Fourth-Quarter Total Adjusted Net Revenue Increases 45% to RUB 2,468 Million and Adjusted Net Profit Increases 5% to RUB 597 Million or RUB 10.84 per diluted share
Full-Year 2014 Total Adjusted Net Revenue Increases 43% to RUB 8,836 Million and Adjusted Net Profit Increases 61% to RUB 3,496 Million or RUB 64.53 per diluted share
QIWI gives 2015 Guidance
MOSCOW, March 12, 2015 (GLOBE NEWSWIRE) -- QIWI plc, (Nasdaq:QIWI) ("QIWI" or the "Company") today announced results for the fourth-quarter and year ended December 31, 2014.
Fourth-Quarter 2014 Operating and Financial Highlights
- Total Adjusted Net Revenue increased 45% to RUB 2,468 million ($43.9 million)
- Adjusted EBITDA increased 24% to RUB 911 million ($16.2 million)
- Adjusted Net Profit increased 5% to RUB 597 million ($10.6 million), or RUB 10.84 per diluted share
- Total payment volume increased 10% to RUB 175.2 billion ($3.1 billion)
Full-Year 2014 Operating and Financial Highlights
- Total Adjusted Net Revenue increased 43% to RUB 8,836 million ($157.1 million)
- Adjusted EBITDA increased 62% to RUB 4,818 million ($85.6 million)
- Adjusted Net Profit increased 61% to RUB 3,496 million ($62.1 million), or RUB 64.53 per diluted share
- Total payment volume increased 15% to RUB 645.2 billion ($11.5 billion)
- Visa QIWI Wallet active accounts increased 12% to 17.2 million
"I am very pleased with our solid fourth quarter results," said Sergey Solonin, QIWI's chief executive officer. "Our financial and operational performance demonstrates resilience to macroeconomic situation. This quarter we have continued to invest in various marketing activities, which have underpinned continued growth in Visa Qiwi Wallet accounts. We see plenty of opportunities ahead, especially in gaining market share in the key verticals, and will continue to focus on our core market verticals and execute our strategy."
Fourth-Quarter 2014 Results
Revenues: Total Adjusted Net Revenue for the quarter ended December 31, 2014 was RUB 2,468 million ($43.9 million), an increase of 45% compared with RUB 1,700 million in the prior year.
Payment Adjusted Net Revenue was RUB 1,838 million ($32.7 million), an increase of 41% compared with RUB 1,305 million in the prior year. Payment Adjusted Net Revenue growth was predominantly driven by an increase in payment volume in the E-commerce and Money Remittances market verticals and net revenue yield in the E-commerce, Financial Services and Money Remittances market verticals, slightly offset by a decrease in payment volume and net revenue yield in the Telecom market vertical.
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, revenue from rent of space for kiosks and sale of kiosks, cash and settlement services and advertising, was RUB 630 million ($11.2 million), an increase of 59% compared with RUB 395 million in the prior year. The growth in the fourth quarter was mainly due to increase in net revenue from sales of kiosks and rent of space for kiosks. Inactivity fees for the fourth quarter were RUB 183 million ($3.3 million) compared with RUB 137 million in the prior year. Other Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 73% compared with the same period in the prior year.
Total Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 46% compared with the same period in the prior year.
Adjusted EBITDA: For the quarter ended December 31, 2014, Adjusted EBITDA was RUB 911 million ($16.2 million), an increase of 24% compared with RUB 733 million in the prior year. Adjusted EBITDA growth was mainly offset by heavy marketing and advertising expenses which amounted to RUB 400 million in the fourth quarter 2014 as compared to RUB 125 million in the prior year. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was 36.9% compared with 43.1% in the prior year. Adjusted EBITDA excluding inactivity fees was RUB 727 million ($12.9 million), an increase of 22% compared with RUB 596 million in the prior year. Adjusted EBITDA margin excluding inactivity fees was 31.8% compared with 38.1% in the prior year. The substantial amount of marketing spent in fourth quarter 2014 was unusually high, due to launch of the vast majority of advertising and promotion campaigns, which we originally planned to spread more evenly throughout the year. Moving forward our intention is to spread marketing and advertising campaigns and thus the budget more evenly, therefore we assume EBITDA margin for the full year 2014 to be more representative then the EBITDA margin for the fourth quarter of 2014.
Adjusted Net Profit: For the quarter ended December 31, 2014, Adjusted Net Profit was RUB 597 million ($10.6 million), an increase of 5% compared with RUB 567 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) decreased 1% compared with the prior year.
