EX-99.1 2 tm2330904d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

QIWI Announces Third Quarter 2023 Financial Results

 

NICOSIA, CYPRUS – November 17, 2023 – QIWI plc (NASDAQ and MOEX: QIWI) (“QIWI” or the “Company”), an innovative provider of cutting-edge payment and financial services, today announced its financial results for the third quarter ended September 30, 2023.

 

3Q 2023 key operating and financial highlights1 2

 

      3Q 2022   3Q 2023       9M 2022   9M 2023       3Q 2023   9M 2023 
      RUB million   RUB million   YoY   RUB million   RUB million   YoY   USD million(1)   USD million(1) 
   Revenue  12,955   17,206   32.8%  36,687   53,115   44.8%  176.6   545.2 
   Total Net Revenue  8,725   8,793   0.8%  25,238   26,539   5.2%  90.3   272.4 
   Adjusted EBITDA  5,620   3,562   (36.6)%  16,279   13,098   (19.5)%  36.6   134.5 
Consolidated Group results  Adjusted EBITDA margin  64.4%  40.5%  (23.9)p.p.  64.5%  49.4%  (15.1)p.p.  40.5%  49.4%
   Profit for the period  4,619   2,993   (35.2)%  9,686   12,309   27.1%  30.7   126.4 
   Adjusted Net profit  4,690   3,564   (24.0)%  9,980   12,978   30.0%  36.6   133.2 
   Adjusted Net profit margin  53.8%  40.5%  (13.2 )p.p.  39.5%  48.9%  9.4 p.p.  40.4%  48.9%
   Net Revenue  7,574   6,600   (12.9)%  22,541   20,759   (7.9)%  67.8   213.1 
   Payment Net Revenue  6,029   4,062   (32.6)%  17,728   14,192   (19.9)%  41.7   145.7 
   Payment Volume, billion  499   473   (5.1)%  1,355   1,447   6.8%  4.9   14.9 
Payment Services (PS)  Payment Net Revenue Yield  1.21%  0.86%  (0.3)p.p.   1.31%  0.98%  (0.3 )p.p.  0.86%  0.98%
   Other Net Revenue  1,545   2,538   64.3%  4,813   6,567   36.5%  26.1   67.4 
   Adjusted Net profit  4,004   2,563   (36.0)%  12,605   9,025   (28.4)%  26.3   92.6 
   Adjusted Net profit margin  52.9%  38.8%  (14.0)p.p.   55.9%  43.5%  (12.4)p.p.  38.8%  43.5%
   Net Revenue  181   1,166   542.8%  466   2,837   509.2%  12.0   29.1 
Digital Marketing (DM)  Adjusted Net (loss) / profit  63   272   331.6%  36   601   1550.2%  2.8   6.2 
   Adjusted Net profit margin  34.8%  23.3%  (11.4)p.p.   7.8%  21.2%  13.4p.p.  23.3%  21.2%
Corporate and Other (CO)  Net Revenue  970   1,027   5.8%  2,231   2,943   31.9%  10.5   30.2 
   Adjusted Net (loss) / profit  623   729   17.0%  (2,662)  3,352   (225.9)%  7.5   34.4 

 

(1)Throughout this release dollar translation is calculated using a rouble to U.S. dollar exchange rate of RUB 97.4147 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 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 during and after the reported period

 

·QIWI provided an update on corporate restructuring and received the consent from the NASDAQ Hearing Panel (the “Panel”) to sustain listing on NASDAQ until completion of the restructuring by January 31, 20243.
·QIWI released its ESG Report for 20224.
·From July 26, 2023, certain QIWI Bank operations were temporarily restricted by the Central Bank of Russia5.
·Credit rating agency Expert Ra assigned credit rating ruBBB+ with “developing” outlook for JSC QIWI, updated its rating for QIWI Bank (JSC), rating of QIWI PLC expired and its extension was not requested by the Company6.

