EX-99.1 2 tm2323538d1_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

 

 

 

QIWI Announces Second Quarter 2023 Financial Results

 

NICOSIA, CYPRUS – August 16, 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 second quarter ended June 30, 2023.

 

2Q 2023 key operating and financial highlights1 2

 

      2Q 2022   2Q 2023       1HY 2022   1HY 2023       2Q 2023   1HY 2023 
      RUB million   RUB million   YoY   RUB million   RUB million   YoY   USD million(1)   USD million(1) 
   Revenue  14,015   18,037   28.7%  23,732   35,909   51.3%  207.2   412.6 
   Total Net Revenue  10,208   9,194   (9.9)%  16,513   17,746   7.5%  105.6   203.9 
   Adjusted EBITDA  6,972   5,057   (27.5)%  10,659   9,536   (10.5)%  58.1   109.6 
Consolidated Group results  Adjusted EBITDA margin  68.3%  55.0%  (13.3)p.p.  64.5%  53.7%  (10.8)p.p.  55.0%  53.7%
   Profit for the period  2,810   4,817   71.4%  5,067   9,316   83.9%  55.3   107.0 
   Adjusted Net profit  2,964   5,234   76.6%  5,290   9,414   78.0%  60.0   108.2 
   Adjusted Net profit margin  29.0%  56.9%  27.9p.p.   32.0%  53.0%  21.0p.p.  56.8%  53.0%
   Net Revenue  9,318   7,215   (22.6)%  14,967   14,159   (5.4)%  82.9   162.7 
   Payment Net Revenue  7,579   5,042   (33.5)%  11,699   10,128   (13.4)%  57.9   116.4 
   Payment Volume, billion  500   505   1.0%  856   974   13.7%  5.8   11.2 
Payment Services (PS)  Payment Net Revenue Yield  1.52%  1.00%  (0.5)p.p.  1.37%  1.04%  (0.3)p.p.   1.00%  1.04%
   Other Net Revenue  1,739   2,173   25.0%  3,268   4,031   23.4%  25.0   46.3 
   Adjusted Net profit  5,572   2,926   (47.5)%  8,601   6,462   (24.9)%  33.6   74.2 
   Adjusted Net profit margin  59.8%  40.6%  (19.2)p.p.  57.5%  45.6%  (11.8)p.p.  40.6%  45.6%
   Net Revenue  128   930   627.6%  285   1,671   487.1%  10.7   19.2 
Digital Marketing (DM)  Adjusted Net (loss) / profit  (56)  213   (480.4)%  (26)  329   (1365.4)%  2.4   3.8 
   Adjusted Net profit margin  (43.8)%  22.9%  66.7p.p.   (9.1)%  19.7%  28.8p.p.   22.9%  19.7%
Corporate and Other (CO)  Net Revenue  762   1,049   37.7%  1,261   1,916   51.9%  12.1   22.0 
   Adjusted Net (loss) / profit  (2,552)  2,095   (182.1)%  (3,285)  2,623   (179.8)%  24.1   30.1 

 

(1)Throughout this release dollar translation is calculated using a rouble to U.S. dollar exchange rate of RUB 87.0341 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 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

 

●On June 6, 2023, NASDAQ Hearing Panel granted the request of the Company to continue its listing on Nasdaq, subject to certain conditions3.

●QIWI announced results of 2023 Annual General Meeting held on June 5, 20234.

●QIWI completed consolidation of Russian assets under the single entity JSC QIWI5.

●QIWI Bank operations were temporarily and partially restricted starting from July 26, 20236.

●Credit rating agency lowered credit ratings of QIWI PLC and QIWI Bank7.

 

 

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/qiwi-to-continue-its-listing-on-the-nasdaq-uponsuccessful- restructuring/

4 https://investor.qiwi.com/news-and-events/press-releases/4108568/

5 https://investor.qiwi.com/news-and-events/press-releases/4108570/

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

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

 

 

 

 

2Q 2023 results

 

Net Revenue breakdown by segments

 

