Total Adjusted Net Revenue Increases 47% to RUB 2,379 Million
Adjusted Net Profit Increases 92% to RUB 1,163 Million or RUB 21.05 per diluted share
QIWI raises 2014 Guidance
Board of Directors Approves Dividend of 38 cents per share
MOSCOW, Nov. 11, 2014 (GLOBE NEWSWIRE) -- QIWI plc, (Nasdaq:QIWI) ("QIWI" or the "Company") today announced results for the third-quarter ended September 30, 2014.
Third-Quarter 2014 Operating and Financial Highlights
- Total Adjusted Net Revenue increased 47% to RUB 2,379 million ($60.4 million)
- Adjusted EBITDA increased 92% to RUB 1,520 million ($38.6 million)
- Adjusted Net Profit increased 92% to RUB 1,163 million ($29.5 million), or RUB 21.05 per diluted share
- Total payment volume increased 15% to RUB 164.4 billion ($4.2 billion)
"In the third quarter we have continued to show strong results," said Sergey Solonin, QIWI's chief executive officer. "Solid financial performance demonstrates that we proceed to execute and gain share in the fast-growing payments markets we serve. Moreover, this quarter we have started various marketing activities for the first time, which demonstrate great results reflected in Visa Qiwi Wallet accounts reaccelerated growth. We see plenty of business development opportunities ahead and will continue to focus on our core market segments and execute our strategy."
Third-Quarter 2014 Results
Revenues: Total Adjusted Net Revenue for the quarter ended September 30, 2014 was RUB 2,379 million ($60.4 million), an increase of 47% compared with RUB 1,622 million in the prior year.
Payment Adjusted Net Revenue was RUB 1,753 million ($44.5 million), an increase of 57% compared with RUB 1,119 million in the prior year. Payment Adjusted Net Revenue growth was predominantly driven by an increase in payment volume and net revenue yield in the E-commerce, Financial Services and Money Remittances market segments.
Other Adjusted Net Revenue, which is principally composed of revenue from inactivity fees, interest revenue and gain from currency swaps and overdrafts provided to agents, cash and settlement services and advertising, was RUB 626 million ($15.9 million), an increase of 24% compared with RUB 503 million in the prior year. Inactivity fees for the third quarter were RUB 189 million ($4.8 million) compared with RUB 134 million in the prior year. Other Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 18% compared with the same period in the prior year.
Total Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 47% compared with the same period in the prior year.
Adjusted EBITDA: For the quarter ended September 30, 2014, Adjusted EBITDA was RUB 1,520 million ($38.6 million), an increase of 92% compared with RUB 793 million in the prior year. Adjusted EBITDA growth was mainly driven by revenue growth and continued operating leverage in the business. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was 63.9% compared with 48.9% in the prior year. Adjusted EBITDA excluding inactivity fees was RUB 1,331 million ($33.8 million), an increase of 102% compared with RUB 659 million in the prior year. Adjusted EBITDA margin excluding inactivity fees was 60.8% compared with 44.3% in the prior year.
Adjusted Net Profit: For the quarter ended September 30, 2014, Adjusted Net Profit was RUB 1,163 million ($29.5 million), an increase of 92% compared with RUB 605 million in the prior year. The increase in Adjusted Net Profit was primarily driven by the same factors impacting Adjusted EBITDA. Adjusted Net Profit excluding inactivity fees (net of tax) increased 103% compared with the prior year.
Other Operating Data: For the quarter ended September 30, 2014, total payment volume was RUB 164.4 billion ($4.2 billion), an increase of 15% compared with RUB 143.2 billion in the prior year. Average payment net revenue yield was 1.07%, an increase of 29 bps compared with 0.78% in the prior year. The increase in payment volume and average net revenue yield in the third quarter was mainly driven by strong growth in the E-commerce, Financial Services and Money Remittances market segments.
The total average Net Revenue Yield was 1.45%, an increase of 31 bps as compared with 1.13% in the prior year. The total average Net Revenue Yield excluding the effect of inactivity fees was 1.33%, an increase of 29 bps as compared with the same period in the prior year.
The number of active kiosks and terminals was 175,293, an increase of 5% compared with the prior year, primarily driven by execution of new rental agreements with certain federal retail networks. The number of active Visa Qiwi Wallet accounts was 16.5 million as of the end of the third quarter 2014, an increase of 1.5 million, or 10%, as compared with 15.0 million in the third quarter 2013.