 

 

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/4108577/

4 https://investor.qiwi.com/news-and-events/press-releases/4108576/

5 https://investor.qiwi.com/news-and-events/press-releases/4108571/

6 https://investor.qiwi.com/news-and-events/press-releases/4108572/

 

 

 

 

3Q 2023 results

 

Net Revenue breakdown by segments

 

   3Q 2022   3Q 2023       9M 2022   9M 2023       3Q 2023   9M 2023 
   RUB million   RUB million   YoY   RUB million   RUB million   YoY   USD million   USD million 
Total Net Revenue   8,725    8,793    0.8%   25,238    26,539    5.2%   90.3    272.4 
Payment Services (PS)   7,574    6,600    (12.9)%   22,541    20,759    (7.9)%   67.8    213.1 
PS Payment   6,029    4,062    (32.6)%   17,728    14,192    (19.9)%   41.7    145.7 
PS Other   1,545    2,538    64.3%   4,813    6,567    36.5%   26.1    67.4 
Digital Marketing (DM)   181    1,166    542.8%   466    2,837    509.2%   12.0    29.1 
Corporate and Other (CO)   970    1,027    5.8%   2,231    2,943    31.9%   10.5    30.2 

 

Total Net Revenue slightly increased by 0.8% YoY and amounted to RUB 8,793 million ($90.3 million) despite the high base effect of last year and temporary restrictions of the Central Bank of Russia (the “CBR restrictions”) on certain operations for QIWI Wallets7. The decline in the PS segment was offset mainly by the strong results of the Digital Marketing (DM) segment and the contribution from the Corporate and Other (CO) segment.

 

Payment Services

 

PS Net Revenue decreased by 12.9% YoY to RUB 6,600 million ($67.8 million) mainly driven by the negative implications of the CBR restrictions and the decreased level of money remittances which were lower than the temporary hikes of the previous year.

 

PS Payment Net Revenue decline was 32.6% YoY and amounted to RUB 4,062 million ($41.7 million) driven by a combination of lower PS Payment Volume by 5.1% YoY and PS Payment Net Revenue Yield decline by 35 bps YoY to 0.86%.

 

PS Payment Net Revenue Yield decline was driven by the adverse mix effect resulting from a higher share of operations with lower margins, such for example acquiring.

 

PS Payment Volume decreased by 5.1% YoY to RUB 473.5 billion due to the negative implications of the CBR restrictions and decreased level of CONTACT money remittances which were partially offset by the onboarding of new merchants and aggregators and the growing payment volume from our product offering for digital entertainment and commerce.

 

PS Other Net Revenue primarily comprises interest income, revenue from fees for inactive accounts and unclaimed payments, cash and settlement services and related conversion income, income from financing of other business segments and third parties. In 3Q 2023 PS Other Net Revenue increased by 64.3% YoY to RUB 2,538 million ($26.1 million) as a result of further growth of net revenue derived from cash and settlement services and higher interest income resulting from a larger investment portfolio and higher interest rates.

 

Digital Marketing (DM)

 

DM Net Revenue increased by 542.8% YoY to RUB 1,166 million ($12.0 million) driven by the RealWeb acquisition in December 20228 and the strong performance of Flocktory underpinned by the increase in the number of clients and traffic-providers as well as overall improved business efficiency.

 

Corporate and Other (CO)

 

   3Q 2022   3Q 2023       9M 2022   9M 2023       3Q 2023   9M 2023 
   RUB million   RUB million   YoY   RUB million   RUB million   YoY   USD million   USD million 
CO Net Revenue   970    1,027    5.8%   2,231    2,943    31.9%   10.5    30.2 
ROWI   696    655    (6.0)%   1,775    1,908    7.5%   6.7    19.6 
Tochka   -    -         106    -    (100.0)%   -    - 
Corporate and Other projects   273    371    35.8%   351    1,035    194.7%   3.8    10.6 

 

 

7 https://investor.qiwi.com/news-and-events/press-releases/4108571/

8 https://investor.qiwi.com/news-and-events/press-releases/4108557/

 

 

 

 

CO Net Revenue increased by 5.8% YoY to RUB 1,027 million ($10.5 million) driven by higher interest income accounted for in Corporate and Other projects.

 

·ROWI Net Revenue decreased by 6.0% YoY to RUB 655 million ($6.7 million) mainly due to a decline of net portfolio yield compared to 3Q2022.