   2Q 2022   2Q 2023       1HY 2022   1HY 2023       2Q 2023   1HY 2023 
   RUB million   RUB million   YoY   RUB million   RUB million   YoY   USD million   USD million 
Total Net Revenue   10,208    9,194    (9.9)%   16,513    17,746    7.5%   105.6    203.9 
Payment Services (PS)   9,318    7,215    (22.6)%   14,967    14,159    (5.4)%   82.9    162.7 
PS Payment   7,579    5,042    (33.5)%   11,699    10,128    (13.4)%   57.9    116.4 
PS Other   1,739    2,173    25.0%   3,268    4,031    23.4%   25.0    46.3 
Digital Marketing (DM)   128    930    627.6%   285    1,671    487.1%   10.7    19.2 
Corporate and Other (CO)   762    1,049    37.7%   1,261    1,916    51.9%   12.1    22.0 

 

Total Net Revenue decreased by 9.9% YoY to RUB 9,194 million ($105.6 million) driven by high base and adverse mix effects in operations of Payment Services (PS) segment partially offset by Corporate and Other (CO) segment results, as well as the strong performance of Flocktory and the consolidated results of the RealWeb business acquired by the Company in December 20228 and accounted for in the Digital Marketing (DM) segment.

 

Payment Services

 

PS Net Revenue decreased by 22.6% YoY to RUB 7,215 million ($82.9 million).

 

PS Payment Net Revenue was 33.5% lower YoY and amounted to RUB 5,042 million ($57.9 million) driven by PS Payment Net Revenue Yield decrease from 1.52% to 1.00% and generally stable PS Payment Volume despite high base of last year.

 

PS Payment Net Revenue Yield was 52 bps lower YoY due to the adverse mix effect resulting from lower share of operations with higher margins, such as currency conversion.

 

PS Payment Volume was 1% higher YoY and reached RUB 504.6 billion driven by the onboarding of new merchants and aggregators and the growing payment volume from our product offering for digital entertainment and self-employed.

 

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 intercompany and third-party funding, and advertising fees. In 2Q 2023 PS Other Net Revenue increased by 25.0% YoY to RUB 2,173 million ($25.0 million) as a result of higher net revenue derived from cash and settlement services partially offset by lower interest income due to lower interest rates.

 

Digital Marketing (DM)

 

DM Net Revenue increased by 627.6% YoY to RUB 930 million ($10.7 million) driven by the RealWeb acquisition in December 2022 and the increase of the number of Flocktory clients and traffic-providers.

 

Corporate and Other (CO)

 

   2Q 2022   2Q 2023       1HY 2022   1HY 2023       2Q 2023   1HY 2023 
   RUB million   RUB million   YoY   RUB million   RUB million   YoY   USD million   USD million 
CO Net Revenue   762    1,049    37.7%   1,261    1,916    51.9%   12.1    22.0 
ROWI   709    658    (7.2)%   1,078    1,253    16.2%   7.6    14.4 
Tochka   -    -         106    -    (100.0)%   -    - 
Corporate and Other projects   54    392    630.1%   77    663    755.8%   4.5    7.6 

 

CO Net Revenue increased by 37.7% YoY to RUB 1,049 million ($12.1 million) mainly as a result of higher interest income accounted for in Corporate and Other projects.

 

 

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

 

 

 

 

●ROWI Net Revenue decreased by 7.2% YoY to RUB 658 million ($7.6 million) mainly due to a decline of net portfolio yield compared to 2Q2022:

 

oAs of June 30, 2023, the bank guarantees portfolio reached RUB 80.0 billion - an increase of 28.0% YoY.

 

oAs of June 30, 2023, the factoring portfolio was RUB 12.1 billion or 15.2% higher YoY.

 

oAs of June 30, 2023, the portfolio of online loans for government contracts execution doubled compared to previous year and reached RUB 4.4 billion.

 

oIn 2Q 2023, the share of ROWI Net Revenue in Total Net Revenue was 7.2% growing by 0.2 ppt YoY.

 

●Corporate and Other projects Net Revenue in 2Q 2023 amounted to RUB 392 million ($4.5 million) compared to RUB 54 million in 2Q 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

 

