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QIWI Announces Third Quarter 2013 Results

Adjusted Net Revenue Increases 49% to RUB 1,622 Million
Adjusted Net Profit Increases 56% to RUB 605 Million, or RUB 11.63 per share
QIWI Raises 2013 Guidance
Board of Directors Approves Dividend of 32 cents per share

MOSCOW, Nov. 19, 2013 (GLOBE NEWSWIRE) -- QIWI plc, (Nasdaq:QIWI) today announced results for the third quarter ended September 30, 2013.

Third Quarter 2013 Operating and Financial Highlights

  • Adjusted Net Revenue increased by 49% to RUB 1,622 million ($50.2 million) from RUB 1,086 million in the prior year period.
  • Adjusted EBITDA increased by 46% to RUB 793 million ($24.5 million) from RUB 542 million in the prior year period.
  • Adjusted Net Profit increased by 56% to RUB 605 million ($18.7 million), or RUB 11.63 per share from RUB 389 million or RUB 7.48 per share in the prior year period.
  • Visa QIWI Wallet active accounts increased by 53% to 15.0 million from 9.8 million in the prior year period.
  • Visa QIWI Wallet payment volume increased by 63% to RUB 64.1 billion ($2.0 billion) from RUB 39.4 billion in the prior year period.
  • QIWI Distribution payment volume increased by 12% to RUB 133.3 billion ($4.1 billion) from RUB 118.7 billion in the prior year period.

"We are pleased to report another strong quarter," said Sergey Solonin, QIWI's chief executive officer. "Our third quarter performance is the result of the continued successful execution of our growth strategy, and the value of our differentiated payments network and solutions to our customers. We remain excited by the many opportunities ahead for QIWI and will continue to invest for long-term growth."

Third Quarter 2013 Results

Revenues: Adjusted Net Revenue for the quarter ended September 30, 2013 was RUB 1,622 million ($50.2 million), an increase of 49% compared to RUB 1,086 million for the third quarter of 2012. Adjusted Net Revenue excluding revenue from fees for inactive Visa QIWI Wallet accounts increased 42% compared to the same period in the prior year.

QIWI Distribution net revenue for the quarter ended September 30, 2013 was RUB 835 million ($25.8 million), an increase of 13% compared to RUB 739 million for the same period in the prior year. QIWI Distribution net revenue growth was primarily driven by an increase in payment volume in active kiosks and terminals.

Visa QIWI Wallet net revenue for the quarter ended September 30, 2013 was RUB 764 million ($23.6 million), an increase of 134% compared to RUB 326 million for the same period in the prior year. Visa QIWI Wallet net revenue growth was primarily driven by: (i) an increase in active accounts and payments volumes; (ii) an increase in net revenue yield; and (iii) an increase in revenue from fees for inactive accounts, which amounted to RUB 134 million ($4.2 million) and constituted approximately 18% of Visa QIWI Wallet net revenue in the quarter. The corresponding amount in the third quarter of 2012 was RUB 38.5 million ($1.2 million). Visa QIWI Wallet net revenue, excluding revenue from fees for inactive accounts, increased 120% compared to the same period in the prior year.

Adjusted EBITDA: For the quarter ended September 30, 2013, Adjusted EBITDA was RUB 793 million ($24.5 million), an increase of 46% compared to RUB 542 million in the same period in the prior year. The increase in Adjusted EBITDA was primarily driven by revenue growth and continued operating leverage in the business, partially offset by additional overhead expenses in the quarter ended September 30, 2013 mainly driven by our move to a new office building. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total Adjusted Net Revenue) was 48.9% compared to 49.9% in the same period in 2012. Adjusted EBITDA excluding the effect of revenue derived from inactive accounts was RUB 659 million, an increase of 31% as compared to the same period in 2012. Adjusted EBITDA margin, excluding the effect of revenue derived from inactive accounts, was 44.3% compared to 48.1% in the same period in the prior year. The decline in adjusted EBITDA margin excluding the effect of revenue derived from inactive accounts primarily resulted from the additional overhead expenses in the quarter ended September 30, 2013 related to the move to a new office building, which decreased the adjusted EBITDA margin by approximately 330 bps. These additional overhead expenses are non-recurring and will not affect the profitability of our operations in the future.