 

oAs of September 30, 2023, the bank guarantees portfolio reached RUB 79.0 billion - an increase of 11.2% YoY.

 

oAs of September 30, 2023, the factoring portfolio was RUB 13.7 billion or 24.0% higher YoY.

 

oAs of September 30, 2023, the portfolio of online loans for government contracts execution doubled compared to the previous year and reached RUB 3.7 billion.

 

oIn 3Q 2023, the share of ROWI Net Revenue in Total Net Revenue was 7.4%.

 

·Corporate and Other projects Net Revenue in 3Q 2023 amounted to RUB 371 million ($3.8 million) compared to RUB 273 million in 3Q 2022 driven by higher interest income from investments in debt securities (high-quality corporate and government bonds) partially offset by lower income from provided loans.

 

Operating expenses and other non-operating income and expenses

 

   3Q 2022   3Q 2023       9M 2022   9M 2023       3Q 2023   9M 2023 
   RUB million   RUB million   YoY   RUB million   RUB million   YoY   USD million   USD million 
Operating expenses  (3,363)  (5,583)  66.0%  (9,876)  (14,417)  46.0%  (57.3)  (148.0)
% of Net Revenue  (38.5)%  (63.5)%  (24.9)p.p.  (39.1)%  (54.3)%  (15.2)p.p.        
Selling, general and administrative expenses  (959)  (1,542)  60.8%  (2,503)  (3,685)  47.2%  (15.8)  (37.8)
% of Net Revenue  (11.0)%  (17.5)%  (6.5)p.p.  (9.9)%  (13.9)%  (4.0 )p.p.        
Personnel expenses  (1,987)  (3,084)  55.2%  (5,662)  (8,869)  56.6%  (31.7)  (91.0)
% of Net Revenue  (22.8)%  (35.1)%  (12.3)p.p.  (22.4)%  (33.4)%  (11.0 )p.p.        
Depreciation, amortization & impairment  (258)  (352)  36.4%  (858)  (976)  13.8%  (3.6)  (10.0)
% of Net Revenue  (3.0)%  (4.0)%  (1.0)p.p.  (3.4)%  (3.7)%  (0.3 )p.p.        
Credit loss (expense) / income  (159)  (605)  280.5%  (853)  (887)  4.0%  (6.2)  (9.1)
% of Net Revenue  (1.8)%  (6.9)%  (5.1)p.p.  (3.4)%  (3.3)%  0.04p.p.        
Other non-operating income and expenses  582   983   68.9%  (2,117)  3,232   (252.7)%  10.1   33.2 
% of Net Revenue  6.7%  11.2%  4.5p.p.  (8.4)%  12.2%  20.6 p.p.        
Share of loss of an associate  -   (68)      -   (112)      (0.7)  (1.1)
% of Net Revenue  0.0%  (0.8)%  (0.8)p.p.  0.0%  (0.4)%  (0.4)p.p.        
Foreign exchange gain/(loss), net  555   1,055   90.1%  (2,255)  3,170   (240.6)%  10.8   32.5 
% of Net Revenue  6.4%  12.0%  5.6 p.p.  (8.9)%  11.9%  20.9p.p.        
Other income and expenses, net  27   13   (51.9)%  138   (233)  (268.8)%  0.1   (2.4)
% of Net Revenue  0.3%  0.1%  (0.2)p.p.  0.5%  (0.9)%  (1.4 )p.p.        
Gain/(loss) from disposal of subsidiaries  -   (17)      -   407       (0.2)  4.2 
% of Net Revenue  0.0%  (0.2)%  (0.2)p.p.  0.0%  1.5%  1.5 p.p.        

 

Operating expenses increased by 66.0% YoY to RUB 5,583 million ($57.3 million) primarily due to investments in personnel and operational improvements to secure future growth of the business and the consolidation of RealWeb results starting from the beginning of the year. As a result, operating expenses as a percentage of Total Net Revenue deteriorated by 24.9 ppts and amounted to 63.5%.

 

Personnel expenses surged by 55.2% YoY to RUB 3,084 million ($31.7 million) driven by the hiring of new staff for the development of new and existing products, salary reviews and higher bonuses to employees in PS segment as well as the consolidation of the new RealWeb business. Personnel expenses as a percentage of Total Net Revenue increased by 12.3 ppts to 35.1% driven by the factors described above.