Recent Developments
Dividend: QIWI announces that following the determination of third-quarter 2014 financial results its Board of Directors recommended a dividend of USD 38 cents per share. The dividend record date is 24 November 2014, and the Company intends to pay the dividend on 26 November, 2014. The holders of ADSs will receive the dividend shortly thereafter.
2014 Guidance
QIWI is raising its 2014 outlook as compared to its previously announced outlook:
- Total Adjusted Net Revenue is expected to increase by 32% to 40% over 2013
- Adjusted Net Profit is expected to increase by 60% to 70% over 2013
We have noted the effects of the macroeconomic slowdown in Russia in Q2 and especially in Q3, which we believe can be long lasting and could have a significant negative effect on consumer spending in Russia and, accordingly, on our business. The extent of the slowdown, and if that were to result in a full scale banking crisis, is yet to be assessed. Moreover, we have recently introduced several limitations on the payment volumes and account balances in QIWI Wallet as a result of our ongoing compliance process. The effect of these limitations is not clear at this stage but could potentially negatively affect the number of our consumers and, consequently, our volumes and revenues. We, therefore, do not currently have enough visibility on our Total Adjusted Net Revenue and Adjusted Net Profit in Q4 2014 and 2015. We provide the 2014 guidance with broader than usual intervals between low and high ends of the range to accommodate for any uncertainty in respect of the matters discussed above. We reserve the right to revisit our guidance in case we see the situation changing and we will report our 2015 guidance as soon as we have any visibility upon 2015 results.
Earnings Conference Call and Audio Webcast
QIWI will host a conference call to discuss second quarter 2014 financial results today at 8:30 a.m. ET. Hosting the call will be Sergey Solonin, chief executive officer, and Alexander Karavaev, chief financial 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 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 13594458. The replay will be available until Tuesday, November 18, 2014. 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 over 16.5 million virtual wallets, over 175,000 kiosks and terminals, and enabled merchants to accept over RUB 50 billion cash and electronic payments monthly from over 70 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 total adjusted net revenue, adjusted net profits and net revenue yield, dividend payments, the growth of Visa QIWI Wallet, payment volume growth, and growth in QIWI'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 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 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 thousands, except per share data) | |||
As of December 31, | As of September 30, | As of September 30, | |
2013 (audited) | 2014 (unaudited) | 2014 | |
RUB | RUB | USD(1) | |
Assets | |||
Non-current assets | |||
Property and equipment | 307,500 | 373,502 | 9,483 |
Goodwill and other intangible assets | 2,405,645 | 2,320,775 | 58,922 |
Long-term debt instruments | 1,376,862 | 0 | 0 |
Long-term loans | 10,637 | 51,307 | 1,303 |
Deferred tax assets | 183,333 | 228,721 | 5,807 |
Other non-current assets | 38,394 | 39,736 | 1,009 |
Total non-current assets | 4,322,371 | 3,014,041 | 76,524 |
Current assets | |||
Trade and other receivables | 2,772,297 | 1,938,944 | 49,228 |
Short-term loans | 65,430 | 27,301 | 693 |
Short-term debt instruments | 1,635,291 | 2,489,475 | 63,205 |
Prepaid income tax | 60,537 | 12,972 | 329 |
VAT and other taxes receivable | 12,478 | 52,706 | 1,338 |
Cash and cash equivalents | 11,636,913 | 12,496,491 | 317,275 |
Other current assets | 159,264 | 329,514 | 8,366 |
Total current assets | 16,342,210 | 17,347,403 | 440,435 |
Total assets | 20,664,581 | 20,361,444 | 516,958 |
Equity and liabilities | |||
Equity attributable to equity holders of the parent | |||
Share capital | 907 | 962 | 24 |
Additional paid-in capital | 1,876,104 | 4,920,407 | 124,925 |
Other reserve | 337,254 | 677,912 | 17,212 |
Retained earnings | 573,604 | 1,579,528 | 40,103 |