Other Operating Data: For the quarter ended December 31, 2014, total payment volume was RUB 175.2 billion ($3.1 billion), an increase of 10% compared with RUB 159.3 billion in the prior year. Average payment net revenue yield was 1.05%, an increase of 23 bps compared with 0.82% in the prior year. The increase in payment volume and average payment net revenue yield in the fourth quarter was mainly driven by strong growth in the E-commerce, Financial Services and Money Remittances market verticals.
The total average Net Revenue Yield was 1.41%, an increase of 34 bps as compared with 1.07% in the prior year. The total average Net Revenue Yield excluding the effect of inactivity fees was 1.31%, an increase of 33 bps as compared with the same period in the prior year.
Full-Year 2014 Results
Revenues: Total Adjusted Net Revenue for the year ended December 31, 2014 was RUB 8,836 million ($157.0 million), an increase of 43% compared with RUB 6,168 million in the prior year.
Payment Adjusted Net Revenue was RUB 6,515 million ($115.8 million), an increase of 51% compared with RUB 4,320 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 verticals, slightly offset by a decrease in payment volume and net revenue yield in the Telecom market vertical.
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, revenue from rent of space for kiosks and sale of kiosks, cash and settlement services and advertising, was RUB 2,321 million ($41.2 million), an increase of 26% compared with RUB 1,848 million in the prior year. Revenue from fees for inactive accounts was RUB 656 million ($11.7 million) in 2014 compared to RUB 549 million in the prior year. Other Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 28% compared with the same period in the prior year.
Total Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 46% compared with the same period in the prior year.
Adjusted EBITDA: For the year ended December 31, 2014, Adjusted EBITDA was RUB 4,818 million ($85.6 million), an increase of 62% compared with RUB 2,978 million in the prior year. Adjusted EBITDA growth was mainly driven by revenue growth and significant operating leverage in the business. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was 54.5% compared with 48.3% in the prior year. Adjusted EBITDA excluding inactivity fees was RUB 4,161 million ($74.1 million), an increase of 71% compared with RUB 2,429 million in the prior year. Adjusted EBITDA margin excluding inactivity fees was 51.0% compared with 43.2% in the prior year.
Adjusted Net Profit: For the year ended December 31, 2014, Adjusted Net Profit was RUB 3,496 million ($62.1 million), an increase of 62% compared with RUB 2,174 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 71% compared with the prior year.
Other Operating Data: For the year ended December 31, 2014, total payment volume was RUB 645.4 billion ($11.5 billion), an increase of 15% compared with RUB 560.5 billion in the prior year. Average payment net revenue yield was 1.01%, an increase of 24 bps compared with 0.77% in the prior year. The increase in payment volume and average net revenue yield in 2014 was mainly driven by strong growth in the E-commerce, Financial Services and Money Remittances market verticals.
The total average Net Revenue Yield was 1.37%, an increase of 27 bps as compared with 1.10% in the prior year. The total average Net Revenue Yield excluding the effect of inactivity fees was 1.27%, an increase of 27 bps as compared with the same period in the prior year.
The number of active kiosks and terminals was 181,148, an increase of 8% 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 17.2 million as of the end of 2014, an increase of 1.8 million, or 12%, as compared with 15.4 million in 2013.
Recent Developments
Dividend: In light of the current geopolitical concerns around Russia and its negative impact on the economy and liquidity management believes it is prudent not to declare a dividend for the fourth quarter. We will revisit this decision each quarter moving forward with an intention to return to our historical payout levels.
M&A: From time to time, we have evaluated and expect to continue to evaluate possible acquisition transactions, partnerships or joint ventures on an on-going basis, some of which may be material. At any time, including currently, we may be engaged in discussions or negotiations or diligence evaluations with respect to possible acquisitions, partnerships or joint ventures or may have entered into non-binding documents in relation to such transactions. As part of our strategy, we intend to continue our disciplined approach to identifying, executing and integrating strategic acquisitions.
2015 Guidance1
QIWI provides its guidance in respect of 2015 outlook:
- Total Adjusted Net Revenue is expected to increase by 12% to 16% over 2014
- Adjusted Net Profit is expected to increase by 12% to 16% over 2014
We have started to note the effects of the macroeconomic slowdown in Russia in the second half of 2014 and especially in Q4, which we believe can be long lasting and could have a significant negative effect on both consumer spending and the banking system in Russia and, accordingly, on our business in the future. The extent of the slowdown, and if that were to result in a full scale banking crisis, is yet to be assessed. We, therefore, do not currently have enough visibility on our Total Adjusted Net Revenue and Adjusted Net Profit in 2015. We provide the 2015 guidance based on our current understanding of the macroeconomic situation, which is subject to change. We reserve the right to revisit our 2015 guidance in case we see the situation changing throughout the year. Expected growth of Adjusted Net Profit equals to the expected growth of Adjusted Net Revenue as a consequence of our desire and commitment to invest into new products and gain market share in 2015.