 

Selling, general and administrative expenses increased by 60.8% YoY to RUB 1,542 million ($15.8 million) and as a percentage of Total Net Revenue by 6.5 ppt YoY to 17.5% as a result of a combination of (i) higher expenses as a result of further growth of net revenue derived from cash and settlement services, (ii) consolidation of RealWeb results starting from 2023, (iii) and higher expenses on advisory and audit services, IT-related services, business travel and other.

 

 

 

 

Depreciation, amortization and impairment increased by 36.4% YoY to RUB 352 million ($3.6 million) or 4.0% as percent of Total Net Revenue due to the consolidation of RealWeb and expenditures on automation of payment systems.

 

Credit loss amounted to RUB 605 million ($6.2 million) compared to RUB 159 million in 3Q 2022 due to the increase of provisions for the bank guarantees portfolio.

 

Other non-operating income increased by 68.9% YoY to RUB 983 million ($10.1 million) due to the higher amount of foreign exchange gain.

 

Income tax expense

 

Income tax expense decreased by 9.4% YoY to RUB 1,200 million ($12.3 million) driven by lower profit before tax on higher expenses described above.

 

The effective tax rate increased from 22.3% in 3Q 2022 to 28.6% in 3Q 2023 due to the windfall tax9 accrued in 3Q 2023 in the amount of RUB 450 million.

 

Profitability results

 

   3Q 2022   3Q 2023       9M 2022   9M 2023       3Q 2023   9M 2023 
   RUB million   RUB million   YoY   RUB million   RUB million   YoY   USD million   USD million 
Adjusted EBITDA   5,620    3,562    (36.6)%   16,279    13,098    (19.5)%   36.6    134.5 
Adjusted EBITDA margin, %   64.4%   40.5%   (23.9)p.p.   64.5%   49.4%   (15.1)p.p.   40.5%   49.4%
Adjusted Net Profit   4,690    3,564    (24.0)%   9,980    12,978    30.0%   36.6    133.2 
Adjusted Net Profit margin, %   53.8%   40.5%   (13.2)p.p.   39.5%   48.9%   9.4p.p.   40.5%   48.9%
Payment Services   4,004    2,563    (36.0)%   12,605    9,025    (28.4)%   26.3    92.6 
PS Adjusted Net Profit margin, %   52.9%   38.8%   (14.0)p.p.   55.9%   43.5%   (12.4)p.p.   38.8%   43.5%
Digital Marketing (DM)   63    272    331.6%   36    601    1550.2%   2.8    6.2 
DM Adjusted Net Profit margin, %   34.8%   23.3%   (11.4)p.p.   7.8%   21.2%   13.4 p.p.   23.3%   21.2%
Corporate and Other (CO)   623    729    17.0%   (2,662)   3,352    (225.9)%   7.5    34.4 

 

Adjusted EBITDA decreased by 36.6% YoY to RUB 3,562 million ($36.6 million) mainly due to investments in personnel and operational improvements to secure future growth of the business and the consolidation of RealWeb starting from the beginning of the year. As a result, Adjusted EBITDA margin decreased by 23.9 ppts YoY to 40.5%.

 

Adjusted Net Profit decreased by 24.0% YoY to RUB 3,564 million ($36.6 million). Adjusted Net Profit margin decreased by 13.2 ppts YoY to 40.5% driven by EBITDA dynamics partially offset by higher forex exchange gain and excluded the one-off impact of the windfall tax provision.

 

PS Adjusted Net Profit decreased by 36.0% YoY to RUB 2,563 million ($26.3 million) mainly due to (i) the decline of PS Net Revenue by 12.9% YoY described earlier, and (ii) investments made in personnel and operational improvements to secure future growth of the business. As a result, PS Adjusted Net Profit margin deteriorated by 14.0 ppts to 38.8%.

 

Digital Marketing (DM) Adjusted Net Profit for 3Q 2023 increased to RUB 272 million ($2.8 million) due to the Flocktory Net Revenue growth and the consolidation of new RealWeb business. DM Adjusted Net Profit margin was 23.3%.

