Adjusted Net Revenue Increased 50% to RUB 1,284 Million
Adjusted Net Profit Increased 216% to RUB 455 Million
Successfully Completed Initial Public Offering in May
MOSCOW, June 4, 2013 (GLOBE NEWSWIRE) -- QIWI plc, (Nasdaq:QIWI) ("QIWI" or the "Company") today announced results for the first quarter ended March 31, 2013.
First Quarter 2013 Operating and Financial Highlights
- Adjusted Net Revenues increased by 50% to RUB 1,284 million ($41.3 million) from RUB 857 million in the prior year period.
- Adjusted EBITDA increased by 105% to RUB 611 million ($19.6 million) from RUB 298 million in the prior year period. Adjusted EBITDA margin improved to 47.6% from 34.7% in the prior year period.
- Adjusted Net Profit increased by 216% to RUB 455 million ($14.7 million) from RUB 144 million in the prior year period.
- The number of active Visa QIWI wallet accounts as of March 31, 2013 was approximately 13.0 million (on a rolling 12 months basis), representing an increase of 49% over 8.7 million as of March 31, 2012.
- Visa QIWI Wallet payment volume increased by 107% to RUB 53.7 billion ($1.73 billion), and average net revenue yield increased by 3 basis points (bps) to 0.94% over the prior year period.
- QIWI Distribution payment volume increased by 14% to RUB 117.3 billion ($3.77 billion), and average net revenue yield increased by 8 bps to 0.65% over the prior year period.
"QIWI is pleased to report a strong start to 2013. Our first quarter results are a testament to the value of our integrated proprietary network, our comprehensive suite of differentiated payment services, and our leading position in the fast-growing markets we serve," said Sergey Solonin, QIWI's chief executive officer. "We remain excited by the wide range of growth opportunities available to us including continuing to capitalize on strong secular trends in the Russian and CIS markets and the rapid adoption of our Visa Qiwi Wallet. We will continue to build on our accomplishments with a focus on creating long-term value."
First Quarter 2013 Results
Revenues: Adjusted net revenue was RUB 1,284 million ($41.3 million), representing an increase of 50% as compared to RUB 857 million in the prior year.
QIWI Distribution segment net revenue for the quarter ended March 31, 2013 was RUB 758 million ($24.4 million), representing an increase of 29% as compared to RUB 590 million for the same period in the prior year. QIWI Distribution segment net revenue growth was primarily driven by an increase in payment volume in active kiosks and terminals and an increase in net revenue yield primarily driven by growth of our value added services.
Visa QIWI Wallet segment net revenue for the quarter ended March 31, 2013 was RUB 505 million ($16.2 million), representing an increase of 113% as compared to RUB 236 million for the same period in the prior year. Visa QIWI Wallet segment net revenue growth was primarily driven by an increase in payment volume.
Adjusted EBITDA: For the quarter ended March 31, 2013 Adjusted EBITDA was RUB 611 million ($19.6 million), representing an increase of 105% as compared to RUB 298 million for the same period in the prior year. The increase in Adjusted EBITDA was primarily driven by the aforementioned growth in revenue and significant operating leverage in the business. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total Adjusted Net Revenues) improved significantly to 47.6% from 34.7% in the prior year.
Adjusted Net Profit: For the quarter ended March 31, 2013 Adjusted net profit was RUB 455 million ($14.7 million) or (RUB 8.75 per diluted share), representing an increase of 216% as compared to RUB 144 million or (RUB 2.77 per diluted share) for the same period in the prior year. The increase in Adjusted net profit was primarily driven by the same factors impacting Adjusted EBITDA.
Other Operating Data: For the quarter ended March 31, 2013 QIWI Distribution payment volume was RUB 117.3 billion ($3.77 billion), representing an increase of 14% as compared to RUB 103.2 billion for the same period in the prior year. The increase in payment volume in QIWI Distribution was primarily driven by an increase in Visa QIWI Wallet users reloading their wallets through the QIWI Distribution network. Average QIWI Distribution net revenue yield for the same period was 0.65%, representing an increase of 8 bps as compared to 0.57% in the prior year period.