1 Guidance is provided in Russian rubles.
Earnings Conference Call and Audio Webcast
QIWI will host a conference call to discuss fourth quarter and full year 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 13602442. The replay will be available until Thursday, March 19, 2015. 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 17.2 million virtual wallets, over 181,000 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 profit and net revenue yield, dividend payments, payment volume growth, and growth of physical and virtual distribution channels. 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 physical and virtual distribution channels, 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 December 31, | As of December 31, | |
| 2013 | 2014 | 2014 | |
| RUB | RUB | USD(1) | |
| Assets | |||
| Non-current assets | |||
| Property and equipment | 307,500 | 379,943 | 6,754 |
| Goodwill and other intangible assets | 2,405,645 | 2,367,623 | 42,085 |
| Long-term debt instruments | 1,376,862 | 1,806,295 | 32,107 |
| Long-term loans | 10,637 | 52,648 | 936 |
| Other non-current assets | 38,394 | 42,455 | 755 |
| Deferred tax assets | 183,333 | 239,571 | 4,258 |
| Total non-current assets | 4,322,371 | 4,888,535 | 86,895 |
| Current assets | |||
| Trade and other receivables | 2,772,297 | 5,305,275 | 94,303 |
| Short-term loans | 65,430 | 31,588 | 561 |
| Short-term debt instruments | 1,635,291 | 2,132,887 | 37,913 |
| Prepaid income tax | 60,537 | 89,239 | 1,586 |
| VAT and other taxes receivable | 12,478 | 51,078 | 908 |
| Cash and cash equivalents | 11,636,913 | 17,079,965 | 303,601 |
| Other current assets | 159,264 | 345,688 | 6,145 |
| Total current assets | 16,342,210 | 25,035,720 | 445,016 |
| Assets of disposal group classified as held for sale | -- | 125,867 | 2,237 |
| Total assets | 20,664,581 | 30,050,122 | 534,148 |
| Equity and liabilities | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 907 | 963 | 17 |
| Additional paid-in capital | 1,876,104 | 1,876,104 | 33,348 |
| Share premium | -- | 3,044,303 | 54,113 |
| Other reserve | 337,254 | 764,243 | 13,585 |
| Retained earnings | 573,604 | 2,683,805 | 47,705 |
| Translation reserve | 10,757 | 204,337 | 3,632 |
| Total equity attributable to equity holders of the parent | 2,798,626 | 8,573,755 | 152,401 |
| Non-controlling interest | (94,766) | (239,385) | (4,255) |
| Total equity | 2,703,860 | 8,334,370 | 148,146 |
| Non-current liabilities | |||
| Long-term borrowings | 109,351 | 41,981 | 746 |
| Long-term deferred revenue | 31,629 | 8,394 | 149 |
| Long-term accounts payable | 7,625 | 987 | 18 |
| Deferred tax liabilities | 58,630 | 37,758 | 671 |
| Total non-current liabilities | 207,235 | 89,120 | 1,584 |
| Current liabilities | |||
| Short-term borrowings | 635 | 1,061 | 19 |
| Trade and other payables | 16,768,973 | 20,179,673 | 358,699 |
| Amounts due to customers and amounts due to banks | 831,226 | 1,001,286 | 17,798 |
| Income tax payable | 10,823 | 11,290 | 201 |
| VAT and other taxes payable | 95,403 | 127,733 | 2,270 |
| Deferred revenue | 46,233 | 52,008 | 924 |
| Other current liabilities | 193 | 56 | 1 |
| Total current liabilities | 17,753,486 | 21,373,107 | 379,912 |
| Liabilities directly associated with the assets of a disposal group classified as held for sale | -- | 253,525 | 4,506 |
| Total equity and liabilities | 20,664,581 | 30,050,122 | 534,148 |
| __________ |
| (1) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 2014. |
| QIWI plc. | |||
| Consolidated Statement of Comprehensive Income | |||
| (in thousands, except per share data) | |||
| Three months ended (unaudited) | |||
| December 31, 2013(1) | December 31, 2014 | December 31, 2014 | |
| RUB | RUB | USD(2) | |
| Revenue | 3,278,649 | 4,148,652 | 73,743 |
| Operating costs and expenses: | |||
| Cost of revenue (exclusive of depreciation and amortization) | 1,833,149 | 2,055,912 | 36,544 |