Adjusted Net Profit: For the quarter ended September 30, 2013, Adjusted net profit was RUB 605 million ($18.7 million), an increase of 56% compared to RUB 389 million in the same period in the prior year. The increase in Adjusted Net Profit was primarily driven by the same factors impacting Adjusted EBITDA. Adjusted Net Profit excluding the effect of revenue derived from inactive accounts (net of tax) increased 39% compared to the same period in the prior year.

Other Operating Data: For the quarter ended September 30, 2013, QIWI Distribution payment volume was RUB 133.3 billion ($4.1 billion), an increase of 12% compared to RUB 118.7 billion for the same period in the prior year. The increase in payment volume in QIWI Distribution was primarily driven by an increase in Visa QIWI Wallet users reloading their wallets through the QIWI Distribution network. Average QIWI Distribution net revenue yield was 0.63% compared to 0.62% in the same period in the prior year.

For the quarter ended September 30, 2013, Visa QIWI Wallet payment volume was RUB 64.1 billion ($2.0 billion), an increase of 63% as compared to RUB 39.4 billion in the same period in the prior year. The increase in Visa QIWI Wallet payment volume resulted primarily from an increase in the number of active accounts. The number of active Visa QIWI Wallet accounts was approximately 15.0 million (on a rolling 12 months basis), an increase of 53% compared to approximately 9.8 million in the same period in the prior year. Average volume per Visa QIWI Wallet was RUB 4,280 ($132), an increase of 6% compared to RUB 4,023 ($124) in the same period in the prior year. Average Visa QIWI Wallet net revenue yield was 1.19%, representing an increase of 36 bps compared to 0.83% in the same period in the prior year. The increase in Visa QIWI Wallet net revenue yield was primarily driven by increased payment volumes associated with higher revenue generating transactions such as e-commerce, and higher revenue from fees for inactive accounts which contributed an additional 21 bps to net revenue yield in the third quarter of 2013. Visa QIWI Wallet net revenue yield, excluding revenue from fees for inactive accounts, was 0.98% in the third quarter of 2013 representing an increase of 25 bps compared to 0.73% in the same period in the prior year. QIWI expects that the revenue derived from charges for inactive accounts will not affect Visa QIWI Wallet net revenue yield to such a significant extent going forward.

Recent Developments

Dividend: QIWI announces that following the determination of third quarter 2013 financial results its Board of Directors approved a dividend of $16,678,014.08 or 32 cents per share. The dividend record date is November 29, 2013, and QIWI intends to pay the dividend on December 3, 2013. The holders of ADSs will receive the dividend shortly thereafter.

Dividend policy: QIWI announced today that its Board of Directors approved the following declaration of intent with respect to future dividends:

QIWI intends to distribute all excess cash to its shareholders in the form of annual dividend. Excess cash is defined as adjusted net profit for a year less an amount management deems necessary for near term corporate action or other business needs including but not limited to M&A activities and capital expenditures. The Board of Directors reserves the right to distribute the dividend on a quarterly basis as it deems necessary. This statement is a general declaration of intention and the actual declaration of dividends will require corporate action at the relevant time on which a decision will be taken by the Board of Directors of QIWI and/or the general meeting of its shareholders, as the case may be, depending on the precise circumstances that prevail at the time, and shareholders and/or potential investors should not treat this statement as an obligation or similar undertaking by QIWI that dividends shall be declared as set out herein.

2013 Guidance

  • Adjusted Net Revenue is expected to increase by 42% to 45% over 2012, above the previous guidance of 27% to 30%.
  • Adjusted Net Profit is expected to increase by 50% to 55% over 2012, above the previous guidance of 35% to 40%.

This guidance reflects QIWI's current and preliminary view, which is subject to change.

Earnings Conference Call and Audio Webcast

QIWI will host a conference call to discuss third quarter 2013 financial results today at 8:30 a.m. EST. 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 today at 11:30 a.m. EST and can be accessed by dialing +1 (877) 870-5176 or +1 (858) 384-5517 for international callers; the pin number is 13572697. The replay will be available until Tuesday, November 26, 2013. The call will be webcast live from QIWI'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 approximately 15 million virtual wallets, over 167,000 kiosks and terminals, and enabled merchants to accept over RUB 47 billion cash and electronic payments monthly from over 60 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 revenue, 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 Registration Statement on Form F-1 and in reports QIWI files with the U.S. Securities and Exchange Commission. QIWI undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events that may affect such forward-looking statements unless QIWI is required to do so by law.