For the quarter ended March 31, 2013 Visa QIWI Wallet payment volume was RUB 53.7 billion ($1.73 billion), representing an increase of 107% as compared to RUB 26.0 billion in the prior year. The increase in payment volume in Visa QIWI Wallet resulted from several major factors, including the continued increase in the number of active users and the increase in the average volume per Visa QIWI Wallet account. The number of active Visa QIWI Wallet accounts in the first quarter 2013 was approximately 13.0 million, representing an increase of 49% compared to approximately 8.7 million in the first quarter 2012. Average volume per Visa QIWI Wallet in the first quarter of 2013 was RUB 4,134 ($133), representing an increase of 38% compared to RUB 2,987 ($96) in the prior year. Average Visa QIWI Wallet net revenue yield for the same period was 0.94%, representing an increase of 3 bps compared to 0.91% in the first quarter 2012 or an increase of 16 bps as compared with 0.78% in the fourth quarter 2012.
Recent Developments
Initial Public Offering: On May 8, 2013 QIWI successfully completed its previously announced initial public offering of 12,500,000 Class B Shares in the form of American Depositary Shares (ADS) at a price of $17.00 per ADS.
Special dividend: On May 31, 2013 following the determination of first quarter 2013 financial results the Board of Directors of QIWI approved a special dividend of $15,080,000.00 or $0.29 per share. The dividend record date is June 17, 2013, and the Company intends to pay the dividend on June 18, 2013. The holders of ADSs will receive the dividend shortly thereafter.
2013 Guidance
- Adjusted Net Revenue for 2013 is expected to increase from 23% to 26% over 2012.
- Adjusted Net Profit for 2013 is expected to increase 27% to 33% over 2012.
This guidance reflects QIWI's current and preliminary view, which is subject to change.
Earnings Conference Call and Audio Webcast
The Company will host a conference call to discuss first quarter 2013 financial results today at 8:30 a.m. EDT. Hosting the call will be Sergey Solonin, chief executive officer, and Alexander Karavaev, chief operating officer. The conference call can be accessed live over the phone by dialing +1 (877) 407-3982 or for international callers by dialing +1 (201) 493-6780. A replay will be available today at 11:30 a.m. ET and can be accessed by dialing +1 (877) 870-5176 or +1 (858) 384-5517 for international callers; the pin number is 414881. The replay will be available until Tuesday, June 11, 2013. The call will be webcast live from the Company's website at https://www.qiwi.ru under the Corporate Investor Relations section or directly at http://investor.qiwi.com/.
About QIWI plc.
QIWI is a leading provider of next generation payment services in Russia and the CIS. It has an integrated proprietary network that enables payment services across physical, online and mobile channels. It has deployed approximately 13 million virtual wallets, over 165,000 kiosks and terminals, and enabled over 47,000 merchants to accept over RUB 41 billion cash and electronic payments monthly from over 60 million consumers using its network at least once a month. QIWI's consumers can use cash, stored value and other electronic payment methods to order and pay for goods and services across physical or online environments interchangeably.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding expected revenue and net profits, dividend payments, the growth of Visa QIWI Wallet, payment volume growth, and growth in the Company's distribution network. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance or achievements of QIWI plc. to be materially different from any 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, competition, a decline in average net revenue yield, fees levied on QIWI's consumers, regulation, QIWI's ability to grow Visa QIWI Wallet, QIWI's ability to expand geographically and other risks identified under the Caption "Risk Factors" in QIWI's Registration Statement on Form F-1 and in reports QIWI files with the U.S. Securities and Exchange Commission. QIWI undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events unless we are required to do so by law.