Translation reserve | 10,757 | 51,315 | 1,303 |
Total equity attributable to equity holders of the parent | 2,798,626 | 7,230,124 | 183,566 |
Non-controlling interest | (94,766) | (156,446) | (3,972) |
Total equity | 2,703,860 | 7,073,678 | 179,594 |
Non-current liabilities | |||
Long-term borrowings | 109,351 | 178,640 | 4,536 |
Long-term deferred revenue | 31,629 | 13,726 | 348 |
Deferred tax liabilities | 58,630 | 75,066 | 1,906 |
Long-term accounts payable | 7,625 | 1,045 | 27 |
Total non-current liabilities | 207,235 | 268,477 | 6,816 |
Current liabilities | |||
Short-term borrowings | 635 | 372 | 9 |
Trade and other payables | 16,768,973 | 11,704,234 | 297,160 |
Amounts due to customers and amounts due to banks | 831,226 | 1,087,297 | 27,605 |
Income tax payable | 10,823 | 59,233 | 1,504 |
VAT and other taxes payable | 95,403 | 140,229 | 3,560 |
Deferred revenue | 46,233 | 27,879 | 708 |
Other current liabilities | 193 | 45 | 1 |
Total current liabilities | 17,753,486 | 13,019,289 | 330,548 |
Total equity and liabilities | 20,664,581 | 20,361,444 | 516,958 |
__________________ | |||
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014. | |||
QIWI plc. | |||
Consolidated Statement of Comprehensive Income | |||
(in thousands, except per share data) | |||
Three months ended (unaudited) | |||
September 30, 2013 | September 30, 2014 | September 30, 2014 | |
RUB | RUB | USD(1) | |
Revenue | 2,975,243 | 3,822,175 | 97,042 |
Operating costs and expenses: | |||
Cost of revenue (exclusive of depreciation and amortization) | 1,559,879 | 1,782,489 | 45,256 |
Selling general and administrative expenses | 684,349 | 616,364 | 15,649 |
Depreciation and amortization | 28,109 | 93,208 | 2,366 |
Goodwill impairment | 5,477 | -- | -- |
Profit from operations | 697,429 | 1,330,114 | 33,770 |
Other income | 2,774 | 4,861 | 123 |
Other expenses | (11,870) | (972) | (25) |
Foreign exchange gain / (loss) net | (2,831) | 534,236 | 13,564 |
Share of loss of associates | -- | (12,151) | (309) |
Impairment of investment in associates | -- | (21,731) | (552) |
Interest income | 4,840 | 341 | 9 |
Interest expense | (7,518) | (9,351) | (237) |
Profit before tax | 682,824 | 1,825,347 | 46,344 |
Income tax expense | (149,533) | (269,134) | (6,833) |
Net profit | 533,291 | 1,556,213 | 39,511 |
Attributable to: | |||
Equity holders of the parent | 542,771 | 1,568,368 | 39,819 |
Non-controlling interests | (9,480) | (12,155) | (309) |
Other comprehensive income | |||
Exchange differences on translation of foreign operations | (3,370) | 22,767 | 578 |
Total comprehensive income net of tax | 529,921 | 1,578,980 | 40,089 |
attributable to: | |||
Equity holders of the parent | 539,045 | 1,610,673 | 40,894 |
Non-controlling interests | (9,124) | (31,693) | (805) |
Earnings per share: | |||
Basic profit attributable to ordinary equity holders of the parent | 10.43 | 28.81 | 0.73 |
Diluted profit attributable to ordinary equity holders of the parent | 10.27 | 28.39 | 0.72 |
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014. | |||
QIWI plc. | |||
Consolidated Statement of Comprehensive Income | |||
(in thousands, except per share data) | |||
Nine months ended (unaudited) | |||
September 30, 2013 | September 30, 2014 | September 30, 2014 | |
RUB | RUB | USD(1) | |
Revenue | 8,387,401 | 10,570,075 | 268,365 |
Operating costs and expenses: | |||
Cost of revenue (exclusive of depreciation and amortization) | 4,563,350 | 5,217,187 | 132,460 |
Selling general and administrative expenses | 1,872,629 | 1,827,016 | 46,386 |
Depreciation and amortization | 81,054 | 258,085 | 6,553 |
Goodwill impairment | 5,477 | -- | -- |
Profit from operations | 1,864,891 | 3,267,787 | 82,966 |
Other income | 60,781 | 40,900 | 1,038 |
Other expenses | (17,791) | (9,465) | (240) |
Foreign exchange gain / (loss) net | 4,002 | 435,773 | 11,064 |
Share of loss of associates | (78,896) | (23,270) | (591) |
Impairment of investment in associates | (21,540) | (24,634) | (625) |
Interest income | 13,374 | 1,053 | 27 |
Interest expense | (19,379) | (30,362) | (771) |
Profit before tax | 1,805,442 | 3,657,782 | 92,868 |
Income tax expense | (465,096) | (697,556) | (17,710) |
