2Q 2022 key operating and financial highlights1
2Q 2021 | 2Q 2022 | 1H 2021 | 1H 2022 | 2Q 2022 | 1H 2022 | ||||||||||||||
RUB million | RUB million | YoY | RUB million | RUB million | YoY | USD million(1) | USD million(1) | ||||||||||||
Revenue | 10,813 | 14,015 | 29.6 | % | 20,047 | 23,732 | 18.4 | % | 274.0 | 463.9 | |||||||||
Total Net Revenue | 6,049 | 10,208 | 68.8 | % | 11,210 | 16,513 | 47.3 | % | 199.5 | 322.8 | |||||||||
Adjusted EBITDA | 3,850 | 6,972 | 81.1 | % | 6,670 | 10,659 | 59.8 | % | 136.3 | 208.4 | |||||||||
Adjusted EBITDA margin | 63.6 | % | 68.3 | % | 4.7 p.p. | 59.5 | % | 64.5 | % | 5.0 p.p. | 68.3 | % | 64.5 | % | |||||
Profit for the period | 2,633 | 2,810 | 6.7 | % | 4,587 | 5,067 | 10.5 | % | 54.9 | 99.0 | |||||||||
Adjusted Net profit | 2,704 | 2,964 | 9.6 | % | 4,765 | 5,290 | 11.0 | % | 57.8 | 103.4 | |||||||||
Adjusted Net profit margin | 44.7 | % | 29.0 | % | (15.7 p.p.) | 42.5 | % | 32.0 | % | (10.5 p.p.) | 29.0 | % | 32.0 | % | |||||
PS Net Revenue | 5,678 | 9,318 | 64.1 | % | 10,440 | 14,967 | 43.4 | % | 182.1 | 292.6 | |||||||||
PS Payment Net Revenue | 4,933 | 7,579 | 53.6 | % | 9,001 | 11,699 | 30.0 | % | 148.1 | 228.7 | |||||||||
PS Payment Volume, billion | 458 | 500 | 9.2 | % | 842 | 856 | 1.7 | % | 9.8 | 16.7 | |||||||||
Payment Services (PS) | PS Payment Net Revenue Yield | 1.08 | % | 1.52 | % | 0.4 p.p. | 1.07 | % | 1.37 | % | 0.3 p.p. | 1.52 | % | 1.37 | % | ||||
PS Other Net Revenue | 745 | 1,739 | 133.3 | % | 1,439 | 3,268 | 127.1 | % | 34.0 | 63.9 | |||||||||
Adjusted Net profit | 3,042 | 5,572 | 83.2 | % | 5,522 | 8,601 | 55.8 | % | 108.9 | 168.1 | |||||||||
Adjusted Net profit margin | 53.6 | % | 59.8 | % | 6.2 p.p. | 52.9 | % | 57.5 | % | 4.6 p.p. | 59.8 | % | 57.5 | % | |||||
(1) Throughout this release dollar translation is calculated using a rouble to
Key events in 2Q 2022 and after the reported period
Dalliance Services Company , a company wholly owned by Mr.Sergey Solonin , the Company’s controlling shareholder and Chairman of the Company’s Board of directors, purchased 4,861,390 ADSs represented by Class B ordinary shares via a tender offer2.QIWI announced the results of the Annual General Shareholders Meeting3 held onSeptember 21, 2022 . Following the election and appointment of Mr.Alexey Ivanov , Mr. Alexey Blagirev, and Mr.Alexey Solovyev to the office of Independent Directors of the Company and its Audit Committee,QIWI regained compliance with Nasdaq’s audit committee requirement as set forth in the Nasdaq Listing Rule 5605(c)(2).
2Q 2022 results
Net Revenue breakdown by segments | |||||||||||
2Q 2021 | 2Q 2022 | 1H 2021 | 1H 2022 | 2Q 2022 | 1H 2022 | ||||||
RUB million | RUB million | YoY | RUB million | RUB million | YoY | USD million | USD million | ||||
Total Net Revenue | 6,049 | 10,208 | 68.8 | % | 11,210 | 16,513 | 47.3 | % | 199.5 | 322.8 | |
Payment Services (PS) | 5,678 | 9,318 | 64.1 | % | 10,440 | 14,967 | 43.4 | % | 182.1 | 292.6 | |
PS Payment Net Revenue | 4,933 | 7,579 | 53.6 | % | 9,001 | 11,699 | 30.0 | % | 148.1 | 228.7 | |
PS Other Net Revenue | 745 | 1,739 | 133.3 | % | 1,439 | 3,268 | 127.1 | % | 34.0 | 63.9 | |
Corporate and Other | 371 | 890 | 139.9 | % | 770 | 1,546 | 100.8 | % | 17.4 | 30.2 | |
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 reconciliation at the end of this release.
2 https://investor.qiwi.com/results-and-reports/sec-filings/4290003
3 Please see AGM results by the following link: https://investor.qiwi.com/news-and-events/press-releases/4208566/
Total Net Revenue increased by 68.8% YoY to
PS Net Revenue increased by 64.1% YoY to
PS Payment Net Revenue increased by 53.6% YoY and amounted to
PS Payment Volume reached
PS Payment Net Revenue Yield improved to 1.52% due to (i) terminated low-margin TSUPIS operations, (ii) lower processing commissions for payment operations, (iii) improved economics of payouts on the taxi market post acquisition of Taxiaggregator SaaS platform, and (iv) increased share of operations with higher commissions on currency conversion.
