QIWI plc (NASDAQ and MOEX: QIWI) (“QIWI” or the “Company”), a
leading provider of cutting-edge payment and financial services in
Russia and the CIS, today announced its financial results for the
first quarter ended March 31, 2023.
1Q 2023 key operating and financial
highlights1 2
|
|
|
1Q
2022 |
1Q
2023 |
YoY |
|
1Q
2023 |
|
|
|
|
RUB million |
RUB million |
|
USD million(1) |
|
|
Consolidated Group results |
Revenue |
9,717 |
|
17,872 |
|
83.9 |
% |
|
231.8 |
|
|
|
Total Net
Revenue |
6,305 |
|
8,552 |
|
35.6 |
% |
|
110.9 |
|
|
|
Adjusted
EBITDA |
3,687 |
|
4,479 |
|
21.5 |
% |
|
58.1 |
|
|
|
Adjusted EBITDA
margin |
58.5 |
% |
52.4 |
% |
(6.1 p.p.) |
|
52.4 |
% |
|
|
Profit for
the period |
2,257 |
|
4,499 |
|
99.3 |
% |
|
58.4 |
|
|
|
Adjusted Net
profit |
2,326 |
|
4,180 |
|
79.7 |
% |
|
54.1 |
|
|
|
Adjusted Net profit
margin |
36.9 |
% |
48.9 |
% |
12.0 p.p. |
|
48.8 |
% |
|
|
Payment Services (PS) |
Net Revenue |
5,649 |
|
6,944 |
|
22.9 |
% |
|
90.1 |
|
|
|
Payment Net Revenue |
4,119 |
|
5,085 |
|
23.5 |
% |
|
66.0 |
|
|
|
Payment
Volume, billion |
356 |
|
469 |
|
31.6 |
% |
|
6.1 |
|
|
|
Payment
Net Revenue Yield |
1.16 |
% |
1.08 |
% |
(0.1 p.p.) |
|
1.08 |
% |
|
|
Other Net Revenue |
1,530 |
|
1,859 |
|
21.5 |
% |
|
24.1 |
|
|
|
Adjusted Net
profit |
3,029 |
|
3,536 |
|
16.7 |
% |
|
45.9 |
|
|
|
Adjusted Net profit margin |
53.6 |
% |
50.9 |
% |
(2.7 p.p.) |
|
50.9 |
% |
|
|
Digital Marketing (DM) |
Net
Revenue |
157 |
|
741 |
|
372.5 |
% |
|
9.6 |
|
|
|
Adjusted Net
profit |
30 |
|
116 |
|
286.6 |
% |
|
1.5 |
|
|
|
Adjusted Net profit margin |
19.1 |
% |
15.7 |
% |
(3.5 p.p.) |
|
15.7 |
% |
|
|
Corporate and Other (CO) |
Net
Revenue |
499 |
|
867 |
|
73.7 |
% |
|
11.2 |
|
|
|
Adjusted Net profit |
(733 |
) |
528 |
|
(172.0 |
%) |
|
6.8 |
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
Throughout this
release dollar translation is calculated using a rouble to U.S.
dollar exchange rate of RUB 77.0863 to U.S. $1.00, which was the
official exchange rate quoted by the Central Bank of the Russian
Federation as of March 31, 2023. |
|
|
(2) |
Throughout this
release, following the introduction of new Digital Marketing
segment, certain amounts related to Flocktory have been
reclassified from Corporate and Other to Digital Marketing segment
to conform to the current period presentation. |
|
Key events after the reported
period
- QIWI received
delisting notification from Nasdaq3 and appealed at the oral
hearing on April 27, 20234. The Company is waiting for the decision
of the Hearing Panel.
- QIWI published its
2022 Annual Report on Form 20-F with the U.S. Securities and
Exchange Commission5.
- QIWI 2023 Annual
General Meeting of shareholders was scheduled on June 5,
20236.
1Q 2023
results
Net Revenue breakdown by
segments
|
|
1Q
2022 |
1Q
2023 |
YoY |
|
1Q
2023 |
|
|
|
RUB million |
RUB million |
|
USD million |
|
|
Total Net Revenue |
6,305 |
|
8,552 |
|
35.6 |
% |
|
110.9 |
|
|
|
Payment
Services (PS) |
5,649 |
|
6,944 |
|
22.9 |
% |
|
90.1 |
|
|
|
PS Payment |
4,119 |
|
5,085 |
|
23.5 |
% |
|
66.0 |
|
|
|
PS Other |
1,530 |
|
1,859 |
|
21.5 |
% |
|
24.1 |
|
|
|
Digital
Marketing (DM) |
157 |
|
741 |
|
372.5 |
% |
|
9.6 |
|
|
|
Corporate and Other (CO) |
499 |
|
867 |
|
73.7 |
% |
|
11.2 |
|
|
|
|
|
|
|
|
|
|
Total Net Revenue increased by 35.6% YoY to RUB
8,552 million ($110.9 million) driven by strong performance of
Payment Services (PS) and Corporate and Other (CO) segments, as
well as consolidated results of RealWeb business acquired by the
Company in December 20227 and accounted for in Digital Marketing
(DM) segment.
Payment Services
PS Net Revenue increased by 22.9% YoY to RUB
6,944 million ($90.1 million).
PS Payment Net Revenue was 23.5% higher YoY and
amounted to RUB 5,085 million ($66.0 million) as a result of PS
Payment Volume increase by 31.6% YoY and slightly decreased PS
Payment Net Revenue Yield by 7 bps YoY.
