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QIWI Announces Second-Quarter 2014 Results

Total Adjusted Net Revenue Increases 35% to RUB 2,112 Million

Adjusted Net Profit Increases 64% to RUB 899 Million or RUB 16.9 per share

QIWI Raises 2014 Guidance

Board of Directors Approves Dividend of 46 cents per share

MOSCOW, Aug. 7, 2014 (GLOBE NEWSWIRE) -- QIWI plc, (Nasdaq:QIWI) ("QIWI" or the "Company") today announced results for the second-quarter ended June 30, 2014.

Second-Quarter 2014 Operating and Financial Highlights

  • Total Adjusted Net Revenue increased 35% to RUB 2,112 million ($62.8 million)
  • Adjusted EBITDA increased 62% to RUB 1,285 million ($38.2 million)
  • Adjusted Net Profit increased 64% to RUB 899 million ($26.7 million), or RUB 16.9 per diluted share
  • Total payment volume increased 17% to RUB 156.3 billion ($4.6 billion)

"Our second quarter results continued to be very strong," said Sergey Solonin, QIWI's chief executive officer. "Solid financial performance demonstrates that we proceed to execute our strategy and gain market share in the fast-growing payments markets we serve. Moreover, this quarter we have introduced new Visa Qiwi Wallet interface driving the adoption and increasing the utilization of our services. We will continue to focus on our core market segments and execute our strategy."

Second-Quarter 2014 Results

Revenues: Total Adjusted Net Revenue for the quarter ended June 30, 2014 was RUB 2,112 million ($62.8 million), an increase of 35% compared with RUB 1,561 million in the prior year.

Payment Adjusted Net Revenue was RUB 1,562 million ($46.4 million), an increase of 57% compared with RUB 995 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 on deposits and overdrafts provided to agents, cash and settlement services and advertising, was RUB 550 million ($16.4 million), a decrease of 3% compared with RUB 566 million in the prior year. Inactivity fees for the second quarter were RUB 156 million ($4.6 million) compared with RUB 224 million in the prior year. Other Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 15% compared with the same period in the prior year.

Total Adjusted Net Revenue excluding revenue from fees for inactive accounts increased 46% compared with the same period in the prior year.

Adjusted EBITDA: For the quarter ended June 30, 2014, Adjusted EBITDA was RUB 1,285 million ($38.2 million), an increase of 62% compared with RUB 796 million in the prior year. Adjusted EBITDA growth was mainly driven by revenue growth, continued operating leverage in the business and the fact that certain marketing expenses in the amount of approximately RUB 130 million which were expected to be incurred in the second quarter were postponed to third and fourth quarters. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of Total Adjusted Net Revenue) was 60.9% compared with 51% in the prior year. Adjusted EBITDA excluding inactivity fees was RUB 1,130 million ($33.6 million), an increase of 97% compared with RUB 573 million in the prior year. Adjusted EBITDA margin excluding inactivity fees was 57.8% compared with 42.8% in the prior year.

Adjusted Net Profit: For the quarter ended June 30, 2014, Adjusted Net Profit was RUB 899 million ($26.7 million), an increase of 64% compared with RUB 546 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 110% compared with the prior year.

Other Operating Data: For the quarter ended June 30, 2014, total payment volume was RUB 156.3 billion ($4.6 billion), an increase of 17% compared with RUB 133.5 billion in the prior year. Average payment net revenue yield was 1.00%, an increase of 25 bps compared with 0.75% in the prior year. The increase in payment volume and average net revenue yield in the second quarter was mainly driven by strong growth in the E-commerce, Financial Services and Money Remittances market segments and decrease of the QIWI Wallet upload costs through the network of kiosks by approximately 20 bps.

The total average net revenue yield was 1.35%, an increase of 18 bps as compared with 1.17% in the prior year. The total average net revenue yield excluding the effect of inactivity fees was 1.25%, an increase of 25 bps as compared with the same period in the prior year.

The number of active kiosks and terminals was 171,043, an increase of 1% compared with the prior year, primarily driven by an increase in self-service kiosks partially offset by a decrease in other terminals. The number of active Visa Qiwi Wallet accounts was 15.8 million as of the end of the second quarter 2014, an increase of 1.7 million, or 12%, as compared with 14.1 million in the second quarter 2013.