PS Other Net Revenue also increased demonstrating 133.3% YoY growth up to
Corporate and Other Net Revenue increased by 139.9% to
Corporate and Other (CO) Net Revenue breakdown
2Q 2021 | 2Q 2022 | 1H 2021 | 1H 2022 | 2Q 2022 | 1H 2022 | ||||||||
RUB million | RUB million | YoY | RUB million | RUB million | YoY | USD million | USD million | ||||||
CO Net Revenue | 371 | 890 | 139.9 | % | 770 | 1,546 | 100.8 | % | 17.4 | 30.2 | |||
ROWI | 181 | 709 | 292.0 | % | 375 | 1,078 | 187.9 | % | 13.9 | 21.1 | |||
Flocktory | 127 | 127 | (0.0 | %) | 260 | 284 | 9.5 | % | 2.5 | 5.6 | |||
Tochka | 74 | - | (100.0 | %) | 155 | 106 | (32.1 | %) | - | 2.1 | |||
Corporate and Other projects | (11 | ) | 54 | 589.7 | % | (20 | ) | 78 | 494.6 | % | 1.0 | 3.6 | |
CO Net Revenue increased by 139.9% YoY to
- ROWI Net Revenue growth by 292.0% YoY to
RUB 709 million ($13.9 million ) on further expansion of bank guarantees and factoring portfolios, development of new products and gross yield appreciation:- As of
June 30, 2022 , bank guarantees portfolio reachedRUB 62.5 billion - an increase of 152% YoY. In 2Q 2022, average amount of an issued guarantee increased by 5% YoY toRUB 1.1 million . - As of
June 30, 2022 , factoring portfolio wasRUB 10.5 billion or 99% higher YoY. In 2Q 2022, following further expansion of the business, the number of active clients increased by 35% YoY to 676. - As of
June 30, 2022 , the portfolio of online loans for government contracts execution wasRUB 2.2 billion (the new product was launched in 3Q 2021). - In 2Q 2022, share of ROWI Net Revenue in Total Net Revenue reached 6.9%.
- As of
- Flocktory Net Revenue remained flat at
RUB 127 million ($2.5 million ) as a result of growth slowdown in number of clients and traffic-providers using Flocktory’s platform and marketing services driven by temporary suspension of advertising campaigns caused by geopolitical situation. - 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 in the PS Other Net Revenue.
- Corporate and Other projects Net Revenue in 2Q 2022 amounted to
RUB 54 million ($1.0 million ) compared toRUB 11 million of loss for the same period of last year.
Operating expenses and other non-operating income and expenses
2Q 2021 | 2Q 2022 | 1H 2021 | 1H 2022 | 2Q 2022 | 1H 2022 | ||||||||||||
RUB million | RUB million | YoY | RUB million | RUB million | YoY | USD million | USD million | ||||||||||
Operating expenses | (2,486 | ) | (3,618 | ) | 45.5 | % | (5,131 | ) | (6,513 | ) | 26.9 | % | (70.7 | ) | (127.3 | ) | |
% of Net Revenue | (41.1 | %) | (35.4 | %) | 5.7 p.p. | (45.8 | %) | (39.4 | %) | 6.3 p.p. | |||||||
Selling, general and administrative expenses | (612 | ) | (773 | ) | 26.3 | % | (1,161 | ) | (1,544 | ) | 33.0 | % | (15.1 | ) | (30.2 | ) | |
% of Net Revenue | (10.1 | %) | (7.6 | %) | 2.5 p.p. | (10.4 | %) | (9.4 | %) | 1.0 p.p. | |||||||
Personnel expenses | (1,525 | ) | (2,002 | ) | 31.3 | % | (3,230 | ) | (3,675 | ) | 13.8 | % | (39.1 | ) | (71.8 | ) | |
% of Net Revenue | (25.2 | %) | (19.6 | %) | 5.6 p.p. | (28.8 | %) | (22.3 | %) | 6.6 p.p. | |||||||
Depreciation, amortization & impairment | (285 | ) | (323 | ) | 13.3 | % | (583 | ) | (600 | ) | 2.9 | % | (6.3 | ) | (11.7 | ) | |
% of Net Revenue | (4.7 | %) | (3.2 | %) | 1.5 p.p. | (5.2 | %) | (3.6 | %) | 1.6 p.p. | |||||||
Credit loss (expense) | (64 | ) | (520 | ) | 712.5 | % | (157 | ) | (694 | ) | 342.0 | % | (10.2 | ) | (13.6 | ) | |
% of Net Revenue | (1.1 | %) | (5.1 | %) | (4.0 p.p.) | (1.4 | %) | (4.2 | %) | (2.8 p.p.) | |||||||