   2Q 2022   2Q 2023       1HY 2022   1HY 2023       2Q 2023   1HY 2023 
   RUB million   RUB million   YoY   RUB million   RUB million   YoY   USD million   USD million 
Operating expenses  (3,618)  (4,452)  23.1%  (6,513)  (8,834)  35.6%  (51.2)  (101.5)
% of Net Revenue  (35.4)%  (48.4)%  (13.0)p.p.  (39.4)%  (49.8)%  (10.3)p.p.        
Selling, general and administrative expenses  (773)  (1,184)  53.2%  (1,544)  (2,143)  38.8%  (13.6)  (24.6)
% of Net Revenue  (7.6)%  (12.9)%  (5.3)p.p.   (9.4)%  (12.1)%  (2.7)p.p.         
Personnel expenses  (2,002)  (3,034)  51.5%  (3,675)  (5,785)  57.4%  (34.9)  (66.5)
% of Net Revenue  (19.6)%  (33.0)%  (13.4)p.p.  (22.3)%  (32.6)%  (10.3)p.p.        
Depreciation, amortization & impairment  (323)  (315)  (2.5)%  (600)  (624)  4.0%  (3.6)  (7.2)
% of Net Revenue  (3.2)%  (3.4)%  (0.3)p.p.  (3.6)%  (3.5)%  0.1p.p.         
Credit loss (expense) / gain  (520)  81   (115.6)%  (694)  (282)  (59.4)%  0.9   (3.2)
% of Net Revenue  (5.1)%  0.9%  6.0p.p.  (4.2)%  (1.6)%  2.6p.p.        
Other non-operating income and expenses  (2,347)  1,029   (143.8)%  (2,699)  2,249   (183.3)%  11.8   21.0 
% of Net Revenue  (23.0)%  11.2%  34.2p.p.   (16.3)%  12.7%  29.0p.p.        
Share of loss of an associate  -   (5)      -   (44)      (0.1)  (0.5)
% of Net Revenue  0.0%  (0.1)%  (0.1)p.p.  0.0%  (0.2)%  (0.2)p.p.         
Foreign exchange gain/(loss), net  (2,369)  1,296   (154.7)%  (2,810)  2,115   (175.3)%  14.9   24.3 
% of Net Revenue  (23.2)%  14.1%  37.3p.p.  (17.0)%  11.9%  28.9p.p.        
Other income and expenses, net  22   (262)  (1290.9)%  111   (246)  (321.6)%  (3.0)  (2.8)
% of Net Revenue  0.2%  (2.8)%  (3.1)p.p.  0.7%  (1.4)%  (2.1)p.p.        
Gain from disposal of subsidiary  -   -       -   424       -   4.9 
% of Net Revenue  0.0%  0.0%  0.0p.p.  0.0%  2.4%  2.4p.p.        

 

Operating expenses increased by 23.1% YoY to RUB 4,452 million ($51.2 million) mainly driven by the increase of expenses to secure growth of the business and the acquisition of RealWeb in December 2022 partially offset by credit loss reversal. Operating expenses as a percentage of Total Net Revenue deteriorated by 13.0 ppts to 48.4% mainly due to the high base of last year for the PS segment and the consolidation of the new RealWeb business (with historically higher operating expenses to Net Revenue ratio), partially offset by a positive credit loss dynamic.

 

Selling, general and administrative expenses increased by 53.2% YoY to RUB 1,184 million ($13.6 million) and as a percentage of Total Net Revenue by 5.3 ppt YoY to 12.9% mainly driven by the high base effect of last year and the acquisition of RealWeb.

 

Personnel expenses surged by 51.5% YoY to RUB 3,034 million ($34.9 million) driven by the 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 the consolidation of the new RealWeb business. Personnel expenses as a percentage of Total Net Revenue increased by 13.4 ppts to 33.0% mainly driven by the high base effect of last year and acquisition of RealWeb.

 

Depreciation, amortization and impairment stood at RUB 315 million ($3.6 million) or 3.4% as percent of Total Net Revenue – 0.3 ppt higher YoY due to the high base effect of last year.

 

 

 

 

Credit loss reversal amounted to RUB 81 million ($0.9 million) compared to a credit loss of RUB 520 million in 2Q 2022 due to release of allowance for ECL on restricted cash accounts partially offset by an increase of provisions due to the growth of bank guarantees portfolio.

 

Other non-operating income increased to RUB 1,029 million ($11.8 million) compared to RUB 2,347 million of loss last year primarily due to (i) the foreign exchange gain resulting from the depreciation of the Russian ruble vs. USD, AED and Euro in 2Q 2023, and (ii) a decrease in fair value of option to invest in an associate.

 

Income tax expense

 

Income tax expense decreased by 33.4% YoY to RUB 954 million ($11.0 million) as a substantial part of the profit relates to exchange gain for 2Q 2023 which is tax neutral within the Group perimeter. As a result, the effective tax rate decreased from 33.8% in 2Q 2022 to 16.5% in 2Q 2023.

