUB     %     USD  

PS Payment Volume (billion)(1)

     346.8       457.6       110.8       32.0     6.3  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

E-commerce

     100.2       104.3       4.1       4.1     1.4  

Financial services

     53.7       67.8       14.1       26.2     0.9  

Money remittances

     142.2       243.7       101.5       71.4     3.4  

Telecom

     42.6       28.9       (13.7     (32.1 %)      0.4  

Other

     8.1       12.9       4.8       59.5     0.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PS Payment Net Revenue (million)(2)

     4,608.4       4,932.8       324.4       7.0     68.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

E-commerce

     2,687.7       2,292.6       (395.1     (14.7 %)      31.7  

Financial services

     313.6       161.5       (152.1     (48.5 %)      2.2  

Money remittances

     1,317.5       2,337.0       1,019.5       77.4     32.3  

Telecom

     238.7       124.4       (114.3     (47.9 %)      1.7  

Other

     51.0       17.2       (33.8     (66.2 %)      0.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

PS Payment Net Revenue Yield(3)

     1.33     1.08     n/a       (0.25 %)      1.08
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

E-commerce

     2.68     2.20     n/a       (0.48 %)      2.20

Financial services

     0.58     0.24     n/a       (0.35 %)      0.24

Money remittances

     0.93     0.96     n/a       0.03     0.96

Telecom

     0.56     0.43     n/a       (0.13 %)      0.43

Other

     0.63     0.13     n/a       (0.50 %)      0.13
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(1)

PS 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.

(2)

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

(3)

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

In 2Q 2021 PS Payment Net Revenue increased by 7.0% YoY and amounted to RUB 4,933 million ($68.2 million) as a result of an increase of the PS Payment volume by 32.0% which was partially offset by a decrease of PS Payment Net Revenue Yield by 25bps YoY.

PS Payment Volume increased by 32.0% to RUB 458 billion primarily due to the Money remittance and Financial services verticals. Money Remittances vertical went up by 71.4% YoY reaching a historical high level of RUB 244 billion represented by increased volumes across all key streamlines, namely card-to-card money transfers to Master Card, Visa and MIR from Qiwi Wallet accountholders (up 109% YoY), repayment of customers’ betting winnings on the QIWI Wallet (up 59% YoY), B2B2C transactions (up 135% YoY) resulting largely from the development of our product offering for self-employed and increase in peer-to-peer operations, and money remittances via Contact (up 29% YoY). Volume growth in the Financial services vertical by 26.2% YoY was driven by increased bank and micro loans repayments. E-commerce vertical Volume went up by 4.1% YoY on increased TSUPIS operations and recovery of tourism partially offset by the decrease in payment volumes to foreign merchants due to temporary restrictions imposed by the CBR2 in December 2020 and expired in June 2021. Telecom volume decreased by 32.1% YoY to RUB 29 billion on lower volumes coming through MNOs3 and adverse impact of the downsizing kiosk network. Other category comprising a broad range of merchants in utilities and other government payments as well as charity organizations to which we offer payment processing services increased by 59.5% YoY to RUB 13 billion.

We note significant growth within the B2B and B2B2C streamlines as we continuously enhance our customer value proposition. These transactions mostly represent use-cases connected to peer-to-peer transactions, light banking, collection of proceeds services we provide to self-employed customers, etc. We

 

 

2 

Disclosed in the Report of Foreign Private Issuer on Form 6-K furnished to the SEC on December 9, 2020

3 

Mobile network operators


believe that significant growth in revenue from peer-to-peer transaction may not be representative of revenue from such transactions in future periods.

A decline in PS Payment Net Revenue Yield by 25bps to 1.08% was mainly driven by a combination of (1) decreased E-commerce Net Revenue Yield by 48bps to 2.20% and (2) lower share of E-commerce vertical in total PS volume by 6.1ppt to 22.8%, both resulting from the temporary restrictions imposed on higher-yielding cross-border payments.

Any changes in the regulatory regime or in the interpretation of current regulations that affect the continuation of one or more types of transactions currently facilitated by our system may materially adversely affect our results of operations.

PS Other Net Revenue breakdown

 

     2Q 2020      2Q 2021      YoY change     2Q 2021  
     RUB million      RUB million      RUB million     %     USD million  

PS Other Net Revenue

     788        745        (42     (5.4 %)      10.3  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

Fees for inactive accounts and unclaimed payments

     501        413        (88     (17.6 %)      5.7  

Other Net Revenue

     287        332        46       16.0     4.6  
  

 

 

    

 

 

    

 

 

   

 

 

   

 

 

 

PS Other Net Revenue decreased by 5.4% YoY and stood at RUB 745 million ($10.3 million).

Fees for inactive accounts and unclaimed payments were RUB 413 million ($5.7 million) or 17.6% lower compared to 2Q 2020 due to extension of inactivity terms from 6 to 12 months as well as decreased number of QIWI Wallet accounts.

Other Net Revenue largely composed of interest revenue, revenue from overdrafts provided to agents, and advertising increased by 16.0% YoY up to RUB 332 million ($4.6 million) driven by cost optimization measures resulting into lower expenses for call center, SMS and Voicemail.

Payment Services other operating data

 

     2Q 2020      2Q 2021      YoY change  

Active kiosks and terminals (units)(1)

     118,455        100,324        (18,131     (15.3 %) 

Active Qiwi Wallet accounts (million)(2)

     20.9        15.5        (5.4     (25.7 %) 

PS Payment volume per active QIWI Wallet account (RUB thousand)

     16.6        29.5        12.9       77.6

 

(1)

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.

(2)

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 from the reporting date.

The number of active kiosks and terminals was 100,324, including Contact and Rapida physical points of service, a decrease of 15.3% compared to the previous year. The number of kiosks and terminals is generally decreasing as market evolves towards a higher share of digital payments. Our physical distribution network was also negatively affected by the spread of the COVID-19 pandemic, corresponding lockdown measures, and other restrictions that limited our consumers’ access to certain retail locations as well as changed customer behavior. Nevertheless, our physical distribution network remains an important part of our omni-channel infrastructure.

The number of active QIWI Wallet accounts was 15.5 million as of end of 2Q 2021, a decrease of 5.4 million, or 25.7%, compared to 20.9 million last year. The decrease primarily resulted from the introduction of limitations on the anonymous wallets, and enhancement of certain KYC, identification and compliance procedures. The number of active QIWI Wallets was also affected by the CBR restrictions imposed in December 2020 resulting in outflow of clients that customarily used our services specifically for payments to merchants that have become subject to the restrictions.


We are focused on diversification of our product proposition and increase of payment volumes per QIWI Wallet account. In 2Q 2021 PS Payment Volume per active QIWI Wallet account was RUB 29 thousand which is 78% higher YoY.

Corporate and Other (CO) Net Revenue breakdown

 

     2Q 2020      2Q 2021     YoY change     2Q 2021  
     RUB million      RUB million     RUB million     %     USD million  

CO Net Revenue

     496        371       (124     (25.1 %)      5.1  
  

 

 

    

 

 

   

 

 

   

 

 

   

 

 

 

Tochka

     166        74       (92     (55.6 %)      1.0  

Factoring

     204        181       (24     (11.6 %)      2.5  

Flocktory

     117        127       10       9.0     1.8  

Corporate and Other projects

     8        (10     (19     (223.5 %)      (0.1

CO Net Revenue in 2Q 2021 decreased by 25.1% YoY to RUB 371 million ($5.1 million) driven by Tochka and Other projects Net Revenue decline partially offset by successful roll out of Factoring and Flocktory projects:

 

   

Tochka Net Revenue decreased by 55.6% YoY to RUB 74 million ($1.0 million) due to switch of some SME customers from QIWI to Tochka bank. The technical change of cash and settlement service bank provider resulted into Net Revenue decline partially offset with Net Profit growth through the equity pick up. In the beginning of 3Q 2021 QIWI entered into agreement to sell its stake in the project. Thus, in the next quarters impact on operating results from Tochka is expected to cease.

 

   

Factoring Net Revenue decreased by 11.6% YoY to RUB 181 million ($2.5 million) due to a one-off adjustment in 2Q 2020 in the amount of RUB 50 million. Excluding the one-off effect, Factoring Net Revenue would have shown growth of 17.1% YoY on further expansion of bank guarantees and factoring portfolios:

 

   

Bank Guarantees portfolio increased by 87% YoY to RUB 24.8 billion with average check growth by 3% to RUB 1.1 million.

 

   

Factoring portfolio increased by 59% YoY and reached RUB 5.3 billion with number of active clients going up by 39% YoY to 492.

 

   

Flocktory Net Revenue increased by 9.0% YoY and reached RUB 127 million ($1.8 million) driven by growing number of clients and traffic-providers (7% YoY) using Flocktory’s platform and marketing services underpinned by growth of average check.

 

   

Corporate and Other projects Net Revenue include result of operations of different projects in the start-up stage and in 2Q 2021 it amounted to RUB 10.5 million ($0.1 million) of loss.

Operating expenses and other non-operating income and expenses


     2Q 2020     2Q 2021     YoY change     2Q 2021  
     RUB     % of Net     RUB     % of Net     RUB      %     ppt     USD  
     million     Revenue     million     Revenue     million     

 

   

 

    million  

Operating expenses

     (3,369     (49.3 %)      (2,486     (41.1 %)      883        (26.2 %)      8.2     (34.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Selling, general and administrative expenses

     (696     (10.2 %)      (612     (10.1 %)      84        (12.1 %)      0.1     (8.5

Personnel expenses

     (1,938     (28.3 %)      (1,525     (25.2 %)      413        (21.3 %)      3.1     (21.1

Depreciation, amortization & impairment

     (445     (6.5 %)      (285     (4.7 %)      160        (36.0 %)      1.8     (3.9

Credit loss (expense)

     (290     (4.2 %)      (64     (1.1 %)      226        (77.9 %)      3.2     (0.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Other non-operating income and expenses

     (883     (12.9 %)      11       0.2     894        (101.2 %)      13.1     0.2  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Share of gain of an associate and a joint venture

     107       1.6     141       2.3     34        31.8     0.8     1.9  

Foreign exchange loss, net

     (292     (4.3 %)      (50     (0.8 %)      242        (82.9 %)      3.4     (0.7

Interest income and expenses, net

     (33     (0.5 %)      (15     (0.2 %)      18        (54.5 %)      0.2     (0.2

Other income and expenses, net

     (665     (9.7 %)      (65     (1.1 %)      600        (90.2 %)      8.6     (0.9
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Operating expenses went down by 26.2% YoY to RUB 2,486 million ($34.4 million) and improved by 8.2ppt to 41.1% as percent of Total Net Revenue driven by divestiture of SOVEST and Rocketbank projects that offset the negative operating leverage effect resulting from Total Net Revenue decline on temporary restrictions imposed on cross-border payments.