PS Payment Volume was RUB 469.2 billion mainly
resulting from (i) the growth of operations via our Contact Money
remittances payment system; (ii) onboarding of new merchants and
aggregators; (iii) an increase of payment volume via QIWI Wallet
used for numerous types of services; and (iv) growing payment
volume from our product offering for self-employed and peer-to-peer
operations.
PS Payment Net Revenue Yield slightly decreased
from 1.16% to 1.08% as a result of adverse mix effect being a
higher share of operations with lower yields.
PS Other Net Revenue primarily comprises revenue
from fees for inactive accounts and unclaimed payments, interest
revenue, cash and settlement services and related conversion
income, fees for intercompany and third-party funding, and
advertising fees. In 1Q 2023 PS Other Net Revenue increased by
21.5% YoY to RUB 1,859 million ($24.1 million) mainly due to higher
net revenue derived from cash and settlement services.
Digital Marketing (DM)
In December 2022, the Company acquired a
controlling stake in a leading digital marketing group of
companies, RealWeb. The transaction allows QIWI to attain leading
positions in the growing digital marketing market based on
RealWeb’s expertise and to further diversify Company’s product
portfolio.
With additional focus on this growing market, in
2023 QIWI started to single out the Digital Marketing (DM)
operating segment in its reporting. DM segment includes revenue
generated from context and media advertising management services,
including platform services under subscription, social network
presence, programmatic, CPA and mobile marketing type of services.
The segment includes results of the full-cycle digital marketing
service provider RealWeb and Flocktory services in marketing
automation and advertising technologies.
DM Net Revenue increased by 372.5% YoY to RUB
741 million ($9.6 million) driven by the RealWeb acquisition and
the overall increase of the number of Flocktory clients and
traffic-providers.
DM market has unique features which differ
significantly from payment services. In comparison to the PS
segment, DM's Net Revenue Yield is lower and operating expenses
(predominantly represented by personnel expenses) as a percentage
of Net revenue are higher. Therefore, an increase in the share of
DM segment in Group results has a margin-dilutive effect.
Corporate and Other (CO)
|
|
1Q
2022 |
1Q
2023 |
YoY |
|
1Q
2023 |
|
|
|
RUB million |
RUB million |
|
|
USD million |
|
|
CO Net Revenue |
499 |
|
867 |
|
73.7 |
% |
|
11.2 |
|
|
|
ROWI |
370 |
|
595 |
|
61.1 |
% |
|
7.7 |
|
|
|
Tochka |
106 |
|
- |
|
(100.0 |
%) |
|
- |
|
|
|
Corporate and Other projects |
24 |
|
272 |
|
1024.9 |
% |
|
3.5 |
|
|
|
|
|
|
|
|
|
|
CO Net Revenue increased by 73.7% YoY to RUB 867
million ($11.2 million) driven by:
- ROWI Net Revenue
growth by 61.1% YoY to RUB 595 million ($7.7 million) on further
expansion of bank guarantees and factoring portfolios:
- As of March 31,
2023, the bank guarantees portfolio reached RUB 68.6 billion - an
increase of 51.1% YoY.
- As of March 31,
2023, the factoring portfolio was RUB 10.8 billion or 13.5% higher
YoY.
- As of March 31,
2023, the portfolio of online loans for government contracts
execution was RUB 2.7 billion.
- In 1Q 2023, the
share of ROWI Net Revenue in Total Net Revenue was 7.0% growing 1.1
ppts YoY.
- Tochka project
was closed after the disposal of our stake in the JSC Tochka
associate. We continue our collaboration with Tochka on an
arms-length basis and provide a bundle of cash settlement services
accounted for within PS Other Net Revenue.
- Corporate and
Other projects Net Revenue in 1Q 2023 amounted to RUB 272 million
($3.5 million) compared to RUB 24 million in 1Q 2022 driven by
interest income from (i) investments into debt securities
(high-quality corporate and government bonds) and (ii) loans
provided.
Operating expenses and other non-operating income and
expenses
|
|
1Q
2022 |
1Q
2023 |
YoY |
|
1Q
2023 |
|
|
|
RUB million |
RUB million |
|
|
USD million |
|
|
Operating expenses |
(2,895 |
) |
(4,382 |
) |
51.4 |
% |
|
(56.8 |
) |
|
|
% of Net Revenue |
(45.9 |
%) |
(51.2 |
%) |
(5.3 p.p. |
) |
|
|
|
|
Selling,
general and administrative expenses |
(771 |
) |
(959 |
) |
24.4 |
% |
|
(12.4 |
) |
|
|
% of Net
Revenue |
(12.2 |
%) |
(11.2 |
%) |
1.0
p.p. |
|
|
|
|
|
Personnel
expenses |
(1,673 |
) |
(2,751 |
) |
64.4 |
% |
|
(35.7 |
) |
|
|
% of Net
Revenue |
(26.5 |
%) |
(32.2 |
%) |
(5.6
p.p. |
) |
|
|
|
|
Depreciation, amortization & impairment |
(277 |
) |
(309 |
) |
11.6 |
% |
|
(4.0 |
) |
|
|
% of Net
Revenue |
(4.4 |
%) |
(3.6 |
%) |
0.8
p.p. |
|
|
|
|
|
Credit loss
(expense) |
(174 |
) |
(363 |
) |
108.6 |
% |
|
(4.7 |
) |
|
|
% of Net Revenue |
(2.8 |
%) |
(4.2 |
%) |
(1.5 p.p. |
) |
|
|
|
|