Other non-operating income and expenses excluding gain on disposal of an associate | 11 | (2,347 | ) | (21436.4 | %) | 164 | (2,699 | ) | (1745.7 | %) | (45.9 | ) | (52.8 | ) | |||
% of Net Revenue | 0.2 | % | (23.0 | %) | (23.2 p.p.) | 1.5 | % | (16.3 | %) | (17.8 p.p.) | |||||||
Share of gain of an associate and a joint venture | 141 | - | (100.0 | %) | 306 | - | (100.0 | %) | - | - | |||||||
% of Net Revenue | 2.3 | % | 0.0 | % | (2.3 p.p.) | 2.7 | % | 0.0 | % | (2.7 p.p.) | |||||||
Foreign exchange loss, net | (50 | ) | (2,369 | ) | 4638.0 | % | (42 | ) | (2,810 | ) | 6590.5 | % | (46.3 | ) | (54.9 | ) | |
% of Net Revenue | (0.8 | %) | (23.2 | %) | (22.4 p.p.) | (0.4 | %) | (17.0 | %) | (16.6 p.p.) | |||||||
Interest income and expenses, net | (15 | ) | 4 | 126.7 | % | (27 | ) | 72 | 366.7 | % | 0.1 | 1.4 | |||||
% of Net Revenue | (0.2 | %) | 0.0 | % | 0.3 p.p. | (0.2 | %) | 0.4 | % | 0.7 p.p. | |||||||
Other income and expenses, net | (65 | ) | 18 | 127.7 | % | (73 | ) | 39 | 153.4 | % | 0.4 | 0.8 | |||||
% of Net Revenue | (1.1 | %) | 0.2 | % | 1.3 p.p. | (0.7 | %) | 0.2 | % | 0.9 p.p. | |||||||
Operating expenses increased by 45.5% YoY to
Selling, general and administrative (SG&A) expenses increased by 26.3% to
Personnel expenses increased by 31.3% to
Credit loss increased by
Other non-operating expenses (net) amounted to
Income tax expense
Income tax expense increased by 52.3% YoY to
Profitability results
2Q 2021 | 2Q 2022 | 1H 2021 | 1H 2022 | 2Q 2022 | 1H 2022 | ||||||||||||
RUB million | RUB million | YoY | RUB million | RUB million | YoY | USD million | USD million | ||||||||||
Adjusted EBITDA | 3,850 | 6,972 | 81.1 | % | 6,670 | 10,659 | 59.8 | % | 136.3 | 208.4 | |||||||
Adjusted EBITDA margin, % | 63.6 | % | 68.3 | % | 4.7 p.p. | 59.5 | % | 64.5 | % | 5.0 p.p. | 68.3 | % | 64.5 | % | |||
Adjusted Net Profit | 2,704 | 2,964 | 9.6 | % | 4,765 | 5,290 | 11.0 | % | 57.8 | 103.4 | |||||||
Adjusted Net Profit margin, % | 44.7 | % | 29.0 | % | (15.7 p.p.) | 42.5 | % | 32.0 | % | (10.5 p.p.) | 29.0 | % | 32.0 | % | |||
Payment Services | 3,042 | 5,572 | 83.2 | % | 5,522 | 8,601 | 55.8 | % | 108.9 | 168.1 | |||||||
PS Net Profit margin, % | 53.6 | % | 59.8 | % | 6.2 p.p. | 52.9 | % | 57.5 | % | 4.6 p.p. | 59.8 | % | 57.5 | % | |||
Corporate and Other (CO) | (338 | ) | (2,608 | ) | 671.6 | % | (757 | ) | (3,311 | ) | 337.4 | % | (51.0 | ) | (64.7 | ) | |
Tochka | 132 | - | (100.0 | %) | 323 | (15 | ) | (104.6 | %) | - | (0.3 | ) | |||||
ROWI | 54 | 321 | 493.9 | % | 34 | 372 | 999.9 | % | 6.3 | 7.3 | |||||||
Flocktory | 17 | (56 | ) | (436.2 | %) | (103 | ) | (27 | ) | 73.6 | % | (1.1 | ) | (0.5 | ) | ||
Corporate and Other projects | (540 | ) | (2,873 | ) | 431.6 | % | (1,011 | ) | (3,641 | ) | 260.1 | % | (56.2 | ) | (71.2 | ) | |
Adjusted EBITDA increased by 81.1% YoY to
Adjusted Net Profit increased by 9.6% YoY to
Payment Services Net Profit increased by 83.2% YoY to
CO Net Loss amounted to
- Corporate and Other projects Net Loss increased to
RUB 2,873 million primarily resulting from a foreign exchange loss due to significant appreciation of Rouble versus USD and Euro. - ROWI Net Profit increased to
RUB 321 million compared toRUB 54 million in the previous year as a result of its Net Revenue growth by 292.0% YoY. - Flocktory Net Loss was
RUB 56 million compared toRUB 17 million of income in the previous year driven by (i) foreign exchange loss due to appreciation of Rouble versus USD and Euro, and (ii) higher personnel expenses. - Absence of equity pick-up for investment in Tochka project as a result of the sale of
QIWI stake in associate in 2021.