 

Profitability results

 

   2Q 2022   2Q 2023       1HY 2022   1HY 2023       2Q 2023   1HY 2023 
   RUB million   RUB million   YoY   RUB million   RUB million   YoY   USD million   USD million 
Adjusted EBITDA   6,972    5,057    (27.5)%   10,659    9,536    (10.5)%   58.1    109.6 
Adjusted EBITDA margin, %   68.3%   55.0%   (13.3)p.p.   64.5%   53.7%   (10.8)p.p.   55.0%   53.7%
Adjusted Net Profit   2,964    5,234    76.6%   5,290    9,414    78.0%   60.0    108.2 
Adjusted Net Profit margin, %   29.0%   56.9%   27.9p.p.   32.0%   53.0%   21.0p.p.   56.9%   53.0%
Payment Services   5,572    2,926    (47.5)%   8,601    6,462    (24.9)%   33.6    74.2 
PS Adjusted Net Profit margin, %   59.8%   40.6%   (19.2)p.p.   57.5%   45.6%   (11.8)p.p.   40.6%   45.6%
Digital Marketing (DM)   (56)   213    (480.4)%   (26)   329    (1365.4)%   2.4    3.8 
DM Adjusted Net Profit margin, %   (43.8)%   22.9%   66.7p.p.   (9.1)%   19.7%   28.8p.p.   22.9%   19.7%
Corporate and Other (CO)   (2,552)   2,095    (182.1)%   (3,285)   2,623    (179.8)%   24.1    30.1 
Tochka   -    -         (15)   -    (100.0)%   -    - 
ROWI   321    72    (77.5)%   372    256    (31.2)%   0.8    2.9 
Corporate and Other projects   (2,873)   2,023    (170.4)%   (3,641)   2,367    (165.0)%   23.2    27.2 

 

Adjusted EBITDA decreased by 27.5% YoY to RUB 5,057 million ($58.1 million) mainly due to (i) the high base effect of last year resulting in Total Net Revenue decline by 9.9% YoY, and (ii) an increase of operating expenses to secure growth of the business, which were (iii) partially offset by the release of allowance for ECL on restricted cash accounts. Adjusted EBITDA margin decreased by 13.3 ppts YoY to 55.0% driven by the factors described above and the consolidation of the new RealWeb business operating with lower margin than the PS segment.

 

Adjusted Net Profit increased by 76.6% YoY to RUB 5,234 million ($60.0 million). Adjusted Net Profit margin increased by 27.9 ppts YoY to 56.9% 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.

 

PS Adjusted Net Profit decreased by 47.5% YoY to RUB 2,926 million ($33.6 million) mainly due to (i) the high base effect of last year resulting in PS Net Revenue decline by 22.6% YoY, and (ii) an increase of operating expenses to secure growth of the business. As a result, PS Adjusted Net Profit margin deteriorated by 19.2 ppts to 40.6% mainly due to a combination of (i) negative operating leverage effect, (ii) increased personnel expenses (described earlier), and (iii) higher expenses related to multi-bank platform services in QIWI Bank.

 

Digital Marketing (DM) Adjusted Net Profit for 2Q 2023 increased to RUB 213 million ($2.4 million) due to Flocktory Net Revenue growth and the consolidation of new RealWeb business. DM Adjusted Net Profit margin stood at 22.9%.

 

 

 

 

CO Adjusted Net Profit increased to RUB 2,095 million ($24.1 million) compared to CO Net loss of RUB 2,552 million driven by:

 

●CO Net Profit of RUB 2,023 million ($23.2 million) resulting primarily from the CO Net Revenue YoY growth by 37.7% described above, the foreign exchange gain, and the release of allowance for ECL on restricted cash accounts.

●ROWI Net Profit of RUB 72 million ($0.8 million) as a result of its Net Revenue decline by 7.2% YoY and an increase of provisions related to ROWI bank guarantees portfolio.

 

Update on the CBR restrictions

 

On July 25, 2023, during a routine audit of Qiwi Bank, the CBR issued an order to introduce temporary and partial limitations for individuals to withdraw funds from QIWI wallets to bank accounts or make cash withdrawals. As of the date of this press release, Qiwi Bank has already fixed the identified deficiencies and provided results to the regulator. We are working closely with the CBR to lift the limitations fully or at least partially.