 

CO Adjusted Net Profit increased by 17.0% YoY to RUB 729 million ($7.5 million) resulting from a combination of CO Net Revenue YoY growth by 5.8% mentioned previously and the foreign exchange gain.

 

 

9 Windfall tax is a one-off special tax enacted in Federal Law 414-FZ and set to take effect on January 1, 2024. The Group anticipates using the “early payment” option to reduce the effective rate by up to 50%.

 

 

 

 

Dividends

 

Due to the lingering stock market infrastructure issues, 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 or other developments 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 an innovative provider of cutting-edge payment and financial services. 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.

 

Contact

Investor Relations

+357.25028091

ir@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, the effect of the CBR restrictions on results of operations, any other restriction the CBR may impose based on our past and future operations, our ability to  eliminate partially or completely the CBR restrictions, 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 September 30,   As of September 30, 
   2022   2023   2023 
       (Unaudited)   (Unaudited) 
   RUB   RUB   USD 
Assets               
Non-current assets               
Property and equipment   1,163    1,658    17.0 
Goodwill and other intangible assets   13,126    12,968    133.1 
Investments in associates   303    512    5.3 
Long-term debt securities   2,946    4,993    51.3 
Long-term loans issued   843    3,479    35.7 
Other non-current assets   257    200    2.1 
Deferred tax assets   208    288    3.0 
Total non-current assets   18,846    24,098    247.4 
Current assets               
Trade and other receivables   15,194    14,948    153.4 
Short-term loans issued   14,200    18,556    190.5 
Short-term debt securities   14,029    29,899    306.9 
Other current assets   2,195    1,877    19.3 
Cash and cash equivalents   47,462    29,463    302.4 
Total current assets   93,080    94,743    972.6 
Total assets   111,926    118,841    1,219.9 
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    19.3 
Share premium   12,068    12,068    123.9 
Other reserves   2,696    1,141    11.7 
Retained earnings   39,941    51,799    531.7 
Translation reserve   401    268    2.8 
Total equity attributable to equity holders of the parent   56,983    67,153    689.4 
Non-controlling interests   912    1,068    11.0 
Total equity   57,895    68,221    700.3 
Non-current liabilities               
Long-term deferred income   1,154    849    8.7 
Long-term lease liabilities   133    319    3.3 
Other non-current liabilities   156    113    1.2 
Deferred tax liabilities   1,847    1,440    14.8 
Total non-current liabilities   3,290    2,721    27.9 
Current liabilities               
Trade and other payables   33,048    29,382    301.6 
Customer accounts and amounts due to banks   11,203    12,374    127.0 
Short-term debt   3,922    3,855    39.6 
Short-term lease liabilities   300    228    2.3 
Other current liabilities   2,268    2,060    21.1 
Total current liabilities   50,741    47,899    491.7 
Total equity and liabilities   111,926    118,841    1,219.9 

 

 

 

 

QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

 

   Three months ended (unaudited) 
   September 30,
2022		   September 30,
2023		   September 30,
2023		 
   RUB   RUB   USD 
Revenue:   12,955    17,206    176.6 
Revenue from contracts with customers   10,871    14,587    149.7 
Interest revenue calculated using the effective interest rate   1,697    2,215    22.7 
Fees from inactive accounts and unclaimed payments   387    404    4.1 
                
Operating costs and expenses:   (7,593)   (13,996)   (143.7)
Cost of revenue (exclusive of items shown separately below)   (4,230)   (8,413)   (86.4)
Selling, general and administrative expenses   (959)   (1,542)   (15.8)
Personnel expenses   (1,987)   (3,084)   (31.7)
Depreciation and amortization   (258)   (352)   (3.6)
Credit loss (expense)/income   (159)   (605)   (6.2)
Profit from operations   5,362    3,210    33.0 
                