| QIWI plc. | |||
| Interim Condensed Consolidated Statement of Financial Position | |||
| (in thousands, except per share data) | |||
| As of December 31, | As of March 31, | As of March 31, | |
| 2012 (audited) | 2013 (unaudited) | 2013 (unaudited) | |
| RUB | RUB | USD(1) | |
| Assets | |||
| Non-current assets | |||
| Property and equipment | 105,653 | 100,204 | 3,224 |
| Goodwill and other intangible assets | 1,975,930 | 1,962,651 | 63,141 |
| Long-term debt instruments | 616,473 | 360,475 | 11,597 |
| Long-term loans | 185,384 | 136,723 | 4,399 |
| Investments in associates | 100,436 | 92,745 | 2,984 |
| Deferred tax assets | 101,805 | 133,058 | 4,281 |
| Other non-current assets | 16,377 | 51 | 1 |
| Total non-current assets | 3,102,058 | 2,785,907 | 89,627 |
| Current assets | |||
| Trade and other receivables | 3,437,671 | 2,205,348 | 70,949 |
| Short-term loans | 324,086 | 403,037 | 12,966 |
| Short-term debt instruments | 1,751,119 | 2,463,227 | 79,246 |
| Prepaid income tax | 37,835 | 41,505 | 1,335 |
| VAT and other taxes receivable | 19,511 | 12,548 | 404 |
| Cash and cash equivalents | 9,943,160 | 4,946,996 | 159,152 |
| Other current assets | 93,334 | 108,283 | 3,484 |
| Total current assets | 15,606,716 | 10,180,944 | 327,536 |
| Total assets | 18,708,774 | 12,966,851 | 417,163 |
| Equity and liabilities | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 904 | 904 | 29 |
| Additional paid-in capital | 1,876,104 | 1,876,104 | 60,357 |
| Other reserve | 101,124 | 178,807 | 5,752 |
| Retained earnings | 569,317 | 638,651 | 20,546 |
| Translation reserve | 705 | (654) | (20) |
| Total equity attributable to equity holders of the parent | 2,548,154 | 2,693,812 | 86,664 |
| Non-controlling interest | (49,311) | (63,830) | (2,053) |
| Total equity | 2,498,843 | 2,629,982 | 84,611 |
| Non-current liabilities | |||
| Long-term borrowings | 38,762 | 47,218 | 1,519 |
| Long-term deferred revenue | 43,605 | 39,474 | 1,270 |
| Deferred tax liabilities | 44,065 | 54,558 | 1,755 |
| Total non-current liabilities | 126,432 | 141,250 | 4,544 |
| Current liabilities | |||
| Short-term borrowings | 26,105 | 28,891 | 929 |
| Trade and other payables | 14,934,194 | 8,994,197 | 289,357 |
| Amounts due to customers and amounts due to banks | 944,549 | 692,590 | 22,282 |
| Income tax payable | 9,558 | 42,081 | 1,354 |
| VAT and other taxes payable | 138,742 | 117,931 | 3,794 |
| Deferred revenue | 30,048 | 21,553 | 693 |
| Dividends payable | -- | 298,106 | 9,591 |
| Other current liabilities | 303 | 270 | 8 |
| Total current liabilities | 16,083,499 | 10,195,619 | 328,008 |
| Total equity and liabilities | 18,708,774 | 12,966,851 | 417,163 |
| (1) Official exchange rate quoted as of March 31, 2013 by the Central Bank of the Russian Federation was RUB 31.0834 to $1.00. | |||
| QIWI plc. | |||
| Interim Condensed Consolidated Statement of Comprehensive Income | |||
| (in thousands, except per share data) | |||
| Three months ended (unaudited) | |||
|
March 31, 2012 (Revised)(1) |
March 31, 2013 |
March 31, 2013 |
|
| RUB | RUB | USD(2) | |
| Revenue | 1,913,128 | 2,532,696 | 81,481 |
| Operating costs and expenses: | |||
| Cost of revenue (exclusive of depreciation and amortization) | 1,244,764 | 1,476,430 | 47,499 |