 

For indicative purposes only, the Company performed a worst-case stress test based on 1H 2023 actual results and estimated that if the full scope of restrictions were in place since the beginning of 1H 2023, it would have affected (i) Payment Volume by up to 20%, (ii) Group Net Revenue by up to 25%, and (iii) Group Adjusted Net Profit by up to 40%. The stress test did not include any cost optimization measures or gradual restrictions relief. The Company also aims to further develop its services and launch new products, in order to mitigate the negative implications of the imposed restrictions on the financial results of the Company.

 

The Company remains financially stable and profitable despite the imposed restrictions. Qiwi Bank has substantial liquidity reserves and maintains the required capital adequacy ratios.

 

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.

 

Update on corporate restructuring

 

Since the beginning of the Ukrainian conflict, the geopolitical situation has been deteriorating, sanctions expanded and extended, and the world stock market infrastructure continued to isolate from Russia. The Company has been searching for a viable solution to address the many shareholders’ concerns, as well as to define an optimal way for further development.

 

The Company has been facing extraordinary challenges to the operations of the business and needs to navigate in a rapidly changing business environment. Under current circumstances, QIWI’s intentions to develop its business within the Russian perimeter and overseas require different strategies. Management and the Board of Directors of QIWI PLC have concluded that the best option to preserve liquidity and shareholder value would be to restructure its business and to exit the Russian market.

 

The Company has completed internal restructuring and consolidated practically all Russian assets under JSC QIWI. The Company also completed a valuation of the Russian assets. The valuation report has been prepared by an independent appraiser and received the required approval by a self-regulatory organization.

 

Further, the Board established a Special Committee comprised of Independent Directors of the Company to review available divestment options. Currently, the Special Committee and management, assisted by reputable advisors, are conducting a disciplined process intended to ensure the best outcome for the Company and the different groups of shareholders using three major criteria: 1) liquidity, 2) ability to receive cash, and 3) ability to exercise voting rights.

 

 

 

 

The Company will duly inform the market on further developments as regards the restructuring process.

 

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 June 30,   As of June 30, 
   2022   2023   2023 
       (Unaudited)   (Unaudited) 
   RUB   RUB   USD 
Assets               
Non-current assets               
Property and equipment   1,163    1,271    14.6 
Goodwill and other intangible assets   13,126    13,077    150.3 
Investments in associates   303    579    6.7 
Long-term debt securities   2,946    4,991    57.3 
Long-term loans issued   843    623    7.2 
Other non-current assets   257    241    2.8 
Deferred tax assets   208    242    2.8 
Total non-current assets   18,846    21,024    241.6 
Current assets               
Trade and other receivables   15,194    12,169    139.8 
Short-term loans issued   14,200    16,728    192.2 
Short-term debt securities   14,029    28,809    331.0 
Other current assets   2,195    1,846    21.2 
Cash and cash equivalents   47,462    39,570    454.6 
Total current assets   93,080    99,122    1,138.9 
Total assets   111,926    120,146    1,380.4 
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    21.6 
Share premium   12,068    12,068    138.7 
Other reserves   2,696    2,352    27.0 
Retained earnings   39,941    48,935    562.3 
Translation reserve   401    169    1.9 
Total equity attributable to equity holders of the parent   56,983    65,401    751.4 
Non-controlling interests   912    977    11.2 
Total equity   57,895    66,378    762.7 
Non-current liabilities               
Long-term deferred income   1,154    1,062    12.2 
Long-term lease liabilities   133    84    1.0 
Other non-current liabilities   156    81    0.9 
Deferred tax liabilities   1,847    1,749    20.1 
Total non-current liabilities   3,290    2,976    34.2 
Current liabilities               
Trade and other payables   33,048    29,740    341.7 
Customer accounts and amounts due to banks   11,203    15,011    172.5 
Short-term debt   3,922    3,745    43.0 
Short-term lease liabilities   300    302    3.5 
Other current liabilities   2,268    1,994    22.9 
Total current liabilities   50,741    50,792    583.6 
Total equity and liabilities   111,926    120,146    1,380.4 

 

 

 

 

QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

 

   Three months ended (unaudited) 
   June 30, 2022   June 30, 2023   June 30, 2023 
   RUB   RUB   USD 
Revenue:   14,015    18,037    207.2 
Revenue from contracts with customers   11,650    15,645    179.8 
Interest revenue calculated using the effective interest rate   1,929    1,944    22.3 
Fees from inactive accounts and unclaimed payments   436    448    5.1 
                
