QIWI Announces Third Quarter 2022 Financial Results
11/18/2022 - 11:00 AM
NICOSIA, Cyprus, Nov. 18, 2022 (GLOBE NEWSWIRE) -- QIWI plc (NASDAQ and MOEX: QIWI) (“QIWI” or the “Company”), a leading provider of cutting-edge payment and financial services in Russia and the CIS, today announced its financial results for the third quarter ended September 30, 2022.
3Q 2022 key operating and financial highlights 1 2 3Q 2021 3Q 2022 YoY 9M 2021 9M 2022 YoY 3Q 2022 (1) 9M 2022 (1) Consolidated Group results Revenue 11,746 12,955 10.3% 31,793 36,687 15.4% 225.6 639.0 Total Net Revenue 6,419 8,725 35.9% 17,629 25,238 43.2% 152.0 439.6 Adjusted EBITDA 3,834 5,620 46.6% 10,504 16,279 55.0% 97.9 283.5 Adjusted EBITDA margin 59.7 % 64.4 % 4.7 p.p. 59.6 % 64.5 % 4.9 p.p. 64.4 % 64.5 % Profit for the period 8,836 4,619 (47.7% ) 13,423 9,686 (27.8% ) 80.5 168.7 Adjusted Net profit 2,705 4,690 73.4% 7,470 9,980 33.6% 81.6 173.8 Adjusted Net profit margin 42.1 % 53.8 % 11.6 p.p. 42.4 % 39.5 % (2.8 p.p.) 53.7 % 39.5 % Payment Services (PS) PS Net Revenue 5,855 7,574 29.4% 16,295 22,541 38.3% 131.9 392.6 PS Payment Net Revenue 4,856 6,029 24.2% 13,857 17,728 27.9% 105.0 308.8 PS Payment Volume, billion 490 499 1.8 % 1,332 1,355 1.7 % 8.7 23.6 PS Payment Net Revenue Yield 0.99 % 1.21 % 0.2 p.p. 1.04 % 1.31 % 0.3 p.p. 1.21 % 1.31 % PS Other Net Revenue 999 1,545 54.7% 2,438 4,813 97.4% 26.9 83.8 Adjusted Net profit 3,231 4,004 23.9% 8,753 12,605 44.0% 69.7 219.5 Adjusted Net profit margin 55.2 % 52.9 % (2.3 p.p.) 53.7 % 55.9 % 2.2 p.p. 52.9 % 55.9 %
(1) Throughout this release dollar translation is calculated using a rouble to U.S. dollar exchange rate of RUB 57.413 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2022.
Key events after the reported period
QIWI is in the process of acquiring a controlling stake in a digital advertising group with operations in the EMEA3 region. The transaction is expected to amount to less than 10% of the Company’s own available cash. The transaction is subject to antitrust clearance and is expected to close at the end of 4Q 2022.
3Q 2022 results
Net Revenue breakdown by segments 3Q 2021 3Q 2022 YoY 9M 2021 9M 2022 YoY 3Q 2022 9M 2022 Total Net Revenue 6,419 8,725 35.9 % 17,629 25,238 43.2 % 152.0 439.6 Payment Services (PS) 5,855 7,574 29.4 % 16,295 22,541 38.3 % 131.9 392.6 PS Payment Net Revenue 4,856 6,029 24.2 % 13,857 17,728 27.9 % 105.0 308.8 PS Other Net Revenue 999 1,545 54.7 % 2,438 4,813 97.4 % 26.9 83.8 Corporate and Other 564 1,151 104.1 % 1,334 2,697 102.2 % 20.0 47.0
Total Net Revenue increased by 35.9% YoY to RUB 8,725 million ($152.0 million ) driven by strong performance of both Payment Services (PS) and Corporate and Other (CO) segments.
PS Net Revenue increased by 29.4% YoY to RUB 7,574 million driven by a combination of higher PS Payment Net Revenue and PS Other Net Revenue.
_______________________1 Total Net Revenue, adjusted EBITDA, adjusted EBITDA margin, adjusted Net profit, and adjusted Net profit margin in this release are “non-IFRS financial measures”. Please see the section “Non-IFRS Financial Measures and Supplemental Financial Information” for more details as well as a reconciliation to IFRS reported numbers at the end of this release.2 Throughout this release calculations of totals, subtotals and/or percentage change may have small variations due to rounding of decimals.3 Europe, the Middle East and Africa.
PS Payment Net Revenue was 24.2% higher YoY and amounted to RUB 6,029 million ($105.0 million ) resulting from a 22 bps improvement in PS Payment Net Revenue Yield by underpinned by PS Payment volume increase of 2.0% .