QIWI plc.
Interim Condensed Consolidated Statement of Financial Position
(in thousands, except per share data)
As of December 31, As of September 30, As of September 30,
2012 (audited) 2013 (unaudited) 2013 (unaudited)
RUB RUB USD(1)
Assets
Non-current assets
Property and equipment 105,653 265,266 8,201
Goodwill and other intangible assets 1,975,930 1,947,447 60,209
Long-term debt instruments 616,473 765,607 23,670
Long-term loans 185,384 89,620 2,771
Investments in associates 100,436 -- --
Deferred tax assets 101,805 183,944 5,687
Other non-current assets 16,377 36,277 1,122
Total non-current assets 3,102,058 3,288,161 101,659
Current assets
Trade and other receivables 3,437,671 1,932,648 59,751
Short-term loans 324,086 198,971 6,152
Short-term debt instruments 1,751,119 1,721,136 53,212
Prepaid income tax 37,835 43,634 1,349
VAT and other taxes receivable 19,511 26,980 834
Cash and cash equivalents 9,943,160 5,810,393 179,638
Other current assets 93,334 136,623 4,224
Total current assets 15,606,716 9,870,385 305,160
Total assets 18,708,774 13,158,546 406,819
Equity and liabilities
Equity attributable to equity holders of the parent
Share capital 904 906 28
Additional paid-in capital 1,876,104 1,903,804 58,859
Other reserve 101,124 224,379 6,937
Retained earnings 569,317 613,302 18,961
Translation reserve 705 (4,525) (140)
Total equity attributable to equity holders of the parent 2,548,154 2,737,866 84,646
Non-controlling interest (49,311) (83,406) (2,579)
Total equity 2,498,843 2,654,460 82,067
Non-current liabilities
Long-term borrowings 38,762 40,718 1,259
Long-term deferred revenue 43,605 37,650 1,164
Deferred tax liabilities 44,065 53,410 1,651
Long-term accounts payable -- 31,902 986
Total non-current liabilities 126,432 163,680 5,060
Current liabilities
Short-term borrowings 26,105 53,495 1,654
Trade and other payables 14,934,194 9,262,675 286,371
Amounts due to customers and amounts due to banks 944,549 824,110 25,479
Income tax payable 9,558 44,362 1,372
VAT and other taxes payable 138,742 130,663 4,040
Deferred revenue 30,048 24,912 770
Other current liabilities 303 189 6
Total current liabilities 16,083,499 10,340,406 319,691
Total equity and liabilities 18,708,774 13,158,546 406,819
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.3451 to U.S.$ 1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2013.
QIWI plc.
Interim Condensed Consolidated Statement of Comprehensive Income
(in thousands, except per share data)
Three months ended (unaudited)
September 30, 2012 September 30, 2013 September 30, 2013
RUB RUB USD(1)
Revenue 2,292,634 2,975,243 91,985
Operating costs and expenses:
Cost of revenue (exclusive of depreciation and amortization) 1,367,688 1,559,879 48,226
Selling, general and administrative expenses 413,052 684,349 21,158
Depreciation and amortization 24,205 28,109 869
Goodwill impairment -- 5,477 169
Profit from operations 487,689 697,429 21,562
Loss from disposal of subsidiaries (1,027) -- --
Impairment of investment in associates -- -- --
Other income 1,004 2,774 86
Other expenses (1,474) (11,870) (367)
Change in fair value of derivative financial assets -- -- --
Foreign exchange gain / (loss), net (15,070) (2,831) (88)
Share of loss of associates (14,140) -- --
Interest income 8,951 4,840 150
Interest expense (2,057) (7,518) (232)
Profit before tax from continuing operations 463,876 682,824 21,111
Income tax expense (107,764) (149,533) (4,623)