Consolidated cash flow statement
1H 2021 | 1H 2022 | 1H 2022 | |||||||
RUB million | RUB million | YoY | USD million | ||||||
Net cash generated from operating activities before changes in working capital | 5,663 | 8,271 | 46.1 | % | 161.7 | ||||
Change in working capital | (14,131 | ) | (4,569 | ) | 67.7 | % | (89.3 | ) | |
Net interest income received and income tax paid | (254 | ) | 2,253 | 987.0 | % | 44.0 | |||
Net cash flow received from/(used in) operating activities | (8,722 | ) | 5,955 | 168.3 | % | 116.4 | |||
Net cash flow generated from investing activities | 837 | 2,692 | 221.6 | % | 52.6 | ||||
Net cash flow used in financing activities | (3,533 | ) | (532 | ) | 84.9 | % | (10.4 | ) | |
Effect of change in ECL and exchange rate changes on cash and cash equivalents | (111 | ) | (2,078 | ) | (1772.1 | %) | (40.6 | ) | |
Net (decrease)/increase in cash and cash equivalents | (11,529 | ) | 6,037 | 152.4 | % | 118.0 | |||
Cash and cash equivalents at the beginning of the period | 47,382 | 33,033 | (30.3 | %) | 645.7 | ||||
Cash and cash equivalents at the end of the period | 35,853 | 39,070 | 9.0 | % | 763.7 | ||||
Net cash generated from operating activities before changes in working capital for 1H 2022 increased by 46.1% YoY to
Net cash flow generated from operating activities was
In 1H 2022, net interest received offset income tax paid resulting in
Net cash flow generated from investing activities was
Net cash flow used in financing activities decreased to RUB 532 million (
In 1H 2022, the adverse effect of exchange rate changes on cash and cash equivalents was
As a result of factors described above cash and cash equivalents as of
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 on guidance expectations in the course of the year 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
Dividends
Although to date our financial position remains strong, the Board continues to keep the payment of future dividends under review and will update shareholders through further announcements as appropriate.
Currently, there are also technical complications for the distribution of dividends, for example, existing
Results of the tender offer arranged by a third party
Earnings Conference Call and Audio Webcast
The conference call and webcast to discuss the results will not be held. 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
For the FY 2021
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
Consolidated Statement of Financial Position
(in millions)
As of | As of | As of | |||
2021 | 2022 (unaudited) | 2022 (unaudited) | |||
RUB | RUB | USD | |||
Assets | |||||
Non-current assets | |||||
Property and equipment | 1,417 | 1,220 | 23.8 | ||
10,501 | 11,185 | 218.6 | |||
Long-term debt securities | 1,111 | - | 0.0 | ||
Long-term loans issued | 267 | 322 | 6.3 | ||
Other non-current assets | 812 | 226 | 4.4 | ||
Deferred tax assets | 237 | 221 | 4.3 | ||
Total non-current assets | 14,345 | 13,174 | 257.5 | ||
Current assets | |||||
Trade and other receivables | 11,576 | 8,304 | 162.3 | ||
Short-term loans issued | 11,270 | 12,680 | 247.9 | ||
Short-term debt securities | 11,976 | 14,972 | 292.7 | ||
Prepaid income tax | 463 | 94 | 1.8 | ||
Other current assets | 1,262 | 736 | 14.4 | ||
Cash and cash equivalents | 33,033 | 39,070 | 763.7 | ||
Total current assets | 69,580 | 75,856 | 1,482.8 | ||
Total assets | 83,925 | 89,030 | 1,740.3 | ||
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 | 36.7 | ||
Share premium | 12,068 | 12,068 | 235.9 | ||
Other reserve | 2,376 | 2,571 | 50.3 | ||
Retained earnings | 26,822 | 31,621 | 618.1 | ||
Translation reserve | 542 | 639 | 12.5 | ||
Total equity attributable to equity holders of the parent | 43,685 | 48,776 | 953.4 | ||
Non-controlling interests | 155 | 335 | 6.5 | ||
Total equity | 43,840 | 49,111 | 960.0 | ||
Non-current liabilities | |||||
Long term debt | 4,648 | 4,258 | 83.2 | ||
Long-term deferred income | 717 | 1,135 | 22.2 | ||
Long-term lease liabilities | 334 | 294 | 5.7 | ||
Other non-current liabilities | 80 | 47 | 0.9 | ||
Deferred tax liabilities | 1,376 | 1,750 | 34.2 | ||
Total non-current liabilities | 7,155 | 7,484 | 146.3 | ||
Current liabilities | |||||
Trade and other payables | 23,365 | 20,564 | 402.0 | ||
Customer accounts and amounts due to banks | 7,635 | 9,562 | 186.9 | ||
Short-term debt | 86 | 77 | 1.5 | ||
Short-term lease liability | 308 | 263 | 5.1 | ||
VAT and other taxes payable | 178 | 254 | 5.0 | ||
Other current liabilities | 1,358 | 1,715 | 33.5 | ||
Total current liabilities | 32,930 | 32,435 | 634.0 | ||