PS Payment Volume reached RUB 499.1 billion mainly resulting from the growth of operations via our Contact Money remittances payment system, onboarding of new merchants and aggregators, an increase of payment volume using QIWI Wallet for numerous types of services, and growing payment volume from our product offering for self-employed and peer-to-peer operations.
PS Payment Net Revenue Yield improved from 0.99% to 1.21% due to (i) terminated low-margin TSUPIS operations, (ii) lower third-party processing commissions for payment operations, (iii) improved economics of payouts on the taxi market after the acquisition of Taxiaggregator SaaS platform, and (iv) increased share of operations with higher commissions on currency conversion.
PS Other Net Revenue also increased by 54.7% YoY to RUB 1,545 million mainly due to (i) higher interest income driven by a combination of higher outstanding cash balances and favorable Central Bank base rate, and (ii) increased net revenue derived from cash and settlement services and related currency conversion income.
CO Net Revenue increased by 104.1% YoY to RUB 1,151 million driven by the growth of ROWI digital factoring and online bank guarantees portfolios, and interest income from investments in debt securities (high-quality corporate and government bonds).
Corporate and Other (CO) Net Revenue breakdown 3Q 2021 3Q 2022 YoY 9M 2021 9M 2022 YoY 3Q 2022 9M 2022 CO Net Revenue 564 1,151 104.1 % 1,334 2,697 102.2 % 20.0 47.0 ROWI 295 696 135.6 % 670 1,775 164.8 % 12.1 30.9 Flocktory 152 181 19.0 % 412 466 13.0 % 3.2 8.1 Tochka 126 - (100.0 %) 282 106 (62.5 %) - 1.8 Corporate and Other projects (10 ) 273 2750.4 % (30 ) 351 1268.0 % 4.8 6.1
CO Net Revenue increased by 104.1% YoY to RUB 1,151 million ($20.0 million ) driven by:
ROWI Net Revenue growth by 135.6% YoY to RUB 696 million ($12.1 million ) on further expansion of bank guarantees and factoring portfolios and gross yield appreciation: As of September 30, 2022, the bank guarantees portfolio reached RUB 71.0 billion - an increase of 128% YoY. In 3Q 2022, the average amount of an issued guarantee amounted to RUB 1.1 million. As of September 30, 2022, the factoring portfolio was RUB 11.1 billion or 60% higher YoY. In 3Q 2022, following further expansion of the business, the number of active clients increased by 17% YoY to 695. As of September 30, 2022, the portfolio of online loans for government contracts execution was RUB 2.2 billion. In 3Q 2022, the share of ROWI Net Revenue in Total Net Revenue reached 8.0% growing 3.4 ppts YoY. Flocktory Net Revenue increased by 19.0% YoY to RUB 181 million ($3.2 million ) due to an overall increase of the number of clients and traffic-providers, compound with growth of the average check. Tochka project was closed after the disposal of our stake in the JSC Tochka associate. We continue our collaboration with Tochka on an arm-length basis and provide a bundle of cash settlement services accounted for within PS Other Net Revenue. Corporate and Other projects Net Revenue in 3Q 2022 amounted to RUB 273 million compared to RUB 10 million of loss in 3Q 2021 driven by interest income from (i) investments into debt securities (high-quality corporate and government bonds) and (ii) interest income for provided credits. Operating expenses and other non-operating income and expenses 3Q 2021 3Q 2022 YoY 9M 2021 9M 2022 YoY 3Q 2022 9M 2022 Operating expenses (2,874 ) (3,363 ) 17.0 % (8,005 ) (9,876 ) 23.4 % (58.6 ) (172.0 ) % of Net Revenue (44.8 %) (38.5 %) 6.2 p.p. (45.4 %) (39.1 %) 6.3 p.p. Selling, general and administrative expenses (986 ) (959 ) (2.7% ) (2,147 ) (2,503 ) 16.6% (16.7 ) (43.6 ) % of Net Revenue (15.4 %) (11.0 %) 4.4 p.p. (12.2 %) (9.9 %) 2.3 p.p. Personnel expenses (1,496 ) (1,987 ) 32.8% (4,726 ) (5,662 ) 19.8% (34.6 ) (98.6 ) % of Net Revenue (23.3 %) (22.8 %) 0.5 p.p. (26.8 %) (22.4 %) 4.4 p.p. Depreciation, amortization & impairment (289 ) (258 ) (10.7% ) (872 ) (858 ) (1.6% ) (4.5 ) (14.9 ) % of Net Revenue (4.5 %) (3.0 %) 1.5 p.p. (4.9 %) (3.4 %) 1.5 p.p. Credit loss (expense) (103 ) (159 ) 54.4% (260 ) (853 ) 228.1% (2.8 ) (14.9 ) % of Net Revenue (1.6 %) (1.8 %) (0.2 p.p.) (1.5 %) (3.4 %) (1.9 p.p.) Other non-operating income and expenses excluding gain on disposal of an associate 36 582 1516.7 % 200 (2,117 ) (1158.5 %) 10.1 (36.9 ) % of Net Revenue 0.6 % 6.7 % 6.1 p.p. 1.1 % (8.4 %) (9.5 p.p.) Share of gain of an associate and a joint venture - - 306 - (100.0% ) - - % of Net Revenue 0.0 % 0.0 % 0.0 p.p. 1.7 % 0.0 % (1.7 p.p.) Foreign exchange gain/(loss), net 3 555 18400.0% (39 ) (2,255 ) 5682.1% 9.7 (39.3 ) % of Net Revenue 0.0 % 6.4 % 6.3 p.p. (0.2 %) (8.9 %) (8.7 p.p.) Interest income and expenses, net 2 (7 ) (450.0% ) (25 ) 65 360.0% (0.1 ) 1.1 % of Net Revenue 0.0 % (0.1 %) (0.1 p.p.) (0.1 %) 0.3 % 0.4 p.p. Other income and expenses, net 31 34 (9.7% ) (42 ) 73 273.8% 0.6 1.3 % of Net Revenue 0.5 % 0.4 % (0.1 p.p.) (0.2 %) 0.3 % 0.5 p.p. Gain on disposal of an associate 6,213 - (100.0 %) 6,213 - (100.0 %) - - % of Net Revenue 96.8 % 0.0 % 35.2 % 0.0 %
Operating expenses increased by 17.0% YoY to RUB 3,363 million ($58.6 million ) that is however as a result of Total Net Revenue growth by 35.9% forms a decrease by 6.2 ppts to 38.5% as a percentage of Total Net Revenue demonstrating the positive operating leverage effect.
Selling, general and administrative (SG&A) expenses marginally decreased by 2.7% YoY to RUB 959 million ($16.7 million ) and by 4.4 ppts YoY to 11.0% as a percentage of Total Net Revenue driven by the positive operating leverage effect.
Personnel expenses increased by 32.8% to RUB 1,987 million ($34.6 million ) driven by hiring of new staff for development of new products and strong financial performance resulting in higher accruals for bonuses to employee. At the same time, personnel expenses as a percentage of Total Net Revenue decreased by 0.5 ppts YoY to 22.8% resulting from the positive operating leverage effect.
Credit loss stood at RUB 159 million ($2.8 million ) or 1.8% as a percentage of Total Net Revenue predominantly as a result of further growth of the ROWI’s bank guarantees and factoring portfolios.
Other non-operating income (net) amounted to RUB 582 million ($10.1 million ) compared to RUB 36 million last year primarily due to the foreign exchange gain resulting from the appreciation of the Russian Rouble versus USD and Euro in 3Q 2022.
Income tax expense
Income tax expense increased by 38.3% YoY to RUB 1,325 million ($23.1 million ) in line with Total Net Revenue dynamics. The effective tax rate was 22.3% , an increase by 12.5 ppts YoY due to the absence of the one-off non-taxable gain on sale of an associate that occurred in 3Q 2021.
Profitability results 3Q 2021 3Q 2022 YoY 9M 2021 9M 2022 YoY 3Q 2022 9M 2022 Adjusted EBITDA 3,834 5,620 46.6 % 10,504 16,279 55.0 % 97.9 283.5 Adjusted EBITDA margin, % 59.7 % 64.4 % 4.7 p.p. 59.6 % 64.5 % 4.9 p.p. 64.4 % 64.5 % Adjusted Net Profit 2,705 4,690 73.4 % 7,470 9,980 33.6 % 81.6 173.8 Adjusted Net Profit margin, % 42.1 % 53.8 % 11.6 p.p. 42.4 % 39.5 % (2.8 p.p.) 53.8 % 39.5 % Payment Services 3,231 4,004 23.9% 8,753 12,605 44.0% 69.7 219.5 PS Net Profit margin, % 55.2 % 52.9 % (2.3 p.p.) 53.7 % 55.9 % 2.2 p.p. 52.9 % 55.9 % Corporate and Other (CO) (526 ) 686 230.4% (1,283 ) (2,625 ) (104.6% ) 11.9 (45.7 ) Tochka 5 - (100.0% ) 328 (15 ) (104.5% ) - (0.3 ) ROWI 122 303 147.6% 156 675 332.3% 5.3 11.8 Flocktory (6 ) 63 1094.0% (109 ) 36 133.0% 1.1 0.6 Corporate and Other projects (647 ) 320 149.5% (1,658 ) (3,321 ) (100.3% ) 5.6 (57.8 )
Adjusted EBITDA increased by 46.6% YoY to RUB 5,620 million ($97.9 million ) mainly due to the Total Net Revenue growth by 35.9% . As a result of the positive operating leverage effect Adjusted EBITDA margin improved by 4.7 ppts YoY to 64.4% .