Net profit from continuing operations 356,112 533,291 16,488
Discontinued operations
Loss from discontinued operations 45,520 -- --
Net profit 401,632 533,291 16,488
Attributable to:
Equity holders of the parent 418,138 542,771 16,781
Non-controlling interests (16,506) (9,480) (293)
Other comprehensive income
Exchange differences on translation of foreign operations 828 (3,370) (104)
Total comprehensive income, net of tax attributable to: 402,460 529,921 16,383
Equity holders of the parent 418,463 539,045 16,665
Non-controlling interests (16,003) (9,124) (282)
Earnings per share:
Basic, profit attributable to ordinary equity holders of the parent 8.04 10.43 0.32
Basic, profit from continuing operations attributable to ordinary equity holders of the parent 6.95 10.43 0.32
Diluted, profit attributable to ordinary equity holders of the parent 8.04 10.27 0.32
Diluted, profit from continuing operations attributable to ordinary equity holders of the parent 6.94 10.27 0.32
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.3451 to U.S.$ 1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2013.
QIWI plc.
Interim Condensed Consolidated Statement of Comprehensive Income
(in thousands, except per share data)
Nine months ended (unaudited)
September 30, 2012 September 30, 2013 September 30, 2013
RUB RUB USD(1)
Revenue 6,319,209 8,387,401 259,311
Operating costs and expenses:
Cost of revenue (exclusive of depreciation and amortization) 3,941,441 4,563,350 141,084
Selling, general and administrative expenses 1,179,395 1,828,545 56,533
Depreciation and amortization 97,477 81,054 2,506
Goodwill impairment -- 5,477 169
Profit from operations 1,100,896 1,908,975 59,019
Loss from disposal of subsidiaries (1,027) -- --
Impairment of investment in associates -- (21,540) (666)
Other income 4,568 16,697 516
Other expenses (28,762) (17,791) (550)
Change in fair value of derivative financial assets (328) -- --
Foreign exchange gain / (loss), net (8,490) 4,002 124
Share of loss of associates (21,636) (78,896) (2,439)
Interest income 22,040 13,374 413
Interest expense (4,119) (19,379) (599)
Profit before tax from continuing operations 1,063,142 1,805,442 55,818
Income tax expense (279,382) (465,096) (14,379)
Net profit from continuing operations 783,760 1,340,346 41,439
Discontinued operations
Loss from discontinued operations (240,363) -- --
Net profit 543,397 1,340,346 41,439
Attributable to:
Equity holders of the parent 634,210 1,368,183 42,300
Non-controlling interests (90,813) (27,837) (861)
Other comprehensive income
Exchange differences on translation of foreign operations 1,140 (9,380) (290)
Total comprehensive income, net of tax attributable to: 544,537 1,330,966 41,149
Equity holders of the parent 635,004 1,362,953 42,138
Non-controlling interests (90,467) (31,987) (989)
Earnings per share:
Basic, profit attributable to ordinary equity holders of the parent 12.20 26.30 0.81
Basic, profit from continuing operations attributable to ordinary equity holders of the parent 15.42 26.30 0.81
Diluted, profit attributable to ordinary equity holders of the parent 12.20 26.19 0.81
Diluted, profit from continuing operations attributable to ordinary equity holders of the parent 15.42 26.19 0.81
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.3451 to U.S.$ 1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2013.
QIWI plc.
Interim Condensed Consolidated Cash Flow Statement
(in thousands, except per share data)