Loss from disposal of subsidiaries   -    (17)   (0.2)
Share of loss of an associate   -    (68)   (0.7)
Foreign exchange gain/(loss), net   555    1,055    10.8 
Other income and expenses, net   27    13    0.1 
Profit before tax   5,944    4,193    43.0 
Income tax expense   (1,325)   (1,200)   (12.3)
Net profit for the period   4,619    2,993    30.7 
Attributable to:               
Equity holders of the parent   4,463    2,864    29.4 
Non-controlling interests   156    129    1.3 
                
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   (177)   136    1.4 
Net gain recycled to profit or loss upon disposal   -    (23)   (0.2)
                
Debt securities at fair value through other comprehensive income (FVOCI):               
Net gain/(loss) arising during the period, net of tax   (121)   (1,206)   (12.4)
Net gain recycled to profit or loss upon disposal   -    (7)   (0.1)
Share of other comprehensive Income of an associate   -    2    0.0 
Total other comprehensive (loss)/income, net of tax   (298)   (1,098)   (11.3)
Total comprehensive income, net of tax   4,321    1,895    19.5 
Attributable to:               
Equity holders of the parent   4,160    1,752    18.0 
Non-controlling interests   161    143    1.5 
                
Earnings per share:               
Basic, earnings attributable to ordinary equity holders of the parent   71.17    45.67    0.47 
Diluted, earnings attributable to ordinary equity holders of the parent   71.17    45.67    0.47 

 

 

 

QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

 

   Nine months ended (unaudited) 
   September 30,
2022		   September 30,
2023		   September 30,
2023		 
   RUB   RUB   USD 
Revenue:   36,687    53,115    545.2 
Revenue from contracts with customers   30,331    45,960    471.8 
Interest revenue calculated using the effective interest rate   5,078    5,923    60.8 
Fees from inactive accounts and unclaimed payments   1,278    1,232    12.6 
                
Operating costs and expenses:   (21,325)   (40,993)   (420.8)
Cost of revenue (exclusive of items shown separately below)   (11,449)   (26,576)   (272.8)
Selling, general and administrative expenses   (2,503)   (3,685)   (37.8)
Personnel expenses   (5,662)   (8,869)   (91.0)
Depreciation and amortization   (822)   (976)   (10.0)
Credit loss (expense)/income   (853)   (887)   (9.1)
Impairment of non-current assets   (36)   -    - 
Profit from operations   15,362    12,122    124.4 
                
Gain from disposal of subsidiaries   -    407    4.2 
Share of loss of an associate   -    (112)   (1.1)
Foreign exchange gain/(loss), net   (2,255)   3,170    32.5 
Other income and expenses, net   138    (233)   (2.4)
Profit before tax   13,245    15,354    157.6 
Income tax expense   (3,559)   (3,045)   (31.3)
Net profit for the period   9,686    12,309    126.4 
Attributable to:               
Equity holders of the parent   9,262    11,858    121.7 
Non-controlling interests   424    451    4.6 
                
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   (101)   349    3.6 
Net gain recycled to profit or loss upon disposal   -    (447)   (4.6)
                
Debt securities at fair value through other comprehensive income (FVOCI):               
Net gain/(loss) arising during the period, net of tax   (11)   (1,270)   (13.0)
Net gain recycled to profit or loss upon disposal   -    (25)   (0.3)
Share of other comprehensive Income of an associate   -    5    0.1 
Total other comprehensive (loss)/income, net of tax   (112)   (1,388)   (14.2)
Total comprehensive income, net of tax   9,574    10,921    112.1 
Attributable to:               
Equity holders of the parent   9,166    10,435    107.1 
Non-controlling interests   408    486    5.0 
                
Earnings per share:               
Basic, earnings attributable to ordinary equity holders of the parent   147.98    189.08    1.94 
Diluted, earnings attributable to ordinary equity holders of the parent   147.98    189.08    1.94 

 

 

 

QIWI plc.