Selling, general and administrative expenses decreased by 12.1% to RUB 612 million ($8.5 million). SG&A expenses as percent of Total Net Revenue remained almost flat decreasing by 0.1ppt YoY to 10.1% primarily on lower advertising, client acquisition and related expenses of SOVEST and Rocketbank projects partially offset by higher taxes expenses and expenses related to the Tochka platform.

Discontinuation of SOVEST and Rocketbank projects also resulted in optimization of personnel expenses by 21.3% YoY to RUB 1,525 million ($21.1 million) or 25.2% as percent of Total Net Revenue — 3.1ppt improvement compared to last year.

Depreciation, amortizanion and impairment as well as Credit loss expenses combined decreased by 5.0ppt YoY to 5.8% as percent of Total Net Revenue driven by divestiture of SOVEST and Rocketbank projects.

Share of gain of an associate and a joint venture represented by Tochka equity pick up increased by 31.8% YoY to RUB 141 million ($1.9 million) on strong performance of Tochka in 2Q 2021 compared to last year.

Foreign exchange loss (net) decreased by 82.9% YoY to RUB 50 million ($0.7 million) driven by currency rates fluctuations.

Interest expenses (net) primarily related to interest on non-banking loans issued and interest expense accrued on lease liabilities held by the Company, decreased by 54.5% YoY to RUB 15 million ($0.2 million) driven by divestiture of SOVEST and Rocketbank projects.

Other expenses (net) decreased by 90.2% YoY to RUB 65 million ($0.9 million) driven by divestiture of SOVEST project.

Income tax expense

Income tax expense increased by 25.6% YoY to RUB 941 million mainly resulting from divesture of SOVEST and Rocketbank projects. Effective tax rate in 2Q 2021 was 2.6ppt lower YoY and stood at 26.3%.

Profitability results


     2Q 2020     2Q 2021     YoY change     2Q 2021  
     RUB million     RUB million     RUB million     %     USD million  

Adjusted EBITDA

     3,905       3,850       (55     (1.4 %)      53.2  

Adjusted EBITDA margin, %

     57.1     63.7     n/a       6.6     63.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     2,756       2,704       (52     (1.9 %)      37.4  

Adjusted Net Profit margin, %

     40.3     44.7     n/a       4.4     44.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Payment Services

     3,243       3,042       (201     (6.2 %)      42.0  

PS Net Profit margin, %

     60.1     53.6     n/a       (6.5 %)      53.6

Consumer Financial Services

     (134     —         134       (100.0 %)      —    

Rocketbank

     44       —         (44     (100.0 %)      —    

Corporate and Other

     (397     (338     59       (14.8 %)      (4.7
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Tochka

     165       132       (33     (20.3 %)      1.8  

Factoring

     94       54       (40     (42.6 %)      0.7  

Flocktory

     (23     17       40       172.3     0.2  

Corporate

     (543     (512     31       (5.7 %)      (7.1

Other projects

     (90     (28     62       (68.4 %)      (0.4
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA decreased by 1.4% YoY to RUB 3,850 million ($53.2 million) driven by Total Net Revenue decline and partially offset by Adjusted EBITDA margin improvement by 6.6ppt to 63.7%. Adjusted EBITDA margin went up despite negative operating leverage effect offset by optimization measures resulting from divesture of SOVEST and Rocketbank projects.

Adjusted Net Profit in 2Q 2021 decreased by 1.9% YoY to RUB 2,704 million ($37.4 million). Adjusted Net Profit margin improved by 4.4ppt and stood at 44.7% primarily driven by the same factors affecting Adjusted EBITDA.

Payment Services Net Profit decreased by 6.2% YoY to RUB 3,042 million ($42.0 million) mainly driven by margin decrease by 6.5ppt to 53.6% due to temporary restrictions imposed on higher-yielding cross-border payments, increase in personnel expenses and higher income tax partially offset by foreign exchange gain for the reported period and PS Net Revenue growth of 5.2%.

CO Net Loss includes: (i) net profit from the Tochka JV operations; (ii) net profit of our Factoring PLUS project; (iii) net profit of the Flocktory project; (iv) corporate expenses, and (v) net loss from other projects in the start-up stage. CO Net Loss in 2Q 2021 decreased by 14.8% YoY to RUB 338 million ($4.7 million) driven primarily by the following factors:

 

   

Corporate Net Loss in 2Q 2021 decreased by 5.7% YoY to RUB 512 million mainly due to lower personnel expenses (excluding share-based payments) and foreign exchange gain partially offset by higher income tax expenses.

 

   

Tochka Net Profit decreased by 20.3% YoY to RUB 132 million driven by Net Revenue decline by 55.6% YoY due to switch of some SME customers from QIWI to Tochka bank which was partially offset with Net Profit growth through the equity pick up. In the beginning of 3Q 2021 QIWI entered into agreement to sell its stake in the project. Thus, in the next quarters the impact on operating results from Tochka is expected to cease.

 

   

Factoring Plus Net Profit declined by 42.6% YoY to RUB 54 million as a result of the accrual of reserves for expected credit losses due to digital bank guarantees and factoring portfolios growth, increased personnel expenses for business scale up and last year’s one-off adjustment of about RUB 40 million related to agent expenses. Excluding the one-off effect Factoring Net Profit would have stayed flat YoY.

 

   

Floctory Net Profit in 2Q 2021 stood at RUB 17 million as a result of Net Revenue growth by 9.0% YoY, lower personnel expenses and forex exchange gain.


   

Loss from Other projects decreased by 68.4% YoY as a result of optimization measures and ceasing of some of the projects in the end of 2020.

Consolidated cash flow statement

 

     1H 2020     1H 2021     YoY change     1H 2021  
     RUB million     RUB million     RUB million     %     USD million  

Net cash generated from operating activities before changes in working capital

     5,305       5,663       358       6.7     78.2  

Change in working capital

     (13,844     (14,131     (287     2.1     (195.3

Net interest and income tax paid

     848       (254     (1,102     (130.0 %)      (3.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash flow used in operating activities

     (7,691     (8,722     (1,031     13.4     (120.5

Net cash received from investing activities

     648       837       189       29.2     11.6  

Net cash used in from financing activities

     (1,832     (3,533     (1,701     92.8     (48.8

Effect of exchange rate changes on cash and cash equivalents

     403       (111     (514     (127.5 %)      (1.5
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (8,472     (11,529     (3,057     36.1     (159.3
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the beginning of the period

     42,101       47,382       5,281       12.5     654.7  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     33,629       35,853       2,224       6.6     495.4  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net cash generated from operating activities before changes in working capital for 1H 2021 increased by 6.7% YoY to RUB 5,663 million ($78.2 million). Net cash flow used in operating activities for 1H 2021 increased by 13.4% YoY to RUB 8,722 million ($120.5 million) driven by significant changes in working capital and increased income tax paid. Change in working capital for 1H 2021 resulted in cash outflow of RUB 14,131 million primarily due to (i) lower accounts payable and accruals of RUB 12,028 million resulted from discontinuation of payments to foreign merchants on the back of the temporary CBR prescriptions related to cross-border operations; (ii) decrease in in customer accounts and amounts due to banks in the amount of RUB 4,257 million driven predominantly due to seasonal factor; (iii) increase of income tax paid to RUB 1,443 million driven by increase in net profit for the reported period by 36%.

Net cash flow received from investing activities for 1H 2021 increased by 29.2% YoY to RUB 837 million ($11.6 million). This increase in net cash outflow was primarily driven by the less treasury operations comprising purchases of publicly traded debt securities in the last year following the wind-down of Rocketbank.

Net cash flow used in financing activities for 1H 2021 increased by 92.8% YoY to RUB 3,533 million ($48.8 million). The increase in net cash outflow was primarily driven by (i) the increase in repayment of borrowings by RUB 902 million and (ii) higher dividend payments in 1H 2021 by RUB 816 million due to an increase of distributable profit and lower payout ratio in 1H 2020 due to the COVID-19 outbreak.

As a result of factors described above cash and cash equivalents as of the end of 1H 2021 was RUB 35,583 million ($495.4 million) – an increase by 6.6% compared to the end of 1H 2020.

Recent Developments

The CBR restrictions

At the beginning of 2021 the CBR permitted us to resume processing payments to certain key foreign merchants and lifted some of the other restrictions imposed in December 2020. In June 2021 the term of restrictions imposed by the CBR expired. As a result, we started to onboard foreign merchants. However, the recovery of the payment volume and revenue lost in the wake of restrictions is highly dependent on changed customer behavior and new regulatory developments and cannot be accurately estimated as well as may never be restored. Considering existing uncertainties, we remain cautious and don’t provide guidance on the recovery process. There can be no assurance that new laws and regulations that have emerged recently or may emerge


in the near term will not adversely affect the recovery process. The restrictions introduced by the CBR have substantially decreased the volume mainly in our E-Commerce market vertical and therefore have adversely affected and will continue to adversely affect the results of operations of our Payment Services Segment.

Betting industry regulation

Since 2016, we have been operating an Interactive Bets Accounting Center (TSUPIS), which we established together with one of the self-regulated associations of bookmakers in order to enable us to accept electronic bets on behalf of sports betting companies and process related payments. In December 2020, a new law was adopted, establishing a Unified Gambling Regulator as a new governmental agency with broad authority to oversee the betting market, and creating the role of a single Unified Interactive Bets Accounting Center (ETSUP). By the end of September 2021, the newly-appointed ETSUP will replace the existing TSUPIS. Currently, both we and the operator of the competing TSUPIS have publicly made proposals to serve as the ETSUP pursuant to the new regulatory regime, however, there can be no assurance that our bid will be successful.