Nine months ended (unaudited)
September 30, 2012 September 30, 2013 September 30, 2013
RUB RUB USD(1)
Cash flows from operating activities
Profit before tax from continuing operations 1,063,142 1,805,442 55,818
Loss before tax from discontinued operations (233,535) -- --
Profit before tax 829,607 1,805,442 55,818
Adjustments to reconcile profit before income tax to net cash flows generated from operating activities
Depreciation and amortization 105,527 81,054 2,506
Loss on disposal of property and equipment 354 4,069 126
Impairment of associates -- 21,540 666
Impairment of Goodwill -- 5,477 169
Loss recognized on the remeasurement to fair value 167,333 -- --
Foreign exchange loss (gain), net 11,941 4,002 124
Interest income, net (157,030) (268,207) (8,292)
Bad debt expense, net 110,264 211,407 6,536
Share of loss of associates 25,392 78,896 2,439
Gain from disposal of subsidiaries (45,519) -- --
Share of profit for the period attributable to non-controlling interest and accounted for as a liability 24,298 -- --
Share-based payments -- 145,763 4,507
Other 8,011 1,364 42
Operating profit before changes in working capital 1,080,178 2,090,807 64,641
Decrease in trade and other receivables 226,208 1,324,662 40,954
Increase in other assets (9,759) (64,551) (1,996)
Decrease in amounts due to customers and amounts due to banks (781,335) (120,439) (3,724)
Decrease in accounts payable and accruals (3,074,865) (5,743,157) (177,559)
Loans (issued) / settled from banking operations (315,838) 200,750 6,207
Cash used in operations (2,875,411) (2,311,928) (71,477)
Interest received 123,293 408,945 12,643
Interest paid (4,043) (16,368) (506)
Income tax paid (234,305) (508,885) (15,733)
Net cash flow used in operating activities (2,990,466) (2,428,236) (75,073)
Cash flows used in investing activities
Purchase of property and equipment (27,177) (122,550) (3,789)
Proceeds from sale of property and equipment 3,962 1,684 52
Purchase of intangible assets (31,295) (13,400) (414)
Loans issued (16,573) (20,859) (645)
Repayment of loans issued 20,322 9,421 291
Purchase of debt instruments (1,155,417) (1,901,004) (58,773)
Proceeds from settlement of debt instruments 289,501 1,654,016 51,137
Contribution to investments to associates (92,916) -- --
Net cash (outflow) on disposal of subsidiaries (44,441) -- --
Net cash flow used in investing activities (1,054,034) (392,692) (12,141)
Cash flows used in/from financing activities
Proceeds from borrowings 33,196 20,426 632
Repayment of promissory notes issued (16,297) -- --
Repayment of borrowings (3,952) (265) (8)
Repayment of overdraft facilities, net (47,118) -- --
Contributions to subsidiaries from non-controlling shareholders 9,654 -- --
Dividends paid to owners of the Group (612,917) (1,327,836) (41,052)
Dividends paid to non-controlling shareholders (910) (2,098) (65)
Underwriters' commission -- 72,835 2,252
Distribution of underwriters' commission -- (67,643) (2,091)
Net cash flow used in financing activities (638,344) (1,304,581) (40,333)
Effect of exchange rate changes on cash and cash equivalents 3,188 (7,258) (224)
Net decrease in cash and cash equivalents (4,679,656) (4,132,767) (127,771)
Cash and cash equivalents at the beginning 8,810,441 9,943,160 307,409
Cash and cash equivalents at the end 4,130,785 5,810,393 179,638
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.3451 to U.S.$ 1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2013.