Consolidated Statement of Cash Flows

(in millions)

 

   Nine months ended (unaudited) 
   September 30,
2022		   September 30,
2023		   September 30,
2023		 
   RUB   RUB   USD(1) 
Operating activities               
Profit before tax   13,245    15,354    157.6 
Adjustments to reconcile profit before tax to net cash flows generated from operating activities:               
Depreciation and amortization   822    976    10.0 
Foreign exchange loss/(gain), net   2,255    (3,170)   (32.5)
Interest income, net   (4,787)   (5,668)   (58.2)
Credit loss expense   853    887    9.1 
Share of loss of an associate   -    112    1.1 
Gain from disposal of subsidiaries   -    (407)   (4.2)
Impairment of non-current assets   36    -    - 
Other   83    269    2.8 
Net cash flow generated from operating activities before changes in working capital   12,507    8,353    85.7 
Changes in operating assets and liabilities:               
Decrease/(Increase) in trade and other receivables   (3,592)   (431)   (4.4)
Decrease in other assets   103    648    6.7 
Increase in customer accounts and amounts due to banks   4,832    328    3.4 
Decrease in accounts payable and accruals   (5,354)   (5,140)   (52.8)
(Decrease)/Increase in other liabilities   409    (457)   (4.7)
Increase in loans issued as operating activity   (2,561)   (4,169)   (42.8)
Cash generated from operations   6,344    (868)   (8.9)
Interest received   5,480    6,949    71.3 
Interest paid   (399)   (295)   (3.0)
Income tax paid   (2,840)   (3,149)   (32.3)
Net cash flow generated from operating activities   8,585    2,637    27.1 
Investing activities               
Cash used in business combinations   (304)   (47)   (0.5)
Cash disposal upon sale of subsidiaries   -    (186)   (1.9)
Cash paid for investments in associates   (660)   (315)   (3.2)
Proceeds from sale of an associate   4,855    -    - 
Purchase of property and equipment   (173)   (536)   (5.5)
Purchase of intangible assets   (147)   (209)   (2.1)
Proceeds from sale of fixed and intangible assets   9    28    0.3 
Loans issued   (7)   (3,179)   (32.6)
Repayment of loans issued   34    61    0.6 
Purchase of debt securities   (4,509)   (22,455)   (230.5)
Proceeds from sale and redemption of debt securities   2,391    3,394    34.8 
Net cash flow generated from investing activities   1,489    (23,444)   (240.7)
Financing activities               
Repayment of debt   (717)   (310)   (3.2)
Proceeds from borrowings   -    249    2.6 
Payment of principal portion of lease liabilities   (216)   (268)   (2.8)
Dividends paid to non-controlling shareholders   (124)   (260)   (2.7)
Transactions with non-controlling interest   -    (304)   (3.1)
Net cash flow used in financing activities   (1,057)   (893)   (9.2)
Effect of exchange rate changes on cash and cash equivalents   (1,611)   3,710    38.1 
Effect of change in ECL on cash and cash equivalents   -    (9)   (0.1)
Net increase/(decrease) in cash and cash equivalents   7,406    (17,999)   (184.8)
Cash and cash equivalents at the beginning of the period   33,033    47,462    487.2 
Cash and cash equivalents at the end of the period   40,439    29,463    302.4 

 

 

 

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) from 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) from disposal of subsidiary, (5) windfall tax, and (6) 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, income from financing of other business segments and third parties.
·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, windfall tax 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.

 

 

 

QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)

 

   Three months ended (unaudited)
   September 30,
2022		   September 30,
2023		   September 30,
2023		 
   RUB   RUB   USD 
Revenue   12,955    17,206    176.6 
Minus: Cost of revenue   4,230    8,413    86.4 
Total Net Revenue   8,725    8,793    90.3 
Segment Net Revenue               
Payment Services Segment Revenue   11,435    10,537    108.2 
                
PS Payment Revenue(1)   9,663    7,749    79.5 
Minus: Cost of PS Payment Revenue (2)   3,634    3,687    37.8 
PS Payment Net Revenue   6,029    4,062    41.7 
                
PS Other Revenue(3)   1,772    2,788    28.6 
Minus: Cost of PS Other Revenue (4)   227    250    2.6 
PS Other Net Revenue   1,545    2,538    26.1 
Payment Services Segment Net Revenue   7,574    6,600    67.8 
                
Digital Marketing Revenue   252    5,358    55.0 
Minus: Cost of DM revenue   71    4,193    43.0 
Digital Marketing Net Revenue   181    1,166    12.0 
                