Net profit | 1,340,346 | 2,960,226 | 75,157 |
Attributable to: | |||
Equity holders of the parent | 1,368,183 | 3,000,243 | 76,173 |
Non-controlling interests | (27,837) | (40,017) | (1,016) |
Other comprehensive income | |||
Exchange differences on translation of foreign operations | (9,380) | 19,282 | 490 |
Total comprehensive income net of tax | 1,330,966 | 2,979,508 | 75,647 |
attributable to: | |||
Equity holders of the parent | 1,362,953 | 3,040,801 | 77,203 |
Non-controlling interests | (31,987) | (61,293) | (1,556) |
Earnings per share: | |||
Basic profit attributable to ordinary equity holders of the parent | 26.30 | 56.58 | 1.44 |
Diluted profit attributable to ordinary equity holders of the parent | 26.19 | 55.72 | 1.41 |
______________________ | |||
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014. | |||
(2) The amounts shown here do not correspond to the financial statements for the nine-month period ended September 30, 2013 and reflect immaterial reclassifications made to prior period to conform to current period presentation. | |||
QIWI plc. | |||
Consolidated Cash Flow Statement | |||
(in thousands, except per share data) | |||
Nine months ended | |||
September 30, 2013 (unaudited) |
September 30, 2014 (unaudited) |
September 30, 2014 |
|
RUB | RUB | USD(1) | |
Cash flows from operating activities | |||
Profit before tax | 1,805,442 | 3,657,782 | 92,868 |
Adjustments to reconcile profit before income tax to net cash flows generated from operating activities | |||
Depreciation and amortization | 81,054 | 258,085 | 6,553 |
Loss on disposal of property and equipment | 4,069 | 2,394 | 61 |
Foreign exchange loss, net | (4,002) | (435,773) | (11,064) |
Interest income, net | (259,267) | (252,476) | (6,410) |
Bad debt expense, net | 211,407 | 55,678 | 1,414 |
Share of loss of associates | 78,896 | 23,270 | 591 |
Impairment of investment in associates | 21,540 | 24,634 | 625 |
Impairment of Goodwill | 5,477 | -- | |
Share-based payments | 145,763 | 335,491 | 8,518 |
Other | 9,368 | 9,171 | 233 |
Operating profit before changes in working capital | 2,099,747 | 3,678,256 | 93,388 |
Decrease in trade and other receivables | 1,324,662 | 743,173 | 18,868 |
Increase in other assets | (64,551) | (178,808) | (4,540) |
(Increase)/Decrease in amounts due to customers and amounts due to banks | (120,439) | 256,071 | 6,501 |
Decrease in accounts payable and accruals | (5,743,157) | (4,944,812) | (125,544) |
Loans issued/ (settled) from banking operations | 200,750 | (9,040) | (230) |
Cash used in operations | (2,302,988) | (455,160) | (11,556) |
Interest received | 400,005 | 273,811 | 6,952 |
Interest paid | (16,368) | (21,767) | (553) |
Income tax paid | (508,885) | (630,533) | (16,009) |
Net cash flow used in operating activities | (2,428,236) | (833,649) | (21,166) |
Cash flows used in investing activities | |||
Contribution to associates | -- | (24,201) | (614) |
Payments for assignment of loans | -- | (68,063) | (1,728) |
Purchase of property and equipment | (122,550) | (230,784) | (5,859) |
Proceeds from sale of property and equipment | 1,684 | -- | -- |
Purchase of intangible assets | (13,400) | (80,209) | (2,036) |
Loans issued | (20,859) | (44,676) | (1,134) |
Repayment of loans issued | 9,421 | 39,440 | 1,001 |
Purchase of debt instruments | (1,901,004) | (706,846) | (17,946) |
Proceeds from settlement of debt instruments | 1,654,016 | 1,242,313 | 31,541 |
Net cash flow used in/generated from investing activities | (392,692) | 126,974 | 3,224 |
Cash flows generated from financing activities | |||
Issue of share capital | -- | 3,044,356 | 77,293 |
Exercise of options | -- | 5,167 | 131 |
Proceeds from borrowings | 20,426 | 38,198 | 970 |
Repayment of borrowings | (265) | (672) | (17) |
Dividends paid to owners of the Group | (1,327,836) | (2,009,163) | (51,011) |
Dividends paid to non-controlling shareholders | (2,098) | (2,170) | (55) |
Underwriters' commission | 72,835 | -- | -- |
Distribution of underwriters' commission | (67,643) | -- | -- |
Transactions with non-controlling interest | -- | 1,783 | 45 |
Net cash flow used in/ generated from financing activities | (1,304,581) | 1,077,499 | 27,357 |