Other non-operating income and expenses |
(352 |
) |
1,220 |
|
(446.6 |
%) |
|
10.3 |
|
|
|
% of Net Revenue |
(5.6 |
%) |
14.3 |
% |
19.8 p.p. |
|
|
|
|
|
Share of
gain of an associate and a joint venture |
- |
|
(39 |
) |
|
|
(0.5 |
) |
|
|
% of Net
Revenue |
0.0 |
% |
(0.5 |
%) |
(0.5
p.p. |
) |
|
|
|
|
Foreign
exchange gain/(loss), net |
(441 |
) |
819 |
|
(285.7 |
%) |
|
10.6 |
|
|
|
% of Net
Revenue |
(7.0 |
%) |
9.6 |
% |
16.6
p.p. |
|
|
|
|
|
Interest
income and expenses, net |
68 |
|
- |
|
(100.0 |
%) |
|
- |
|
|
|
% of Net
Revenue |
1.1 |
% |
0.0 |
% |
(1.1
p.p. |
) |
|
|
|
|
Other income
and expenses, net |
21 |
|
16 |
|
23.8 |
% |
|
0.2 |
|
|
|
% of Net
Revenue |
0.3 |
% |
0.2 |
% |
(0.1
p.p. |
) |
|
|
|
|
Gain on
disposal of an associate |
- |
|
424 |
|
|
|
- |
|
|
|
% of Net Revenue |
0.0 |
% |
5.0 |
% |
5.0 p.p. |
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses increased by 51.4% YoY to RUB
4,382 million ($56.8 million) following increase in Total Net
Revenue and acquisition of RealWeb in December 2022. Despite
positive operating leverage effect in PS segment, operating
expenses as a percentage of Total Net Revenue deteriorated by 5.3
ppts to 51.2% mainly due to (i) higher personnel expenses of PS
segment as well as consolidation of the new RealWeb business, and
(ii) allowance for expected credit loss (ECL) accrued for growing
ROWI loan portfolio and financial assets accounted for at fair
value through other comprehensive income.
Selling, general and administrative expenses
increased by 24.4% to RUB 959 million ($12.4 million) while as
percentage of Total Net Revenue it went down by 1.0 ppt YoY to
11.2% mainly driven by the positive operating leverage effect.
Personnel expenses surged by 64.4% YoY to RUB
2,751 million ($35.7 million) driven by hiring of new staff for
development of new products and strong financial performance
resulting in higher bonuses to employees in PS segment as well as
consolidation of new RealWeb business. As a result, personnel
expenses as a percentage of Total Net Revenue increased by 5.6 ppts
to 32.2%.
Depreciation, amortization and impairment stood
at RUB 309 million ($4.0 million) or 3.6% as percent of Total Net
Revenue – 0.8 ppt lower YoY due to positive operating leverage
effect.
Credit loss increased to 4.2% as a percentage of
Total Net Revenue or RUB 363 million ($4.7 million) due to
allowance for ECL accrued for (i) ROWI loan portfolio as a result
of its further growth, and (ii) financial assets accounted for at
fair value through other comprehensive income.
Other non-operating income increased to RUB
1,220 million ($10.3 million) compared to RUB 352 million of loss
last year primarily due to (i) gain recognized upon liquidation of
one of our subsidiaries in 1Q 2023 in the amount of RUB 424
million, and (ii) foreign exchange gain resulting from the
depreciation of the Russian ruble vs. USD, AED and Euro in 1Q
2023.
Income tax expense
Income tax expense increased by 11.2% YoY to RUB
891 million ($11.6 million) driven by Total Net Revenue dynamics
and partially offset with (i) non-taxable gain recognized upon
liquidation of our subsidiary, (ii) foreign exchange gain for 1Q
2023 which is tax neutral within the Group perimeter, and (iii) no
tax accruals on dividends in 1Q 2023. The effective tax rate was
therefore 9.7 ppts lower YoY and stood at 16.5% driven by the
factors described above.
Profitability results
|
|
1Q
2022 |
1Q
2023 |
YoY |
|
1Q
2023 |
|
|
|
RUB million |
RUB million |
|
USD million |
|
|
Adjusted EBITDA |
3,687 |
|
4,479 |
|
21.5 |
% |
|
58.1 |
|
|
|
Adjusted EBITDA margin, % |
58.5 |
% |
52.4 |
% |
(6.1 p.p. |
) |
|
52.4 |
% |
|
|
Adjusted Net Profit |
2,326 |
|
4,180 |
|
79.7 |
% |
|
54.1 |
|
|
|
Adjusted Net Profit margin, % |
36.9 |
% |
48.9 |
% |
12.0 p.p. |
|
|
48.9 |
% |
|
|
Payment
Services |
3,029 |
|
3,536 |
|
16.7 |
% |
|
45.9 |
|
|
|
PS Adjusted Net Profit margin, % |
53.6 |
% |
50.9 |
% |
(2.7
p.p. |
) |
|
50.9 |
% |
|
|
Digital
Marketing (DM) |
30 |
|
116 |
|
286.6 |
% |
|
1.5 |
|
|
|
DM Adjusted Net Profit margin, % |
19.1 |
% |
15.7 |
% |
(3.5
p.p. |
) |
|
15.7 |
% |
|
|
Corporate and Other (CO) |
(733 |
) |
528 |
|
(172.0 |
%) |
|
6.8 |
|
|
|
Tochka |
(15 |
) |
- |
|
(100.0 |
%) |
|
- |
|
|
|
ROWI |
51 |
|
184 |
|
259.9 |
% |
|
2.4 |
|
|
|
Corporate and Other projects |
(769 |
) |
344 |
|
(144.8 |
%) |
|
4.5 |
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA increased by 21.5% YoY to RUB
4,479 million ($58.1 million) mainly due to the Total Net Revenue
growth by 35.6%. Despite the positive operating leverage effect in
PS segment, Adjusted EBITDA margin decreased by 6.1 ppts YoY to
52.4% mainly due to consolidation of the new RealWeb business,
increased personnel expenses in PS segment and allowance for ECL
(described earlier).