| Selling, general and administrative expenses | 413,599 | 542,906 | 17,466 |
| Depreciation and amortization | 39,475 | 26,154 | 842 |
| Profit from operations | 215,290 | 487,206 | 15,674 |
| Other income | 2,020 | 11,056 | 356 |
| Other expenses | (26,452) | (1,098) | (35) |
| Foreign exchange gain / (loss), net | (44,891) | 2,603 | 84 |
| Share of loss of associates | (1,152) | (7,691) | (247) |
| Interest income | 8,864 | 4,147 | 133 |
| Interest expense | -- | (6,253) | (202) |
| Profit before tax from continuing operations | 153,679 | 489,970 | 15,763 |
| Income tax expense | (50,541) | (136,308) | (4,385) |
| Net profit from continuing operations | 103,138 | 353,662 | 11,378 |
| Discontinued operations | |||
| Loss from discontinued operations | (49,843) | – | – |
| Net profit | 53,295 | 353,662 | 11,378 |
| Attributable to: | |||
| Equity holders of the parent | 78,641 | 365,334 | 11,753 |
| Non-controlling interests | (25,346) | (11,672) | (375) |
| Other comprehensive income | |||
| Exchange differences on translation of foreign operations | 20,856 | (2,107) | (68) |
| Total comprehensive income, net of tax | 74,151 | 351,555 | 11,310 |
| attributable to: | |||
| Equity holders of the parent | 88,965 | 363,975 | 11,710 |
| Non-controlling interests | (14,814) | (12,420) | (400) |
| Earnings per share: | |||
| Basic, profit attributable to ordinary equity holders of the parent | 1.51 | 7.03 | 0.23 |
| Basic, profit from continuing operations attributable to ordinary equity holders of the parent | 2.10 | 7.03 | 0.23 |
| Diluted, profit attributable to ordinary equity holders of the parent | 1.51 | 7.02 | 0.23 |
| Diluted, profit from continuing operations attributable to ordinary equity holders of the parent | 2.10 | 7.02 | 0.23 |
| (1) Revised to present foreign currency translation on a basis consistent with the current period. | |||
| (2) Official exchange rate quoted as of March 31, 2013 by the Central Bank of the Russian Federation was RUB 31.0834 to $1.00. | |||
| QIWI plc. | |||
| Interim Condensed Consolidated Cash Flow Statement | |||
| (in thousands, except per share data) | |||
| Three months ended (unaudited) | |||
|
March 31, 2012 (Revised)(1) |
March 31, 2013 |
March 31, 2013 |
|
| RUB | RUB | USD(2) | |
| Cash flows from operating activities | |||
| Profit before tax from continuing operations | 153,679 | 489,970 | 15,763 |
| Loss before tax from discontinued operations | (36,786) | -- | -- |
| Profit before tax | 116,893 | 489,970 | 15,763 |
| Adjustments to reconcile profit before income tax to net cash flows generated from operating activities | |||
| Depreciation and amortization | 43,447 | 26,154 | 841 |
| Loss on disposal of property and equipment | 1,169 | 2,854 | 92 |
| Foreign exchange loss (gain), net | 18,508 | (33) | (1) |
| Interest income, net | (43,724) | (83,897) | (2,699) |
| Bad debt expense, net | 37,969 | 51,908 | 1,670 |
| Share of loss of associates | 2,639 | 7,691 | 247 |
| Share of profit for the period attributable to non-controlling interest and accounted for as a liability | 23,989 | -- | -- |
| Share-based payments | -- | 77,683 | 2,499 |
| Other | 4,956 | 1,255 | 41 |
| Operating profit before changes in working capital | 205,846 | 573,585 | 18,453 |