| Selling general and administrative expenses | 805,670 | 1,255,161 | 22,311 |
| Depreciation and amortization | 32,046 | 95,315 | 1,694 |
| Goodwill impairment | 2 | -- | -- |
| Profit from operations | 607,782 | 742,264 | 13,194 |
| Other income | 30,415 | 1,353 | 24 |
| Other expenses | (2,298) | (20,107) | (357) |
| Foreign exchange gain | 9,654 | 2,129,776 | 37,857 |
| Foreign exchange loss | (5,635) | (634,819) | (11,284) |
| Share of loss of associates | -- | (3,313) | (59) |
| Impairment of investment in associates | -- | -- | -- |
| Interest income | 8,830 | 639 | 11 |
| Interest expense | (9,307) | (11,151) | (198) |
| Profit before tax | 639,441 | 2,204,642 | 39,188 |
| Income tax expense | (144,413) | (196,950) | (3,501) |
| Net profit | 495,028 | 2,007,692 | 35,687 |
| Attributable to: | |||
| Equity holders of the parent | 505,043 | 2,023,897 | 35,975 |
| Non-controlling interests | (10,015) | (16,206) | (288) |
| Other comprehensive income | |||
| Exchange differences on translation of foreign operations | 13,941 | 86,507 | 1,538 |
| Total comprehensive income net of tax | 508,969 | 2,094,199 | 37,225 |
| attributable to: | |||
| Equity holders of the parent | 520,325 | 2,176,919 | 38,695 |
| Non-controlling interests | (11,356) | (82,721) | (1,470) |
| Earnings per share: | |||
| Basic profit attributable to ordinary equity holders of the parent | 9.69 | 37.13 | 0.66 |
| Diluted profit attributable to ordinary equity holders of the parent | 9.53 | 36.72 | 0.65 |
| ____________ | |||
| (1) The amounts shown here do not correspond to the financial statements for the year ended December 31, 2013 and reflect immaterial reclassifications made to prior period to conform to current period presentation. | |||
| (2) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 2014. | |||
| QIWI plc. | |||
| Consolidated Statement of Comprehensive Income | |||
| (in thousands, except per share data) | |||
| Full Year ended | |||
| December 31, 2013(1) | December 31, 2014 | December 31, 2014 | |
| RUB | RUB | USD(2) | |
| Revenue | 11,666,050 | 14,718,727 | 261,629 |
| Operating costs and expenses: | |||
| Cost of revenue (exclusive of depreciation and amortization) | 6,396,499 | 7,273,099 | 129,281 |
| Selling general and administrative expenses | 2,678,299 | 3,082,177 | 54,786 |
| Depreciation and amortization | 113,100 | 353,400 | 6,282 |
| Goodwill impairment | 5,479 | -- | -- |
| Profit from operations | 2,472,673 | 4,010,051 | 71,280 |
| Other income | 91,196 | 42,253 | 751 |
| Other expenses | (20,089) | (29,572) | (526) |
| Foreign exchange gain | 78,516 | 3,359,207 | 59,711 |
| Foreign exchange loss | (70,495) | (1,428,478) | (25,392) |
| Share of loss of associates | (78,896) | (26,583) | (473) |
| Impairment of investment in associates | (21,540) | (24,634) | (438) |
| Interest income | 22,204 | 1,692 | 30 |
| Interest expense | (28,686) | (41,513) | (738) |
| Profit before tax | 2,444,883 | 5,862,423 | 104,206 |
| Income tax expense | (609,509) | (894,506) | (15,900) |
| Net profit | 1,835,374 | 4,967,917 | 88,306 |
| Attributable to: | |||
| Equity holders of the parent | 1,873,226 | 5,024,140 | 89,305 |
| Non-controlling interests | (37,852) | (56,223) | (999) |
| Other comprehensive income | |||
| Exchange differences on translation of foreign operations | 4,561 | 105,789 | 1,880 |
| Total comprehensive income net of tax | 1,839,935 | 5,073,706 | 90,186 |
| attributable to: | |||
| Equity holders of the parent | 1,883,278 | 5,217,720 | 92,746 |
| Non-controlling interests | (43,343) | (144,014) | (2,560) |
| Earnings per share: | |||
| Basic profit attributable to ordinary equity holders of the parent | 36.00 | 94.09 | 1.67 |
| Diluted profit attributable to ordinary equity holders of the parent | 35.70 | 92.73 | 1.65 |
| __________ | |||
| (1) The amounts shown here do not correspond to the financial statements for the year ended December 31, 2013 and reflect immaterial reclassifications made to prior period to conform to current period presentation. | |||