Operating costs and expenses:   (7,425)   (13,295)   (152.8)
Cost of revenue (exclusive of items shown separately below)   (3,807)   (8,843)   (101.6)
Selling, general and administrative expenses   (773)   (1,184)   (13.6)
Personnel expenses   (2,002)   (3,034)   (34.9)
Depreciation and amortization   (287)   (315)   (3.6)
Credit loss (expense)/income   (520)   81    0.9 
Impairment of non-current assets   (36)   -    - 
Profit from operations   6,590    4,742    54.5 
                
Share of loss of an associate   -    (5)   (0.1)
Foreign exchange gain/(loss), net   (2,369)   1,296    14.9 
Other income and expenses, net   22    (262)   (3.0)
Profit before tax   4,243    5,771    66.3 
Income tax expense   (1,433)   (954)   (11.0)
Net profit for the period   2,810    4,817    55.3 
Attributable to:               
Equity holders of the parent   2,625    4,653    53.5 
Non-controlling interests   185    164    1.9 
                
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   88    143    1.6 
Net gain recycled to profit or loss upon disposal   -    -    - 
Debt securities at fair value through other comprehensive income (FVOCI):               
Net gain/(loss) arising during the period, net of tax   964    (77)   (0.9)
Net gain recycled to profit or loss upon disposal   -    (18)   (0.2)
Share of other comprehensive Income of an associate   -    (1)   (0.0)
Total other comprehensive (loss)/income, net of tax   1,052    47    0.5 
Total comprehensive income, net of tax   3,862    4,864    55.9 
Attributable to:               
Equity holders of the parent   3,697    4,689    53.9 
Non-controlling interests   165    175    2.0 
                
Earnings per share:               
Basic, earnings attributable to ordinary equity holders of the parent   41.93    74.20    0.85 
Diluted, earnings attributable to ordinary equity holders of the parent   41.93    74.20    0.85 

 

 

 

 

QIWI plc.

Consolidated Statement of Comprehensive Income

(in millions, except per share data)

 

   Six months ended (unaudited) 
   June 30, 2022   June 30, 2023   June 30, 2023 
   RUB   RUB   USD 
Revenue:   23,732    35,909    412.6 
Revenue from contracts with customers   19,460    31,373    360.5 
Interest revenue calculated using the effective interest rate   3,381    3,708    42.6 
Fees from inactive accounts and unclaimed payments   891    828    9.5 
                
Operating costs and expenses:   (13,732)   (26,997)   (310.2)
Cost of revenue (exclusive of items shown separately below)   (7,219)   (18,163)   (208.7)
Selling, general and administrative expenses   (1,544)   (2,143)   (24.6)
Personnel expenses   (3,675)   (5,785)   (66.5)
Depreciation and amortization   (564)   (624)   (7.2)
Credit loss (expense)/income   (694)   (282)   (3.2)
Impairment of non-current assets   (36)   -    - 
Profit from operations   10,000    8,912    102.4 
                
Gain from disposal of subsidiary   -    424    4.9 
Share of loss of an associate   -    (44)   (0.5)
Foreign exchange gain/(loss), net   (2,810)   2,115    24.3 
Other income and expenses, net   111    (246)   (2.8)
Profit before tax   7,301    11,161    128.2 
Income tax expense   (2,234)   (1,845)   (21.2)
Net profit for the period   5,067    9,316    107.0 
Attributable to:               
Equity holders of the parent   4,799    8,994    103.3 
Non-controlling interests   268    322    3.7 
                
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   76    213    2.4 
Net gain recycled to profit or loss upon disposal   -    (424)   (4.9)
Debt securities at fair value through other comprehensive income (FVOCI):               
Net gain/(loss) arising during the period, net of tax   110    (64)   (0.7)
Net gain recycled to profit or loss upon disposal   -    (18)   (0.2)
Share of other comprehensive Income of an associate   -    3    0.0 
Total other comprehensive (loss)/income, net of tax   186    (290)   (3.3)
Total comprehensive income, net of tax   5,253    9,026    103.7 
Attributable to:               
Equity holders of the parent   5,006    8,683    99.8 
Non-controlling interests   247    343    3.9 
                
Earnings per share:               
Basic, earnings attributable to ordinary equity holders of the parent   76.75    143.42    1.65 
Diluted, earnings attributable to ordinary equity holders of the parent   76.75    143.42    1.65 

 

 

 

 

QIWI plc.