| Decrease in trade and other receivables | 196,031 | 1,173,576 | 37,756 |
| (Increase)/decrease in other assets | 3,171 | (1,413) | (45) |
| (Increase)/decrease in inventories | (3,561) | 115 | 4 |
| Decrease in amounts due to customers and amounts due to banks | (676,594) | (251,959) | (8,106) |
| Decrease in accounts payable and accruals | (5,046,225) | (5,958,937) | (191,708) |
| Loans issued from banking operations | (163,331) | (26,024) | (838) |
| Cash used in operations | (5,484,663) | (4,491,057) | (144,484) |
| Interest received | 48,087 | 155,830 | 5,013 |
| Interest paid | (2,372) | (3,849) | (124) |
| Income tax paid | (67,774) | (128,216) | (4,125) |
| Net cash flow used in operating activities | (5,506,722) | (4,467,292) | (143,720) |
| Cash flows from/used in investing activities | |||
| Purchase of property and equipment | (12,078) | (10,972) | (353) |
| Proceeds from sale of property and equipment | 1,213 | -- | -- |
| Purchase of intangible assets | (599) | (1,453) | (47) |
| Loans issued | (2,131) | (11,262) | (362) |
| Repayment of loans issued | 5,779 | 4,321 | 139 |
| Purchase of debt instruments | -- | (1,499,952) | (48,256) |
| Proceeds from settlement of debt instruments | 57,374 | 979,316 | 31,506 |
| Net cash (outflow) on disposal of subsidiaries | (12,938) | -- | -- |
| Net cash flow from/used in investing activities | 36,620 | (540,002) | (17,373) |
| Cash flows used in/generated from financing activities | |||
| Proceeds from borrowings | 6,913 | 8,870 | 285 |
| Repayment of promissory notes issued | (16,194) | -- | -- |
| Repayment of borrowings | (1,736) | -- | -- |
| Repayment of overdraft facilities, net | (6,646) | -- | -- |
| Transactions with non-controlling interest | 6,720 | -- | -- |
| Net cash flow used in/generated from financing activities | (10,943) | 8,870 | 285 |
| Effect of exchange rate changes on cash and cash equivalents | 1,542 | 2,260 | 74 |
| Net decrease in cash and cash equivalents | (5,479,503) | (4,996,164) | (160,734) |
| Cash and cash equivalents at the beginning | 8,810,441 | 9,943,160 | 319,886 |
| Cash and cash equivalents at the end | 3,330,938 | 4,946,996 | 159,152 |
| (1) Revised to present foreign currency translation on a basis consistent with the current period. | |||
| (2) Official exchange rate quoted as of March 31, 2013 by the Central Bank of the Russian Federation was RUB 31.0834 to $1.00. | |||
Non-IFRS Financial Measures
This release presents Adjusted Net Revenue, Adjusted EBITDA, 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 Adjusted Net Revenue, or net profit, in the case of Adjusted EBITDA and Adjusted Net Profit, 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. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure. For more information regarding Adjusted Net Revenue, Adjusted EBITDA, Adjusted Net Profit, and Adjusted Net Profit per share, including a quantitative reconciliation of Adjusted Net Revenue, Adjusted EBITDA and Adjusted Net Profit to the most directly comparable IFRS financial performance measure, which is revenue in the case of Adjusted Net Revenue, and net profit in the case of Adjusted EBITDA and Adjusted Net Profit, see Reconciliation of IFRS to Non-IFRS Operating Results in this earnings release.