If we are not able to secure an active role in this new industry landscape, QIWI may lose the ability to generate volume and income directly related to TSUPIS business in Russia and acquiring services with winning payouts provided to sports betting companies in a bundle with TSUPIS operations. At the same time, part of the betting revenues generated from QIWI Wallet services, including commissions for betting accounts top-ups and winning payouts expected to be retained. This or any further significant change in betting legislation may negatively affect the payment volume, revenue, and margins of our Payment Services business, as well as overall usage of Qiwi Wallet.

The combined betting stream for 1H 2021 represented 27% (or RUB 223.3 billion) of PS Payment Volume and 37% (or RUB 3,368 million) of PS Payment Net Revenue. QIWI’s TSUPIS business and related acquiring services with winning payouts for 1H 2021 accounted 23% (or RUB 2,083 million) of PS Payment Net Revenue.

Dividends

In March 2021, the Board of Directors has approved a target dividend payout ratio for 2021. In accordance with the decision of the Board of Directors, the Company aims to distribute at least 50% of Group Adjusted Net Profit for 2021.

Following the determination of 2Q 2021 financial results and taking into consideration the current operating environment, the Board of Directors approved a dividend of USD 30 cents per share. The dividend record date is September 7, 2021, and the Company intends to pay the dividend on September 9, 2021. 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.

2021 Guidance4

QIWI revised its FY 2021 guidance:

 

   

Total Net Revenue is expected to decrease by 10% to 20% YoY;

 

   

Payment Services Net Revenue is expected to decrease by 10% to 20% YoY;

 

   

Adjusted Net Profit is expected to decrease by 15% to 30% YoY.

 

4 

Guidance is provided in Russian rubles


Our outlook reflects (1) recent changes in the betting industry landscape described in the “Recent developments” section, (2) conservative projections on recovery of cross-borders operations, and (3) sale of stake in Tochka project, previously accounted for under the equity pick-up method.

Our current views and expectations only and are based on the trends we see as of the day of this press release. If such trends were to deteriorate or improve further the impact on our business and operations could deviate from than currently expected.

The Company reserves the right to revise guidance in the course of the year or when additional information regarding the effect of the ongoing events becomes available.

Earnings Conference Call and Audio Webcast

QIWI will host a conference call to discuss 2Q 2021 financial results today at 8:30 a.m. ET. Hosting the call will be Andrey Protopopov, CEO and Elena Nikonova, interim CFO. 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 or +1 (412) 317-6671 for international callers; the pin number is 13722017. The replay will be available until Thursday, September 2, 2021. 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 around 15.5 million virtual wallets, over 100,000 kiosks and terminals, and enabled merchants and customers to accept and transfer over RUB 140 billion cash and electronic payments monthly connecting over 26 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 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 Factoring, Flocktory and Tochka businesses, the impact of the COVID-19 pandemic and related public health measures on our business, merchants, customers, and employees, the impact of the restrictions imposed on us by the CBR on December 7, 2020, in particular with respect to payments to foreign merchants, developments in the betting industry in the Russian Federation and its regulation, and others. 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

 

Investor Relations

+357.25028091

ir@qiwi.com


QIWI plc.

Consolidated Statement of Financial Position

(in millions)

 

     As of December 31,
2020
     As of June 30,
2021 (unaudited)
     As of June 30,
2021 (unaudited)
 
     RUB      RUB      USD(1)  

Assets

        

Non-current assets

        

Property and equipment

     1,893        1,681        23.2  

Goodwill and other intangible assets

     10,813        10,590        146.3  

Investments in associates

     1,635        0        0.0  

Long-term debt securities and deposits

     3,495        3,456        47.8  

Long-term loans

     214        257        3.5  

Other non-current assets

     112        120        1.7  

Deferred tax assets

     209        178        2.5  
  

 

 

    

 

 

    

 

 

 

Total non-current assets

     18,371        16,282        225.0  
  

 

 

    

 

 

    

 

 

 

Current assets

        

Trade and other receivables

     7,445        5,547        76.6  

Short-term loans

     5,799        5,615        77.6  

Short-term debt securities and deposits

     2,888        1,899        26.2  

Prepaid income tax

     197        207        2.9  

Other current assets

     1,202        875        12.1  

Cash and cash equivalents

     47,382        35,853        495.4  

Assets held for sale

     31        1,949        26.9  
  

 

 

    

 

 

    

 

 

 

Total current assets

     64,944        51,945        717.7  
  

 

 

    

 

 

    

 

 

 

Total assets

     83,315        68,227        942.7  
  

 

 

    

 

 

    

 

 

 

Equity and liabilities

        

Equity attributable to equity holders of the parent

        

Share capital

     1        1        0.0  

Additional paid-in capital

     1,876        1,876        25.9  

Share premium

     12,068        12,068        166.7  

Other reserve

     2,575        2,582        35.7  

Retained earnings

     14,602        16,730        231.2  

Translation reserve

     554        530        7.3  
  

 

 

    

 

 

    

 

 

 

Total equity attributable to equity holders of the parent

     31,676        33,787        466.8  
  

 

 

    

 

 

    

 

 

 

Non-controlling interests

     96        64        0.9  
  

 

 

    

 

 

    

 

 

 

Total equity

     31,772        33,851        467.7  
  

 

 

    

 

 

    

 

 

 

Non-current liabilities

        

Long term debt

     4,923        4,936        68.2  

Long-term lease liability

     762        737        10.2  

Long-term customer accounts

     36        —          —    

Other non-current liabilities

     44        49        0.7  

Deferred tax liabilities

     1,161        1,362        18.8  
  

 

 

    

 

 

    

 

 

 

Total non-current liabilities

     6,926        7,084        97.9  
  

 

 

    

 

 

    

 

 

 

Current liabilities

        

Trade and other payables

     29,528        17,397        240.4  

Customer accounts and amounts due to banks

     12,301        8,047        111.2  

Short-term debt

     1,640        638        8.8  

Short-term lease liability

     354        357        4.9  

VAT and other taxes payable

     147        108        1.5  

Other current liabilities

     647        745        10.3  
  

 

 

    

 

 

    

 

 

 

Total current liabilities

     44,617        27,292        377.1  
  

 

 

    

 

 

    

 

 

 

Total equity and liabilities

     83,315        68,227        942.7  
  

 

 

    

 

 

    

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

 

     Three months ended (unaudited)  
     June 30, 2020     June 30, 2021     June 30, 2021  
     RUB(1)     RUB     USD(2)  

Continuing operations

      

Revenue:

     9,426       10,813       149.4  

Payment processing fees

     7,796       9,162       126.6  

Interest revenue calculated using the effective interest rate

     655       694       9.6  

Fees from inactive accounts and unclaimed payments

     501       413       5.7  

Other revenue

     474       544       7.5  

Operating costs and expenses:

     (5,716     (7,250     (100.2

Cost of revenue (exclusive of items shown separately below)

     (3,501     (4,764     (65.8

Selling, general and administrative expenses

     (510     (612     (8.5

Personnel expenses

     (1,400     (1,525     (21.1

Depreciation and amortization

     (268     (285     (3.9

Credit loss expense

     (5     (64     (0.9

Impairment of non-current assets

     (32     —         —    
  

 

 

   

 

 

   

 

 

 

Profit from operations

     3,710       3,563       49.2  
  

 

 

   

 

 

   

 

 

 

Share of gain of an associate and a joint venture

     107       141       1.9  

Foreign exchange gain/(loss), net (3)

     (299     (50     (0.7

Interest income and expenses, net

     (23     (15     (0.2

Other income and expenses, net

     (7     (65     (0.9
  

 

 

   

 

 

   

 

 

 

Profit before tax from continuing operations

     3,488       3,574       49.4  
  

 

 

   

 

 

   

 

 

 

Income tax expense

     (678     (941     (13.0
  

 

 

   

 

 

   

 

 

 

Net profit from continuing operations

     2,810       2,633       36.4  
  

 

 

   

 

 

   

 

 

 

Discontinued operations

      

Loss after tax from discontinued operations

     (973     —         —    
  

 

 

   

 

 

   

 

 

 

Net profit

     1,837       2,633       36.4  
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     1,816       2,618       36.2  

Non-controlling interests

     21       15       0.2  

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

     (33     (29     (0.4

Debt securities at fair value through other comprehensive income (FVOCI):

      

Net gains arising during the period, net of tax

     40       —         —    

Net gains recycled to profit or loss upon disposal

     (25     —         —    

Total other comprehensive income/(loss), net of tax

     (18     (29     (0.4
  

 

 

   

 

 

   

 

 

 

Total comprehensive income, net of tax effect of nil

     1,819       2,604       36.0  
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     1,798       2,589       35.8  

Non-controlling interests

     21       15       0.2  

Earnings per share:

      

Basic, profit attributable to ordinary equity holders of the parent

     29.24       41.94       0.58  

Diluted, profit attributable to ordinary equity holders of the parent

     29.13       41.92       0.58  

Earnings per share for continuing operations

      

Basic, profit from continuing operations attributable to ordinary equity holders of the parent

     44.88       41.94       0.58  

Diluted, profit from continuing operations attributable to ordinary equity holders of the parent

     44.72       41.92       0.58  

 

 

(1)

Following the divestiture of SOVEST and the wind-down of Rocketbank, certain amounts have been reclassified to Discontinued operations in order to conform to the current period’s presentation.