Adjusted Net Profit increased by 73.4% YoY to RUB 4,690 million ($81.6 million ). Adjusted Net Profit margin increased by 11.6 ppts YoY to 53.8% driven by the foreign exchange gain partially offset by the higher income tax expense.
Payment Services Net Profit increased by 23.9% YoY to RUB 4,004 million ($69.7 million ) as a result of PS Net Revenue growth by 29.4% YoY while PS Net Profit margin reduced by 2.3 p.p. YoY mainly due to increase of personnel expenses (describe earlier).
CO Net Profit amounted to RUB 686 million ($11.9 million ) driven primarily by the following factors:
Corporate and Other projects Net Profit amounted to RUB 320 million primarily resulting from the foreign exchange gain. ROWI Net Profit increased to RUB 303 million compared to RUB 122 million in the previous year mainly as a result of its Net Revenue growth by 135.6% YoY. Flocktory Net Profit was RUB 63 million compared to RUB 6 million of loss in the previous year driven by the higher Net Revenue by 19.0% YoY and the rigorous cost control. Guidance
Due to the persisting level of uncertainty and market volatility, we have decided to extend our abstaining from providing guidance on both short- and medium-term perspective. We will update our guidance on expectations if and when more information becomes available.
We encourage investors to review our 2021 Annual Report on Form 20-F in the Caption “Risk Factors” and other reports QIWI files with the U.S. Securities and Exchange Commission for more details on risks.
Dividends and buyback program
Due to the lingering stock market infrastructure issues resulting from the introduction of European sanctions against the Russian National Settlement Depositary, the Company does not see the opportunity to organise the distribution of dividends or repurchase shares with the equal treatment of all existing shareholders. Respectively the Board decided to keep the distribution of dividends under review until changes of the sanction regime in respect of the Russian National Settlement Depositary and has not approved the commencement of the buyback program.
The full impact of sanctions on the Russian economy and other markets where we operate remains unclear and requires caution for the benefit of all shareholders and the Company.
Earnings Conference Call and Audio Webcast
Given the persisting level of uncertainty and market volatility, there will be no conference call or webcast to discuss the results. We welcome all our stakeholders to send any questions related to our business using the contact details available on our investor’s website. We remain available for individual incoming call requests.
About QIWI plc.
QIWI is a leading provider of cutting-edge payment and financial services in Russia and the CIS. We stand at the forefront of fintech innovations to facilitate and secure the digitalization of payments. Our mission is to connect our clients providing unique financial and technological solutions to make the impossible accessible and simple. We offer a wide range of products under several directions: QIWI payment and financial services ecosystem for merchants and B2C clients across digital use-cases, ROWI digital structured financial products for SME, and several other projects.
For the FY 2021 QIWI had revenue of RUB 41.1 billion and an Adjusted EBITDA of RUB 13.2 billion. QIWI's American depositary shares are traded on the NASDAQ and Moscow Exchange (ticker: QIWI).
For more information, visit investor.qiwi.com
Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding expected total net revenue, adjusted net profit and net revenue yield, dividend payments, payment volume growth, growth of physical and virtual distribution channels, trends in each of our market verticals and statements regarding the development of our ROWI and Flocktory businesses, the impact of recent sanctions targeting Russia, the impact of such sanctions on our results of operations, potential further changes in the regulatory regime, and others. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance or achievements of QIWI to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Various factors that could cause actual future results and other future events to differ materially from those estimated by management include, but are not limited to, the macroeconomic conditions of the Russian Federation and in each of the international markets in which we operate, growth in each of our market verticals, competition, the introduction of new products and services and their acceptance by consumers, QIWI’s ability to estimate the market risk and capital risk associated with new projects, a decline in net revenue yield, regulation, QIWI’s ability to grow physical and virtual distribution channels, cyberattacks and security vulnerabilities in QIWI’s products and services, QIWI’s ability to expand geographically, the risk that new projects will not perform in accordance with its expectations and other risks identified under the Caption “Risk Factors” in QIWI’s Annual Report on Form 20-F and in other reports QIWI files with the U.S. Securities and Exchange Commission. QIWI undertakes no obligation to revise any forward-looking statements or to report future events that may affect such forward-looking statements unless QIWI is required to do so by law.
