Form 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF A FOREIGN ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For November 11, 2014

 

 

QIWI plc

 

 

12-14 Kennedy Ave.

Kennedy Business Centre, 2nd Floor, Office 203

1087 Nicosia Cyprus

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F  x        Form 40-F  ¨

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ¨        No  x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):

EXHIBIT 99.1 TO THIS REPORT ON FORM 6-K IS INCORPORATED BY REFERENCE IN THE REGISTRATION STATEMENT ON FORM S-8 (FILE NO. 333-190918) OF QIWI PLC AND IN THE OUTSTANDING PROSPECTUS CONTAINED IN SUCH REGISTRATION STATEMENT.

 

 

 


Exhibits

 

99.1    “QIWI Announces Third Quarter 2014 Results” press release dated November 11, 2014


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    QIWI PLC (Registrant)
Date: November 11, 2014     By:  

/s/ Alexander Karavaev

      Alexander Karavaev
      Chief Financial Officer
EX-99.1

Exhibit 99.1

 

LOGO

QIWI ANNOUNCES THIRD-QUARTER 2014 RESULTS

Total Adjusted Net Revenue Increases 47% to RUB 2,379 Million

Adjusted Net Profit Increases 92% to RUB 1,163 Million or RUB 21.05 per diluted share

QIWI raises 2014 Guidance

Board of Directors Approves Dividend of 38 cents per share

MOSCOW, RUSSIA – November 11, 2014 – QIWI plc, (NASDAQ: QIWI) (“QIWI” or the “Company”) today announced results for the third-quarter ended September 30, 2014.

Third-Quarter 2014 Operating and Financial Highlights

 

    Total Adjusted Net Revenue increased 47% to RUB 2,379 million ($60.4 million)

 

    Adjusted EBITDA increased 92% to RUB 1,520 million ($38.6 million)

 

    Adjusted Net Profit increased 92% to RUB 1,163 million ($29.5 million), or RUB 21.05 per diluted share

 

    Total payment volume increased 15% to RUB 164.4 billion ($4.2 billion)

“In the third quarter we have continued to show strong results,” said Sergey Solonin, QIWI’s chief executive officer. “Solid financial performance demonstrates that we proceed to execute and gain share in the fast-growing payments markets we serve. Moreover, this quarter we have started various marketing activities for the first time, which demonstrate great results reflected in Visa Qiwi Wallet accounts reaccelerated growth. We see plenty of business development opportunities ahead and will continue to focus on our core market segments and execute our strategy.”

Third-Quarter 2014 Results

Revenues: Total Adjusted Net Revenue for the quarter ended September 30, 2014 was RUB 2,379 million ($60.4 million), an increase of 47% compared with RUB 1,622 million in the prior year.

Payment Adjusted Net Revenue was RUB 1,753 million ($44.5 million), an increase of 57% compared with RUB 1,119 million in the prior year. Payment Adjusted Net Revenue growth was predominantly driven by an increase in payment volume and net revenue yield in the E-commerce, Financial Services and Money Remittances market segments.

Other Adjusted Net Revenue, which is principally composed of revenue from inactivity fees, interest revenue and gain from currency swaps and overdrafts provided to agents, cash and settlement services and advertising, was RUB 626 million ($15.9 million), an increase of 24% compared with RUB 503 million in the prior year. Inactivity fees for the third quarter were RUB 189 million ($4.8 million) compared with RUB 134 million in the prior year. Other Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 18% compared with the same period in the prior year.


Total Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 47% compared with the same period in the prior year.

Adjusted EBITDA: For the quarter ended September 30, 2014, Adjusted EBITDA was RUB 1,520 million ($38.6 million), an increase of 92% compared with RUB 793 million in the prior year. Adjusted EBITDA growth was mainly driven by revenue growth and continued operating leverage in the business. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was 63.9% compared with 48.9% in the prior year. Adjusted EBITDA excluding inactivity fees was RUB 1,331 million ($33.8 million), an increase of 102% compared with RUB 659 million in the prior year. Adjusted EBITDA margin excluding inactivity fees was 60.8% compared with 44.3% in the prior year.

Adjusted Net Profit: For the quarter ended September 30, 2014, Adjusted Net Profit was RUB 1,163 million ($29.5 million), an increase of 92% compared with RUB 605 million in the prior year. The increase in Adjusted Net Profit was primarily driven by the same factors impacting Adjusted EBITDA. Adjusted Net Profit excluding inactivity fees (net of tax) increased 103% compared with the prior year.

Other Operating Data: For the quarter ended September 30, 2014, total payment volume was RUB 164.4 billion ($4.2 billion), an increase of 15% compared with RUB 143.2 billion in the prior year. Average payment net revenue yield was 1.07%, an increase of 29 bps compared with 0.78% in the prior year. The increase in payment volume and average net revenue yield in the third quarter was mainly driven by strong growth in the E-commerce, Financial Services and Money Remittances market segments.