Corporate and Other Category Revenue   1,268    1,311    13.5 
Minus: Cost of CO Revenue   298    284    2.9 
Corporate and Other Category Net Revenue   970    1,027    10.5 
                
Total Segment Net Revenue   8,725    8,793    90.3 
                
Net profit   4,619    2,993    30.7 
Plus:               
Depreciation and amortization   258    352    3.6 
Other income and expenses, net   (27)   (13)   (0.1)
Foreign exchange (gain)/loss, net   (555)   (1,055)   (10.8)
Loss from disposal of subsidiaries   -    17    0.2 
Share of gain/(loss) of an associate   -    68    0.7 
Income tax expenses   1,325    1,200    12.3 
Adjusted EBITDA   5,620    3,562    36.6 
Adjusted EBITDA margin   64.4%   40.5%   40.5%
                
Net profit   4,619    2,993    30.7 
Fair value adjustments recorded on business combinations and their amortization(5)   85    124    1.3 
Loss from disposal of subsidiaries   -    17    0.2 
Windfall tax and effect from taxation of the above items   (14)   430    4.4 
Adjusted Net Profit   4,690    3,564    36.6 
                
Adjusted Net Profit per share:               
Basic   74.79    56.83    0.58 
Diluted   74.79    56.83    0.58 
                
Weighted-average number of shares used in computing Adjusted Net Profit per share:               
Basic   62,713    62,713    62,713 
Diluted   62,713    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 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 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.

 

 

 

QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)

 

   Nine months ended (unaudited) 
   September 30, 2022   September 30, 2023   September 30, 2023 
   RUB   RUB   USD 
Revenue   36,687    53,115    545.2 
Minus: Cost of revenue   11,449    26,576    272.8 
Total Net Revenue   25,238    26,539    272.4 
Segment Net Revenue               
Payment Services Segment Revenue   33,019    32,426    332.9 
                
PS Payment Revenue(1)   27,450    25,184    258.5 
Minus: Cost of PS Payment Revenue (2)   9,722    10,992    112.8 
PS Payment Net Revenue   17,728    14,192    145.7 
                
PS Other Revenue(3)   5,569    7,242    74.3 
Minus: Cost of PS Other Revenue (4)   756    674    6.9 
PS Other Net Revenue   4,813    6,567    67.4 
Payment Services Segment Net Revenue   22,541    20,759    213.1 
                
Digital Marketing Revenue   640    16,880    173.3 
Minus: Cost of DM revenue   175    14,044    144.2 
Digital Marketing Net Revenue   466    2,837    29.1 
                
Corporate and Other Category Revenue   3,028    3,808    39.1 
Minus: Cost of CO Revenue   796    865    8.9 
Corporate and Other Category Net Revenue   2,231    2,943    30.2 
                
Total Segment Net Revenue   25,238    26,539    272.4 
                
Profit for the period   9,686    12,309    126.4 
Plus:               
Depreciation and amortization   822    976    10.0 
Other income and expenses, net   (138)   233    2.4 
Foreign exchange (gain)/loss, net   2,255    (3,170)   (32.5)
Gain from disposal of subsidiaries   -    (407)   (4.2)
Share of gain of an associate and a joint venture   -    112    1.1 
Income tax expenses   3,559    3,045    31.3 
Share-based payment expenses   59    -    - 
Impairment of non-current assets   36    -    - 
Adjusted EBITDA   16,279    13,098    134.5 
Adjusted EBITDA margin   64.5%   49.4%   49.4%
                
Profit for the period   9,686    12,309    126.4 
Fair value adjustments recorded on business combinations and their amortization(5)   266    687    7.1 
Impairment of non-current assets   36    -    - 
Share-based payment expenses   59    -    - 
Gain from disposal of subsidiaries   -    (407)   (4.2)
Windfall tax and effect from taxation of the above items   (67)   389    4.0 
Adjusted Net Profit   9,980    12,978    133.2 
                
Adjusted Net Profit per share:               
Basic   159.45    206.94    2.12 
Diluted   159.45    206.94    2.12 
                
Weighted-average number of shares used in computing Adjusted Net Profit per share:               
Basic   62,588    62,713    62,713 
Diluted   62,588    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 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 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.