Adjusted Net Profit increased by 79.7% YoY to
RUB 4,180 million ($54.1 million). Adjusted Net Profit margin
increased by 12.0 ppts YoY to 48.9% primarily driven by the foreign
exchange gain partially offset by the consolidation of the RealWeb
business operating with a lower margin than the PS segment.
Payment Services Adjusted Net Profit increased
by 16.7% YoY to RUB 3,536 million ($45.9 million) as a result of PS
Net Revenue growth by 22.9% YoY. PS Adjusted Net Profit margin
slightly deteriorated by 2.7 ppts to 50.9% due to a combination of
(i) increased personnel expenses (described earlier), (ii)
allowance for ECL (described earlier), (iii) higher expenses
related to multi-bank platform services due to increased payment
volumes via Tochka branch in QIWI Bank, partially offset by (iv)
positive operating leverage effect and (v) foreign exchange
gain.
Digital Marketing (DM) Adjusted Net Profit for 1Q 2023 increased
to RUB 116 million ($1.5 million) due to consolidation of new
RealWeb business and Flocktory Net Revenue growth. DM Adjusted Net
Profit margin stood at 15.7%.
CO Adjusted Net Profit increased to RUB 528
million ($6.8 million) compared to CO Net loss of RUB 733 million
driven by:
-
CO Net Profit of RUB 344 million ($4.5 million) resulting primarily
from the СO Net Revenue change described above and the foreign
exchange gain.
- ROWI Net Profit growth to RUB 184
million ($2.4 million) as a result of its Net Revenue growth by
61.1% YoY.
Dividends
Due to the lingering stock market infrastructure
issues resulting from the introduction of European sanctions
against the Russian National Settlement Depositary, the Company
does not see the opportunity to arrange the distribution of
dividends or repurchase shares with the equal treatment of all
existing shareholders. Therefore, the Board decided to keep the
distribution of dividends under review until changes of the
sanction regime in respect of the Russian National Settlement
Depositary or other developments that may enable the Company to
distribute dividends to all of its shareholders.
Earnings Conference Call and Audio
Webcast
Given the persisting level of uncertainty and
market volatility, there will be no conference call or webcast to
discuss the results. We welcome all our stakeholders to send any
questions related to our business using the contact details
available on our investor’s website. We remain available for
individual incoming call requests.
About QIWI plc.
QIWI is a leading provider of cutting-edge
payment and financial services in Russia and the CIS. We stand at
the forefront of fintech innovations to facilitate and secure the
digitalization of payments. Our mission is to connect our clients
providing unique financial and technological solutions to make the
impossible accessible and simple. We offer a wide range of products
under several directions: QIWI payment and financial services
ecosystem for merchants and B2C clients across digital use-cases,
ROWI digital structured financial products for SME, digital
marketing, and several other projects.
For the FY 2022 QIWI had revenue of RUB 51.5
billion and an Adjusted EBITDA of RUB 19.8 billion. QIWI's American
depositary shares are listed on the NASDAQ and Moscow Exchange
(ticker: QIWI).
For more information, visit investor.qiwi.com.
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 ROWI, RealWeb,
Flocktory and other projects, the impact of recent sanctions
targeting Russia, the impact of such sanctions on our results of
operations, potential further changes in the regulatory regime, 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 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 markets, 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.
QIWI plc.Consolidated
Statement of Financial Position (in
millions)
|
|
|
|
|
|
|
As
of December 31, |
|
As
of March 31, |
|
As
of March 31, |
|
2021 |
|
2022 |
|
2022 |
|
RUB |
|
RUB |
|
USD |
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Property and
equipment |
1,163 |
|
1,055 |
|
13.7 |
Goodwill and
other intangible assets |
13,126 |
|
13,075 |
|
169.6 |
Investments
in associates |
303 |
|
270 |
|
3.5 |
Long-term
debt securities |
2,946 |
|
4,088 |
|
53.0 |
Long-term
loans issued |
843 |
|
613 |
|
8.0 |
Other
non-current assets |
257 |
|
243 |
|
3.2 |
Deferred tax
assets |
208 |
|
282 |
|
3.7 |
Total non-current assets |
18,846 |
|
19,626 |
|
254.6 |
Current assets |
|
|
|
|
|
Trade and
other receivables |