(2)

Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

(3)

Starting December 31, 2020, we present foreign exchange gain and foreign exchange loss on a netted basis. This change in presentation was implemented to make our financial statements comparable with industry peers.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

 

     Six months ended (unaudited)  
     June 30, 2020     June 30, 2021     June 30, 2021  
     RUB(1)     RUB     USD(2)  

Continuing operations

      

Revenue:

     18,830       20,047       277.0  

Payment processing fees

     15,731       16,777       231.8  

Interest revenue calculated using the effective interest rate

     1,211       1,343       18.6  

Fees from inactive accounts and unclaimed payments

     991       854       11.8  

Other revenue

     897       1,073       14.8  

Operating costs and expenses:

     (11,920     (13,968     (193.0

Cost of revenue (exclusive of items shown separately below)

     (7,354     (8,837     (122.1

Selling, general and administrative expenses

     (1,204     (1,161     (16.0

Personnel expenses

     (2,777     (3,230     (44.6

Depreciation and amortization

     (528     (571     (7.9

Credit loss expense

     (25     (157     (2.2

Impairment of non-current assets

     (32     (12     (0.2
  

 

 

   

 

 

   

 

 

 

Profit from operations

     6,910       6,079       84.0  
  

 

 

   

 

 

   

 

 

 

Share of gain of an associate and a joint venture

     239       306       4.2  

Foreign exchange gain/(loss), net (3)

     (239     (42     (0.6

Interest income and expenses, net

     (44     (27     (0.4

Other income and expenses, net

     (23     (73     (1.0
  

 

 

   

 

 

   

 

 

 

Profit before tax from continuing operations

     6,843       6,243       86.3  
  

 

 

   

 

 

   

 

 

 

Income tax expense

     (1,344     (1,656     (22.9
  

 

 

   

 

 

   

 

 

 

Net profit from continuing operations

     5,499       4,587       63.4  
  

 

 

   

 

 

   

 

 

 

Discontinued operations

      

Loss after tax from discontinued operations

     (2,063     —         —    
  

 

 

   

 

 

   

 

 

 

Net profit

     3,436       4,587       63.4  
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     3,403       4,561       63.0  

Non-controlling interests

     33       26       0.4  

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

     153       (24     (0.3

Debt securities at fair value through other comprehensive income (FVOCI):

      

Net gains arising during the period, net of tax

     32       —         —    

Net gains recycled to profit or loss upon disposal

     (47     —         —    

Total other comprehensive income/(loss), net of tax

     138       (24     (0.3
  

 

 

   

 

 

   

 

 

 

Total comprehensive income, net of tax effect of nil

     3,574       4,563       63.0  
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     3,530       4,537       62.7  

Non-controlling interests

     44       26       0.4  

Earnings per share:

      

Basic, profit attributable to ordinary equity holders of the parent

     54.78       73.07       1.01  

Diluted, profit attributable to ordinary equity holders of the parent

     54.58       73.02       1.01  

Earnings per share for continuing operations

      

Basic, profit from continuing operations attributable to ordinary equity holders of the parent

     87.97       73.07       1.01  

Diluted, profit from continuing operations attributable to ordinary equity holders of the parent

     87.65       73.02       1.01  

 

(1)

Following the divestiture of SOVEST and the wind-down of Rocketbank, certain amounts have been reclassified to Discontinued operations in order to conform to the current period’s presentation.

(2)

Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

(3)

Starting December 31, 2020, we present foreign exchange gain and foreign exchange loss on a netted basis. This change in presentation was implemented to make our financial statements comparable with industry peers.


QIWI plc.

Consolidated Statement of Cash Flows

(in millions)

     Six months ended (unaudited)  
     June 30, 2020     June 30, 2021     June 30, 2021  
     RUB     RUB     USD(1)  

Operating activities

      

Profit before tax from continuing operations

     6,843       6,243       86.3  

Loss before tax from discontinued operations

     (2,244     —         —    

Profit before tax

     4,599       6,243       86.3  
  

 

 

   

 

 

   

 

 

 

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

      

Depreciation and amortization

     650       571       7.9  

Foreign exchange loss, net

     255       42       0.6  

Interest income, net

     (1,595     (1,069     (14.8

Credit loss expense

     810       157       2.2  

Share of gain of an associate and a joint venture

     (239     (306     (4.2

Loss on forward contract to sell Sovest loans’ portfolio

     658       —         —    

Impairment of non-current assets

     134       12       0.2  

Other

     33       13       0.2  

Working capital adjustments:

      

Increase in trade and other receivables

     1,218       1,687       23.3  

Decrease/(increase) in other assets

     (37     311       4.3  

Decrease in customer accounts and amounts due to banks

     (12,441     (4,257     (58.8

Decrease in accounts payable and accruals

     (3,391     (12,028     (166.2

Decrease/(increase) in loans issued from banking operations

     807       156       2.2  
  

 

 

   

 

 

   

 

 

 

Cash used in operations

     (8,539     (8,468     (117.0
  

 

 

   

 

 

   

 

 

 

Interest received

     1,985       1,468       20.3  

Interest paid

     (332     (279     (3.9

Income tax paid

     (805     (1,443     (19.9
  

 

 

   

 

 

   

 

 

 

Net cash flow used in operating activities

     (7,691     (8,722     (120.5
  

 

 

   

 

 

   

 

 

 

Investing activities

      

Cash paid for acquisition

     (66     (10     (0.1

Purchase of property and equipment

     (90     (90     (1.2

Purchase of intangible assets

     (111     (37     (0.5

Proceeds from sale of fixed and intangible assets

     54       12       0.2  

Loans issued

     (11     (20     (0.3

Repayment of loans issued

     —         11       0.2  

Purchase of debt securities and deposits

     (2,358     —         —    

Proceeds from sale and redemption of debt securities

     3,230       971       13.4  
  

 

 

   

 

 

   

 

 

 

Net cash used in investing activities

     648       837       11.6  
  

 

 

   

 

 

   

 

 

 

Financing activities

      

Repayment of borrowings

     (102     (1,004     (13.9

Payment of principal portion of lease liabilities

     (46     (29     (0.4

Dividends paid to owners of the Group

     (1,630     (2,446     (33.8

Dividends paid to non-controlling shareholders

     (54     (54     (0.7
  

 

 

   

 

 

   

 

 

 

Net cash (used in)/generated from financing activities

     (1,832     (3,533     (48.8
  

 

 

   

 

 

   

 

 

 

Net increase in cash and cash equivalents

     (8,472     (11,529     (159.3
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the beginning of the period

     42,101       47,382       654.7  
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     33,629       35,853       495.4  
  

 

 

   

 

 

   

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.


QIWI plc.

Reporting Segments Data

 

     Three months ended (unaudited)  
     June 30, 2020     June 30, 2021     June 30, 2021  
     RUB     RUB     USD (1)  

Total Net Revenue

     6,839       6,049       83.6  
  

 

 

   

 

 

   

 

 

 

Payment Services

     5,397       5,678       78.5  

Consumer Financial Services

     437       —         —    

Rocketbank

     509       —         —    

Corporate and Other

     496       371       5.1  
  

 

 

   

 

 

   

 

 

 

Tochka

     166       74       1.0  

Factoring

     204       181       2.5  

Flocktory

     117       127       1.8  

Corporate and Other projects

     8       (10     (0.1
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     2,756       2,704       37.4  
  

 

 

   

 

 

   

 

 

 

Payment Services

     3,243       3,042       42.0  

Consumer Financial Services

     (134     —         —    

Rocketbank

     44       —         —    

Corporate and Other

     (397     (338     (4.7
  

 

 

   

 

 

   

 

 

 

Tochka

     165       132       1.8  

Factoring

     94       54       0.7  

Flocktory

     (23     17       0.2  

Corporate

     (543     (512     (7.1

Other projects

     (90     (28     (0.4
  

 

 

   

 

 

   

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.


QIWI plc.

Reporting Segments Data

 

     Six months ended (unaudited)  
     June 30, 2020     June 30, 2021     June 30, 2021  
     RUB     RUB     USD (1)  

Total Net Revenue

     13,099       11,210       154.9  
  

 

 

   

 

 

   

 

 

 

Payment Services

     10,718       10,440       144.3  

Consumer Financial Services

     1,003       —         —    

Rocketbank

     532       —         —    

Corporate and Other

     846       770       10.6  
  

 

 

   

 

 

   

 

 

 

Tochka

     331       155       2.1  

Factoring

     305       375       5.2  

Flocktory

     206       260       3.6  

Corporate and Other projects

     4       (20     (0.3
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     4,510       4,765       65.8  
  

 

 

   

 

 

   

 

 

 

Payment Services

     6,294       5,522       76.3  

Consumer Financial Services

     (656     —         —    

Rocketbank

     (616     —         —    

Corporate and Other

     (512     (757     (10.5
  

 

 

   

 

 

   

 

 

 

Tochka

     308       323       4.5  

Factoring

     92       34       0.5  

Flocktory

     12       (103     (1.4

Corporate

     (782     (954     (13.2

Others

     (142     (57     (0.8
  

 

 

   

 

 

   

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.


Non-IFRS Financial Measures and Supplemental Financial Information

This release presents Total Net Revenue, PS Payment Net Revenue, PS Other 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 Net Revenue, PS Payment Net Revenue and PS Other 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 Net Revenue, PS Payment Net Revenue, PS Other Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit, and Adjusted Net Profit per share, including a quantitative reconciliation of Total Net Revenue, PS Payment Net Revenue, PS Other 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 Net Revenue, PS Payment Net Revenue and PS Other 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 Net Revenue is the Net Revenue consisting of the merchant and consumer fees collected for the payment transactions. E-commerce payment 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 net revenue primarily consists of fees charged for payments accepted on behalf of our bank partners and microfinance companies. Money Remittance payment 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 net revenue primarily consists of fees charged for payments to MNOs, internet services providers and pay television providers. Other payment 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 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)  
     June 30, 2020     June 30, 2021     June 30, 2021  
     RUB(1)     RUB     USD(2)  

Revenue(3)

     10,580       10,813       149.4  

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

     3,741       4,764       65.8  
  

 

 

   

 

 

   

 

 

 

Total Net Revenue

     6,839       6,049       83.6  
  

 

 

   

 

 

   

 

 

 

Segment Net Revenue

      

Payment Services Segment Revenue

     8,828       10,145       140.2  

PS Payment Revenue (5)

     7,796       9,162       126.6  

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

     3,187       4,229       58.4  
  

 

 

   

 

 

   

 

 

 

PS Payment Adjusted Net Revenue

     4,609       4,933       68.2  
  

 

 

   

 

 

   

 

 

 

PS Other Revenue (7)

     1,032       983       13.6  

Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(8)

     244       238       3.3  
  

 

 

   

 

 

   

 

 

 