The total average Net Revenue Yield was 1.45%, an increase of 31 bps as compared with 1.13% in the prior year. The total average Net Revenue Yield excluding the effect of inactivity fees was 1.33%, an increase of 29 bps as compared with the same period in the prior year.

The number of active kiosks and terminals was 175,293, an increase of 5% compared with the prior year, primarily driven by execution of new rental agreements with certain federal retail networks. The number of active Visa Qiwi Wallet accounts was 16.5 million as of the end of the third quarter 2014, an increase of 1.5 million, or 10%, as compared with 15.0 million in the third quarter 2013.

Recent Developments

Dividend: QIWI announces that following the determination of third-quarter 2014 financial results its Board of Directors recommended a dividend of USD 38 cents per share. The dividend record date is 24 November 2014, and the Company intends to pay the dividend on 26 November, 2014. The holders of ADSs will receive the dividend shortly thereafter.

2014 Guidance

QIWI is raising its 2014 outlook as compared to its previously announced outlook:

 

    Total Adjusted Net Revenue is expected to increase by 32% to 40% over 2013

 

    Adjusted Net Profit is expected to increase by 60% to 70% over 2013


We have noted the effects of the macroeconomic slowdown in Russia in Q2 and especially in Q3, which we believe can be long lasting and could have a significant negative effect on consumer spending in Russia and, accordingly, on our business. The extent of the slowdown, and if that were to result in a full scale banking crisis, is yet to be assessed. Moreover, we have recently introduced several limitations on the payment volumes and account balances in QIWI Wallet as a result of our ongoing compliance process. The effect of these limitations is not clear at this stage but could potentially negatively affect the number of our consumers and, consequently, our volumes and revenues. We, therefore, do not currently have enough visibility on our Total Adjusted Net Revenue and Adjusted Net Profit in Q4 2014 and 2015. We provide the 2014 guidance with broader than usual intervals between low and high ends of the range to accommodate for any uncertainty in respect of the matters discussed above. We reserve the right to revisit our guidance in case we see the situation changing and we will report our 2015 guidance as soon as we have any visibility upon 2015 results.

Earnings Conference Call and Audio Webcast

QIWI will host a conference call to discuss second quarter 2014 financial results today at 8:30 a.m. ET. Hosting the call will be Sergey Solonin, chief executive officer, and Alexander Karavaev, chief financial officer. The conference call can be accessed live over the phone by dialing +1 (877) 407-3982 or for international callers by dialing +1 (201) 493-6780. A replay will be available at 11:30 a.m. ET and can be accessed by dialing +1 (877) 870-5176 or +1 (858) 384-5517 for international callers; the pin number is 13594458. The replay will be available until Tuesday, November 18, 2014. The call will be webcast live from the Company’s website at https://www.qiwi.ru under the Corporate Investor Relations section or directly at http://investor.qiwi.com/.

About QIWI plc.

QIWI is a leading provider of next generation payment services in Russia and the CIS. It has an integrated proprietary network that enables payment services across physical, online and mobile channels. It has deployed over 16.5 million virtual wallets, over 175,000 kiosks and terminals, and enabled merchants to accept over RUB 50 billion cash and electronic payments monthly from over 70 million consumers using its network at least once a month. QIWI’s consumers can use cash, stored value and other electronic payment methods to order and pay for goods and services across physical or online environments interchangeably.


Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of, and subject to the protection of, the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding expected total adjusted net revenue, adjusted net profits and net revenue yield, dividend payments, the growth of Visa QIWI Wallet, payment volume growth, and growth in QIWI’s distribution network. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance or achievements of QIWI plc. to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Various factors that could cause actual future results and other future events to differ materially from those estimated by management include, but are not limited to, competition, a decline in average net revenue yield, fees levied on QIWI’s consumers, regulation, QIWI’s ability to grow Visa QIWI Wallet, QIWI’s ability to expand geographically and other risks identified under the Caption “Risk Factors” in QIWI’s Annual Report on Form 20-F and in other reports QIWI files with the U.S. Securities and Exchange Commission. QIWI undertakes no obligation to revise any forward-looking statements or to report future events that may affect such forward-looking statements unless QIWI is required to do so by law.

Contact

 

Yakov Barinskiy

Head of Corporate Development

and Investor Relations

+7.499.709.0192

ir@qiwi.com

  

Varvara Kiseleva

Investor Relations

+7.499.709.0192

ir@qiwi.com


QIWI plc.