QIWI plc. Consolidated Statement of Financial Position (in millions) As of December 31, As of September 30, As of September 30, 2021 2022 (unaudited) 2022 (unaudited) RUB RUB USD Assets Non-current assets Property and equipment 1,417 1,149 20.0 Goodwill and other intangible assets 10,501 11,174 194.6 Long-term debt securities 1,111 2,750 47.9 Investments in associate - 327 5.7 Long-term loans issued 267 155 2.7 Other non-current assets 812 217 3.8 Deferred tax assets 237 234 4.1 Total non-current assets 14,345 16,006 278.8 Current assets Trade and other receivables 11,576 10,094 175.8 Short-term loans issued 11,270 13,690 238.4 Short-term debt securities 11,976 12,300 214.2 Prepaid income tax 463 277 4.8 Other current assets 1,262 1,111 19.4 Cash and cash equivalents 33,033 40,439 704.4 Total current assets 69,580 77,911 1,357.0 Total assets 83,925 93,917 1,635.8 Equity and liabilities Equity attributable to equity holders of the parent Share capital 1 1 0.02 Additional paid-in capital 1,876 1,876 32.7 Share premium 12,068 12,068 210.2 Other reserves 2,376 2,450 42.7 Retained earnings 26,822 36,084 628.5 Translation reserve 542 457 8.0 Total equity attributable to equity holders of the parent 43,685 52,936 922.0 Non-controlling interests 155 478 8.3 Total equity 43,840 53,414 930.3 Non-current liabilities Long-term debt 4,648 3,943 68.7 Long-term deferred income 717 1,112 19.4 Long-term lease liabilities 334 138 2.4 Other non-current liabilities 80 85 1.5 Deferred tax liabilities 1,376 1,831 31.9 Total non-current liabilities 7,155 7,109 123.8 Current liabilities Trade and other payables 23,365 20,780 361.9 Customer accounts and amounts due to banks 7,635 10,625 185.1 Short-term debt 86 72 1.3 Short-term lease liabilities 308 263 4.6 VAT and other taxes payable 178 356 6.2 Other current liabilities 1,358 1,298 22.6 Total current liabilities 32,930 33,394 581.6 Total equity and liabilities 83,925 93,917 1,635.8
QIWI plc. Consolidated Statement of Comprehensive Income (in millions, except per share data) Three months ended (unaudited) September 30, September 30, September 30, RUB RUB USD Continuing operations Revenue: 11,746 12,955 225.6 Payment processing fees 9,667 9,663 168.3 Interest revenue calculated using the effective interest rate 962 1,697 29.6 Fees from inactive accounts and unclaimed payments 441 387 6.7 Other revenue 676 1,208 21.0 Operating costs and expenses: (8,201 ) (7,593 ) (132.3 ) Cost of revenue (exclusive of items shown separately below) (5,327 ) (4,230 ) (73.7 ) Selling, general and administrative expenses (986 ) (959 ) (16.7 ) Personnel expenses (1,496 ) (1,987 ) (34.6 ) Depreciation and amortization (277 ) (258 ) (4.5 ) Credit loss expense (103 ) (159 ) (2.8 ) Impairment of non-current assets (12 ) - - Profit from operations 3,545 5,362 93.4 Gain on disposal of an associate 6,213 - - Foreign exchange gain/(loss), net 3 555 9.7 Interest income and expenses, net 2 (7 ) (0.1 ) Other income and expenses, net 31 34 0.6 Profit before tax 9,794 5,944 103.5 Income tax expense (958 ) (1,325 ) (23.1 ) Profit for the period 8,836 4,619 80.5 Attributable to: Equity holders of the parent 8,787 4,463 77.7 Non-controlling interests 49 156 2.7 Other comprehensive (loss)/income Other comprehensive income to be reclassified to profit or loss in subsequent periods: Foreign currency translation: Exchange differences on translation of foreign operations 10 (177 ) (3.1 ) Debt securities at fair value through other comprehensive income (FVOCI): Net gain/(loss) arising during the period, net of tax (21 ) (121 ) (2.1 ) Net gain recycled to profit or loss upon disposal (2 ) - - Total other comprehensive income, net of tax (13 ) (298 ) (5.2 ) Total comprehensive income, net of tax 8,823 4,321 75.3 Attributable to: Equity holders of the parent 8,774 4,160 72.5 Non-controlling interests 49 161 2.8 Earnings per share: Basic, earnings attributable to ordinary equity holders of the parent 140.71 71.17 1.24 Diluted, earnings attributable to ordinary equity holders of the parent 140.71 71.17 1.24