Total equity and liabilities | 83,925 | 89,030 | 1,740.3 | ||
Consolidated Statement of Comprehensive Income
(in millions, except per share data)
Three months ended (unaudited) | ||||||||
RUB | RUB | USD | ||||||
Revenue: | 10,813 | 14,015 | 274.0 | |||||
Payment processing fees | 9,162 | 10,839 | 211.9 | |||||
Interest revenue calculated using the effective interest rate | 694 | 1,929 | 37.7 | |||||
Fees from inactive accounts and unclaimed payments | 413 | 436 | 8.5 | |||||
Other revenue | 544 | 811 | 15.9 | |||||
Operating costs and expenses: | (7,250 | ) | (7,425 | ) | (145.1 | ) | ||
Cost of revenue (exclusive of items shown separately below) | (4,764 | ) | (3,807 | ) | (74.4 | ) | ||
Selling, general and administrative expenses | (612 | ) | (773 | ) | (15.1 | ) | ||
Personnel expenses | (1,525 | ) | (2,002 | ) | (39.1 | ) | ||
Depreciation and amortization | (285 | ) | (287 | ) | (5.6 | ) | ||
Credit loss expense | (64 | ) | (520 | ) | (10.2 | ) | ||
Impairment of non-current assets | - | (36 | ) | (0.7 | ) | |||
Profit from operations | 3,563 | 6,590 | 128.8 | |||||
Share of gain of an associate and a joint venture | 141 | - | - | |||||
Foreign exchange loss, net | (50 | ) | (2,369 | ) | (46.3 | ) | ||
Interest income and expenses, net | (15 | ) | 4 | 0.1 | ||||
Other income and expenses, net | (65 | ) | 18 | 0.4 | ||||
Profit before tax | 3,574 | 4,243 | 82.9 | |||||
Income tax expense | (941 | ) | (1,433 | ) | (28.0 | ) | ||
Profit for the period | 2,633 | 2,810 | 54.9 | |||||
Attributable to: | ||||||||
Equity holders of the parent | 2,618 | 2,625 | 51.3 | |||||
Non-controlling interests | 15 | 185 | 3.6 | |||||
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 | (29 | ) | 88 | 1.7 | ||||
Debt securities at fair value through other comprehensive income (FVOCI): | ||||||||
Net gain arising during the period, net of tax | - | 964 | 18.8 | |||||
Total other comprehensive income, net of tax | (29 | ) | 1,052 | 20.6 | ||||
Total other comprehensive (loss)/income, net of tax | 2,604 | 3,862 | 75.5 | |||||
Attributable to: | ||||||||
Equity holders of the parent | 2,589 | 3,697 | 72.3 | |||||
Non-controlling interests | 15 | 165 | 3.2 | |||||
Earnings per share: | ||||||||
Basic, earnings attributable to ordinary equity holders of the parent | 41.94 | 41.93 | 0.82 | |||||
Diluted, earnings attributable to ordinary equity holders of the parent | 41.92 | 41.93 | 0.82 | |||||
Consolidated Statement of Comprehensive Income
(in millions, except per share data)
Six months ended (unaudited) | ||||||||
RUB | USD | |||||||
Revenue: | 20,047 | 23,732 | 463.9 | |||||
Payment processing fees | 16,777 | 17,787 | 347.7 | |||||
Interest revenue calculated using the effective interest rate | 1,343 | 3,381 | 66.1 | |||||
Fees from inactive accounts and unclaimed payments | 854 | 891 | 17.4 | |||||
Other revenue | 1,073 | 1,673 | 32.7 | |||||
Operating costs and expenses: | (13,968 | ) | (13,732 | ) | (268.4 | ) | ||
Cost of revenue (exclusive of items shown separately below) | (8,837 | ) | (7,219 | ) | (141.1 | ) | ||
Selling, general and administrative expenses | (1,161 | ) | (1,544 | ) | (30.2 | ) | ||
Personnel expenses | (3,230 | ) | (3,675 | ) | (71.8 | ) | ||
Depreciation and amortization | (571 | ) | (564 | ) | (11.0 | ) | ||
Credit loss expense | (157 | ) | (694 | ) | (13.6 | ) | ||
Impairment of non-current assets | (12 | ) | (36 | ) | (0.7 | ) | ||
Profit from operations | 6,079 | 10,000 | 195.5 | |||||
Share of gain of an associate and a joint venture | 306 | - | - | |||||
Foreign exchange loss, net | (42 | ) | (2,810 | ) | (54.9 | ) | ||
Interest income and expenses, net | (27 | ) | 72 | 1.4 | ||||
Other income and expenses, net | (73 | ) | 39 | 0.8 | ||||
Profit before tax | 6,243 | 7,301 | 142.7 | |||||
Income tax expense | (1,656 | ) | (2,234 | ) | (43.7 | ) | ||
Profit for the period | 4,587 | 5,067 | 99.0 | |||||
Attributable to: | ||||||||
Equity holders of the parent | 4,561 | 4,799 | 93.8 | |||||
Non-controlling interests | 26 | 268 | 5.2 | |||||
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 | (24 | ) | 76 | 1.5 | ||||
Debt securities at fair value through other comprehensive income (FVOCI): | ||||||||
Net gains arising during the period, net of tax | - | 110 | 2.2 | |||||
Total other comprehensive income/(loss), net of tax | (24 | ) | 186 | 3.6 | ||||
Total comprehensive income, net of tax | 4,563 | 5,253 | 102.7 | |||||
Attributable to: | ||||||||
Equity holders of the parent | 4,537 | 5,006 | 97.9 | |||||
Non-controlling interests | 26 | 247 | 4.8 | |||||