Effect of exchange rate changes on cash and cash equivalents | (7,258) | 488,754 | 12,409 |
Net decrease in cash and cash equivalents | (4,132,767) | 859,578 | 21,824 |
Cash and cash equivalents at the beginning | 9,943,160 | 11,636,913 | 295,451 |
Cash and cash equivalents at the end | 5,810,393 | 12,496,491 | 317,275 |
_______________________ | |||
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014. |
Non-IFRS Financial Measures and Supplemental Financial Information
This release presents Total Adjusted Net Revenue, Payment Adjusted Net Revenue, Other Adjusted Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit and Adjusted Net Profit per share, which are non-IFRS financial measures. You should not consider these non-IFRS financial measures as substitutes for or superior to revenue, in the case of Total Adjusted Net Revenue, Payment Adjusted Net Revenue and Other Adjusted Net Revenue; Net Profit, in the case of Adjusted EBITDA; and Adjusted Net Profit, or earnings per share, in the case of Adjusted Net Profit per share, each prepared in accordance with IFRS. Furthermore, because these non-IFRS financial measures are not determined in accordance with IFRS, they are susceptible to varying calculations and may not be comparable to other similarly titled measures presented by other companies. QIWI encourages investors and others to review our financial information in its entirety and not rely on a single financial measure. For more information regarding Total Adjusted Net Revenue, Payment Adjusted Net Revenue, Other Adjusted Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit, and Adjusted Net Profit per share, including a quantitative reconciliation of Total Adjusted Net Revenue, Payment Adjusted Net Revenue, Other 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 Total Adjusted Net Revenue, payment revenue in the case of Payment Adjusted Net Revenue, other revenue in the case of Other 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.
Payment Adjusted Net Revenue is the Adjusted Net Revenue consisting of the merchant and consumer fees collected for the payment transactions. E-commerce payment adjusted net revenue consists of fees charged to customers and merchants that buy and sell products and services online, including online games, social networks, online stores, game developers, software producers, coupon websites, tickets and numerous other merchants. Financial Services payment adjusted net revenue primarily consists of fees charged for payments accepted on behalf of our bank partners and microfinance companies. Money Remittances payment adjusted net revenue primarily consists of fees charged for transferring funds via money remittance companies. Telecom payment adjusted net revenue primarily consists of fees charged for payments to MNOs, internet services providers and pay television providers. Other payment adjusted net revenue consists of consumer and merchant fees charged for a variety of payments including multi-level-marketing, utility bills, government payments, education services and many others. Other Adjusted Net Revenue primarily consists of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, cash and settlement services and advertising.
QIWI plc. | |||
Reconciliation of IFRS to Non-IFRS Operating Results | |||
(in millions, except per share data) | |||
Three months ended | |||
September 30, 2013 | September 30, 2014 | September 30, 2014 | |
RUB | RUB | USD(1) | |
Revenue | 2,975 | 3,822 | 97.0 |
Minus: Cost of revenue (exclusive of depreciation and amortization) | 1,560 | 1,782 | 45.3 |
Plus: Compensation to employees and related taxes | 207 | 339 | 8.6 |
Total Adjusted Net Revenue | 1,622 | 2,379 | 60.4 |
Payment Revenue(2) | 2,381 | 3,001 | 76.2 |
Minus: Cost of payment revenue (exclusive of depreciation and amortization)(3) | 1,434 | 1,514 | 38.4 |
Plus: Compensation to employees and related taxes allocated to payment revenue(4) | 172 | 266 | 6.8 |
Payment Adjusted Net Revenue | 1,119 | 1,753 | 44.5 |
Other Revenue(5) | 594 | 821 | 20.8 |
Minus: Cost of other revenue (exclusive of depreciation and amortization)(6) | 126 | 268 | 6.8 |
Plus: Compensation to employees and related taxes allocated to other revenue(4) | 35 | 73 | 1.9 |