| (2) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 2014. | |||
| QIWI plc. | |||
| Consolidated Cash Flow Statement | |||
| (in thousands, except per share data) | |||
| Full Year ended | |||
| December 31, 2013 | December 31, 2014 | December 31, 2014 | |
| RUB | RUB | USD(1) | |
| Cash flows from operating activities | |||
| Profit before tax | 2,444,883 | 5,862,423 | 104,206 |
| Adjustments to reconcile profit before income tax to net cash flows generated from operating activities | |||
| Depreciation and amortization | 113,100 | 353,400 | 6,282 |
| Loss/(gain) on disposal of property and equipment | 12,739 | 3,557 | 63 |
| Impairment of investment in associates | 21,540 | 24,634 | 438 |
| Impairment of intangible assets and goodwill | 5,479 | -- | -- |
| Foreign exchange loss, net | (8,021) | (1,930,729) | (34,319) |
| Interest income, net | (346,013) | (412,852) | (7,339) |
| Bad debt expense | 266,711 | 150,633 | 2,678 |
| Share of loss of associates | 78,896 | 26,583 | 473 |
| Share-based payments | 230,937 | 421,822 | 7,498 |
| Other | 4,609 | 14,721 | 262 |
| Operating profit before changes in working capital | 2,824,860 | 4,514,192 | 80,241 |
| (Increase)/decrease in trade and other receivables | 508,751 | (2,745,399) | (48,800) |
| Increase in other assets | (92,553) | (232,422) | (4,131) |
| (Increase)/Decrease in amounts due to customers and amounts due to banks | (102,750) | 170,060 | 3,023 |
| Increase in accounts payable and accruals | 1,593,765 | 3,621,895 | 64,380 |
| Loans (issued)/repaid from banking operations | 257,194 | (35,184) | (625) |
| Cash generated from operations | 4,989,267 | 5,293,142 | 94,087 |
| Interest received | 467,205 | 491,150 | 8,730 |
| Interest paid | (24,194) | (29,114) | (518) |
| Income tax paid | (706,512) | (1,000,002) | (17,775) |
| Net cash flow from operating activities | 4,725,766 | 4,755,176 | 84,524 |
| Cash flow from investing activities | |||
| Acquisitions of shares in subsidiaries, net of cash acquired | (44) | -- | -- |
| Contribution to associates | -- | (26,357) | (469) |
| Payments for assignment of loans | (90,750) | (90,750) | (1,613) |
| Net cash inflow on disposal of subsidiaries | 4,000 | -- | -- |
| Purchase of property and equipment | (182,823) | (294,402) | (5,233) |
| Proceeds from sale of property and equipment | 6,848 | -- | -- |
| Purchase of intangible assets | (192,385) | (218,160) | (3,878) |
| Loans issued | (24,508) | (60,493) | (1,075) |
| Repayment of loans issued | 29,715 | 49,590 | 881 |
| Purchase of debt instruments | (2,862,535) | (2,553,313) | (45,386) |
| Proceeds from settlement of debt instruments | 2,111,902 | 1,591,485 | 28,289 |
| Net cash flow used in investing activities | (1,200,580) | (1,602,400) | (28,483) |
| Cash flows generated from financing activities | |||
| Issue of share capital | -- | 3,044,357 | 54,114 |
| Exercise of options | -- | 5,167 | 92 |
| Proceeds from borrowings | 34,068 | 71,747 | 1,275 |
| Repayment of borrowings | (2,526) | (672) | (12) |
| Transactions with non-controlling interest | -- | 1,783 | 32 |
| Dividends paid to owners of the Group | (1,881,082) | (2,940,714) | (52,272) |
| Dividends paid to non-controlling shareholders | (2,098) | (2,388) | (42) |
| Compensation from underwriters | 72,836 | -- | -- |
| Distribution of underwriters' commission | (67,643) | -- | -- |
| Net cash flow used in/ generated from financing activities | (1,846,445) | 179,280 | 3,187 |
| Effect of exchange rate changes on cash and cash equivalents | 15,012 | 2,110,996 | 37,523 |
| Net decrease in cash and cash equivalents | 1,693,753 | 5,443,052 | 96,752 |
| Cash and cash equivalents at the beginning | 9,943,160 | 11,636,913 | 206,849 |
| Cash and cash equivalents at the end | 11,636,913 | 17,079,965 | 303,601 |
| _______________ | |||