Earnings per share: | ||||||||
Basic, earnings attributable to ordinary equity holders of the parent | 73.07 | 76.75 | 1.50 | |||||
Diluted, earnings attributable to ordinary equity holders of the parent | 73.02 | 76.75 | 1.50 | |||||
Consolidated Statement of Cash Flows
(in millions)
Six months ended (unaudited) | ||||||||
RUB | RUB | |||||||
Operating activities | ||||||||
Profit before tax | 6,243 | 7,301 | 142.7 | |||||
Adjustments to reconcile profit before tax to net cash flows (used in) /generated from operating activities | ||||||||
Depreciation and amortization | 571 | 564 | 11.0 | |||||
Foreign exchange loss, net | 42 | 2,810 | 54.9 | |||||
Interest income, net | (1,069 | ) | (3,212 | ) | (62.8 | ) | ||
Credit loss expense | 157 | 694 | 13.6 | |||||
Share of (gain) / loss of an associate and a joint venture | (306 | ) | - | - | ||||
Impairment of non-current assets | 12 | 36 | 0.7 | |||||
Other | 13 | 78 | 1.5 | |||||
Net cash flow generated from operating activities before changes in working capital | 5,663 | 8,271 | 161.7 | |||||
Changes in operating assets and liabilities: | - | |||||||
Decrease/(Increase) in trade and other receivables | 1,687 | (1,739 | ) | (34.0 | ) | |||
Decrease in other assets | 311 | 144 | 2.8 | |||||
(Decrease)/increase in customer accounts and amounts due to banks | (4,257 | ) | 3,728 | 72.9 | ||||
Decrease in accounts payable and accruals | (12,028 | ) | (5,345 | ) | (104.5 | ) | ||
Increase in other liabilities | - | 313 | 6.1 | |||||
Decrease/(Increase) in loans issued from banking operations | 156 | (1,670 | ) | (32.6 | ) | |||
Cash (used in)/ generated from operations | (8,468 | ) | 3,702 | 72.4 | ||||
Interest received | 1,468 | 3,569 | 69.8 | |||||
Interest paid | (279 | ) | (283 | ) | (5.5 | ) | ||
Income tax paid | (1,443 | ) | (1,033 | ) | (20.2 | ) | ||
Net cash flow received from/(used in) operating activities | (8,722 | ) | 5,955 | 116.4 | ||||
Investing activities | ||||||||
Cash used in business combinations | (10 | ) | (215 | ) | (4.2 | ) | ||
Proceeds from sale of an associate | - | 4,855 | 94.9 | |||||
Purchase of property and equipment | (90 | ) | (133 | ) | (2.6 | ) | ||
Purchase of intangible assets | (37 | ) | (106 | ) | (2.1 | ) | ||
Proceeds from sale of fixed and intangible assets | 12 | 5 | 0.1 | |||||
Loans issued | (20 | ) | (7 | ) | (0.1 | ) | ||
Repayment of loans issued | 11 | 30 | 0.6 | |||||
Purchase of debt securities | - | (1,737 | ) | (34.0 | ) | |||
Proceeds from sale and redemption of debt instruments | 971 | - | ||||||
Net cash flow generated from investing activities | 837 | 2,692 | 52.6 | |||||
Financing activities | - | |||||||
Repayment of debt | (1,004 | ) | (392 | ) | (7.7 | ) | ||
Payment of principal portion of lease liabilities | (29 | ) | (34 | ) | (0.7 | ) | ||
Dividends paid to owners of the Group | (2,446 | ) | - | |||||
Dividends paid to non-controlling shareholders | (54 | ) | (106 | ) | (2.1 | ) | ||
Net cash flow used in financing activities | (3,533 | ) | (532 | ) | (10.4 | ) | ||
Effect of exchange rate changes on cash and cash equivalents | (111 | ) | (2,068 | ) | (40.4 | ) | ||
Effect of change in ECL on cash and cash equivalents | - | (10 | ) | (0.2 | ) | |||
Net (decrease)/increase in cash and cash equivalents | (11,529 | ) | 6,037 | 118.0 | ||||
Cash and cash equivalents at the beginning of the period | 47,382 | 33,033 | 645.7 | |||||
Cash and cash equivalents at the end of the period | 35,853 | 39,070 | 763.7 | |||||
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, 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.
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.
- “Adjusted Net profit” as Net profit plus: (1) fair value adjustments recorded on business combinations and their amortization (2) impairment of non-current assets (3) share-based payment expenses (4) effect of taxation of the above items.
- “Adjusted EBITDA Margin” as Adjusted EBITDA divided by Total Net Revenue.
- “Adjusted Net profit Margin” as Adjusted Net profit divided by Total Net Revenue.
Total Net Revenue is a key measure used by management to observe our operational profitability since it reflects our portion of the revenue net of fees that we pass through, primarily to our agents and other reload channels providers. In addition, under IFRS, most types of fees are presented on a gross basis whereas certain types of fees are presented on a net basis. Therefore, in order to analyze our two sources of payment processing fees on a comparative basis, management reviews Total Net Revenue.