15,194 |
|
12,715 |
|
164.9 |
Short-term
loans issued |
14,200 |
|
13,339 |
|
173.0 |
Short-term
debt securities |
14,029 |
|
15,321 |
|
198.8 |
Other
current assets |
2,195 |
|
3,086 |
|
40.0 |
Cash and
cash equivalents |
47,462 |
|
47,515 |
|
616.4 |
Total current assets |
93,080 |
|
91,976 |
|
1,193.2 |
Total assets |
111,926 |
|
111,602 |
|
1,447.8 |
Equity and liabilities |
|
|
|
|
|
Equity attributable to equity holders of the
parent |
|
|
|
|
|
Share
capital |
1 |
|
1 |
|
0.01 |
Additional
paid-in capital |
1,876 |
|
1,876 |
|
24.3 |
Share
premium |
12,068 |
|
12,068 |
|
156.6 |
Other
reserves |
2,696 |
|
2,713 |
|
35.2 |
Retained
earnings |
39,941 |
|
44,282 |
|
574.4 |
Translation
reserve |
401 |
|
37 |
|
0.5 |
Total equity attributable to equity holders of the
parent |
56,983 |
|
60,977 |
|
791.0 |
Non-controlling interests |
912 |
|
1022 |
|
13.3 |
Total equity |
57,895 |
|
61,999 |
|
804.3 |
Non-current liabilities |
|
|
|
|
|
Long-term
deferred income |
1,154 |
|
1,097 |
|
14.2 |
Long-term
lease liabilities |
133 |
|
108 |
|
1.4 |
Other
non-current liabilities |
156 |
|
48 |
|
0.6 |
Deferred tax
liabilities |
1,847 |
|
1,691 |
|
21.9 |
Total non-current liabilities |
3,290 |
|
2,944 |
|
38.2 |
Current liabilities |
|
|
|
|
|
Trade and
other payables |
33,048 |
|
28,469 |
|
369.3 |
Customer
accounts and amounts due to banks |
11,203 |
|
11,883 |
|
154.2 |
Short-term
debt |
3,922 |
|
3,781 |
|
49.0 |
Short-term
lease liabilities |
300 |
|
302 |
|
3.9 |
Other
current liabilities |
2,268 |
|
2,224 |
|
28.9 |
Total current liabilities |
50,741 |
|
46,659 |
|
605.3 |
Total equity and liabilities |
111,926 |
|
111,602 |
|
1,447.8 |
|
|
|
|
|
|
QIWI plc.Consolidated
Statement of Comprehensive Income(in millions,
except per share data)
|
Three months ended |
|
March 31, 2022 |
|
March 31, 2023 |
|
March 31, 2023 |
|
RUB |
|
RUB |
|
USD |
|
|
|
|
|
|
Revenue: |
9,717 |
|
|
17,872 |
|
|
231.8 |
|
Revenue from
contracts with customers |
7,810 |
|
|
15,728 |
|
|
204.0 |
|
Interest
revenue calculated using the effective interest rate |
1,452 |
|
|
1,764 |
|
|
22.9 |
|
Fees from
inactive accounts and unclaimed payments |
455 |
|
|
380 |
|
|
4.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating costs and expenses: |
(6,307 |
) |
|
(13,702 |
) |
|
(177.7 |
) |
Cost of
revenue (exclusive of items shown separately below) |
(3,412 |
) |
|
(9,320 |
) |
|
(120.9 |
) |
Selling,
general and administrative expenses |
(771 |
) |
|
(959 |
) |
|
(12.4 |
) |
Personnel
expenses |
(1,673 |
) |
|
(2,751 |
) |
|
(35.7 |
) |
Depreciation
and amortization |
(277 |
) |
|
(309 |
) |
|
(4.0 |
) |
Credit loss
expense |
(174 |
) |
|
(363 |
) |
|
(4.7 |
) |
Profit from operations |
3,410 |
|
|
4,170 |
|
|
54.1 |
|
|
|
|
|
|
|
Gain on
disposal of subsidiary |
- |
|
|
424 |
|
|
5.5 |
|
Share of
loss of an associate |
- |
|
|
(39 |
) |
|
(0.5 |
) |
Foreign
exchange gain/(loss), net |
(441 |
) |
|
819 |
|
|
10.6 |
|
Interest
income and expenses, net |
68 |
|
|
- |
|
|
- |
|
Other income
and expenses, net |
21 |
|
|
16 |
|
|
0.2 |
|
Profit before tax |
3,058 |
|
|
5,390 |
|
|
69.9 |
|
Income tax
expense |
(801 |
) |
|
(891 |
) |
|
(11.6 |
) |
Net
profit |
2,257 |
|
|
4,499 |
|
|
58.4 |
|
Attributable to: |
|
|
|
|
|
Equity holders of the parent |
2,174 |
|
|
4,341 |
|
|
56.3 |
|
Non-controlling interests |
83 |
|
|
158 |
|
|
2.0 |
|
|
|
|
|
|
|
Other comprehensive (loss)/income |
|
|
|
|
|
Other comprehensive income to be reclassified to profit or loss in
subsequent periods: |
|
|
Foreign
currency translation: |
|
|
|
|
|
Exchange
differences on translation of foreign operations |
(12 |
) |
|
70 |
|
|
0.9 |
|
Net gain
recycled to profit or loss upon disposal |
- |
|
|
(424 |
) |
|
(5.5 |
) |
Debt securities at fair value through other comprehensive income
(FVOCI): |
|
|
|
|
Net losses
arising during the period, net of tax |
(854 |
) |
|
13 |
|
|
0.2 |
|
Share of
other comprehensive Income of an associate |
- |
|
|
4 |
|
|
0.1 |
|
Total other comprehensive income/(loss), net of
tax |
(866 |
) |
|
(337 |
) |
|
(4.4 |
) |
Total comprehensive income, net of tax |
1,391 |
|
|
4,162 |
|
|
54.0 |
|
Attributable to: |
|
|
|
|
|
Equity holders of the parent |
1,309 |
|
|
3,994 |
|
|
51.8 |
|
Non-controlling interests |
82 |
|
|
168 |
|
|
2.2 |
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
Basic,
earnings attributable to ordinary equity holders of the parent |
34.81 |
|
|
69.22 |
|
|
0.90 |
|