| (1) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 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 (unaudited) | |||
| December 31, 2013(1) | December 31, 2014 | December 31, 2014 | |
| RUB | RUB | USD(2) | |
| Revenue | 3,279 | 4,149 | 73.7 |
| Minus: Cost of revenue (exclusive of depreciation and amortization) | 1,833 | 2,056 | 36.5 |
| Plus: Compensation to employees and related taxes | 255 | 376 | 6.7 |
| Total Adjusted Net Revenue | 1,700 | 2,468 | 43.9 |
| Payment Revenue(3) | 2,679 | 3,161 | 56.2 |
| Minus: Cost of payment revenue (exclusive of depreciation and amortization)(4) | 1,569 | 1,609 | 28.6 |
| Plus: Compensation to employees and related taxes allocated to payment revenue(5) | 195 | 286 | 5.1 |
| Payment Adjusted Net Revenue | 1,305 | 1,838 | 32.7 |
| Other Revenue(6) | 600 | 988 | 17.6 |
| Minus: Cost of other revenue (exclusive of depreciation and amortization)(7) | 263 | 447 | 7.9 |
| Plus: Compensation to employees and related taxes allocated to other revenue(5) | 60 | 90 | 1.6 |
| Other Adjusted Net Revenue | 395 | 630 | 11.2 |
| Payment Adjusted Net Revenue | 1,305 | 1,838 | 32.7 |
| E-commerce | 374 | 648 | 11.5 |
| Financial services | 337 | 487 | 8.7 |
| Money remittances | 158 | 322 | 5.7 |
| Telecom | 341 | 264 | 4.7 |
| Other | 95 | 116 | 2.1 |
| Other Adjusted Net Revenue | 395 | 630 | 11.2 |
| Total Adjusted Net Revenue | 1,700 | 2,468 | 43.9 |
| Net Profit | 495 | 2,008 | 35.7 |
| Plus: | |||
| Depreciation and amortization | 32 | 95 | 1.7 |
| Other income, excluding income from depositary | (4) | (1) | (0.0) |
| Other expenses | 2 | 20 | 0.4 |
| Foreign exchange gain | (10) | (2,130) | (37.9) |
| Foreign exchange loss | 6 | 635 | 11.3 |
| Share of loss of associates | -- | 3 | 0.1 |
| Impairment of investment in associates | -- | -- | -- |
| Interest income | (9) | (1) | (0.0) |
| Interest expenses | 9 | 11 | 0.2 |
| Income tax expenses | 144 | 197 | 3.5 |
| Offering expenses | 8 | (13) | (0.2) |
| Income from depositary(8) | (26) | -- | -- |
| Share-based payments expenses | 85 | 86 | 1.5 |
| Goodwill impairment | -- | -- | -- |
| Adjusted EBITDA | 733 | 911 | 16.2 |
| Adjusted EBITDA margin | 43.1% | 36.9% | 36.9% |
| Net profit | 495 | 2,008 | 35.7 |
| Amortization of fair value adjustments | 6 | 17 | 0.3 |
| Offering expenses | 8 | (13) | (0.2) |
| Income from depositary | (26) | -- | -- |
| Share-based payments expenses | 85 | 86 | 1.5 |
| Goodwill impairment | -- | -- | -- |
| Effect of taxation of the above items | (1) | (4) | (0.1) |
| Foreign Exchange gain on June 2014 offering proceeds(9) | -- | (1,497) | (26.6) |
| Adjusted Net Profit | 567 | 597 | 10.6 |
| Adjusted Net Profit per share: | |||
| Basic | 10.88 | 10.96 | 0.19 |
| Diluted | 10.69 | 10.84 | 0.19 |
| Shares used in computing Adjusted Net Profit per share | |||
| Basic | 52,115 | 54,503 | 54,503 |
| Diluted | 53,032 | 55,117 | 55,117 |
| _______________ |
| (1) The amounts shown here do not correspond to the financial statements for the year ended December 31, 2013 and reflect immaterial reclassifications made to prior period to conform to current period presentation. |
| (2) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 2014. |
| (3) Payment revenue primarily consists of the merchant and consumer fees charged for the payment transactions. |
| (4) 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. |
| (5) 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. |
| (6) Other revenue primarily consists of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, cash and settlement services and advertising. |
| (7) 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. |
| (8) 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. |
| (9) 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) | |||
| Full Year ended | |||
| December 31, 2013(1) | December 31, 2014 | December 31, 2014 | |
| RUB | RUB | USD(2) | |
| Revenue | 11,666 | 14,719 | 261.6 |