Recent Developments

Dividend: QIWI announces that following the determination of second-quarter 2014 financial results its Board of Directors recommended a dividend of USD 46 cents per share. The dividend record date is August 18, 2014, and the Company intends to pay the dividend on August 19, 2014. The holders of ADSs will receive the dividend shortly thereafter.

Changes in Company Reporting: Beginning January 1, 2014, QIWI revised its financial reporting structure such that it has one financial reporting segment. The Company decided to consolidate the Company's previous financial reporting segments, Visa QIWI Wallet and QIWI Distribution, in order to better reflect QIWI's underlying business in light of the growing interconnectedness and interrelation between Visa QIWI Wallet and QIWI Distribution. In addition, in order to provide additional transparency into its core payments-related businesses, QIWI began reporting two components of Total Adjusted Net Revenue, being Payment Adjusted Net Revenue and Other Adjusted Net Revenue, in order to highlight different revenue streams of QIWI's business. This quarter the Company presents financials for 2013 according to new financial reporting structure. Please see below the section "Other operating data".

2014 Guidance

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

  • Total Adjusted Net Revenue is expected to increase by 30% to 32% over 2013
  • Adjusted Net Profit is expected to increase by 36% to 38% over 2013

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 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 13587871. The replay will be available until Thursday, August 14, 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 15.8 million virtual wallets, over 171,000 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.