Consolidated Statement of Cash Flows

(in millions)

 

   Six months ended (unaudited) 
   June 30, 2022   June 30, 2023   June 30, 2023 
   RUB   RUB   USD(1) 
Operating activities               
Profit before tax   7,301    11,161    128.2 
Adjustments to reconcile profit before tax to net cash flows generated from operating activities               
Depreciation and amortization   564    624    7.2 
Foreign exchange loss/(gain), net   2,810    (2,115)   (24.3)
Interest income, net   (3,212)   (3,540)   (40.7)
Credit loss expense   694    282    3.2 
Share of loss of an associate   -    44    0.5 
Gain from disposal of subsidiary   -    (424)   (4.9)
Impairment of non-current assets   36    -    - 
Other   78    277    3.2 
Net cash flow generated from operating activities before changes in working capital   8,271    6,309    72.5 
Changes in operating assets and liabilities:               
Decrease/(Increase) in trade and other receivables   (1,739)   2,847    27.4 
Decrease in other assets   144    884    15.5 
Increase in customer accounts and amounts due to banks   3,728    3,213    36.9 
Decrease in accounts payable and accruals   (5,345)   (4,519)   (51.9)
(Decrease)/Increase in other liabilities   313    (328)   (3.8)
Increase in loans issued as operating activity   (1,670)   (2,459)   (28.3)
Cash generated from operations   3,702    5,947    68.3 
Interest received   3,569    4,140    47.6 
Interest paid   (283)   (196)   (2.3)
Income tax paid   (1,033)   (2,266)   (26.0)
Net cash flow generated from operating activities   5,955    7,625    87.6 
Investing activities               
Proceeds from sale of an associate   4,855    -    - 
Cash paid for investments in associates   -    (315)   (3.6)
Cash used in business combinations   (215)   (50)   (0.6)
Purchase of property and equipment   (133)   (359)   (4.1)
Purchase of intangible assets   (106)   (141)   (1.6)
Proceeds from sale of fixed and intangible assets   5    27    0.3 
Loans issued   (7)   (19)   (0.2)
Repayment of loans issued   30    79    0.9 
Purchase of debt securities   (1,737)   (19,873)   (228.3)
Proceeds from sale and redemption of debt instruments   -    3,150    36.2 
Net cash flow generated from investing activities   2,692    (17,501)   (201.1)
Financing activities               
Repayment of debt   (392)   (161)   (1.8)
Payment of principal portion of lease liabilities   (34)   (57)   (0.7)
Dividends paid to non-controlling shareholders   (106)   (218)   (2.5)
Transactions with non-controlling interest   -    (304)   (3.5)
Net cash flow used in financing activities   (532)   (740)   (8.5)
Effect of exchange rate changes on cash and cash equivalents   (2,068)   2,724    31.3 
Effect of change in ECL on cash and cash equivalents   (10)   -    - 
Net increase/(decrease) in cash and cash equivalents equivalents   6,037    (7,892)   (90.7)
Cash and cash equivalents at the beginning of the period   33,033    47,462    545.3 
Cash and cash equivalents at the end of the period   39,070    39,570    454.6 

 

 

 

 

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.

 

 

 

 

QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)

 

   Three months ended (unaudited) 
   June 30, 2022   June 30, 2023   June 30, 2023 
   RUB   RUB   USD 
Revenue   14,015    18,037    207.2 
Minus: Cost of revenue   3,807    8,843    101.6 
Total Net Revenue   10,208    9,194    105.6 
Segment Net Revenue               
Payment Services Segment Revenue   12,854    11,087    127.4 
                
PS Payment Revenue(1)   10,839    8,687    99.8 
Minus: Cost of PS Payment Revenue (2)   3,260    3,645    41.9 
PS Payment Net Revenue   7,579    5,042    57.9 
                
PS Other Revenue(3)   2,015    2,400    27.6 
Minus: Cost of PS Other Revenue (4)   276    227    2.6 
PS Other Net Revenue   1,739    2,173    25.0 
Payment Services Segment Net Revenue   9,318    7,215    82.9 
                