Diluted,
earnings attributable to ordinary equity holders of the parent |
34.81 |
|
|
69.22 |
|
|
0.90 |
|
QIWI plc.Consolidated
Statement of Cash Flows (in
millions)
|
|
|
|
|
|
|
March 31, 2022 |
|
March 31, 2023 |
|
March 31, 2023 |
|
RUB |
|
RUB |
|
USD(1) |
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
Profit before tax |
3,058 |
|
|
5,390 |
|
|
69.9 |
|
Adjustments
to reconcile profit before tax to net cash flows (used in)
/generated from operating activities |
|
|
|
|
|
Depreciation and amortization |
277 |
|
|
309 |
|
|
4.0 |
|
Foreign exchange loss/(gain), net |
441 |
|
|
(819 |
) |
|
(10.6 |
) |
Interest income, net |
(1,400 |
) |
|
(1,686 |
) |
|
(21.9 |
) |
Credit loss expense |
174 |
|
|
363 |
|
|
4.7 |
|
Share of loss of an associate |
- |
|
|
39 |
|
|
0.5 |
|
Gain on disposal of an associate |
- |
|
|
(424 |
) |
|
(5.5 |
) |
Other |
- |
|
|
(55 |
) |
|
(0.7 |
) |
Net
cash flow generated from operating activities before changes in
working capital |
2,550 |
|
|
3,117 |
|
|
40.4 |
|
Changes in
operating assets and liabilities: |
|
|
|
|
|
Decrease in trade and other receivables |
1,917 |
|
|
2,503 |
|
|
32.5 |
|
Decrease/(Increase) in other assets |
510 |
|
|
(856 |
) |
|
(11.1 |
) |
Increase in customer accounts and amounts due to banks |
2,205 |
|
|
411 |
|
|
5.3 |
|
Decrease in accounts payable and accruals |
(6,657 |
) |
|
(5,176 |
) |
|
(67.1 |
) |
(Decrease)/Increase in other liabilities |
238 |
|
|
(209 |
) |
|
(2.7 |
) |
Decrease in loans issued as operating activity |
128 |
|
|
968 |
|
|
12.6 |
|
Cash
generated from operations |
891 |
|
|
758 |
|
|
9.8 |
|
Interest received |
1,750 |
|
|
1,970 |
|
|
25.6 |
|
Interest paid |
(138 |
) |
|
(96 |
) |
|
(1.2 |
) |
Income tax paid |
(893 |
) |
|
(1,190 |
) |
|
(15.4 |
) |
Net
cash flow generated from operating activities |
1,610 |
|
|
1,442 |
|
|
18.7 |
|
Investing activities |
|
|
|
|
|
Cash used in business combinations |
(215 |
) |
|
(21 |
) |
|
(0.3 |
) |
Purchase of property and equipment |
(111 |
) |
|
(17 |
) |
|
(0.2 |
) |
Purchase of intangible assets |
(39 |
) |
|
(33 |
) |
|
(0.4 |
) |
Proceeds from sale of fixed and intangible assets |
- |
|
|
8 |
|
|
0.1 |
|
Loans issued |
- |
|
|
(15 |
) |
|
(0.2 |
) |
Repayment of loans issued |
17 |
|
|
62 |
|
|
0.8 |
|
Purchase of debt securities |
(1,737 |
) |
|
(4,132 |
) |
|
(53.6 |
) |
Proceeds from sale and redemption of debt securities |
- |
|
|
1,627 |
|
|
21.1 |
|
Net
cash used in investing activities |
(2,085 |
) |
|
(2,521 |
) |
|
(32.7 |
) |
Financing activities |
|
|
|
|
- |
|
Repayment of debt |
(155 |
) |
|
(133 |
) |
|
(1.7 |
) |
Payment of principal portion of lease liabilities |
(18 |
) |
|
(28 |
) |
|
(0.4 |
) |
Dividends paid to non-controlling shareholders |
(95 |
) |
|
(51 |
) |
|
(0.7 |
) |
Net
cash used in financing activities |
(268 |
) |
|
(212 |
) |
|
(2.8 |
) |
Effect of exchange rate changes on cash and cash equivalents |
(531 |
) |
|
1,344 |
|
|
17.4 |
|
Effect of change in ECL on cash and cash equivalents |
(38 |
) |
|
- |
|
|
- |
|
Net
increase/(decrease) in cash and cash equivalents |
(1,312 |
) |
|
53 |
|
|
0.7 |
|
Cash and
cash equivalents at the beginning of year |
33,033 |
|
|
47,462 |
|
|
615.7 |
|
Cash
and cash equivalents at the end of year |
31,721 |
|
|
47,515 |
|
|
616.4 |
|
|
|
|
|
|
|
Non-IFRS Financial Measures and Supplemental Financial
Information
This release presents Total Net Revenue, Payment
Services (PS) Net Revenue, PS Payment Net Revenue, PS Other Net
Revenue, Digital Marketing (DM) Net Revenue, Corporate and Other
(CO) Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted
Net Profit, PS Adjusted Net Profit, DM Adjusted Net Profit, CO
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 Net Revenue, PS Payment Net
Revenue, PS Other Net Revenue, DM Net Revenue, CO Net Revenue; Net
Profit, in the case of Adjusted EBITDA, Adjusted Net Profit, PS
Adjusted Net Profit, DM Adjusted Net Profit, CO Adjusted Net
Profit, and 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 Net Revenue, PS
Payment Net Revenue, PS Other Net Revenue, DM Net Revenue, CO Net
Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net
Profit and Adjusted Net Profit per share, including a quantitative
reconciliation of Total Net Revenue and its breakdown by segments,
Adjusted EBITDA and Adjusted Net Profit to the most directly
comparable IFRS financial performance measures, 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.