QIWI plc. Consolidated Statement of Comprehensive Income (in millions, except per share data) Nine months ended (unaudited) September 30, September 30, September 30, RUB RUB USD Continuing operations Revenue: 31,793 36,687 639.0 Payment processing fees 26,444 27,450 478.1 Interest revenue calculated using the effective interest rate 2,305 5,078 88.4 Fees from inactive accounts and unclaimed payments 1,295 1,278 22.3 Other revenue 1,749 2,881 50.2 Operating costs and expenses: (22,169 ) (21,325 ) (371.4 ) Cost of revenue (exclusive of items shown separately below) (14,164 ) (11,449 ) (199.4 ) Selling, general and administrative expenses (2,147 ) (2,503 ) (43.6 ) Personnel expenses (4,726 ) (5,662 ) (98.6 ) Depreciation and amortization (848 ) (822 ) (14.3 ) Credit loss expense (260 ) (853 ) (14.9 ) Impairment of non-current assets (24 ) (36 ) (0.6 ) Profit from operations 9,624 15,362 267.6 Gain on disposal of an associate 6,213 - - Share of gain of an associate and a joint venture 306 - - Foreign exchange loss, net (39 ) (2,255 ) (39.3 ) Interest income and expenses, net (25 ) 65 1.1 Other income and expenses, net (42 ) 73 1.3 Profit before tax 16,037 13,245 230.7 Income tax expense (2,614 ) (3,559 ) (62.0 ) Profit for the period 13,423 9,686 168.7 Attributable to: Equity holders of the parent 13,348 9,262 161.3 Non-controlling interests 75 424 7.4 Other comprehensive income Other comprehensive income to be reclassified to profit or loss in subsequent periods: Foreign currency translation: Exchange differences on translation of foreign operations (14 ) (101 ) (1.8 ) Debt securities at fair value through other comprehensive income (FVOCI): Net gain/(loss) arising during the period, net of tax (21 ) (11 ) (0.2 ) Net gain recycled to profit or loss upon disposal (2 ) - - Total other comprehensive income/(loss), net of tax (37 ) (112 ) (2.0 ) Total comprehensive income, net of tax 13,386 9,574 166.8 Attributable to: Equity holders of the parent 13,311 9,166 159.7 Non-controlling interests 75 408 7.1 Earnings per share: Basic, earnings attributable to ordinary equity holders of the parent 213.81 147.98 2.58 Diluted, earnings attributable to ordinary equity holders of the parent 213.72 147.98 2.58
QIWI plc. Consolidated Statement of Cash Flows (in millions) Nine months ended (unaudited) September 30, September 30, September 30, RUB RUB USD(1) Operating activities Profit before tax 16,037 13,245 230.7 Adjustments to reconcile profit before tax to net cash flows (used in) /generated from operating activities Depreciation and amortization 848 822 14.3 Foreign exchange loss, net 39 2,255 39.3 Interest income, net (1,898 ) (4,787 ) (83.4 ) Credit loss expense 260 853 14.9 Share of gain of an associate and a joint venture (306 ) - - Gain on disposal of an associate (6,213 ) - - Impairment of non-current assets 24 36 0.6 Other (29 ) 83 1.4 Net cash flow generated from operating activities before changes in working capital 8,762 12,507 217.8 Changes in operating assets and liabilities: Decrease/(Increase) in trade and other receivables 2,125 (3,592 ) (62.6 ) Decrease in other assets 86 103 1.8 (Decrease)/increase in customer accounts and amounts due to banks (4,163 ) 4,832 84.2 Decrease in accounts payable and accruals (10,444 ) (5,354 ) (93.3 ) Increase in other liabilities 1,142 409 7.1 Increase in loans issued from banking operations (2,418 ) (2,561 ) (44.6 ) Cash (used in)/ generated from operations (4,910 ) 6,344 110.5 Interest received 2,579 5,480 95.4 Interest paid (428 ) (399 ) (6.9 ) Income tax paid (2,167 ) (2,840 ) (49.5 ) Net cash flow (used in)/generated from operating