PS Other Adjusted Net Revenue

     788       745       10.3  
  

 

 

   

 

 

   

 

 

 

Payment Services Segment Net Revenue

     5,397       5,678       78.5  
  

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Revenue

     486       —         —    

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

     49       —         —    
  

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Net Revenue

     437       —         —    
  

 

 

   

 

 

   

 

 

 

Rocketbank Revenue

     688       —         —    

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

     179       —         —    
  

 

 

   

 

 

   

 

 

 

Rocketbank Net Revenue

     509       —         —    
  

 

 

   

 

 

   

 

 

 

Corporate and Other Category Revenue

     578       668       9.2  

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

     82       297       4.1  
  

 

 

   

 

 

   

 

 

 

Corporate and Other Category Net Revenue

     496       371       5.1  
  

 

 

   

 

 

   

 

 

 

Total Segment Net Revenue

     6,839       6,049       83.6  
  

 

 

   

 

 

   

 

 

 

Net Profit

     1,837       2,633       36.4  
  

 

 

   

 

 

   

 

 

 

Plus:

      

Depreciation and amortization

     331       285       3.9  

Other income and expenses, net

     7       65       0.9  

Foreign exchange (gain)/loss, net

     292       50       0.7  

Share of gain of an associate and a joint venture

     (107     (141     (1.9

Income tax expenses

     751       941       13.0  

Offering expenses

     —         —         —    

Loss from sale of Sovest loans’ portfolio

     658       —      

Share-based payment expenses

     (11     2       0.0  

Impairment of non-current assets

     114       —         —    
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     3,905       3,850       53.2  
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

     57.1     63.7     63.7

Net profit

     1,837       2,633       36.4  

Fair value adjustments recorded on business combinations and their amortization(9)

     85       83       1.1  

Impairment of non-current assets

     114       —         —    

Share-based payment expenses

     (11     2       0.0  

Offering expenses

     —         —         —    

Loss from sale of Sovest loans’ portfolio

     658         —    

Effect of taxation of the above items

     73       (14     (0.2
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     2,756       2,704       37.4  
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

      

Basic

     44.35       43.32       0.60  

Diluted

     44.19       43.30       0.60  

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

      

Basic

     62,147       62,424       62,424  

Diluted

     62,362       62,446       62,446  


 

(1)

The results presented in Reconciliation differ from IFRS results due to Rocketbank and CFS results are presented as discontinued operations in IFRS.

(2)

Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

(3)

Including revenue from discontinued operations of RUB 1,154 million for the second quarter ended June 30, 2020.

(4)

Including cost of revenue from discontinued operations of RUB 240 million for second quarter ended June 30, 2020.

(5)

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

(6)

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.

(7)

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.

(8)

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: costs of call-centers and advertising commissions.

(9)

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


QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)

 

     Six months ended (unaudited)  
     June 30, 2020     June 30, 2021     June 30, 2021  
     RUB(1)     RUB     USD(2)  

Revenue (3)

     21,190       20,047       277.0  

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

     8,091       8,837       122.1  
  

 

 

   

 

 

   

 

 

 

Total Net Revenue

     13,099       11,210       154.9  
  

 

 

   

 

 

   

 

 

 

Segment Net Revenue

      

Payment Services Segment Revenue

     17,816       18,692       258.3  

PS Payment Revenue (5)

     15,731       16,777       231.8  

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

     6,528       7,775       107.4  
  

 

 

   

 

 

   

 

 

 

PS Payment Adjusted Net Revenue

     9,203       9,002       124.4  
  

 

 

   

 

 

   

 

 

 

PS Other Revenue (7)

     2,085       1,915       26.5  

Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(8)

     570       476       6.6  
  

 

 

   

 

 

   

 

 

 

PS Other Adjusted Net Revenue

     1,514       1,439       19.9  
  

 

 

   

 

 

   

 

 

 

Payment Services Segment Net Revenue

     10,718       10,440       144.3  
  

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Revenue

     1,126       —         —    

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

     123       —         —    
  

 

 

   

 

 

   

 

 

 

Consumer Financial Services Segment Net Revenue

     1,003       —         —    
  

 

 

   

 

 

   

 

 

 

Rocketbank Revenue

     1,125       —         —    

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

     593       —         —    
  

 

 

   

 

 

   

 

 

 

Rocketbank Net Revenue

     532       —         —    
  

 

 

   

 

 

   

 

 

 

Corporate and Other Category Revenue

     1,123       1,355       18.7  

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

     277       585       8.1  
  

 

 

   

 

 

   

 

 

 

Corporate and Other Category Net Revenue

     846       770       10.6  
  

 

 

   

 

 

   

 

 

 

Total Segment Net Revenue

     13,099       11,210       154.9  
  

 

 

   

 

 

   

 

 

 

Net Profit

     3,436       4,587       63.4  
  

 

 

   

 

 

   

 

 

 

Plus:

      

Depreciation and amortization

     650       571       7.9  

Other income and expenses, net

     23       73       1.0  

Foreign exchange (gain)/loss, net

     255       42       0.6  

Share of gain of an associate and a joint venture

     (239     (306     (4.2

Income tax expenses

     1,163       1,656       22.9  

Offering expenses

     10       —         —    

Loss from sale of Sovest loans’ portfolio

     658       —      

Share-based payment expenses

     48       8       0.1  

Impairment of non-current assets

     134       12       0.2  
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     6,203       6,670       92.2  
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

     47.4     59.5     59.5

Net profit

     3,436       4,587       63.4  

Fair value adjustments recorded on business combinations and their amortization(9)

     169       168       2.3  

Impairment of non-current assets

     134       12       0.2  

Share-based payment expenses

     48       8       0.1  

Offering expenses

     10       —         —    

Loss from sale of Sovest loans’ portfolio

     658         —    

Effect of taxation of the above items

     55       (10     (0.1
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     4,510       4,765       65.8  
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

      

Basic

     72.58       76.34       1.05  

Diluted

     72.31       76.29       1.05  

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

      

Basic

     62,137       62,418       62,418  

Diluted

     62,367       62,459       62,459  


 

(1)

The results presented in Reconciliation differ from IFRS results due to Rocketbank and CFS results are presented as discontinued operations in IFRS.

(2)

Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

(3)

Including revenue from discontinued operations of RUB 2,360 million for the six months ended June 30, 2020.

(4)

Including cost of revenue from discontinued operations of RUB 737 million for the six months ended June 30, 2020.

(5)

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

(6)

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.

(7)

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.

(8)

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: costs of call-centers and advertising commissions.

(9)

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


QIWI plc.

Other Operating Data

 

     Three months ended (unaudited)  
     June 30, 2020     June 30, 2021     June 30, 2021  
     RUB     RUB     USD (1)  

Payment Services Segment key operating metrics

      

Payment Volume (billion)(2)

     346.8       457.6       6.3  
  

 

 

   

 

 

   

 

 

 

E-commerce

     100.2       104.3       1.4  

Financial services

     53.7       67.8       0.9  

Money remittances

     142.2       243.7       3.4  

Telecom

     42.6       28.9       0.4  

Other

     8.1       12.9       0.2  
  

 

 

   

 

 

   

 

 

 

Payment Net Revenue (million)(3)

     4,608.4       4,932.8       68.2  
  

 

 

   

 

 

   

 

 

 

E-commerce

     2,687.7       2,292.6       31.7  

Financial services

     313.6       161.5       2.2  

Money remittances

     1,317.5       2,337.0       32.3  

Telecom

     238.7       124.4       1.7  

Other

     51.0       17.2       0.2  
  

 

 

   

 

 

   

 

 

 

Payment Net Revenue Yield(4)

     1.33     1.08     1.08
  

 

 

   

 

 

   

 

 

 

E-commerce

     2.68     2.20     2.20

Financial services

     0.58     0.24     0.24

Money remittances

     0.93     0.96     0.96

Telecom

     0.56     0.43     0.43

Other

     0.63     0.13     0.13
  

 

 

   

 

 

   

 

 

 

Payment Services Segment Net Revenue Yield

     1.56     1.24     1.24

Active kiosks and terminals (units)(5)

     118,455       100,324       100,324  

Active Qiwi Wallet accounts (million)(6)

     20.9       15.5       15.5  

PS Payment volume per active QIWI Wallet account (RUB thousand)

     16.6       29.5       12.9  
  

 

 

   

 

 

   

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

(2)

Payment Services 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 Net Revenue is calculated as the difference between PS Payment Revenue and PS Cost of Payment Revenue (excluding D&A). PS Payment Revenue primarily consists of merchant and consumer fees. Cost of PS Payment Revenue primarily consists of commission to agents.

(4)

PS Payment Net Revenue Yield is defined as PS Payment 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 from the reporting date.


QIWI plc.

Other Operating Data

 

     Six months ended (unaudited)  
     June 30, 2020     June 30, 2021     June 30, 2021  
     RUB     RUB     USD (1)  

Payment Services Segment key operating metrics

      

Payment Volume (billion)(2)

     717.1       841.6       11.6  
  

 

 

   

 

 

   

 

 

 

E-commerce

     209.4       193.6       2.7  

Financial services

     121.3       128.7       1.8  

Money remittances

     286.5       433.8       6.0  

Telecom

     82.7       60.8       0.8  

Other

     17.3       24.7       0.3  
  

 

 

   

 

 

   

 

 

 

Payment Net Revenue (million)(3)

     9,203.1       9,001.2       124.4  
  

 

 

   

 

 

   

 

 

 

E-commerce

     5,400.5       4,074.6       56.3  

Financial services

     600.1       328.1       4.5  

Money remittances

     2,668.5       4,236.8       58.5  

Telecom

     430.1       276.4       3.8  

Other

     103.9       85.3       1.2  
  

 

 

   

 

 

   

 

 

 

Payment Net Revenue Yield(4)

     1.28     1.07     1.07
  

 

 

   

 

 

   

 

 

 

E-commerce

     2.58     2.10     2.10

Financial services

     0.49     0.25     0.25

Money remittances

     0.93     0.98     0.98

Telecom

     0.52     0.45     0.45

Other

     0.60     0.34     0.34
  

 

 

   

 

 

   

 

 

 
      

 

 

Payment Services Segment Net Revenue Yield

     1.49     1.24     1.24

Active kiosks and terminals (units)(5)

     118,455       100,324       100,324  

Active Qiwi Wallet accounts (million)(6)

     20.9       15.5       15.5  

PS Payment volume per active QIWI Wallet account (RUB thousand)

     34.3       54.2       19.9  
  

 

 

   

 

 

   

 

 

 

 

(1)

Calculated using a ruble to U.S. dollar exchange rate of RUB 72.3723 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2021.