Consolidated Statement of Financial Position

(in thousands, except per share data)

 

     As of December 31,
2013 (audited)
    As of September 30,
2014 (unaudited)
    As of September 30,
2014
 
     RUB     RUB     USD(1)  

Assets

      

Non-current assets

      

Property and equipment

     307,500        373,502        9,483   

Goodwill and other intangible assets

     2,405,645        2,320,775        58,922   

Long-term debt instruments

     1,376,862        0        0   

Long-term loans

     10,637        51,307        1,303   

Deferred tax assets

     183,333        228,721        5,807   

Other non-current assets

     38,394        39,736        1,009   
  

 

 

   

 

 

   

 

 

 

Total non-current assets

     4,322,371        3,014,041        76,524   
  

 

 

   

 

 

   

 

 

 

Current assets

      

Trade and other receivables

     2,772,297        1,938,944        49,228   

Short-term loans

     65,430        27,301        693   

Short-term debt instruments

     1,635,291        2,489,475        63,205   

Prepaid income tax

     60,537        12,972        329   

VAT and other taxes receivable

     12,478        52,706        1,338   

Cash and cash equivalents

     11,636,913        12,496,491        317,275   

Other current assets

     159,264        329,514        8,366   
  

 

 

   

 

 

   

 

 

 

Total current assets

     16,342,210        17,347,403        440,435   
  

 

 

   

 

 

   

 

 

 

Total assets

     20,664,581        20,361,444        516,958   
  

 

 

   

 

 

   

 

 

 

Equity and liabilities

      

Equity attributable to equity holders of the parent

      

Share capital

     907        962        24   

Additional paid-in capital

     1,876,104        4,920,407        124,925   

Other reserve

     337,254        677,912        17,212   

Retained earnings

     573,604        1,579,528        40,103   

Translation reserve

     10,757        51,315        1,303   
  

 

 

   

 

 

   

 

 

 

Total equity attributable to equity holders of the parent

     2,798,626        7,230,124        183,566   

Non-controlling interest

     (94,766     (156,446     (3,972
  

 

 

   

 

 

   

 

 

 

Total equity

     2,703,860        7,073,678        179,594   
  

 

 

   

 

 

   

 

 

 

Non-current liabilities

      

Long-term borrowings

     109,351        178,640        4,536   

Long-term deferred revenue

     31,629        13,726        348   

Deferred tax liabilities

     58,630        75,066        1,906   

Long-term accounts payable

     7,625        1,045        27   
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     207,235        268,477        6,816   
  

 

 

   

 

 

   

 

 

 

Current liabilities

      

Short-term borrowings

     635        372        9   

Trade and other payables

     16,768,973        11,704,234        297,160   

Amounts due to customers and amounts due to banks

     831,226        1,087,297        27,605   

Income tax payable

     10,823        59,233        1,504   

VAT and other taxes payable

     95,403        140,229        3,560   

Deferred revenue

     46,233        27,879        708   

Other current liabilities

     193        45        1   
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     17,753,486        13,019,289        330,548   
  

 

 

   

 

 

   

 

 

 

Total equity and liabilities

     20,664,581        20,361,444        516,958   
  

 

 

   

 

 

   

 

 

 

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in thousands, except per share data)

 

     Three months ended (unaudited)  
     September 30, 2013     September 30, 2014     September 30, 2014  
     RUB     RUB     USD(1)  

Revenue

     2,975,243        3,822,175        97,042   

Operating costs and expenses:

      

Cost of revenue (exclusive of depreciation and amortization)

     1,559,879        1,782,489        45,256   

Selling general and administrative expenses

     684,349        616,364        15,649   

Depreciation and amortization

     28,109        93,208        2,366   

Goodwill impairment

     5,477        —          —     

Profit from operation

     697,429        1,330,114        33,770   
  

 

 

   

 

 

   

 

 

 

Other income

     2,774        4,861        123   

Other expenses

     (11,870     (972     (25

Foreign exchange gain / (loss) net

     (2,831     534,236        13,564   

Share of loss of associates

     —          (12,151     (309

Impairment of investment in associates

     —          (21,731     (552

Interest income

     4,840        341        9   

Interest expense

     (7,518     (9,351     (237
  

 

 

   

 

 

   

 

 

 

Profit before tax

     682,824        1,825,347        46,344   

Income tax expense

     (149,533     (269,134     (6,833
  

 

 

   

 

 

   

 

 

 

Net profit

     533,291        1,556,213        39,511   
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     542,771        1,568,368        39,819   

Non-controlling interests

     (9,480     (12,155     (309

Other comprehensive income

      

Exchange differences on translation of foreign operations

     (3,370     22,767        578   
  

 

 

   

 

 

   

 

 

 

Total comprehensive income net of tax attributable to:

     529,921        1,578,980        40,089   
  

 

 

   

 

 

   

 

 

 

Equity holders of the parent

     539,045        1,610,673        40,894   

Non-controlling interests

     (9,124     (31,693     (805

Earnings per share:

Basic profit attributable to ordinary equity holders of the parent

     10.43        28.81        0.73   

Diluted profit attributable to ordinary equity holders of the parent

     10.27        28.39        0.72   

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014.