We define non-IFRS financial measures as
follows:
- “Total Net Revenue” is calculated
by subtracting cost of revenue from revenue.
- “Adjusted EBITDA” as Net profit
plus/(less): (1) depreciation and amortization, (2) other
expenses/(income), (3) foreign exchange loss/(gain), (4) share of
loss/(gain) of associates and joint ventures, (5) interest
expenses/ (income), (6) income tax expenses, (7) share-based
payment expenses, (8) impairment of non-current assets, (9)
loss/(gain) on disposal of subsidiary.
- “Adjusted Net profit” as Net profit
plus/(less): (1) fair value adjustments recorded on business
combinations and their amortization, (2) impairment of non-current
assets, (3) share-based payment expenses, (4) loss/(gain) on
disposal of subsidiary, (5) effect of taxation of the above
items.
- “Adjusted EBITDA Margin” as
Adjusted EBITDA divided by Total Net Revenue.
- “Adjusted Net profit Margin” as
Adjusted Net profit divided by Total Net Revenue.
Total Net Revenue is a key
measure used by management to observe our operational profitability
since it reflects our portion of the revenue net of fees that we
pass through, primarily to our agents and other reload channels
providers. In addition, under IFRS, most types of fees are
presented on a gross basis whereas certain types of fees are
presented on a net basis. Therefore, in order to analyze our two
sources of payment processing fees on a comparative basis,
management reviews Total Net Revenue.
We provide a breakdown of Total Net Revenue by
segments - PS Net Revenue, including PS Payment Net Revenue and PS
Other Net Revenue, DM Net Revenue, CO Net Revenue. We define the
above measures as follows:
- PS Payment Net
Revenue is the Net Revenue comprising the merchant and
consumer fees collected for the payment transactions.
- PS Other Net
Revenue primarily comprises revenue from fees for inactive
accounts and unclaimed payments, interest revenue, cash and
settlement services and related conversion income, fees for
intercompany and third-party funding, and advertising fees.
- DM Net Revenue
includes revenue generated with services provided for context and
media advertising management services, including platform services
under subscription, social network presence, programmatic, CPA and
mobile marketing type of services. The segment includes results of
full-cycle digital marketing service provider RealWeb and Flocktory
services in marketing automation and advertising technologies.
- CO Net
Revenue comprises from results of ROWI business, Tochka
project (before 2Q2022) and Corporate and Other projects, including
interest income.
Adjusted EBITDA is a key
measure used by management as a supplemental performance measure
that facilitates operating performance comparisons from period to
period and company to company by backing out potential differences
caused by variations in capital structures (affecting interest
expenses, net), changes in foreign exchange rates that impact
financial assets and liabilities denominated in currencies other
than our functional currency (affecting foreign exchange
(loss)/gain, net), tax positions (such as the impact on periods or
companies of changes in effective tax rates), the age and book
depreciation of fixed assets (affecting relative depreciation
expense), non-cash charges (affecting share-based payments expenses
and impairment of non-current assets), and certain one-time income
and expenses (affecting other income, offering and related
expenses, etc.). Adjusted EBITDA also excludes other expenses,
share in losses of associates and impairment of investment in
associates because we believe it is helpful to view the performance
of our business excluding the impact of entities that we do not
control, and because our share of the net income (loss) of
associates and other expenses includes items that have been
excluded from Adjusted EBITDA (such as finance expenses, net,
income tax, and depreciation and amortization). Because Adjusted
EBITDA facilitates internal comparisons of operating performance on
a more consistent basis, we also use Adjusted EBITDA in measuring
our performance relative to that of our competitors.
Adjusted Net Profit is a key
measure used by management to observe the operational profitability
of the company. We believe Adjusted Net Profit is useful to an
investor in evaluating our operating performance because it
measures a company’s operating performance without the effect
of non-recurring items or items that are not core to our
operations. For example, loss on disposals of subsidiaries and the
effects of deferred taxation on excluded items do not represent the
core operations of the business, and fair value adjustments
recorded on business combinations and their amortization,
impairment of non-current assets and share-based payments
expenses do not have a substantial cash effect. Nevertheless, such
gains and losses can affect our financial performance.
In order to reflect the operational
profitability of each segment, we provide a following breakdown of
Adjusted Net Profit: Payment Services Adjusted Net Profit,
Digital Marketing Adjusted Net Profit, Corporate and Other Adjusted
Net Profit.
Payment Services segment payment
volume provides a measure of the overall size and growth
of the business, and increasing our payment volumes is essential to
growing our profitability.
Payment Services segment net revenue
yield. We calculate Payment Services segment net revenue
yield by dividing Payment Services segment net revenue by Payment
Services segment payment volume. Payment Services segment net
revenue yield provides a measure of our ability to generate net
revenue per unit of volume we process.