(2)

Payment Services 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 Net Revenue is calculated as the difference between PS Payment Revenue and PS Cost of Payment Revenue (excluding D&A). PS Payment Revenue primarily consists of merchant and consumer fees. Cost of PS Payment Revenue primarily consists of commission to agents.

(4)

PS Payment Net Revenue Yield is defined as PS Payment 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 from the reporting date.

EX-99.2
Table of Contents

Exhibit 99.2

QIWI plc

Unaudited interim condensed consolidated

financial statements

June 30, 2021


Table of Contents

QIWI plc

Unaudited interim condensed consolidated financial statements

June  30, 2021

Content

 

Report of Independent Registered Public Accounting Firm

     F-1  

Interim condensed consolidated statement of financial position

     F-2  

Interim condensed consolidated statement of comprehensive income

     F-3  

Interim condensed consolidated statement of cash flows

     F-4  

Interim condensed consolidated statement of changes in equity

     F-5  

Notes to interim condensed consolidated financial statements

     F-7  


Table of Contents

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors of Qiwi plc

Results of Review of Interim Financial Statements

We have reviewed the accompanying interim condensed consolidated statement of financial position of Qiwi plc and subsidiaries (“the Group”) as of June 30, 2021, the related interim condensed consolidated statements of comprehensive income for the six and three-month periods ended June 30, 2021 and 2020, interim condensed consolidated statements of cash flows and changes in equity for the six-month periods ended June 30, 2021 and 2020, and the related notes (collectively referred to as the “interim condensed consolidated financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the interim condensed consolidated financial statements for them to be in conformity with International Financial Reporting Standards (IFRS) promulgated by the International Accounting Standards Board.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of financial position of the Group as of December 31, 2020, the related consolidated statements of comprehensive income, consolidated statements of cash flows and changes in equity for the year then ended, and the related notes (not presented herein); and in our report dated April 15, 2021, we expressed an unqualified audit opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated statement of financial position as of December 31, 2020, is fairly stated, in all material respects, in relation to the consolidated statement of financial position from which it has been derived.

Basis for Review Results

These interim financial statements are the responsibility of the Group’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Group in accordance with the U.S. federal securities laws and the applicable rules and regulations of the SEC and the PCAOB. We conducted our review in accordance with the standards of the PCAOB. A review of interim financial statements consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ Ernst & Young LLC

Moscow, Russia

August 19, 2021

 

F-1


Table of Contents

QIWI plc

Interim condensed consolidated statement of financial position

June 30, 2021

(in millions of rubles)

 

     Notes      As of
December 31,
2020
     As of
June 30, 2021
(unaudited)
 

Assets

        

Non-current assets

        

Property and equipment

        1,893        1,681  

Goodwill and other intangible assets

        10,813        10,590  

Investments in associates

     13        1,635        —    

Long-term debt securities and deposits

     22        3,495        3,456  

Long-term loans

     6, 22        214        257  

Other non-current assets

        112        120  

Deferred tax assets

        209        178  
     

 

 

    

 

 

 

Total non-current assets

        18,371        16,282  
     

 

 

    

 

 

 

Current assets

        

Trade and other receivables

     7        7,445        5,547  

Short-term loans

     6        5,799        5,615  

Short-term debt securities and deposits

     22        2,888        1,899  

Prepaid income tax

        197        207  

Other current assets

     9        1,202        875  

Cash and cash equivalents

     8        47,382        35,853  

Assets held for sale

     4        31        1,949  
     

 

 

    

 

 

 

Total current assets

        64,944        51,945  
     

 

 

    

 

 

 

Total assets

        83,315        68,227  
     

 

 

    

 

 

 

Equity and liabilities

        

Equity attributable to equity holders of the parent

        

Share capital

        1        1  

Additional paid-in capital

        1,876        1,876  

Share premium

        12,068        12,068  

Other reserves

        2,575        2,582  

Retained earnings

        14,602        16,730  

Translation reserve

        554        530  
     

 

 

    

 

 

 

Total equity attributable to equity holders of the parent

        31,676        33,787  

Non-controlling interests

        96        64  
     

 

 

    

 

 

 

Total equity

        31,772        33,851  
     

 

 

    

 

 

 

Non-current liabilities

        

Long-term debt

     12        4,923        4,936  

Long-term lease liabilities

     14        762        737  

Long-term customer accounts

     11        36        —    

Other non-current liabilities

        44        49  

Deferred tax liabilities

        1,161        1,362  
     

 

 

    

 

 

 

Total non-current liabilities

        6,926        7,084  
     

 

 

    

 

 

 

Current liabilities

        

Trade and other payables

     10        29,528        17,397  

Customer accounts and amounts due to banks

     11        12,301        8,047  

Short-term debt

     12        1,640        638  

Short-term lease liabilities

     14        354        357  

VAT and other taxes payable

        147        108  

Other current liabilities

     9        647        745  
     

 

 

    

 

 

 

Total current liabilities

        44,617        27,292  
     

 

 

    

 

 

 

Total equity and liabilities

        83,315        68,227  
     

 

 

    

 

 

 

 

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

F-2


Table of Contents

QIWI plc

Interim condensed consolidated statement of comprehensive income

June 30, 2021

(in millions of rubles)

 

            Unaudited  
            Three months
ended
    Six months
ended
    Three months
ended
    Six months
ended
 
     Notes      June 30, 2020 (restated)*     June 30, 2021  

Continuing operations

           

Revenue:

        9,426       18,830       10,813       20,047  
     

 

 

   

 

 

   

 

 

   

 

 

 

Payment processing fees

        7,796       15,731       9,162       16,777  

Interest revenue calculated using the effective interest rate

     15        655       1,211       694       1,343  

Fees from inactive accounts and unclaimed payments

        501       991       413       854  

Other revenue

     15        474       897       544       1,073  
     

 

 

   

 

 

   

 

 

   

 

 

 

Operating costs and expenses:

        (5,716     (11,920     (7,250     (13,968
     

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenue (exclusive of items shown separately below)

     16        (3,501     (7,354     (4,764     (8,837

Selling, general and administrative expenses

     17        (510     (1,204     (612     (1,161

Personnel expenses

        (1,400     (2,777     (1,525     (3,230

Depreciation and amortization

        (268     (528     (285     (571

Credit loss expense

     6, 7, 8        (5     (25     (64     (157

Impairment of non-current assets

        (32     (32     —         (12
     

 

 

   

 

 

   

 

 

   

 

 

 

Profit from operations

        3,710       6,910       3,563       6,079  
     

 

 

   

 

 

   

 

 

   

 

 

 

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

     13        107       239       141       306  

Foreign exchange gain/(loss), net

        (299     (239     (50     (42

Interest income and expenses, net

        (23     (44     (15     (27

Other income and expenses, net

        (7     (23     (65     (73
     

 

 

   

 

 

   

 

 

   

 

 

 

Profit before tax from continuing operations

        3,488       6,843       3,574       6,243  

Income tax expense

     19        (678     (1,344     (941     (1,656
     

 

 

   

 

 

   

 

 

   

 

 

 

Net profit from continuing operations

        2,810       5,499       2,633       4,587  
     

 

 

   

 

 

   

 

 

   

 

 

 

Discontinued operations

           

Loss after tax from discontinued operations

     4        (973     (2,063     —         —    
     

 

 

   

 

 

   

 

 

   

 

 

 

Net profit

        1,837       3,436       2,633       4,587  
     

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to:

           

Equity holders of the parent

        1,816       3,403       2,618       4,561  

Non-controlling interests

        21       33       15       26  

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

 

     (33     153       (29     (24

Debt securities at fair value through other comprehensive income (FVOCI):

           

Net gains arising during the period, net of tax

        40       32       —         —    

Net gains recycled to profit or loss upon disposal

        (25     (47     —         —    

Total other comprehensive income/(loss), net of tax

        (18     138       (29     (24
     

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income, net of tax

        1,819       3,574       2,604       4,563  
     

 

 

   

 

 

   

 

 

   

 

 

 

Attributable to:

           

Equity holders of the parent

        1,798       3,530       2,589       4,537  

Non-controlling interests

        21       44       15       26  

Earnings per share:

           

Basic, profit attributable to ordinary equity holders of the parent

 

     29.24       54.78       41.94       73.07  

Diluted, profit attributable to ordinary equity holders of the parent

 

     29.13       54.58       41.92       73.02  

Earnings per share for continuing operations

 

        

Basic, profit from continuing operations attributable to ordinary equity holders of the parent

 

     44.88       87.97       41.94       73.07  

Diluted, profit from continuing operations attributable to ordinary equity holders of the parent

 

     44.72       87.65       41.92       73.02  

 

*

Amounts do not correspond with the previously presented ones due to discontinued operations (please refer to Note 4) and foreign exchange gain/(loss) netting (please refer to Note 2.3)

 

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

F-3


Table of Contents

QIWI plc

Interim condensed consolidated statement of cash flows

June 30, 2021

(in millions of rubles)

 

            Six months ended (unaudited)  
     Notes      June 30, 2020     June 30, 2021  

Operating activities

       

Profit before tax from continuing operations

        6,843       6,243  

Loss before tax from discontinued operations

     4        (2,244     —    
     

 

 

   

 

 

 

Profit before tax

        4,599       6,243  

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

       

Depreciation and amortization

        650       571  

Foreign exchange loss, net

        255       42  

Interest income, net

     15        (1,595     (1,069

Credit loss expense

     4, 6, 7, 8        810       157  

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

     13        (239     (306

Loss on forward contract to sell Sovest loans’ portfolio

     4        658       —    

Impairment of non-current assets

        134       12  

Other

        33       13  

Changes in operating assets and liabilities:

       