| Minus: Cost of revenue (exclusive of depreciation and amortization) | 6,396 | 7,273 | 129.3 |
| Plus: Compensation to employees and related taxes | 898 | 1,391 | 24.7 |
| Total Adjusted Net Revenue | 6,168 | 8,836 | 157.1 |
| Payment Revenue(3) | 9,385 | 11,594 | 206.1 |
| Minus: Cost of payment revenue (exclusive of depreciation and amortization)(4) | 5,789 | 6,174 | 109.8 |
| Plus: Compensation to employees and related taxes allocated to payment revenue(5) | 724 | 1,096 | 19.5 |
| Payment Adjusted Net Revenue | 4,320 | 6,515 | 115.8 |
| Other Revenue(6) | 2,281 | 3,125 | 55.5 |
| Minus: Cost of other revenue (exclusive of depreciation and amortization)(7) | 607 | 1,099 | 19.5 |
| Plus: Compensation to employees and related taxes allocated to other revenue(5) | 174 | 295 | 5.2 |
| Other Adjusted Net Revenue | 1,848 | 2,321 | 41.3 |
| Payment Adjusted Net Revenue | 4,320 | 6,515 | 115.8 |
| E-commerce | 1,207 | 2,006 | 35.7 |
| Financial services | 1,010 | 1,931 | 34.3 |
| Money remittances | 450 | 987 | 17.5 |
| Telecom | 1,332 | 1,169 | 20.8 |
| Other | 322 | 422 | 7.5 |
| Other Adjusted Net Revenue | 1,848 | 2,321 | 41.3 |
| Total Adjusted Net Revenue | 6,168 | 8,836 | 157.1 |
| Net Profit | 1,835 | 4,968 | 88.3 |
| Plus: | |||
| Depreciation and amortization | 113 | 353 | 6.3 |
| Other income, excluding income from depositary | (21) | (4) | (0.1) |
| Other expenses | 20 | 30 | 0.5 |
| Foreign exchange gain | (79) | (3,359) | (59.7) |
| Foreign exchange loss | 71 | 1,428 | 25.4 |
| Share of loss of associates | 79 | 27 | 0.5 |
| Impairment of investment in associates | 22 | 25 | 0.4 |
| Interest income | (22) | (2) | (0.0) |
| Interest expenses | 29 | 42 | 0.7 |
| Income tax expenses | 610 | 895 | 15.9 |
| Offering expenses | 155 | 32 | 0.6 |
| Income from depositary(8) | (71) | (38) | (0.7) |
| Share-based payments expenses | 231 | 422 | 7.5 |
| Goodwill impairment | 5 | -- | -- |
| Adjusted EBITDA | 2,978 | 4,818 | 85.6 |
| Adjusted EBITDA margin | 48.3% | 54.5% | 54.5% |
| Net profit | 1,835 | 4,968 | 88.3 |
| Amortization of fair value adjustments | 22 | 74 | 1.3 |
| Offering expenses | 155 | 32 | 0.6 |
| Income from depositary | (71) | (38) | (0.7) |
| Share-based payments expenses | 231 | 422 | 7.5 |
| Goodwill impairment | 5 | -- | -- |
| Effect of taxation of the above items | (4) | (15) | (0.3) |
| Foreign Exchange gain on June 2014 offering proceeds(9) | -- | (1,947) | (34.6) |
| Adjusted Net Profit | 2,174 | 3,496 | 62.1 |
| Adjusted Net Profit per share: | |||
| Basic | 41.79 | 65.48 | 1.16 |
| Diluted | 41.44 | 64.53 | 1.15 |
| Shares used in computing Adjusted Net Profit per share | |||
| Basic | 52,034 | 53,396 | 53,396 |
| Diluted | 52,469 | 54,179 | 54,179 |
| _____________ |
| (1) The amounts shown here do not correspond to the financial statements for the year ended December 31, 2013 and reflect immaterial reclassifications made to prior period to conform to current period presentation. |
| (2) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 2014. |
| (3) Payment revenue primarily consists of the merchant and consumer fees charged for the payment transactions. |
| (4) 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. |
| (5) 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. |
| (6) Other revenue primarily consists of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, cash and settlement services and advertising. |
| (7) 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. |
| (8) 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. |
| (9) 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 | |||
| December 31, 2013 | December 31, 2014 | December 31, 2014 | |
| RUB | RUB | USD(1) | |
| Payment volume (billion)(2) | 159.3 | 175.2 | 3.1 |
| E-commerce | 17.9 | 21.1 | 0.4 |
| Financial services | 47.4 | 46.6 | 0.8 |
| Money remittances | 12.2 | 21.6 | 0.4 |
| Telecom | 67.6 | 65.5 | 1.2 |
| Other | 14.3 | 20.4 | 0.4 |