| QIWI plc. | |||
| Reconciliation of IFRS to Non-IFRS Operating Results | |||
| (in thousands, except per share data) | |||
| Three months ended | |||
|
March 31, 2012 (Revised)(1) |
March 31, 2013 |
March 31, 2013 |
|
| RUB | RUB | USD(2) | |
| Revenue | 1,913,128 | 2,532,696 | 81,481 |
| Minus: Cost of revenue (exclusive of depreciation and amortization) | 1,244,764 | 1,476,430 | 47,499 |
| Plus: Payroll and related taxes | 188,314 | 227,380 | 7,315 |
| Adjusted Net Revenue | 856,678 | 1,283,646 | 41,297 |
| Segment Net Revenue | |||
| Qiwi Distribution | 589,606 | 757,746 | 24,378 |
| Qiwi Wallet | 236,468 | 504,834 | 16,241 |
| Other | 30,604 | 21,066 | 678 |
| Total Adjusted Net Revenue | 856,678 | 1,283,646 | 41,297 |
| Net Profit | 53,295 | 353,662 | 11,378 |
| Plus: | |||
| Depreciation and amortization | 39,475 | 26,154 | 841 |
| Other income | (2,020) | (11,056) | (356) |
| Other expenses | 26,452 | 1,098 | 35 |
| Foreign exchange (loss) gain, net | 44,891 | (2,603) | (84) |
| Share of loss of associates | 1,152 | 7,691 | 247 |
| Interest income | (8,864) | (4,147) | (133) |
| Interest expenses | -- | 6,253 | 201 |
| Income tax expenses | 50,541 | 136,308 | 4,386 |
| Corporate costs allocated to discontinued operations | 42,866 | -- | -- |
| Offering expenses | -- | 19,623 | 632 |
| Share-based payments expenses | -- | 77,683 | 2,499 |
| Loss from discontinued operations | 49,843 | -- | -- |
| Adjusted EBITDA | 297,631 | 610,666 | 19,646 |
| Adjusted EBITDA margin | 34.7% | 47.6% | 47.6% |
| Net profit | 53,295 | 353,662 | 11,378 |
| Loss from discontinued operations | 49,843 | -- | -- |
| Corporate costs allocated to discontinued operations | 42,866 | -- | -- |
| Amortization of fair value adjustments | 8,233 | 5,545 | 178 |
| Offering expenses | -- | 19,623 | 631 |
| Share-based payments expenses | -- | 77,683 | 2,499 |
| Effect of deferred taxation of the above items | (10,220) | (1,109) | (35) |
| Adjusted Net Profit | 144,017 | 455,404 | 14,651 |
| Adjusted Net Profit per share: | |||
| Basic | 2.77 | 8.76 | 0.28 |
| Diluted | 2.77 | 8.75 | 0.28 |
| Shares used in computing Adjusted Net Profit per share | |||
| Basic | 52,000 | 52,000 | 52,000 |
| Diluted | 52,000 | 52,048 | 52,048 |
| (1) Revised to present foreign currency translation on a basis consistent with the current period. | |||
| (2) Official exchange rate quoted as of March 31, 2013 by the Central Bank of the Russian Federation was RUB 31.0834 to $1.00. | |||
| QIWI plc. | |||
| Other Operating Data | |||
| Quarters Ended | |||
| March 31, 2012 | March 31, 2013 | March 31, 2013 | |
| RUB | RUB | USD(1) | |
| Qiwi Distribution | |||
| Active kiosks and terminals (units) | 166,803 | 166,154 | 166,154 |
| Payment volume (millions) | 103,211 | 117,326 | 3,775 |
| Average net revenue yield | 0.57% | 0.65% | 0.65% |
| Qiwi Wallet | |||
| Active Qiwi Wallet accounts(2), (millions) | 8.7 | 13.0 | 13.0 |
| Payment volume (millions) | 25,983 | 53,744 | 1,729 |
| Average volume per Qiwi Wallet account (per quarter) | 2,987 | 4,134 | 133 |
| Average net revenue yield | 0.91% | 0.94% | 0.94% |
| (1) Official exchange rate quoted as of March 31, 2013 by the Central Bank of the Russian Federation was RUB 31.0834 to $1.00. | |||
| (2) Number at period end on a rolling 12 months basis | |||
In this release, Russian ruble (RUB) amounts have been translated into U.S. dollars at a rate of RUB 31.0834 to $1.00, the official exchange rate quoted as of March 31, 2013 by the Central Bank of the Russian Federation.