Decrease in trade and other receivables

        1,218       1,687  

(Increase)/decrease in other assets

        (37     311  

Decrease in customer accounts and amounts due to banks

        (12,441     (4,257

Decrease in accounts payable and accruals

        (3,391     (12,028

Decrease in loans issued from banking operations

        807       156  
     

 

 

   

 

 

 

Cash used in operations

        (8,539     (8,468

Interest received

        1,985       1,468  

Interest paid

        (332     (279

Income tax paid

        (805     (1,443
     

 

 

   

 

 

 

Net cash flow used in operating activities

        (7,691     (8,722
     

 

 

   

 

 

 

Investing activities

       

Cash paid for acquisitions

        (66     (10

Purchase of property and equipment

        (90     (90

Purchase of intangible assets

        (111     (37

Proceeds from sale of fixed and intangible assets

        54       12  

Loans issued

        (11     (20

Repayment of loans issued

        —         11  

Purchase of debt securities and deposits

        (2,358     —    

Proceeds from sale and redemption of debt instruments

        3,230       971  
     

 

 

   

 

 

 

Net cash flow received from investing activities

        648       837  
     

 

 

   

 

 

 

Financing activities

       

Repayment of borrowings

        (102     (1,004

Payment of principal portion of lease liabilities

        (46     (29

Dividends paid to owners of the Group

     18        (1,630     (2,446

Dividends paid to non-controlling shareholders

        (54     (54
     

 

 

   

 

 

 

Net cash flow used in financing activities

        (1,832     (3,533

Effect of exchange rate changes on cash and cash equivalents

        403       (111
     

 

 

   

 

 

 

Net decrease in cash and cash equivalents

        (8,472     (11,529

Cash and cash equivalents at the beginning of the period

     8        42,101       47,382  
     

 

 

   

 

 

 

Cash and cash equivalents at the end of the period

     8        33,629       35,853  
     

 

 

   

 

 

 

 

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

F-4


Table of Contents

QIWI plc

Interim condensed consolidated statement of changes in equity

June 30, 2021

(in millions of rubles, except per share data)

 

    Notes     Attributable to equity holders of the parent     Non-controlling
interests
    Total
equity
 
  Share capital     Additional
paid-in
capital
    Share
premium
    Other
reserves
    Retained
earnings
    Translation
reserve
    Total  
  Number of
shares
issued and
outstanding
    Amount  

Balance as of December 31, 2020

      62,378,832       1       1,876       12,068       2,575       14,602       554       31,676       96       31,772  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

      —         —         —         —         —         4,561       —         4,561       26       4,587  

Other comprehensive income:

                     

Foreign currency translation

      —         —         —         —         —         —         (24     (24     —         (24
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

      —         —         —         —         —         4,561       (24     4,537       26       4,563  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Share-based payments

      —         —         —         —         8       —         —         8       —         8  

Exercise of options

      52,002       —         —         —         —         —         —         —         —         —    

Dividends

    18       —         —         —         —         —         (2,433       (2,433     —         (2,433

Dividends to non-controlling interests

      —         —         —         —         —         —         —         —         (58     (58

Other

      —         —         —         —         (1     —         —         (1     —         (1
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of June 30, 2021 (unaudited)

      62,430,834       1       1,876       12,068       2,582       16,730       530       33,787       64       33,851  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

F-5


Table of Contents

QIWI plc

Interim condensed consolidated statement of changes in equity (continued)

June 30, 2021

(in millions of rubles, except per share data)

 

    Notes     Attributable to equity holders of the parent     Non-controlling
interests
    Total
equity
 
  Share capital     Additional
paid-in
capital
    Share
premium
    Other
reserves
    Retained
earnings
    Translation
reserve
    Total  
  Number of
shares
issued and
outstanding
    Amount  

Balance as of December 31, 2019

      62,092,835       1       1,876       12,068       2,576       10,557       289       27,367       70       27,437  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit for the period

      —         —         —         —         —         3,403       —         3,403       33       3,436  

Other comprehensive income:

                     

Foreign currency translation

      —         —         —         —         —         —         142       142       11       153  

Debt instruments at FVOCI

      —         —         —         —         (15     —         —         (15     —         (15
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income

      —         —         —         —         (15     3,403       142       3,530       44       3,574  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Share-based payments

      —         —         —         —         48       —         —         48       —         48  

Exercise of options

      79,938       —         —         —         —         —         —         —         —         —    

Dividends

    18       —         —         —         —         —         (1,655       (1,655       (1,655

Dividends to non-controlling interests

      —         —         —         —         —         —         —         —         (54     (54

Other

      —         —         —         —         (9     —         —         (9     —         (9
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of June 30, 2020 (unaudited)

      62,172,773       1       1,876       12,068       2,600       12,305       431       29,281       60       29,341  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

F-6


Table of Contents

QIWI plc

Notes to interim condensed consolidated financial statements

 

1.

Corporate Information and description of business

The interim condensed consolidated financial statements of QIWI plc (hereinafter “the Company”) and its subsidiaries (collectively “the Group”) for the six months ended June 30, 2021 were authorized for issue on August 12, 2021.

The Company was registered on February 26, 2007 as a limited liability Company OE Investments in Cyprus under the Cyprus Companies Law, Cap. 113. The registered office of the Company is Kennedy 12, Kennedy Business Centre, 2nd Floor, P.C.1087, Nicosia, Cyprus. On September 13, 2010 the directors of the Company resolved to change the name of the Company from OE Investments Limited to QIWI Limited and later to QIWI plc.

Sergey Solonin is the ultimate controlling shareholder of the Group as of June 30, 2021.

Information on the Company’s principal subsidiaries is disclosed in Note 3.

 

2.

Basis of preparation and changes to the Group’s accounting policies

2.1. Basis of preparation

The interim condensed consolidated financial statements for the six months ended June 30, 2021 have been prepared in accordance with IAS 34 Interim Financial Reporting.

The condensed consolidated financial statements are presented in Russian rubles (“RUB”) and all values are rounded to the nearest million (RUB (000,000)) except when otherwise indicated.

The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group’s annual financial statements as of December 31, 2020.

2.2. New standards, interpretations and amendments adopted by the Group

The accounting policies adopted in the preparation of the interim condensed consolidated financial

statements are consistent with those followed in the preparation of the Group’s annual consolidated financial statements for the year ended December 31, 2020, except for the adoption of new standards effective as of January 1, 2021. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

The following amended standards and interpretations became effective for the Group from January 1, 2021, but did not have any material impact on the financial statements of the Group:

 

   

Phase 2 amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16: Interest rate benchmark (IBOR) reform.

 

   

Amendments to IFRS 16: Covid-19 Related Rent Concessions beyond June 30, 2021.

 

F-7


Table of Contents

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

 

2.

Basis of preparation and changes to the Group’s accounting policies (continued)

 

2.3. Changes in presentation

As at December 31, 2020, the Group started presenting foreign exchange gains and losses on a net basis. The change in presentation was made to make the financial statements more comparable with the industry peers and to provide fair presentation of these amounts.

The effects of the restatement on the previously reported amounts in the condensed consolidated statement of comprehensive income are set out below:

 

     For the three months ended
June 30, 2020
    For the six months ended
June 30, 2020
 
   As previously
reported
    Restated     As previously
reported
    Restated  

Foreign exchange gain

     743       —         355       —    

Foreign exchange loss

     (1,042     —         (594     —    

Foreign exchange gain, net

     —         (299     —         (239
  

 

 

   

 

 

   

 

 

   

 

 

 

 

F-8


Table of Contents

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

 

3.

Group structure

The interim condensed consolidated IFRS financial statements include the assets, liabilities and financial results of the Company and its subsidiaries. The subsidiaries are listed below:

 

          Ownership interest  

Subsidiary

  

Main activity

   As of
December 31,
2020
    As of
June 30,
2021
 

JSC QIWI (Russia)

   Operation of electronic payment kiosks      100     100

QIWI Bank JSC (Russia)

   Maintenance of electronic payment systems, money transfer, consumer and SME financial services      100     100

QIWI Payments Services Provider Ltd (UAE)

   Operation of on-line payments      100     100

QIWI International Payment System LLC (USA)

   Operation of electronic payment kiosks      100     100

Qiwi Kazakhstan LP (Kazakhstan)

   Operation of electronic payment kiosks      100     100

JLLC OSMP BEL (Belarus)

   Operation of electronic payment kiosks      51     51

QIWI - M S.R.L. (Moldova)

   Operation of electronic payment kiosks      51     51

Attenium LLC (Russia) 1

   Management services      100     —    

Postomatnye Tekhnologii LLC (Russia) 1

   Logistic      100     —    

Future Pay LLC (Russia) 1

   Operation of on-line payments      100     —    

Qiwi Blockchain Technologies LLC (Russia)

   Software development      100     100

Factoring PLUS LLC (Russia)

   Software development      51     51

ContactPay Solution (United Kingdom)

   Operation of on-line payments      100     100

Rocket Universe LLC (Russia)

   Software development      100     100

Billing Online Solutions LLC (Russia)

   Software development      100     100

Flocktory Ltd (Cyprus)

   Holding company      100     100

Flocktory Spain S.L. (Spain)

   SaaS platform for customer lifecycle management and personalization      100     100

FreeAtLast LLC (Russia)

   SaaS platform for customer lifecycle management and personalization      100     100

SETTE FZ-LLC (UAE)

   Payment Services Provider      100     100

LALIRA DMCC (UAE)

   Payment Services Provider      100     100

MFC «Polet Finance» LLC(Russia)2

   Retail financial services      —         100

QIWI Finance LLC (Russia)

   Financing management      100     100

QPCD LLC (RF)3

   Software development      —         51

Associate and Joint Venture

       

QIWI Platform LLC (Russia)

   Software development      60     60

JSC Tochka (Russia)

   Digital services for banks      40     40

Tochka Investitsii LLC (Russia)3

   Digital services for banks      —         40

 

1

The Entities were liquidated during 2021

2

The Entity was established during 2021

3

The Entities were acquired during 2021 for insignificant consideration

 

F-9


Table of Contents

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

 

4.