Other Adjusted Net Revenue | 503 | 626 | 15.9 |
Payment Adjusted Net Revenue | 1,119 | 1,753 | 44.5 |
E-commerce | 311 | 527 | 13.4 |
Financial services | 264 | 601 | 15.2 |
Money remittances | 123 | 240 | 6.1 |
Telecom | 350 | 283 | 7.2 |
Other | 72 | 103 | 2.6 |
Other Adjusted Net Revenue | 503 | 626 | 15.9 |
Total Adjusted Net Revenue | 1,622 | 2,379 | 60.4 |
Net Profit | 533 | 1,556 | 39.5 |
Plus: | |||
Depreciation and amortization | 28 | 93 | 2.4 |
Other income | (3) | 0 | 0.0 |
Other expenses | 12 | 1 | 0.0 |
Foreign exchange (loss) gain, net | 3 | (534) | (13.6) |
Share of loss of associates | -- | 12 | 0.3 |
Impairment of investment in associates | -- | 22 | 0.6 |
Interest income | (5) | (0) | (0.0) |
Interest expenses | 8 | 9 | 0.2 |
Income tax expenses | 150 | 269 | 6.8 |
Offering expenses | 32 | 0 | 0.0 |
Income from depositary(7) | (0) | (5) | (0.1) |
Share-based payments expenses | 30 | 96 | 2.4 |
Goodwill impairment | 5 | -- | -- |
Adjusted EBITDA | 793 | 1,520 | 38.6 |
Adjusted EBITDA margin | 48.9% | 63.9% | 63.9% |
Net profit | 533 | 1,556 | 39.5 |
Amortization of fair value adjustments | 5 | 22 | 0.6 |
Offering expenses | 32 | 0 | 0.0 |
Income from depositary | (0) | (5) | (0.1) |
Share-based payments expenses | 30 | 96 | 2.4 |
Goodwill impairment | 5 | -- | -- |
Effect of taxation of the above items | (1) | (5) | (0.1) |
Forex gain on SPO funds(8) | -- | (502) | (12.7) |
Adjusted Net Profit | 605 | 1,163 | 29.5 |
Adjusted Net Profit per share: | |||
Basic | 11.63 | 21.37 | 0.54 |
Diluted | 11.46 | 21.05 | 0.53 |
Shares used in computing Adjusted Net Profit per share | |||
Basic | 52,044 | 54,442 | 54,442 |
Diluted | 52,864 | 55,248 | 55,248 |
____________________ | |||
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014. | |||
(2) Payment revenue primarily consists of the merchant and consumer fees charged for the payment transactions. | |||
(3) Cost of payment revenue (exclusive of depreciation and amortization) primarily consists of transaction costs to acquire payments from our customers payable to agents, mobile operators, international payment systems and other parties. | |||
(4) The Company does not record the compensation to employees and related taxes within cost of revenue separately for payment revenue and other revenue, therefore it has been allocated between payment revenue and other revenue in proportion to the relevant revenue amounts for the purposes of the reconciliation presented above. | |||
(5) Other revenue primarily consists of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, cash and settlement services and advertising. | |||
(6) Cost of other revenue (exclusive of depreciation and amortization) primarily consists of direct costs associated with other revenue and other costs, including but not limited to: compensation to employees and related taxes allocated to other revenue, costs of call-centers and advertising commissions. | |||
(7) Income from depositary is presented in the separate line in reconciliation tables for convenience purposes, while it is included in other income in financial statements. | |||
(8) The Forex gain on SPO funds as presented in the reconciliation of Net Profit to Adjusted Net Profit differs from the Foreign exchange loss/(gain), net in the reconciliation of Net Profit to Adjusted EBITDA as the latter includes all the foreign exchange losses/(gains) for the period, while the former only include the foreign exchange gain on the US dollar amount, which we received at SPO. | |||
QIWI plc. | |||
Reconciliation of IFRS to Non-IFRS Operating Results | |||
(in millions, except per share data) | |||
Nine months ended | |||
September 30, 2013 | September 30, 2014 | September 30, 2014 | |
RUB | RUB | USD(1) | |
Revenue | 8,387 | 10,570 | 268.4 |
Minus: Cost of revenue (exclusive of depreciation and amortization) | 4,563 | 5,217 | 132.5 |
Plus: Compensation to employees and related taxes | 643 | 1,015 | 25.8 |
Total Adjusted Net Revenue | 4,467 | 6,368 | 161.7 |
Payment Revenue(2) | 6,706 | 8,433 | 214.1 |
Minus: Cost of payment revenue (exclusive of depreciation and amortization)(3) | 4,219 | 4,566 | 115.9 |