1 Total Net Revenue, adjusted EBITDA, adjusted
EBITDA margin, adjusted Net profit, and adjusted Net profit margin
in this release are “non-IFRS financial measures”. Please see the
section “Non-IFRS Financial Measures and Supplemental Financial
Information” for more details as well as a reconciliation to IFRS
reported numbers at the end of this release.2 Throughout this
release calculations of totals, subtotals and/or percentage change
may have small variations due to rounding of decimals.3
https://investor.qiwi.com/news-and-events/press-releases/4108553/4
https://investor.qiwi.com/news-and-events/press-releases/4108554/5
https://investor.qiwi.com/results-and-reports/sec-filings/40910226
https://investor.qiwi.com/news-and-events/press-releases/4108564/7
https://investor.qiwi.com/news-and-events/press-releases/4108557/
QIWI plc.Reconciliation
of IFRS to Non-IFRS Operating Results(in millions,
except per share data)
|
Three months ended |
|
March 31, 2022 |
|
March 31, 2023 |
|
March 31, 2023 |
|
RUB |
|
RUB |
|
USD |
|
|
|
|
|
|
Revenue |
9,717 |
|
|
17,872 |
|
|
231.8 |
|
Minus: Cost
of revenue (exclusive of depreciation and amortization) |
3,412 |
|
|
9,320 |
|
|
120.9 |
|
Total Net Revenue |
6,305 |
|
|
8,552 |
|
|
110.9 |
|
Segment Net Revenue |
|
|
|
|
|
Payment Services Segment Revenue |
8,730 |
|
|
10,803 |
|
|
140.1 |
|
|
|
|
|
|
|
PS Payment Revenue(1) |
6,948 |
|
|
8,748 |
|
|
113.5 |
|
Minus: Cost of PS Payment Revenue (exclusive of depreciation and
amortization)(2) |
2,829 |
|
|
3,663 |
|
|
47.5 |
|
PS Payment Net Revenue |
4,119 |
|
|
5,085 |
|
|
66.0 |
|
|
|
|
|
|
|
PS Other Revenue(3) |
1,782 |
|
|
2,055 |
|
|
26.7 |
|
Minus: Cost of PS Other Revenue (exclusive of depreciation and
amortization)(4) |
252 |
|
|
196 |
|
|
2.5 |
|
PS Other Net Revenue |
1,530 |
|
|
1,859 |
|
|
24.1 |
|
Payment Services Segment Net Revenue |
5,649 |
|
|
6,944 |
|
|
90.1 |
|
|
|
|
|
|
|
Digital Marketing Revenue |
201 |
|
|
5,922 |
|
|
76.8 |
|
Minus: Cost
of CO revenue (exclusive of depreciation and amortization) |
44 |
|
|
5,181 |
|
|
67.2 |
|
Digital Marketing Net Revenue |
157 |
|
|
741 |
|
|
9.6 |
|
|
|
|
|
|
|
Corporate and Other Category Revenue |
785 |
|
|
1,147 |
|
|
14.9 |
|
Minus: Cost
of CO revenue (exclusive of depreciation and amortization) |
286 |
|
|
280 |
|
|
3.6 |
|
Corporate and Other Category Net Revenue |
499 |
|
|
867 |
|
|
11.2 |
|
|
|
|
|
|
|
Total Segment Net Revenue |
6,305 |
|
|
8,552 |
|
|
110.9 |
|
|
|
|
|
|
|
Net profit |
2,257 |
|
|
4,499 |
|
|
58.4 |
|
Plus: |
|
|
|
|
|
Depreciation
and amortization |
277 |
|
|
309 |
|
|
4.0 |
|
Other income
and expenses, net |
(21 |
) |
|
(16 |
) |
|
(0.2 |
) |
Foreign
exchange (gain)/loss, net |
441 |
|
|
(819 |
) |
|
(10.6 |
) |
Gain on
disposal of subsidiary |
- |
|
|
(424 |
) |
|
(5.5 |
) |
Share of
gain/(loss) of an associate |
- |
|
|
39 |
|
|
0.5 |
|
Interest
income and expenses, net |
(68 |
) |
|
- |
|
|
- |
|
Income tax
expenses |
801 |
|
|
891 |
|
|
11.6 |
|
Adjusted EBITDA |
3,687 |
|
|
4,479 |
|
|
58.1 |
|
Adjusted
EBITDA margin |
58.5 |
% |
|
52.4 |
% |
|
52.4 |
% |
|
|
|
|
|
|
Net profit |
2,257 |
|
|
4,499 |
|
|
58.4 |
|
Fair value
adjustments recorded on business combinations and their
amortization(5) |
83 |
|
|
125 |
|
|
1.6 |
|
Gain on
disposal of subsidiary |
- |
|
|
(424 |
) |
|
(5.5 |
) |
Effect of
taxation of the above items |
(14 |
) |
|
(20 |
) |
|
(0.3 |
) |
Adjusted Net Profit |
2,326 |
|
|
4,180 |
|
|
54.1 |
|
|
|
|
|
|
|
Adjusted Net
Profit per share: |
|
|
|
|
|
Basic |
37.25 |
|
|
66.65 |
|
|
0.86 |
|
Diluted |
37.25 |
|
|
66.65 |
|
|
0.86 |
|
|
|
|
|
|
|
Weighted-average number of shares used in computing Adjusted Net
Profit per share: |
|
|
|
|
Basic |
62,449 |
|
|
62,713 |
|
|
62,713 |
|
Diluted |
62,449 |
|
|
62,713 |
|
|
62,713 |
|
|
|
(1) |
|
PS
Payment Revenue represents payment processing fees, which primarily
consists of the merchant and consumer fees charged for the payment
transactions. |
(2) |
|
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. |
(3) |
|
PS Other Revenue primarily
consists of revenue from fees for inactive accounts and unclaimed
payments, interest revenue, cash and settlement services and
related conversion income, fees for intercompany and third-party
funding, and advertising fees. |
(4) |
|
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: interest expenses related to issued
bonds, costs of sms notification, advertising commissions. |
(5) |
|
Amortization of fair value
adjustments primarily includes the effect of the acquisition of
control in CONTACT, Rapida and Realweb. |
Contact
Investor Relations
+357.25028091
ir@qiwi.com
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