QIWI plc.
Consolidated Statement of Financial Position
(in thousands, except per share data)
As of December 31, As of June 30, As of June 30,
2013 (audited) 2014 (unaudited) 2014
RUB RUB USD(1)
Assets
Non-current assets
Property and equipment 307,500 376,795 11,204
Goodwill and other intangible assets 2,405,645 2,319,355 68,965
Long-term debt instruments 1,376,862 0 0
Long-term loans 10,637 29,992 892
Deferred tax assets 183,333 220,277 6,550
Other non-current assets 38,394 37,943 1,128
Total non-current assets 4,322,371 2,984,362 88,738
Current assets
Trade and other receivables 2,772,297 1,741,567 51,785
Short-term loans 65,430 27,085 805
Short-term debt instruments 1,635,291 2,447,755 72,783
Prepaid income tax 60,537 41,638 1,238
VAT and other taxes receivable 12,478 42,837 1,274
Cash and cash equivalents 11,636,913 10,977,887 326,422
Other current assets 159,264 322,871 9,600
Total current assets 16,342,210 15,601,640 463,907
Total assets 20,664,581 18,586,002 552,645
Equity and liabilities
Equity attributable to equity holders of the parent
Share capital 907 955 28
Additional paid-in capital 1,876,104 4,522,490 134,474
Other reserve 337,254 581,701 17,297
Retained earnings 573,604 899,712 26,752
Translation reserve 10,757 9,010 268
Total equity attributable to equity holders of the parent 2,798,626 6,013,868 178,819
Non-controlling interest (94,766) (124,753) (3,709)
Total equity 2,703,860 5,889,115 175,110
Non-current liabilities
Long-term borrowings 109,351 144,438 4,295
Long-term deferred revenue 31,629 19,268 573
Deferred tax liabilities 58,630 67,933 2,020
Long-term accounts payable 7,625 1,012 30
Total non-current liabilities 207,235 232,651 6,918
Current liabilities
Short-term borrowings 635 1,780 53
Trade and other payables 16,768,973 11,383,718 338,489
Amounts due to customers and amounts due to banks 831,226 921,411 27,398
Income tax payable 10,823 22,883 680
VAT and other taxes payable 95,403 107,435 3,195
Deferred revenue 46,233 26,970 802
Other current liabilities 193 39 1
Total current liabilities 17,753,486 12,464,236 370,617
Total equity and liabilities 20,664,581 18,586,002 552,645
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 33.6306 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2014.
QIWI plc.
Consolidated Statement of Comprehensive Income
(in thousands, except per share data)
Three months ended (unaudited)
June 30, 2013 June 30, 2014 June 30, 2014
RUB RUB USD(1)
Revenue 2,879,462 3,488,438 103,727
Operating costs and expenses:
Cost of revenue (exclusive of depreciation and amortization) 1,527,041 1,746,565 51,933
Selling general and administrative expenses 645,374 628,464 18,687
Depreciation and amortization 26,791 80,583 2,396
Profit from operations 680,256 1,032,826 30,711
Other income 46,951 35,664 1,060
Other expenses (4,823) (3,487) (104)
Foreign exchange gain / (loss) net 4,230 (96,410) (2,867)
Share of loss of associates (71,205) (3,808) (113)
Impairment of investment in associates (21,540) -- --
Interest income 4,387 -- --
Interest expense (5,608) (10,439) (310)
Profit before tax 632,648 954,346 28,377
Income tax expense (179,255) (238,510) (7,092)
Net profit 453,393 715,836 21,285
Attributable to:
Equity holders of the parent 460,078 727,540 21,633
Non-controlling interests (6,685) (11,704) (348)
Other comprehensive income
Exchange differences on translation of foreign operations (3,903) (473) (14)
Total comprehensive income net of tax 449,490 715,363 21,271
attributable to:
Equity holders of the parent 459,933 720,005 21,409
Non-controlling interests (10,443) (4,642) (138)
Earnings per share:
Basic profit attributable to ordinary equity holders of the parent 8.84 13.88 0.41
Diluted profit attributable to ordinary equity holders of the parent 8.83 13.66 0.41
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 33.630 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2014.
QIWI plc.
Consolidated Statement of Comprehensive Income
(in thousands, except per share data)
Six months ended (unaudited)
June 30, 2013 June 30, 2014 June 30, 2014
RUB RUB USD(1)
Revenue 5,412,158 6,747,900 200,645
Operating costs and expenses:
Cost of revenue (exclusive of depreciation and amortization) 3,003,471 3,434,698 102,129
Selling general and administrative expenses 1,188,280 1,210,652 35,998
Depreciation and amortization 52,945 164,877 4,903
Profit from operations 1,167,462 1,937,673 57,616
Other income 58,007 36,039 1,072
Other expenses (5,921) (8,493) (253)
Foreign exchange gain / (loss) net 6,833 (98,463) (2,928)
Share of loss of associates (78,896) (11,119) (331)
Impairment of investment in associates (21,540) (2,903) (86)
Interest income 8,534 712 21
Interest expense (11,861) (21,011) (625)
Profit before tax 1,122,618 1,832,435 54,486
Income tax expense (315,563) (428,422) (12,739)
Net profit 807,055 1,404,013 41,748
Attributable to:
Equity holders of the parent 825,412 1,431,875 42,576
Non-controlling interests (18,357) (27,862) (828)
Other comprehensive income
Exchange differences on translation of foreign operations (6,010) (3,485) (104)
Total comprehensive income net of tax 801,045 1,400,528 41,644
attributable to:
Equity holders of the parent 823,908 1,430,128 42,524
Non-controlling interests (22,863) (29,600) (880)
Earnings per share:
Basic profit attributable to ordinary equity holders of the parent 15.87 27.38 0.81
Diluted profit attributable to ordinary equity holders of the parent 15.85 26.94 0.80
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 33.630 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 30, 2014.
QIWI plc.
Consolidated Cash Flow Statement
(in thousands, except per share data)
Six months ended
June 30, 2013
(unaudited)
June 30, 2014
(unaudited)