QIWI plc.

Consolidated Statement of Comprehensive Income

(in thousands, except per share data)

 

     Nine months ended (unaudited)  
     September 30, 2013     September 30, 2014(2)     September 30, 2014  
     RUB     RUB     USD(1)  

Revenue

     8,387,401        10,570,075        268,365   

Operating costs and expenses:

      

Cost of revenue (exclusive of depreciation and amortization)

     4,563,350        5,217,187        132,460   

Selling general and administrative expenses

     1,872,629        1,827,016        46,386   

Depreciation and amortization

     81,054        258,085        6,553   

Goodwill impairment

     5,477        —          —     

Profit from operations

     1,864,891        3,267,787        82,966   
  

 

 

   

 

 

   

 

 

 

Other income

     60,781        40,900        1,038   

Other expenses

     (17,791     (9,465     (240

Foreign exchange gain / (loss) net

     4,002        435,773        11,064   

Share of loss of associates

     (78,896     (23,270     (591

Impairment of investment in associates

     (21,540     (24,634     (625

Interest income

     13,374        1,053        27   

Interest expense

     (19,379     (30,362     (771
  

 

 

   

 

 

   

 

 

 

Profit before tax

     1,805,442        3,657,782        92,868   

Income tax expense

     (465,096     (697,556     (17,710
  

 

 

   

 

 

   

 

 

 

Net profit

     1,340,346        2,960,226        75,157   
  

 

 

   

 

 

   

 

 

 

Attributable to:

      

Equity holders of the parent

     1,368,183        3,000,243        76,173   

Non-controlling interests

     (27,837     (40,017     (1,016

Other comprehensive income

      

Exchange differences on translation of foreign operations

     (9,380     19,282        490   
  

 

 

   

 

 

   

 

 

 

Total comprehensive income net of tax attributable to:

     1,330,966        2,979,508        75,647   
  

 

 

   

 

 

   

 

 

 

Equity holders of the parent

     1,362,953        3,040,801        77,203   

Non-controlling interests

     (31,987     (61,293     (1,556

Earnings per share:

      

Basic profit attributable to ordinary equity holders of the parent

     26.30        56.58        1.44   

Diluted profit attributable to ordinary equity holders of the parent

     26.19        55.72        1.41   

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014.
(2) The amounts shown here do not correspond to the financial statements for the nine-month period ended September 30, 2013 and reflect immaterial reclassifications made to prior period to conform to current period presentation.


QIWI plc.

Consolidated Cash Flow Statement

(in thousands, except per share data)

 

     Nine months ended  
     September 30, 2013
(unaudited)
    September 30, 2014
(unaudited)
    September 30, 2014  
     RUB     RUB     USD(1)  

Cash flows from operating activities

      

Profit before tax

     1,805,442        3,657,782        92,868   
  

 

 

   

 

 

   

 

 

 

Adjustments to reconcile profit before income tax to net cash flows generated from operating activities

      

Depreciation and amortization

     81,054        258,085        6,553   

Loss on disposal of property and equipment

     4,069        2,394        61   

Foreign exchange loss, net

     (4,002     (435,773     (11,064

Interest income, net

     (259,267     (252,476     (6,410

Bad debt expense, net

     211,407        55,678        1,414   

Share of loss of associates

     78,896        23,270        591   

Impairment of investment in associates

     21,540        24,634        625   

Impairment of Goodwill

     5,477        —       

Share-based payments

     145,763        335,491        8,518   

Other

     9,368        9,171        233   
  

 

 

   

 

 

   

 

 

 

Operating profit before changes in working capital

     2,099,747        3,678,256        93,388   
  

 

 

   

 

 

   

 

 

 

Decrease in trade and other receivables

     1,324,662        743,173        18,868   

Increase in other assets

     (64,551     (178,808     (4,540

(Increase)/Decrease in amounts due to customers and amounts due to banks

     (120,439     256,071        6,501   

Decrease in accounts payable and accruals

     (5,743,157     (4,944,812     (125,544

Loans issued/ (settled) from banking operations

     200,750        (9,040     (230
  

 

 

   

 

 

   

 

 

 

Cash used in operations

     (2,302,988     (455,160     (11,556
  

 

 

   

 

 

   

 

 

 