activities (4,926 ) 8,585 149.5 Investing activities Cash paid as investments in associates - (660 ) (11.5 ) Cash used in business combinations (10 ) (304 ) (5.3 ) Proceeds from sale of an associate 4,947 4,855 84.6 Purchase of property and equipment (208 ) (173 ) (3.0 ) Purchase of intangible assets (122 ) (147 ) (2.6 ) Proceeds from sale of fixed and intangible assets 12 9 0.2 Loans issued (23 ) (7 ) (0.1 ) Repayment of loans issued 12 34 0.6 Purchase of debt securities (8,058 ) (4,509 ) (78.5 ) Proceeds from sale and redemption of debt instruments 2,885 2,391 41.6 Dividends received from an associate 532 - - Net cash flow generated from investing activities (33 ) 1,489 25.9 Financing activities Repayment of debt (649 ) (717 ) (12.5 ) Payment of principal portion of lease liabilities (270 ) (216 ) (3.8 ) Dividends paid to owners of the Group (3,822 ) - - Dividends paid to non-controlling shareholders (64 ) (124 ) (2.2 ) Net cash flow used in financing activities (4,805 ) (1,057 ) (18.4 ) Effect of exchange rate changes on cash and cash equivalents (140 ) (1,611 ) (28.1 ) Net (decrease)/increase in cash and cash equivalents (9,904 ) 7,406 129.0 Cash and cash equivalents at the beginning of the period 47,382 33,033 575.4 Cash and cash equivalents at the end of the period 37,478 40,439 704.4
Non-IFRS Financial Measures and Supplemental Financial Information
This release presents Total Net Revenue, PS Payment Net Revenue, PS Other 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 Net Revenue, PS Payment Net Revenue and PS Other Net Revenue; Net Profit, in the case of Adjusted EBITDA and Adjusted Net Profit, and earnings per share, in the case of Adjusted Net Profit per share, each prepared in accordance with IFRS.
Furthermore, because these non-IFRS financial measures are not determined in accordance with IFRS, they are susceptible to varying calculations and may not be comparable to other similarly titled measures presented by other companies. QIWI encourages investors and others to review our financial information in its entirety and not rely on a single financial measure. For more information regarding Total Net Revenue, PS Payment Net Revenue, PS Other Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit, and Adjusted Net Profit per share, including a quantitative reconciliation of Total Net Revenue, PS Payment Net Revenue, PS Other Net Revenue, Adjusted EBITDA and Adjusted Net Profit to the most directly comparable IFRS financial performance measures, which is revenue in the case of Total Net Revenue, PS Payment Net Revenue and PS Other Net Revenue, and Net Profit in the case of Adjusted EBITDA and Adjusted Net Profit, see Reconciliation of IFRS to Non-IFRS Operating Results in this earnings release.
We define non-IFRS financial measures as follows:
“Total Net Revenue” is calculated by subtracting cost of revenue from revenue. “Adjusted EBITDA” as Net profit plus/(less): (1) depreciation and amortization, (2) other expenses/(income), (3) foreign exchange loss/(gain), (4) share of loss/(gain) of associates and joint ventures, (5) interest expenses/ (income), (6) income tax expenses, (7) share-based payment expenses, (8) impairment of non-current assets, (9) loss/(gain) on disposal of an associate. “Adjusted Net profit” as Net profit plus/(less): (1) fair value adjustments recorded on business combinations and their amortization, (2) impairment of non-current assets, (3) share-based payment expenses, (4) loss/(gain) on disposal of an associate, (5) effect of taxation of the above items. “Adjusted EBITDA Margin” as Adjusted EBITDA divided by Total Net Revenue. “Adjusted Net profit Margin” as Adjusted Net profit divided by Total Net Revenue. Total Net Revenue
Adjusted EBITDA
Adjusted Net Profit
Payment Services segment payment volume
Payment Services segment net revenue yield.