June 30, 2014
RUB RUB USD(1)
Cash flows from operating activities
Profit before tax 1,122,618 1,832,435 54,486
Adjustments to reconcile profit before income tax to net cash flows generated from operating activities
Depreciation and amortization 52,945 164,877 4,903
Loss on disposal of property and equipment 6,314 1,318 39
Foreign exchange loss, net 824 98,463 2,928
Interest income, net (177,195) (142,633) (4,241)
Bad debt expense, net 124,850 84,951 2,526
Share of loss of associates 78,896 11,119 331
Impairment of investment in associates 21,540 2,903 86
Share-based payments 116,041 239,280 7,115
Other 2,657 4,186 124
Operating profit before changes in working capital 1,349,490 2,296,899 68,297
Drease in trade and other receivables 629,935 955,305 28,405
Increase in other assets (67,605) (166,158) (4,941)
(Increase)/Decrease in amounts due to customers and amounts due to banks (207,188) 90,185 2,682
Decrease in accounts payable and accruals (5,277,082) (5,304,276) (157,720)
Loans issued/ (settled) from banking operations 136,533 (12,534) (373)
Cash used in operations (3,435,917) (2,140,579) (63,649)
Interest received 290,824 196,787 5,851
Interest paid (8,912) (14,627) (435)
Income tax paid (323,063) (425,104) (12,640)
Net cash flow used in operating activities (3,477,068) (2,383,523) (70,873)
Cash flows used in investing activities
Loans to associates -- (14,022) (417)
Payments for assignment of loans -- (45,375) (1,349)
Purchase of property and equipment (29,487) (196,646) (5,847)
Purchase of intangible assets (9,584) (15,438) (459)
Loans issued (13,369) (12,441) (370)
Repayment of loans issued 9,421 866 26
Purchase of debt instruments (1,899,952) (706,846) (21,018)
Proceeds from settlement of debt instruments 1,654,016 1,242,313 36,940
Net cash flow used in/generated from investing activities (288,955) 252,411 7,505
Cash flows generated from financing activities
Issue of share capital -- 2,646,432 78,690
Exercise of options -- 5,167 154
Proceeds from borrowings 14,912 29,408 874
Repayment of borrowings -- (1,389) (41)
Dividends paid to owners of the Group (773,719) (1,105,939) (32,885)
Dividends paid to non-controlling shareholders (2,098) (2,170) (65)
Underwriters' commission 72,835 -- --
Distribution of underwriters' commission (67,643) -- --
Transactions with non-controlling interest -- 1,783 53
Net cash flow used in/ generated from financing activities (755,713) 1,573,292 46,781
Effect of exchange rate changes on cash and cash equivalents (3,534) (101,206) (3,009)
Net decrease in cash and cash equivalents (4,525,270) (659,026) (19,596)
Cash and cash equivalents at the beginning 9,943,160 11,636,913 346,017
Cash and cash equivalents at the end 5,417,890 10,977,887 326,422
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 33.630to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 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 such non-IFRS financial measures as included 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
June 30, 2013 June 30, 2014 June 30, 2014
RUB RUB USD(1)
Revenue 2,879 3,488 103.7
Minus: Cost of revenue (exclusive of depreciation and amortization) 1,527 1,747 51.9
Plus: Compensation to employees and related taxes 209 370 11.0
Total Adjusted Net Revenue 1,561 2,112 62.8
Payment Revenue(2) 2,239 2,804 83.4
Minus: Cost of payment revenue (exclusive of depreciation and amortization)(3) 1,413 1,539 45.8
Plus: Compensation to employees and related taxes allocated to payment revenue(4) 169 297 8.8
Payment Adjusted Net Revenue 995 1,562 46.4
Other Revenue(5) 640 685 20.4
Minus: Cost of other revenue (exclusive of depreciation and amortization)(6) 115 208 6.2
Plus: Compensation to employees and related taxes allocated to other revenue(4) 41 73 2.2
Other Adjusted Net Revenue 566 550 16.4
Payment Adjusted Net Revenue 995 1,562 46.4
E-commerce 273 451 13.4
Financial services 221 468 13.9
Money remittances 98 240 7.1
Telecom 326 310 9.2
Other 77 92 2.7
Other Adjusted Net Revenue 566 550 16.4
Total Adjusted Net Revenue 1,561 2,112 62.8