Interest received

     400,005        273,811        6,952   

Interest paid

     (16,368     (21,767     (553

Income tax paid

     (508,885     (630,533     (16,009
  

 

 

   

 

 

   

 

 

 

Net cash flow used in operating activities

     (2,428,236     (833,649     (21,166
  

 

 

   

 

 

   

 

 

 

Cash flows used in investing activities

      

Contribution to associates

     —          (24,201     (614

Payments for assignment of loans

     —          (68,063     (1,728

Purchase of property and equipment

     (122,550     (230,784     (5,859

Proceeds from sale of property and equipment

     1,684        —          —     

Purchase of intangible assets

     (13,400     (80,209     (2,036

Loans issued

     (20,859     (44,676     (1,134

Repayment of loans issued

     9,421        39,440        1,001   

Purchase of debt instruments

     (1,901,004     (706,846     (17,946

Proceeds from settlement of debt instruments

     1,654,016        1,242,313        31,541   
  

 

 

   

 

 

   

 

 

 

Net cash flow used in/generated from investing activities

     (392,692     126,974        3,224   
  

 

 

   

 

 

   

 

 

 

Cash flows generated from financing activities

      

Issue of share capital

     —          3,044,356        77,293   

Exercise of options

     —          5,167        131   

Proceeds from borrowings

     20,426        38,198        970   

Repayment of borrowings

     (265     (672     (17

Dividends paid to owners of the Group

     (1,327,836     (2,009,163     (51,011

Dividends paid to non-controlling shareholders

     (2,098     (2,170     (55

Underwriters’ commission

     72,835        —          —     

Distribution of underwriters’ commission

     (67,643     —          —     

Transactions with non-controlling interest

     —          1,783        45   
  

 

 

   

 

 

   

 

 

 

Net cash flow used in/ generated from financing activities

     (1,304,581     1,077,499        27,357   
  

 

 

   

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (7,258     488,754        12,409   
  

 

 

   

 

 

   

 

 

 

Net decrease in cash and cash equivalents

     (4,132,767 )      859,578        21,824   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the beginning

     9,943,160        11,636,913        295,451   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at the end

     5,810,393        12,496,491        317,275   
  

 

 

   

 

 

   

 

 

 

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014.


Non-IFRS Financial Measures and Supplemental Financial Information

This release presents Total Adjusted Net Revenue, Payment Adjusted Net Revenue, Other Adjusted Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit and Adjusted Net Profit per share, which are non-IFRS financial measures. You should not consider these non-IFRS financial measures as substitutes for or superior to revenue, in the case of Total Adjusted Net Revenue, Payment Adjusted Net Revenue and Other Adjusted Net Revenue; Net Profit, in the case of Adjusted EBITDA; and Adjusted Net Profit, or earnings per share, in the case of Adjusted Net Profit per share, each prepared in accordance with IFRS. Furthermore, because these non-IFRS financial measures are not determined in accordance with IFRS, they are susceptible to varying calculations and may not be comparable to other similarly titled measures presented by other companies. QIWI encourages investors and others to review our financial information in its entirety and not rely on a single financial measure. For more information regarding Total Adjusted Net Revenue, Payment Adjusted Net Revenue, Other Adjusted Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit, and Adjusted Net Profit per share, including a quantitative reconciliation of Total Adjusted Net Revenue, Payment Adjusted Net Revenue, Other Adjusted Net Revenue, Adjusted EBITDA and Adjusted Net Profit to the most directly comparable IFRS financial performance measure, which is revenue in the case of Total Adjusted Net Revenue, payment revenue in the case of Payment Adjusted Net Revenue, other revenue in the case of Other Adjusted Net Revenue and net profit in the case of Adjusted EBITDA and Adjusted Net Profit, see Reconciliation of IFRS to Non-IFRS Operating Results in this earnings release.

Payment Adjusted Net Revenue is the Adjusted Net Revenue consisting of the merchant and consumer fees collected for the payment transactions. E-commerce payment adjusted net revenue consists of fees charged to customers and merchants that buy and sell products and services online, including online games, social networks, online stores, game developers, software producers, coupon websites, tickets and numerous other merchants. Financial Services payment adjusted net revenue primarily consists of fees charged for payments accepted on behalf of our bank partners and microfinance companies. Money Remittances payment adjusted net revenue primarily consists of fees charged for transferring funds via money remittance companies. Telecom payment adjusted net revenue primarily consists of fees charged for payments to MNOs, internet services providers and pay television providers. Other payment adjusted net revenue consists of consumer and merchant fees charged for a variety of payments including multi-level-marketing, utility bills, government payments, education services and many others. Other Adjusted Net Revenue primarily consists of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, cash and settlement services and advertising.


QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)

 

     Three months ended  
     September 30, 2013     September 30, 2014     September 30, 2014  
     RUB     RUB     USD(1)  

Revenue

     2,975        3,822        97.0   

Minus: Cost of revenue (exclusive of depreciation and amortization)

     1,560        1,782        45.3   

Plus: Compensation to employees and related taxes

     207        339        8.6   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     1,622        2,379        60.4   
  

 

 

   

 

 

   

 

 

 

Payment Revenue(2)

     2,381        3,001        76.2   

Minus: Cost of payment revenue (exclusive of depreciation and amortization)(3)

     1,434        1,514        38.4   

Plus: Compensation to employees and related taxes allocated to payment revenue(4)

     172        266        6.8   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

     1,119        1,753        44.5   
  

 

 

   

 

 

   

 

 

 

Other Revenue(5)

     594        821        20.8   

Minus: Cost of other revenue (exclusive of depreciation and amortization)(6)

     126        268        6.8   

Plus: Compensation to employees and related taxes allocated to other revenue(4)

     35        73        1.9   
  

 

 

   

 

 

   

 

 

 

Other Adjusted Net Revenue

     503        626        15.9   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

     1,119        1,753        44.5   

E-commerce

     311        527        13.4   

Financial services

     264        601        15.2   

Money remittances

     123        240        6.1   

Telecom

     350        283        7.2   

Other

     72        103        2.6   

Other Adjusted Net Revenue

     503        626        15.9   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     1,622        2,379        60.4   
  

 

 

   

 

 

   

 

 

 

Net Profit

     533        1,556        39.5   
  

 

 

   

 

 

   

 

 

 

Plus:

Depreciation and amortization

     28        93        2.4   

Other income

     (3     0        0.0   

Other expenses

     12        1        0.0   

Foreign exchange (loss) gain, net

     3        (534     (13.6

Share of loss of associates

     —          12        0.3   

Impairment of investment in associates

     —          22        0.6   

Interest income

     (5     (0     (0.0

Interest expenses

     8        9        0.2   

Income tax expenses

     150        269        6.8   

Offering expenses

     32        0        0.0   

Income from depositary(7)

     (0     (5     (0.1

Share-based payments expenses

     30        96        2.4   

Goodwill impairment

     5        —          —     
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     793        1,520        38.6   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

     48.9 %      63.9 %      63.9 % 

Net profit

     533        1,556        39.5   

Amortization of fair value adjustments

     5        22        0.6   

Offering expenses

     32        0        0.0   

Income from depositary

     (0     (5     (0.1

Share-based payments expenses

     30        96        2.4   

Goodwill impairment

     5        —          —     

Effect of taxation of the above items

     (1     (5     (0.1

Forex gain on SPO funds(8)

     —          (502     (12.7
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     605        1,163        29.5   
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

      

Basic

     11.63        21.37        0.54   

Diluted

     11.46        21.05        0.53   

Shares used in computing Adjusted Net Profit per share

      

Basic

     52,044        54,442        54,442   

Diluted

     52,864        55,248        55,248   


 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014.
(2) Payment revenue primarily consists of the merchant and consumer fees charged for the payment transactions.
(3) Cost of payment revenue (exclusive of depreciation and amortization) primarily consists of transaction costs to acquire payments from our customers payable to agents, mobile operators, international payment systems and other parties.
(4) The Company does not record the compensation to employees and related taxes within cost of revenue separately for payment revenue and other revenue, therefore it has been allocated between payment revenue and other revenue in proportion to the relevant revenue amounts for the purposes of the reconciliation presented above.
(5) Other revenue primarily consists of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, cash and settlement services and advertising.
(6) Cost of other revenue (exclusive of depreciation and amortization) primarily consists of direct costs associated with other revenue and other costs, including but not limited to: compensation to employees and related taxes allocated to other revenue, costs of call-centers and advertising commissions.
(7) Income from depositary is presented in the separate line in reconciliation tables for convenience purposes, while it is included in other income in financial statements.
(8) The Forex gain on SPO funds as presented in the reconciliation of Net Profit to Adjusted Net Profit differs from the Foreign exchange loss/(gain), net in the reconciliation of Net Profit to Adjusted EBITDA as the latter includes all the foreign exchange losses/(gains) for the period, while the former only include the foreign exchange gain on the US dollar amount, which we received at SPO.


QIWI plc.