We define the above measures as follows:
PS Payment Net Revenue is the Net Revenue comprising the merchant and consumer fees collected for the payment transactions. PS Other Net Revenue primarily comprises revenue from fees for inactive accounts and unclaimed payments, interest revenue, cash and settlement services and related conversion income, fees for intercompany and third-party funding, and advertising fees. QIWI plc. Reconciliation of IFRS to Non-IFRS Operating Results (in millions, except per share data) Three months ended (unaudited) September 30, September 30, September 30, RUB RUB USD Revenue 11,746 12,955 225.6 Minus: Cost of revenue (exclusive of depreciation and amortization) 5,327 4,230 73.7 Total Net Revenue 6,419 8,725 152.0 Segment Net Revenue Payment Services Segment Revenue 10,902 11,435 199.2 PS Payment Revenue(1) 9,667 9,663 168.3 Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(2) 4,811 3,634 63.3 PS Payment Adjusted Net Revenue 4,856 6,029 105.0 PS Other Revenue(3) 1,235 1,772 30.9 Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(4) 236 227 3.9 PS Other Adjusted Net Revenue 999 1,545 26.9 Payment Services Segment Net Revenue 5,855 7,574 131.9 Corporate and Other Category Revenue 844 1,520 26.5 Minus: Cost of CO revenue (exclusive of depreciation and amortization) 280 369 6.4 Corporate and Other Category Net Revenue 564 1,151 20.0 Total Segment Net Revenue 6,419 8,725 152.0 Profit for the period 8,836 4,619 80.5 Plus: Depreciation and amortization 277 258 4.5 Other income and expenses, net (31 ) (34 ) (0.6 ) Foreign exchange (gain)/loss, net (3 ) (555 ) (9.7 ) Gain on disposal of an associate (6,213 ) - - Interest income and expenses, net (2 ) 7 0.1 Income tax expenses 958 1,325 23.1 Impairment of non-current assets 12 - - Adjusted EBITDA 3,834 5,620 97.9 Adjusted EBITDA margin 59.7 % 64.4 % 64.4 % Profit for the period 8,836 4,619 80.5 Fair value adjustments recorded on business combinations and their amortization(5) 84 85 1.5 Impairment of non-current assets 12 - - Gain on disposal of an associate (6,213 ) - - Effect of taxation of the above items (14 ) (14 ) (0.2 ) Adjusted Net Profit 2,705 4,690 81.6 Adjusted Net Profit per share: Basic 43.32 74.79 1.30 Diluted 43.32 74.79 1.30 Weighted-average number of shares used in computing Adjusted Net Profit per share: Basic 62,449 62,713 62,713 Diluted 62,449 62,713 62,713
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(1) PS Payment Revenue represents payment processing fees, which primarily consists of the merchant and consumer fees charged for the payment transactions.
QIWI plc. Reconciliation of IFRS to Non-IFRS Operating Results (in millions, except per share data) Nine months ended (unaudited) September 30, September 30, September 30, RUB RUB USD Revenue 31,793 36,687 639.0 Minus: Cost of revenue (exclusive of depreciation and amortization) 14,164 11,449 199.4 Total Net Revenue 17,629 25,238 439.6 Segment Net Revenue Payment Services Segment Revenue 29,594 33,019 575.1 PS Payment Revenue(1) 26,444 27,450 478.1 Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(2) 12,587 9,722 169.3 PS Payment Adjusted Net Revenue 13,857 17,728 308.8 PS Other Revenue(3) 3,150 5,569 97.0 Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(4) 712 756 13.2 PS Other Adjusted Net Revenue 2,438 4,813 83.8 Payment Services Segment Net Revenue 16,295 22,541 392.6 Corporate and Other Category Revenue 2,199 3,668 63.9 Minus: Cost of CO revenue (exclusive of depreciation and amortization) 865 971 16.9 Corporate and Other Category Net Revenue 1,334 2,697 47.0 Total Segment Net Revenue 17,629 25,238 439.6 Profit for the period 13,423 9,686 168.7 Plus: Depreciation and amortization 848 822 14.3 Other income and expenses, net 42 (73 ) (1.3 ) Foreign exchange (gain)/loss, net 39 2,255 39.3 Gain on disposal of an associate (6,213 ) - - Share of gain of an associate and a joint venture (306 ) - - Interest income and expenses, net 25 (65 ) (1.1 ) Income tax expenses 2,614 3,559 62.0 Share-based payment expenses 8 59 1.0 Impairment of non-current assets 24 36 0.6 Adjusted EBITDA 10,504 16,279 283.5 Adjusted EBITDA margin 59.6 % 64.5 % 64.5 % Profit for the period 13,423 9,686 168.7 Fair value adjustments recorded on business combinations and their amortization(5) 252 266 4.6 Impairment of non-current assets 24 36 0.6 Share-based payment expenses 8 59 1.0 Gain on disposal of an associate (6,213 ) - - Effect of taxation of the above items (24 ) (67 ) (1.2 ) Adjusted Net Profit 7,470 9,980 173.8 Adjusted Net Profit per share: Basic 119.66 159.45 2.78 Diluted 119.62 159.45 2.78 Weighted-average number of shares used in computing Adjusted Net Profit per share: Basic 62,428 62,588 62,588 Diluted 62,449 62,588 62,588
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(1) PS Payment Revenue represents payment processing fees, which primarily consists of the merchant and consumer fees charged for the payment transactions.