| Payment adjusted net revenue (million)(3) | 1,304.9 | 1,837.8 | 32.7 |
| E-commerce | 374.0 | 648.5 | 11.5 |
| Financial services | 336.6 | 487.2 | 8.7 |
| Money remittances | 157.8 | 322.2 | 5.7 |
| Telecom | 341.4 | 263.6 | 4.7 |
| Other | 95.1 | 116.4 | 2.1 |
| Payment average net revenue yield | 0.82% | 1.05% | 1.05% |
| E-commerce | 2.09% | 3.07% | 3.07% |
| Financial services | 0.71% | 1.05% | 1.05% |
| Money remittances | 1.30% | 1.49% | 1.49% |
| Telecom | 0.50% | 0.40% | 0.40% |
| Other | 0.67% | 0.57% | 0.57% |
| Total average Net Revenue Yield | 1.07% | 1.41% | 1.41% |
| Active kiosks and terminals (units)(4) | 168,236 | 181,148 | 181,148 |
| Active Visa Qiwi Wallet accounts(5) | 15.4 | 17.2 | 17.2 |
| ___________ |
| (1) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 2014. |
| (2) Payment volume by market verticals and consolidated payment volume consist of the amounts paid by our customers to merchants included in each of those market verticals less intra-group eliminations. The methodology of payment volumes allocation between different market verticals in QIWI's international operations (including Kazakhstan) 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) We measure the numbers of our kiosks and terminals on a daily basis, with only those kiosks and terminals being taken into calculation through which at least one payment has been processed during the day, which we refer to as active kiosks and terminals. The period end numbers of our kiosks and terminals are calculated as an average of the amount of active kiosks and terminals for the last 30 days of the respective reporting period. |
| (5) 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 | |||
| Full Year ended | |||
| December 31, 2013 | December 31, 2014 | December 31, 2014 | |
| RUB | RUB | USD(1) | |
| Payment volume (billion)(2) | 560.5 | 645.4 | 11.5 |
| E-commerce | 62.9 | 75.2 | 1.3 |
| Financial services | 150.1 | 193.2 | 3.4 |
| Money remittances | 35.6 | 66.7 | 1.2 |
| Telecom | 265.0 | 251.3 | 4.5 |
| Other | 46.9 | 59.0 | 1.0 |
| Payment adjusted net revenue (million)(3) | 4,320.0 | 6,515.0 | 115.8 |
| E-commerce | 1,206.7 | 2,006.1 | 35.7 |
| Financial services | 1,009.5 | 1,931.4 | 34.3 |
| Money remittances | 450.2 | 986.5 | 17.5 |
| Telecom | 1,331.9 | 1,168.7 | 20.8 |
| Other | 321.7 | 422.3 | 7.5 |
| Payment average net revenue yield | 0.77% | 1.01% | 1.0% |
| E-commerce | 1.92% | 2.67% | 2.67% |
| Financial services | 0.67% | 1.00% | 1.00% |
| Money remittances | 1.27% | 1.48% | 1.48% |
| Telecom | 0.50% | 0.47% | 0.47% |
| Other | 0.69% | 0.72% | 0.72% |
| Total average Net Revenue Yield | 1.10% | 1.37% | 1.37% |
| Active kiosks and terminals (units)(4) | 168,236 | 181,148 | 181,148 |
| Active Visa Qiwi Wallet accounts(5) | 15.4 | 17.2 | 17.2 |
| __________ |
| (1) Calculated using a ruble to U.S. dollar exchange rate of RUB 56.2584 to U.S. $1.00, which the official exchange rate was quoted by the Central Bank of the Russian Federation as of December 31, 2014. |
| (2) Payment volume by market verticals consolidated payment volume consist of the amounts paid by our customers to merchants included in each of those market verticals less intra-group eliminations. The methodology of payment volumes allocation between different market verticals in QIWI's international operations (including Kazakhstan) 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) We measure the numbers of our kiosks and terminals on a daily basis, with only those kiosks and terminals being taken into calculation through which at least one payment has been processed during the day, which we refer to as active kiosks and terminals. The period end numbers of our kiosks and terminals are calculated as an average of the amount of active kiosks and terminals for the last 30 days of the respective reporting period. |
| (5) 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. |