Reconciliation of IFRS to Non-IFRS Operating Results

(in millions, except per share data)

 

     Nine months ended  
     September 30, 2013     September 30, 2014     September 30, 2014  
     RUB     RUB     USD(1)  

Revenue

     8,387        10,570        268.4   

Minus: Cost of revenue (exclusive of depreciation and amortization)

     4,563        5,217        132.5   

Plus: Compensation to employees and related taxes

     643        1,015        25.8   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     4,467        6,368        161.7   
  

 

 

   

 

 

   

 

 

 

Payment Revenue(2)

     6,706        8,433        214.1   

Minus: Cost of payment revenue (exclusive of depreciation and amortization)(3)

     4,219        4,566        115.9   

Plus: Compensation to employees and related taxes allocated to payment revenue(4)

     527        810        20.6   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

     3,015        4,677        118.7   
  

 

 

   

 

 

   

 

 

 

Other Revenue(5)

     1,681        2,137        54.3   

Minus: Cost of other revenue (exclusive of depreciation and amortization)(6)

     345        651        16.5   

Plus: Compensation to employees and related taxes allocated to other revenue(4)

     116        205        5.2   
  

 

 

   

 

 

   

 

 

 

Other Adjusted Net Revenue

     1,452        1,691        42.9   
  

 

 

   

 

 

   

 

 

 

Payment Adjusted Net Revenue

     3,015        4,677        118.7   

E-commerce

     833        1,358        34.5   

Financial services

     673        1,444        36.7   

Money remittances

     292        664        16.9   

Telecom

     990        905        23.0   

Other

     227        306        7.8   

Other Adjusted Net Revenue

     1,452        1,691        42.9   
  

 

 

   

 

 

   

 

 

 

Total Adjusted Net Revenue

     4,467        6,368        161.7   
  

 

 

   

 

 

   

 

 

 

Net Profit

     1,340        2,960        75.2   
  

 

 

   

 

 

   

 

 

 

Plus:

Depreciation and amortization

     81        258        6.6   

Other income

     (17     (3     (0.1

Other expenses

     18        9        0.2   

Foreign exchange (loss) gain, net

     (4     (436     (11.1

Share of loss of associates

     79        23        0.6   

Impairment of investment in associates

     22        25        0.6   

Interest income

     (13     (1     (0.0

Interest expenses

     19        30        0.8   

Income tax expenses

     465        698        17.7   

Offering expenses

     147        45        1.1   

Income from depositary(7)

     (44     (38     (1.0

Share-based payments expenses

     146        335        8.5   

Goodwill impairment

     5        —          —     
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

     2,244        3,907        99.2   
  

 

 

   

 

 

   

 

 

 

Adjusted EBITDA margin

     50.2     61.3     61.3

Net profit

     1,340        2,960        75.2   

Amortization of fair value adjustments

     16        57        1.4   

Offering expenses

     147        45        1.1   

Income from depositary

     (44     (38     (1.0

Share-based payments expenses

     146        335        8.5   

Goodwill impairment

     5        —          —     

Effect of taxation of the above items

     (3     (11     (0.3

Forex gain on SPO funds(8)

     —          (450     (11.4
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit

     1,607        2,898        73.6   
  

 

 

   

 

 

   

 

 

 

Adjusted Net Profit per share:

      

Basic

     30.90        54.66        1.39   

Diluted

     30.77        53.83        1.37   

Shares used in computing Adjusted Net Profit per share

      

Basic

     52,015        53,023        53,023   

Diluted

     52,241        53,841        53,841   


 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014.
(2) Payment revenue primarily consists of the merchant and consumer fees charged for the payment transactions.
(3) Cost of payment revenue (exclusive of depreciation and amortization) primarily consists of transaction costs to acquire payments from our customers payable to agents, mobile operators, international payment systems and other parties.
(4) The Company does not record the compensation to employees and related taxes within cost of revenue separately for payment revenue and other revenue, therefore it has been allocated between payment revenue and other revenue in proportion to the relevant revenue amounts for the purposes of the reconciliation presented above.
(5) Other revenue primarily consists of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, cash and settlement services and advertising.
(6) Cost of other revenue (exclusive of depreciation and amortization) primarily consists of direct costs associated with other revenue and other costs, including but not limited to: compensation to employees and related taxes allocated to other revenue, costs of call-centers and advertising commissions.
(7) Income from depositary is presented in the separate line in reconciliation tables for convenience purposes, while it is included in other income in financial statements.
(8) The Forex gain on SPO funds as presented in the reconciliation of Net Profit to Adjusted Net Profit differs from the Foreign exchange loss/(gain), net in the reconciliation of Net Profit to Adjusted EBITDA as the latter includes all the foreign exchange losses/(gains) for the period, while the former only include the foreign exchange gain on the US dollar amount, which we received at SPO.


QIWI plc.