Adjusted EBITDA is a key measure used by management, is serves as a supplemental performance measure that facilitates operating performance comparisons from period to period and company to company by backing out potential differences caused by variations in capital structures (affecting interest expenses, net), changes in foreign exchange rates that impact financial asset and liabilities denominated in currencies other than our functional currency (affecting foreign exchange (loss)/gain, net), tax positions (such as the impact on periods or companies of changes in effective tax rates), the age and book depreciation of fixed assets (affecting relative depreciation expense), non-cash charges (affecting share-based payments expenses and impairment of non-current assets), and certain one-time income and expenses (affecting other income, offering and related expenses, loss from sale of Sovest loan portfolio, etc.). Adjusted EBITDA also excludes other expenses, share in losses of associates and impairment of investment in associates because we believe it is helpful to view the performance of our business excluding the impact of entities that we do not control, and because our share of the net income (loss) of the associate and other expenses includes items that have been excluded from Adjusted EBITDA (such as finance expenses, net, income tax, and depreciation and amortization). Because Adjusted EBITDA facilitates internal comparisons of operating performance on a more consistent basis, we also use Adjusted EBITDA in measuring our performance relative to that of our competitors.
Adjusted Net Profit is a key measure used by management to observe the operational profitability of the company. We believe Adjusted Net Profit is useful to an investor in evaluating our operating performance because it measures a company’s operating performance without the effect of non-recurring items or items that are not core to our operations. For example, loss on disposals of subsidiaries and the effects of deferred taxation on excluded items do not represent the core operations of the business, and fair value adjustments recorded on business combinations and their amortization, impairment of non-current assets and share-based payments expenses do not have a substantial cash effect. Nevertheless, such gains and losses can affect our financial performance.
Payment Services segment payment volume provides a measure of the overall size and growth of the business, and increasing our payment volumes is essential to growing our profitability.
Payment Services segment net revenue yield. We calculate Payment Services segment net revenue yield by dividing Payment Services segment net revenue by Payment Services segment payment volume. Payment Services segment net revenue yield provides a measure of our ability to generate net revenue per unit of volume we process.
We define these measures as follows:
- PS Payment Net Revenue is the Net Revenue consisting of the merchant and consumer fees collected for the payment transactions.
- PS Other Net Revenue primarily consists of revenue from fees for inactive accounts and unclaimed payments, interest revenue, cash and settlement services and related conversion income, fees for intercompany and third-party funding, and advertising fees.
Reconciliation of IFRS to Non-IFRS Operating Results
(in millions, except per share data)
Three months ended (unaudited) | ||||||||
RUB | RUB | USD | ||||||
Revenue | 10,813 | 14,015 | 274.0 | |||||
Minus: Cost of revenue (exclusive of depreciation and amortization) | 4,764 | 3,807 | 74.4 | |||||
Total Net Revenue | 6,049 | 10,208 | 199.5 | |||||
Segment Net Revenue | ||||||||
Payment Services Segment Revenue | 10,145 | 12,854 | 251.3 | |||||
PS Payment Revenue(1) | 9,162 | 10,839 | 211.9 | |||||
Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(2) | 4,229 | 3,260 | 63.7 | |||||
PS Payment Adjusted Net Revenue | 4,933 | 7,579 | 148.1 | |||||
PS Other Revenue(3) | 983 | 2,015 | 39.4 | |||||
Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(4) | 238 | 276 | 5.4 | |||||
PS Other Adjusted Net Revenue | 745 | 1,739 | 34.0 | |||||
Payment Services Segment Net Revenue | 5,678 | 9,318 | 182.1 | |||||
Corporate and Other Category Revenue | 668 | 1,161 | 22.7 | |||||
Minus: Cost of CO revenue (exclusive of depreciation and amortization) | 297 | 271 | 5.3 | |||||
Corporate and Other Category Net Revenue | 371 | 890 | 17.4 | |||||
Total Segment Net Revenue | 6,049 | 10,208 | 199.5 | |||||
Profit for the period | 2,633 | 2,810 | 54.9 | |||||
Plus: | ||||||||
Depreciation and amortization | 285 | 287 | 5.6 | |||||
Other income and expenses, net | 65 | (18 | ) | (0.4 | ) | |||
Foreign exchange (gain)/loss, net | 50 | 2,369 | 46.3 | |||||
Share of gain of an associate and a joint venture | (141 | ) | - | - | ||||
Interest income and expenses, net | 15 | (4 | ) | (0.1 | ) | |||
Income tax expenses | 941 | 1,433 | 28.0 | |||||
Share-based payment expenses | 2 | 59 | 1.2 | |||||
Impairment of non-current assets | - | 36 | 0.7 | |||||
Adjusted EBITDA | 3,850 | 6,972 | 136.3 | |||||
Adjusted EBITDA margin | 63.6 | % | 68.3 | % | 68.3 | % | ||
Profit for the period | 2,633 | 2,810 | 54.9 | |||||
Fair value adjustments recorded on business combinations and their amortization(5) | 83 | 98 | 1.9 | |||||
Impairment of non-current assets | - | 36 | 0.7 | |||||
Share-based payment expenses | 2 | 59 | 1.2 | |||||
Effect of taxation of the above items | (14 | ) | (39 | ) | (0.8 | ) | ||
Adjusted Net Profit | 2,704 | 2,964 | 57.8 | |||||
Adjusted Net Profit per share: | ||||||||
Basic | 43.32 | 47.35 | 0.93 | |||||
Diluted | 43.30 | 47.35 | 0.93 | |||||
Weighted-average number of shares used in computing Adjusted Net Profit per share: | ||||||||
Basic | 62,424 | 62,600 | 62,600 | |||||
Diluted | 62,446 | 62,600 | 62,600 | |||||
(1) PS Payment Revenue represents payment processing fees, which primarily consists of the merchant and consumer fees charged for the payment transactions.