Non-IFRS Financial Measures

This release presents 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 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 Adjusted Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit, and Adjusted Net Profit per share, including a quantitative reconciliation of 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 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.

QIWI plc.
Reconciliation of IFRS to Non-IFRS Operating Results
(in thousands, except per share data)
Three months ended
September 30, 2012 September 30, 2013 September 30, 2013
RUB RUB USD(1)
Revenue 2,292,634 2,975,243 91,985
Minus: Cost of revenue (exclusive of depreciation and amortization) 1,367,688 1,559,879 48,226
Plus: Compensation to employees and related taxes 160,865 207,015 6,400
Adjusted Net Revenue 1,085,811 1,622,379 50,159
Segment Adjusted Net Revenue
Qiwi Distribution 738,786 835,433 25,829
Visa Qiwi Wallet 326,092 764,469 23,635
Other 20,933 22,477 695
Total Adjusted Net Revenue 1,085,811 1,622,379 50,159
Net Profit 401,632 533,291 16,488
Plus:
Depreciation and amortization 24,205 28,109 869
Other income (1,004) (2,774) (86)
Other expenses 1,474 11,870 367
Change in fair value of derivative financial assets -- -- --
Foreign exchange (loss) gain, net 15,070 2,831 88
Share of loss of associates 14,140 -- --
Loss from disposal of subsidiaries 1,027 -- --
Impairment of investment in associates -- -- --
Interest income (8,951) (4,840) (150)
Interest expenses 2,057 7,518 232
Income tax expenses 107,764 149,533 4,623
Corporate costs allocated to discontinued operations 4,035 -- --
Offering expenses 26,047 32,418 1,002
Share-based payments expenses -- 29,722 919
Loss from discontinued operations (45,520) -- --
Goodwill impairment -- 5,477 169
Adjusted EBITDA 541,976 793,155 24,522
Adjusted EBITDA margin 49.9% 48.9% 48.9%
Net profit 401,632 533,291 16,488
Loss from discontinued operations (45,520) -- --
Goodwill impairment -- 5,477 169
Corporate costs allocated to discontinued operations 4,035 -- --
Amortization of fair value adjustments 4,471 5,389 167
Offering expenses 26,047 32,418 1,002
Share-based payments expenses -- 29,722 919
Effect of deferred taxation of the above items (1,701) (1,057) (33)
Adjusted Net Profit 388,964 605,240 18,712
Adjusted Net Profit per share:
Basic 7.48 11.63 0.36
Diluted 7.48 11.45 0.35
Shares used in computing Adjusted Net Profit per share
Basic 52,000 52,044 52,044
Diluted 52,000 52,864 52,864
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.3451 to U.S.$ 1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2013.
QIWI plc.
Reconciliation of IFRS to Non-IFRS Operating Results
(in thousands, except per share data)
Nine months ended
September 30, 2012 September 30, 2013 September 30, 2013
RUB RUB USD(1)
Revenue 6,319,209 8,387,401 259,311
Minus: Cost of revenue (exclusive of depreciation and amortization) 3,941,441 4,563,350 141,084
Plus: Compensation to employees and related taxes 530,170 643,233 19,887
Adjusted Net Revenue 2,907,938 4,467,284 138,114
Segment Adjusted Net Revenue
Qiwi Distribution 1,999,688 2,375,233 73,434
Visa Qiwi Wallet 828,001 2,024,684 62,597
Other 80,249 67,367 2,083
Total Adjusted Net Revenue 2,907,938 4,467,284 138,114
Net Profit 543,397 1,340,346 41,439
Plus:
Depreciation and amortization 97,477 81,054 2,506
Other income (4,568) (16,697) (516)
Other expenses 28,762 17,791 550
Change in fair value of derivative financial assets 328 -- --
Foreign exchange (loss) gain, net 8,490 (4,002) (124)
Share of loss of associates 21,636 78,896 2,439
Loss from disposal of subsidiaries 1,027 -- --
Impairment of investment in associates -- 21,540 666
Interest income (22,040) (13,374) (413)
Interest expenses 4,119 19,379 599
Income tax expenses 279,382 465,096 14,379
Corporate costs allocated to discontinued operations 61,274 -- --
Offering expenses 26,047 102,777 3,178
Share-based payments expenses -- 145,763 4,507
Loss from discontinued operations 240,363 -- --
Goodwill impairment -- 5,477 169
Adjusted EBITDA 1,285,694 2,244,046 69,378
Adjusted EBITDA margin 44.2% 50.2% 50.2%
Net profit 543,397 1,340,346 41,439
Loss from discontinued operations 240,363 -- --
Goodwill impairment -- 5,477 169
Corporate costs allocated to discontinued operations 61,274 -- --
Amortization of fair value adjustments 28,451 16,316 504
Offering expenses 26,047 102,777 3,178
Share-based payments expenses -- 145,763 4,507
Effect of deferred taxation of the above items (17,945) (3,242) (100)
Adjusted Net Profit 881,587 1,607,437 49,697
Adjusted Net Profit per share:
Basic 16.95 30.90 0.96
Diluted 16.95 30.77 0.95
Shares used in computing Adjusted Net Profit per share
Basic 52,000 52,015 52,015
Diluted 52,000 52,241 52,241
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.3451 to U.S.$ 1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2013.
QIWI plc.
Other Operating Data
Quarters Ended
September 30, 2012 September 30, 2013 September 30, 2013
RUB RUB USD(1)
Qiwi Distribution
Active kiosks and terminals (units) 168,450 167,112 167,112
Payment volume (billions) 118.7 133.3 4.1
Average net revenue yield 0.62% 0.63% 0.63%
Visa Qiwi Wallet
Active Qiwi Wallet accounts (number at period end), (millions) 9.8 15.0 15.0
Payment volume (billions) 39.4 64.1 2.0
Average volume per Qiwi Wallet account (per quarter) 4,023 4,280 132
Average net revenue yield 0.83% 1.19% 1.19%
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.3451 to U.S.$ 1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2013.

In this release, Russian ruble (RUB) amounts have been translated into U.S. dollars at a rate of RUB 32.3451 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2013.

CONTACT: Yakov Barinskiy Head of Investor Relations +7.499.709.0192 ir@qiwi.comSource:QIWI plc