Other Operating Data

 

     Three months ended  
     September 30, 2013     September 30, 2014     September 30, 2014  
     RUB     RUB     USD (1)  

Payment volume (billion)(2)

     143.2        164.4        4.2   
  

 

 

   

 

 

   

 

 

 

E-commerce

     15.3        18.8        0.5   

Financial services

     38.0        51.0        1.3   

Money remittances

     9.4        16.7        0.4   

Telecom

     70.3        64.8        1.6   

Other

     10.2        13.1        0.3   
  

 

 

   

 

 

   

 

 

 

Payment adjusted net revenue (million)(3)

     1,119.1        1,753.3        44.5   
  

 

 

   

 

 

   

 

 

 

E-commerce

     310.6        527.0        13.4   

Financial services

     263.5        600.5        15.2   

Money remittances

     123.2        239.8        6.1   

Telecom

     349.6        282.5        7.2   

Other

     72.2        103.4        2.6   
  

 

 

   

 

 

   

 

 

 

Payment average net revenue yield

     0.78     1.07     1.07
  

 

 

   

 

 

   

 

 

 

E-commerce

     2.02     2.80     2.8

Financial services

     0.69     1.18     1.2

Money remittances

     1.31     1.44     1.4

Telecom

     0.50     0.44     0.4

Other

     0.71     0.79     0.8
  

 

 

   

 

 

   

 

 

 

Total average Net Revenue Yield

     1.13     1.45     1.45

Active kiosks and terminals (units)

     167,112        175,293        175,293   

Active Qiwi Wallet accounts(4)

     15.0        16.5        16.5   

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014.
(2) Payment volume by market segments and consolidated payment volume consist of the amounts paid by our customers to merchants included in each of those market segments less intra-group eliminations. The methodology of payment volumes allocation between different market segments in QIWI’s international operations (including Kazachstan) may differ from the methodology used by QIWI’s Russian operations. We therefore retain the right to restate the presented volumes, net revenues and net revenue yields data in case the methodology of QIWI’s international operations will be brought in conformity with the methodology of QIWI’s Russian operations.
(3) Payment Adjusted Net Revenue is calculated as the difference between Payment Gross Revenue and Payment Costs. Payment Gross Revenue primarily consists of merchant and consumer fees. Payment Costs primarily consist of commission to agents.
(4) Active VISA Qiwi Wallet accounts calculated on a yearly basis, i.e. an active account is an account that had at least one transaction within the last 12 months from the reporting date.


QIWI plc.

Other Operating Data

 

     Nine months ended  
   September 30, 2013     September 30, 2014     September 30, 2014  
     RUB     RUB     USD (1)  

Payment volume (billion)(2)

     401.2        470.2        11.9   
  

 

 

   

 

 

   

 

 

 

E-commerce

     45.1        54.1        1.4   

Financial services

     102.6        146.6        3.7   

Money remittances

     23.4        45.1        1.1   

Telecom

     197.4        185.8        4.7   

Other

     32.7        38.6        1.0   
  

 

 

   

 

 

   

 

 

 

Payment adjusted net revenue (million)(3)

     3,015.1        4,677.2        118.7   
  

 

 

   

 

 

   

 

 

 

E-commerce

     832.7        1,357.6        34.5   

Financial services

     672.9        1,444.2        36.7   

Money remittances

     292.3        664.3        16.9   

Telecom

     990.5        905.1        23.0   

Other

     226.7        305.9        7.8   
  

 

 

   

 

 

   

 

 

 

Payment average net revenue yield

     0.8     1.0     1.0
  

 

 

   

 

 

   

 

 

 

E-commerce

     1.85     2.51     2.5

Financial services

     0.66     0.98     1.0

Money remittances

     1.25     1.47     1.5

Telecom

     0.50     0.49     0.5

Other

     0.69     0.79     0.8
  

 

 

   

 

 

   

 

 

 

Total average Net Revenue Yield

     1.11     1.35     1.35

Active kiosks and terminals (units)

     167,112        175,293        175,293   

Active Qiwi Wallet accounts(4)

     15.0        16.5        16.5   

 

(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 39.3866 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2014.
(2) Payment volume by market segments and consolidated payment volume consist of the amounts paid by our customers to merchants included in each of those market segments less intra-group eliminations. The methodology of payment volumes allocation between different market segments in QIWI’s international operations (including Kazachstan) may differ from the methodology used by QIWI’s Russian operations. We therefore retain the right to restate the presented volumes, net revenues and net revenue yields data in case the methodology of QIWI’s international operations will be brought in conformity with the methodology of QIWI’s Russian operations.
(3) Payment Adjusted Net Revenue is calculated as the difference between Payment Gross Revenue and Payment Costs. Payment Gross Revenue primarily consists of merchant and consumer fees. Payment Costs primarily consist of commission to agents.
(4) Active VISA Qiwi Wallet accounts calculated on a yearly basis, i.e. an active account is an account that had at least one transaction within the last 12 months from the reporting date.