Acquisitions, disposals and discontinued operations

2021

Tochka sale

In June 2021, the Group decided to enter into an agreement with Otkritie Bank to sell its 40% stake (45% economic interest) in the capital of Tochka associate. By June 30, 2021, the carrying value of investment in associate in the amount of 1,949 had been reclassified to assets held for sale. From the date of classification into assets held for sale the Group discontinued the use of the equity method of accounting and started measuring it at the lower of it carrying amount and fair value less costs to sell. No impairment was recognized upon reclassification. The price the Group is due to receive consists of two elements: i) a fixed amount of 4,947, and; ii) an amount contingent on Tochka’s earnings for the year 2021.

The sale is expected to be completed in third quarter of the year 2021.

2020

Rocketbank wind down

In March 2020, the Board of Directors decided to wind down the Rocketbank project and had finished the process by the end of third quarter 2020. Since that date the Rocketbank’s operations are considered as discontinued.

Rocketbank represented the entire Group’s respective operating segment. Assets that remained after Rocketbank liquidation were transferred to Payment Services segment.

SOVEST disposal

In the second quarter of 2020 the Group made a decision to dispose its SOVEST project.

In June 2020, the Group entered into the framework agreement and several related binding agreements to sell certain specific SOVEST project assets to an unrelated party. As a part of the transaction, the Group assigned the portfolio of SOVEST instalment card loans as well as transferred respective brands and domains. Since then, SOVEST was classified as a disposal group held for sale and as a discontinued operation.

As a part of the transaction, the Group was to dismiss most SOVEST employees and the buyer extended job offers to certain SOVEST employees and reimbursed to the Group corresponding redundancy costs.

The sale of SOVEST assets was completed in July 2020, resulting in a pre-tax loss on disposal of 712.

SOVEST project represented the entire Group’s Consumer Financial Services operating segment.

 

F-10


Table of Contents

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

 

4.

Acquisitions, disposals and discontinued operations (continued)

 

The results of discontinued operations for the reporting periods are presented below:

 

     Three months ended June 30, 2020     Six months ended June 30, 2020  
     Rocketbank     SOVEST     Total     Rocketbank     SOVEST     Total  

Revenue:

     688       466       1,154       1,125       1,235       2,360  

Interest revenue calculated using the effective interest rate

     52       161       213       222       495       717  

Other revenue

     636       305       941       903       740       1,643  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating costs and expenses:

     (660     (733     (1,393     (1,865     (2,044     (3,909
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Cost of revenue (exclusive of items shown separately below)

     (178     (62     (240     (592     (145     (737

Selling, general and administrative expenses

     (119     (66     (185     (318     (401     (719

Personnel expenses

     (309     (229     (538     (843     (601     (1,444

Depreciation and amortization

     (44     (19     (63     (84     (38     (122

Credit loss (expense)/income

     4       (289     (285     6       (791     (785

Impairment of non-current assets

     (14     (68     (82     (34     (68     (102
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit/(Loss) from operations

     28       (267     (239     (740     (809     (1,549
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Loss on forward contract to sell Sovest loans’ portfolio

     —         (658     (658     —         (658     (658

Foreign exchange gain and loss, net

     7       —         7       (16     —         (16

Interest income and expenses, net

     (8     (2     (10     (17     (4     (21
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Profit/(Loss) before tax from discontinued operations

     27       (927     (900     (773     (1,471     (2,244

Income tax benefit/(expense) (Note 19)

     (30     (43     (73     112       69       181  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net loss from discontinued operations

     (3     (970     (973     (661     (1,402     (2,063
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Earnings per share for discontinued operations

            

Basic, loss from discontinued operations attributable to ordinary equity holders of the parent

 

      (15.64         (33.19

Diluted, loss from discontinued operations attributable to ordinary equity holders of the parent

 

      (15.59         (33.07

Impairment of non-current assets

Immediately before the classification of SOVEST as discontinued operations, the recoverable amount was estimated for certain items of Intangible assets and impairment loss was identified and recognized in June 2020 in the amount of 68 to reduce the carrying amount of the assets in the disposal group to their fair values less cost to sell. This impairment of non-current assets was recognized in discontinued operations in the statement of profit or loss.

The net cash flows incurred by the discontinued operations are, as follows:

 

     Six months ended June 30, 2020  
     Rocketbank      SOVEST      Total  

Operating

     (12,835      822        (12,013

Investing

     1,256        (7      1,249  

Financing

     (42      (14      (56
  

 

 

    

 

 

    

 

 

 

Net cash (outflow)/inflow

     (11,621      801        (10,820
  

 

 

    

 

 

    

 

 

 

 

F-11


Table of Contents

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

 

5.

Operating segments

The Chief executive officer (CEO) of the Group is considered as the chief operating decision maker of the Group (CODM). In reviewing the operational performance of the Group and allocating resources, the CODM reviews selected items of each segment’s statement of comprehensive income.

In determining that the CODM was the CEO, the Group considered its responsibilities as well as the following factors:

 

 

The CEO determines compensation of other executive officers while the Group’s board of directors approves corporate key performance indicators (KPIs) and total bonus pool for those executive officers. In case of underperformance of corporate KPIs a right to make a final decision on bonus pool distribution is left with the Board of directors (BOD);

 

 

The CEO is actively involved in the operations of the Group and regularly chairs meetings on key projects of the Group; and

 

 

The CEO regularly reviews the financial and operational reports of the Group. These reports primarily include segment net revenue, segment profit before tax and segment net profit for the Group as well as certain operational data.

The financial data is presented on a combined basis for all key subsidiaries and associates representing the segment net revenue, segment profit before tax and segment net profit. The Group measures the performance of its operating segments by monitoring: segment net revenue, segment profit before tax and segment net profit. Segment net revenue is a measure of profitability defined as the segment revenues less segment direct costs. The Group does not monitor balances of assets and liabilities by segments as the CODM considers they have no impact on decision-making.

The Group has identified its operating segments based on the types of products and services the Group offers. The CODM reviews segment net revenue, segment profit before tax and segment net profit separately for each of the following reportable segments: Payment Services, Consumer Financial Services and Rocketbank:

 

 

Payment Services (PS), operating segment that generates revenue through operations of the payment processing system offered to the Group’s customers through a diverse range of channels and interfaces;

 

 

Consumer Financial Services (CFS), operating segment that generates revenue through financial services rendered to individuals, presented by SOVEST installment card project;

 

 

Rocketbank (RB), operating segment that generates revenue through offering digital banking service including debit cards and deposits to retail customers.

For the purpose of management reporting, expenses related to corporate back-office operations were not allocated to any operating segment and are presented separately to the CODM. Results of other operating segments and corporate expenses are included in Corporate and Other (CO) category for the purpose of segment reporting.

 

F-12


Table of Contents

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

 

5.

Operating segments (continued)

 

Management reporting is different from IFRS, because it does not include certain IFRS adjustments, which are not analyzed by the CODM in assessing the operating performance of the business. The adjustments affect such major areas as share-based payments, offering expenses, the effect of disposal of subsidiaries and fair value adjustments, such as amortization and impairment, as well as non-recurring items that occur from time to time and are evaluated for adjustment as and when they occur. The tax effect of these adjustments is also excluded from management reporting.

The segments’ statement of comprehensive income for the six months ended June 30, 2021, as presented to the CODM are presented below:

 

     Six months ended June 30, 2021  
     PS      CO      Total  

Revenue

     18,692        1,355        20,047  

Cost of revenue

     (8,252      (585      (8,837
  

 

 

    

 

 

    

 

 

 

Segment net revenue

     10,440        770        11,210  
  

 

 

    

 

 

    

 

 

 

Overheads

     (3,011      (1,372      (4,383

Credit loss expense

     (39      (118      (157

Depreciation, amortization and impairment

     (342      (61      (403

Share of gain of an associate and a joint venture

     —          306        306  

Other gains and losses

     (76      (66      (142
  

 

 

    

 

 

    

 

 

 

Segment profit/(loss) before tax

     6,972        (541      6,431  
  

 

 

    

 

 

    

 

 

 

Income tax

     (1,450      (216      (1,666
  

 

 

    

 

 

    

 

 

 

Segment net profit/(loss)

     5 522        (757      4,765  
  

 

 

    

 

 

    

 

 

 

The segments’ statement of comprehensive income for the three months ended June 30, 2021, as presented to the CODM are presented below:

 

     Three months ended June 30, 2021  
     PS      CO      Total  

Revenue

     10,145        668        10,813  

Cost of revenue

     (4,467      (297      (4,764
  

 

 

    

 

 

    

 

 

 

Segment net revenue

     5,678        371        6,049  
  

 

 

    

 

 

    

 

 

 

Overheads

     (1,500      (637      (2,137

Credit loss expense

     (47      (17      (64

Depreciation, amortization and impairment

     (170      (30      (200

Share of gain of an associate and a joint venture

     —          141        141  

Other gains and losses

     (88      (42      (130
  

 

 

    

 

 

    

 

 

 

Segment profit/(loss) before tax

     3,873        (214      3,659  
  

 

 

    

 

 

    

 

 

 

Income tax

     (831      (124      (955
  

 

 

    

 

 

    

 

 

 

Segment net profit/(loss)

     3,042        (338      2,704  
  

 

 

    

 

 

    

 

 

 

 

F-13


Table of Contents

QIWI plc

Notes to interim condensed consolidated financial statements (continued)

 

5.

Operating segments (continued)

 

The segments’ statement of comprehensive income for the six months ended June 30, 2020, as presented to the CODM are presented below:

 

     Six months ended June 30, 2020  
     PS     CFS     RB     CO     Total  

Revenue

     17,816       1,126       1,125       1,123       21,190  

Cost of revenue

     (7,098     (123     (593     (277     (8,091
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment net revenue

     10,718       1,003       532       846       13,099  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Overheads

     (2,596     (983     (1,136     (1,371     (6,086

Credit loss (expense)/recovery

     3       (792     6       (27     (810

Depreciation, amortization and impairment

     (314     (39     (83     (45     (481

Share of gain of an associate and a joint venture

     —         —         —         239       239  

Other gains and losses

     (286     (14     (36     (7     (343
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Segment profit/(loss) before tax

     7,525       (825     (717     (365     5,618