Plus: Compensation to employees and related taxes allocated to payment revenue(4) | 527 | 810 | 20.6 |
Payment Adjusted Net Revenue | 3,015 | 4,677 | 118.7 |
Other Revenue(5) | 1,681 | 2,137 | 54.3 |
Minus: Cost of other revenue (exclusive of depreciation and amortization)(6) | 345 | 651 | 16.5 |
Plus: Compensation to employees and related taxes allocated to other revenue(4) | 116 | 205 | 5.2 |
Other Adjusted Net Revenue | 1,452 | 1,691 | 42.9 |
Payment Adjusted Net Revenue | 3,015 | 4,677 | 118.7 |
E-commerce | 833 | 1,358 | 34.5 |
Financial services | 673 | 1,444 | 36.7 |
Money remittances | 292 | 664 | 16.9 |
Telecom | 990 | 905 | 23.0 |
Other | 227 | 306 | 7.8 |
Other Adjusted Net Revenue | 1,452 | 1,691 | 42.9 |
Total Adjusted Net Revenue | 4,467 | 6,368 | 161.7 |
Net Profit | 1,340 | 2,960 | 75.2 |
Plus: | |||
Depreciation and amortization | 81 | 258 | 6.6 |
Other income | (17) | (3) | (0.1) |
Other expenses | 18 | 9 | 0.2 |
Foreign exchange (loss) gain, net | (4) | (436) | (11.1) |
Share of loss of associates | 79 | 23 | 0.6 |
Impairment of investment in associates | 22 | 25 | 0.6 |
Interest income | (13) | (1) | (0.0) |
Interest expenses | 19 | 30 | 0.8 |
Income tax expenses | 465 | 698 | 17.7 |
Offering expenses | 147 | 45 | 1.1 |
Income from depositary(7) | (44) | (38) | (1.0) |
Share-based payments expenses | 146 | 335 | 8.5 |
Goodwill impairment | 5 | -- | -- |
Adjusted EBITDA | 2,244 | 3,907 | 99.2 |
Adjusted EBITDA margin | 50.2% | 61.3% | 61.3% |
Net profit | 1,340 | 2,960 | 75.2 |
Amortization of fair value adjustments | 16 | 57 | 1.4 |
Offering expenses | 147 | 45 | 1.1 |
Income from depositary | (44) | (38) | (1.0) |
Share-based payments expenses | 146 | 335 | 8.5 |
Goodwill impairment | 5 | -- | -- |
Effect of taxation of the above items | (3) | (11) | (0.3) |
Forex gain on SPO funds(8) | -- | (450) | (11.4) |
Adjusted Net Profit | 1,607 | 2,898 | 73.6 |
Adjusted Net Profit per share: | |||
Basic | 30.90 | 54.66 | 1.39 |
Diluted | 30.77 | 53.83 | 1.37 |
Shares used in computing Adjusted Net Profit per share | |||
Basic | 52,015 | 53,023 | 53,023 |
Diluted | 52,241 | 53,841 | 53,841 |
_______________________ | |||
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014. | |||
(2) Payment revenue primarily consists of the merchant and consumer fees charged for the payment transactions. | |||
(3) Cost of payment revenue (exclusive of depreciation and amortization) primarily consists of transaction costs to acquire payments from our customers payable to agents, mobile operators, international payment systems and other parties. | |||
(4) The Company does not record the compensation to employees and related taxes within cost of revenue separately for payment revenue and other revenue, therefore it has been allocated between payment revenue and other revenue in proportion to the relevant revenue amounts for the purposes of the reconciliation presented above. | |||
(5) Other revenue primarily consists of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, cash and settlement services and advertising. | |||
(6) Cost of other revenue (exclusive of depreciation and amortization) primarily consists of direct costs associated with other revenue and other costs, including but not limited to: compensation to employees and related taxes allocated to other revenue, costs of call-centers and advertising commissions. | |||
(7) Income from depositary is presented in the separate line in reconciliation tables for convenience purposes, while it is included in other income in financial statements. | |||
(8) The Forex gain on SPO funds as presented in the reconciliation of Net Profit to Adjusted Net Profit differs from the Foreign exchange loss/(gain), net in the reconciliation of Net Profit to Adjusted EBITDA as the latter includes all the foreign exchange losses/(gains) for the period, while the former only include the foreign exchange gain on the US dollar amount, which we received at SPO. | |||
QIWI plc. | |||
Other Operating Data | |||
Three months ended | |||
September 30, 2013 | September 30, 2014 | September 30, 2014 | |
RUB | RUB | USD(1) | |
Payment volume (billion)(2) | 143.2 | 164.4 | 4.2 |
E-commerce | 15.3 | 18.8 | 0.5 |
Financial services | 38.0 | 51.0 | 1.3 |