(2) Cost of PS Payment Revenue (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.
(3) PS Other Revenue primarily consists of revenue from fees for inactive accounts and unclaimed payments, interest revenue, cash and settlement services and related conversion income, fees for intercompany and third-party funding, and advertising fees.
(4) Cost of PS Other Revenue (exclusive of depreciation and amortization) primarily consists of direct costs associated with other revenue and other costs, including but not limited to: interest expenses related to issued bonds, costs of sms notification, advertising commissions.
(5) Amortization of fair value adjustments primarily includes the effect of the acquisition of control in CONTACT and Rapida.
Reconciliation of IFRS to Non-IFRS Operating Results
(in millions, except per share data)
Six months ended (unaudited) | ||||||||
RUB | USD | |||||||
Revenue | 20,047 | 23,732 | 463.9 | |||||
Minus: Cost of revenue (exclusive of depreciation and amortization) | 8,837 | 7,219 | 141.1 | |||||
Total Net Revenue | 11,210 | 16,513 | 322.8 | |||||
Segment Net Revenue | ||||||||
Payment Services Segment Revenue | 18,692 | 21,584 | 421.9 | |||||
PS Payment Revenue(1) | 16,777 | 17,787 | 347.7 | |||||
Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(2) | 7,776 | 6,088 | 119.0 | |||||
PS Payment Adjusted Net Revenue | 9,001 | 11,699 | 228.7 | |||||
PS Other Revenue(3) | 1,915 | 3,797 | 74.2 | |||||
Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(4) | 476 | 529 | 10.3 | |||||
PS Other Adjusted Net Revenue | 1,439 | 3,268 | 63.9 | |||||
Payment Services Segment Net Revenue | 10,440 | 14,967 | 292.6 | |||||
Corporate and Other Category Revenue | 1,355 | 2,148 | 42.0 | |||||
Minus: Cost of CO revenue (exclusive of depreciation and amortization) | 585 | 602 | 11.8 | |||||
Corporate and Other Category Net Revenue | 770 | 1,546 | 30.2 | |||||
Total Segment Net Revenue | 11,210 | 16,513 | 322.8 | |||||
Profit for the period | 4,587 | 5,067 | 99.0 | |||||
Plus: | ||||||||
Depreciation and amortization | 571 | 564 | 11.0 | |||||
Other income and expenses, net | 73 | (39 | ) | (0.8 | ) | |||
Foreign exchange (gain)/loss, net | 42 | 2,810 | 54.9 | |||||
Share of gain of an associate and a joint venture | (306 | ) | - | - | ||||
Interest income and expenses, net | 27 | (72 | ) | (1.4 | ) | |||
Income tax expenses | 1,656 | 2,234 | 43.7 | |||||
Share-based payment expenses | 8 | 59 | 1.2 | |||||
Impairment of non-current assets | 12 | 36 | 0.7 | |||||
Adjusted EBITDA | 6,670 | 10,659 | 208.4 | |||||
Adjusted EBITDA margin | 59.5 | % | 64.5 | % | 64.5 | % | ||
Profit for the period | 4,587 | 5,067 | 99.0 | |||||
Fair value adjustments recorded on business combinations and their amortization(5) | 168 | 181 | 3.5 | |||||
Impairment of non-current assets | 12 | 36 | 0.7 | |||||
Share-based payment expenses | 8 | 59 | 1.2 | |||||
Effect of taxation of the above items | (10 | ) | (53 | ) | (1.0 | ) | ||
Adjusted Net Profit | 4,765 | 5,290 | 103.4 | |||||
Adjusted Net Profit per share: | ||||||||
Basic | 76.34 | 84.61 | 1.65 | |||||
Diluted | 76.29 | 84.61 | 1.65 | |||||
Weighted-average number of shares used in computing Adjusted Net Profit per share: | ||||||||
Basic | 62,418 | 62,525 | 62,525 | |||||
Diluted | 62,459 | 62,525 | 62,525 | |||||
(1) PS Payment Revenue represents payment processing fees, which primarily consists of the merchant and consumer fees charged for the payment transactions.
(2) Cost of PS Payment Revenue (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.
(3) PS Other Revenue primarily consists of revenue from fees for inactive accounts and unclaimed payments, interest revenue, cash and settlement services and related conversion income, fees for intercompany and third-party funding, and advertising fees.
(4) Cost of PS Other Revenue (exclusive of depreciation and amortization) primarily consists of direct costs associated with other revenue and other costs, including but not limited to: interest expenses related to issued bonds, costs of sms notification, advertising commissions.
(5) Amortization of fair value adjustments primarily includes the effect of the acquisition of control in CONTACT and Rapida.
Contact Investor Relations +357.25028091 ir@qiwi.com
Source:
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