Digital Marketing Revenue   187    5,600    64.3 
Minus: Cost of DM revenue   59    4,669    53.7 
Digital Marketing Net Revenue   128    930    10.7 
                
Corporate and Other Category Revenue   974    1,350    15.5 
Minus: Cost of CO Revenue   212    301    3.5 
Corporate and Other Category Net Revenue   762    1,049    12.1 
                
Total Segment Net Revenue   10,208    9,194    105.6 
                
Net profit   2,810    4,817    55.3 
Plus:               
Depreciation and amortization   287    315    3.6 
Other income and expenses, net   (22)   262    3.0 
Foreign exchange (gain)/loss, net   2,369    (1,296)   (14.9)
Gain on disposal of subsidiary   -    -    - 
Share of gain/(loss) of an associate   -    5    0.1 
Income tax expenses   1,433    954    11.0 
Share-based payment expenses   59    -    - 
Impairment of non-current assets   36    -    - 
Adjusted EBITDA   6,972    5,057    58.1 
Adjusted EBITDA margin   68.3%   55.0%   55.0%
                
Net profit   2,810    4,817    55.3 
Fair value adjustments recorded on business combinations and their amortization(5)   98    438    5.0 
Impairment of non-current assets   36    -    - 
Share-based payment expenses   59    -    - 
Gain on disposal of subsidiary   -    -    - 
Effect from taxation of the above items   (39)   (21)   (0.2)
Adjusted Net Profit   2,964    5,234    60.0 
                
Adjusted Net Profit per share:               
Basic   47.35    83.46    0.96 
Diluted   47.35    83.46    0.96 
                
Weighted-average number of shares used in computing Adjusted Net Profit per share:               
Basic   62,600    62,713    62,713 
Diluted   62,600    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)

 

   Six months ended (unaudited) 
   June 30, 2022   June 30, 2023   June 30, 2023 
   RUB   RUB   USD 
Revenue   23,732    35,909    412.6 
Minus: Cost of revenue   7,219    18,163    208.7 
Total Net Revenue   16,513    17,746    203.9 
Segment Net Revenue               
Payment Services Segment Revenue   21,584    21,890    251.5 
                
PS Payment Revenue(1)   17,787    17,435    200.3 
Minus: Cost of PS Payment Revenue (2)   6,088    7,307    84.0 
PS Payment Net Revenue   11,699    10,128    116.4 
                
PS Other Revenue(3)   3,797    4,455    51.2 
Minus: Cost of PS Other Revenue (4)   529    424    4.9 
PS Other Net Revenue   3,268    4,031    46.3 
Payment Services Segment Net Revenue   14,967    14,159    162.7 
                
Digital Marketing Revenue   388    11,522    132.4 
Minus: Cost of DM revenue   103    9,851    113.2 
Digital Marketing Net Revenue   285    1,671    19.2 
                
Corporate and Other Category Revenue   1,760    2,497    28.7 
Minus: Cost of CO Revenue   498    581    6.7 
Corporate and Other Category Net Revenue   1,261    1,916    22.0 
                
Total Segment Net Revenue   16,513    17,746    203.9 
                
Profit for the period   5,067    9,316    107.0 
Plus:               
Depreciation and amortization   564    624    7.2 
Other income and expenses, net   (111)   246    2.8 
Foreign exchange (gain)/loss, net   2,810    (2,115)   (24.3)
Gain on disposal of an associate   -    (424)   (4.9)
Share of gain of an associate and a joint venture   -    44    0.5 
Income tax expenses   2,234    1,845    21.2 
Share-based payment expenses   59    -    - 
Impairment of non-current assets   36    -    - 
Adjusted EBITDA   10,659    9,536    109.6 
Adjusted EBITDA margin   64.5%   53.7%   53.7%
                
Profit for the period   5,067    9,316    107.0 
Fair value adjustments recorded on business combinations and their amortization(5)   181    563    6.5 
Impairment of non-current assets   36    -    - 
Share-based payment expenses   59    -    - 
Gain on disposal of an associate   -    (424)   (4.9)
Effect from taxation of the above items   (53)   (41)   (0.5)
Adjusted Net Profit   5,290    9,414    108.2 
                
Adjusted Net Profit per share:               
Basic   84.61    150.11    1.72 
Diluted   84.61    150.11    1.72 
                
Weighted-average number of shares used in computing Adjusted Net Profit per share:               
Basic   62,525    62,713    62,713 
Diluted   62,525    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.