Money remittances | 9.4 | 16.7 | 0.4 |
Telecom | 70.3 | 64.8 | 1.6 |
Other | 10.2 | 13.1 | 0.3 |
Payment adjusted net revenue (million)(3) | 1,119.1 | 1,753.3 | 44.5 |
E-commerce | 310.6 | 527.0 | 13.4 |
Financial services | 263.5 | 600.5 | 15.2 |
Money remittances | 123.2 | 239.8 | 6.1 |
Telecom | 349.6 | 282.5 | 7.2 |
Other | 72.2 | 103.4 | 2.6 |
Payment average net revenue yield | 0.78% | 1.07% | 1.07% |
E-commerce | 2.02% | 2.80% | 2.8% |
Financial services | 0.69% | 1.18% | 1.2% |
Money remittances | 1.31% | 1.44% | 1.4% |
Telecom | 0.50% | 0.44% | 0.4% |
Other | 0.71% | 0.79% | 0.8% |
Total average Net Revenue Yield | 1.13% | 1.45% | 1.45% |
Active kiosks and terminals (units) | 167,112 | 175,293 | 175,293 |
Active Qiwi Wallet accounts(4) | 15.0 | 16.5 | 16.5 |
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014. | |||
(2) Payment volume by market segments and consolidated payment volume consist of the amounts paid by our customers to merchants included in each of those market segments less intra-group eliminations. The methodology of payment volumes allocation between different market segments in QIWI's international operations (including Kazachstan) may differ from the methodology used by QIWI's Russian operations. We therefore retain the right to restate the presented volumes, net revenues and net revenue yields data in case the methodology of QIWI's international operations will be brought in conformity with the methodology of QIWI's Russian operations. | |||
(3) Payment Adjusted Net Revenue is calculated as the difference between Payment Gross Revenue and Payment Costs. Payment Gross Revenue primarily consists of merchant and consumer fees. Payment Costs primarily consist of commission to agents. | |||
(4) Active VISA Qiwi Wallet accounts calculated on a yearly basis, i.e. an active account is an account that had at least one transaction within the last 12 months from the reporting date. | |||
QIWI plc. | |||
Other Operating Data | |||
Nine months ended | |||
September 30, 2013 | September 30, 2014 | September 30, 2014 | |
RUB | RUB | USD(1) | |
Payment volume (billion)(2) | 401.2 | 470.2 | 11.9 |
E-commerce | 45.1 | 54.1 | 1.4 |
Financial services | 102.6 | 146.6 | 3.7 |
Money remittances | 23.4 | 45.1 | 1.1 |
Telecom | 197.4 | 185.8 | 4.7 |
Other | 32.7 | 38.6 | 1.0 |
Payment adjusted net revenue (million)(3) | 3,015.1 | 4,677.2 | 118.7 |
E-commerce | 832.7 | 1,357.6 | 34.5 |
Financial services | 672.9 | 1,444.2 | 36.7 |
Money remittances | 292.3 | 664.3 | 16.9 |
Telecom | 990.5 | 905.1 | 23.0 |
Other | 226.7 | 305.9 | 7.8 |
Payment average net revenue yield | 0.8% | 1.0% | 1.0% |
E-commerce | 1.85% | 2.51% | 2.5% |
Financial services | 0.66% | 0.98% | 1.0% |
Money remittances | 1.25% | 1.47% | 1.5% |
Telecom | 0.50% | 0.49% | 0.5% |
Other | 0.69% | 0.79% | 0.8% |
Total average Net Revenue Yield | 1.11% | 1.35% | 1.35% |
Active kiosks and terminals (units) | 167,112 | 175,293 | 175,293 |
Active Qiwi Wallet accounts(4) | 15.0 | 16.5 | 16.5 |
______________________ | |||
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014. | |||
(2) Payment volume by market segments and consolidated payment volume consist of the amounts paid by our customers to merchants included in each of those market segments less intra-group eliminations. The methodology of payment volumes allocation between different market segments in QIWI's international operations (including Kazachstan) may differ from the methodology used by QIWI's Russian operations. We therefore retain the right to restate the presented volumes, net revenues and net revenue yields data in case the methodology of QIWI's international operations will be brought in conformity with the methodology of QIWI's Russian operations. | |||
(3) Payment Adjusted Net Revenue is calculated as the difference between Payment Gross Revenue and Payment Costs. Payment Gross Revenue primarily consists of merchant and consumer fees. Payment Costs primarily consist of commission to agents. | |||
(4) Active VISA Qiwi Wallet accounts calculated on a yearly basis, i.e. an active account is an account that had at least one transaction within the last 12 months from the reporting date. | |||