Net Profit 453 716 21.3
Plus:
Depreciation and amortization 27 81 2.4
Other income (47) (36) (1.1)
Other expenses 5 3 0.1
Foreign exchange (loss) gain, net (4) 96 2.9
Share of loss of associates 71 4 0.1
Impairment of investment in associates 22 -- --
Interest income (4) -- --
Interest expenses 6 10 0.3
Income tax expenses 179 239 7.1
Offering expenses 94 45 1.3
Income from depositary (44) (33) (1.0)
Share-based payments expenses 38 160 4.8
Adjusted EBITDA 796 1,285 38.2
Adjusted EBITDA margin 51.0% 60.9% 60.9%
Net profit 453 716 21.3
Amortization of fair value adjustments 5 13 0.4
Offering expenses 94 45 1.3
Income from depositary (44) (33) (1.0)
Share-based payments expenses 38 160 4.8
Effect of taxation of the above items (1) (3) (0.1)
Adjusted Net Profit 546 899 26.7
Adjusted Net Profit per share:
Basic 10.51 17.14 0.51
Diluted 10.50 16.87 0.50
Shares used in computing Adjusted Net Profit per share
Basic 52,000 52,425 52,425
Diluted 52,072 53,253 53,253
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 33.630 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 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.
QIWI plc.
Reconciliation of IFRS to Non-IFRS Operating Results
(in millions, except per share data)
Six months ended
June 30, 2013 June 30, 2014 June 30, 2014
RUB RUB USD(1)
Revenue 5,412 6,748 200.6
Minus: Cost of revenue (exclusive of depreciation and amortization) 3,003 3,435 102.1
Plus: Compensation to employees and related taxes 436 676 20.1
Total Adjusted Net Revenue 2,845 3,989 118.6
Payment Revenue(2) 4,323 5,432 161.5
Minus: Cost of payment revenue (exclusive of depreciation and amortization)(3) 2,784 3,052 90.7
Plus: Compensation to employees and related taxes allocated to payment revenue(4) 357 544 16.2
Payment Adjusted Net Revenue 1,896 2,924 86.9
Other Revenue(5) 1,089 1,316 39.1
Minus: Cost of other revenue (exclusive of depreciation and amortization)(6) 219 383 11.4
Plus: Compensation to employees and related taxes allocated to other revenue(4) 79 132 3.9
Other Adjusted Net Revenue 949 1,065 31.7
Payment Adjusted Net Revenue 1,896 2,924 86.9
E-commerce 522 831 24.7
Financial services 409 844 25.1
Money remittances 169 425 12.6
Telecom 641 623 18.5
Other 154 203 6.0
Other Adjusted Net Revenue 949 1,065 31.7
Total Adjusted Net Revenue 2,845 3,989 118.6
Net Profit 807 1,404 41.7
Plus:
Depreciation and amortization 53 165 4.9
Other income (58) (36) (1.1)
Other expenses 6 8 0.3
Foreign exchange (loss) gain, net (7) 98 2.9
Share of loss of associates 79 11 0.3
Impairment of investment in associates 22 3 0.1
Interest income (9) (1) (0.0)
Interest expenses 12 21 0.6
Income tax expenses 316 428 12.7
Offering expenses 114 45 1.3
Income from depositary (44) (33) (1.0)
Share-based payments expenses 116 239 7.1
Adjusted EBITDA 1,407 2,354 70.0
Adjusted EBITDA margin 49.4% 59.0% 59.0%
Net profit 807 1,404 41.7
Amortization of fair value adjustments 11 35 1.0
Offering expenses 114 45 1.3
Income from depositary (44) (33) (1.0)
Share-based payments expenses 116 239 7.1
Effect of taxation of the above items (2) (7) (0.2)
Adjusted Net Profit 1,002 1,683 50.0
Adjusted Net Profit per share:
Basic 19.27 32.18 0.96
Diluted 19.25 31.67 0.94
Shares used in computing Adjusted Net Profit per share
Basic 52,000 52,302 52,302
Diluted 52,061 53,141 53,141
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 33.630 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 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.
QIWI plc.
Other Operating Data
Three months ended
June 30, 2013 June 30, 2014 June 30, 2014
RUB RUB USD(1)
Payment volume (billion)(2) 133.5 156.3 4.6
E-commerce 15.2 17.8 0.5
Financial services 33.5 48.4 1.4
Money remittances 7.9 15.3 0.5
Telecom 65.6 62.5 1.9
Other 11.2 12.3 0.4
Payment adjusted net revenue (million)(3) 995.5 1,561.6 46.4
E-commerce 273.4 450.9 13.4
Financial services 221.1 468.3 13.9
Money remittances 97.9 240.3 7.1
Telecom 326.5 310.3 9.2
Other 76.6 91.8 2.7
Payment average net revenue yield 0.7% 1.0% 1.0%
E-commerce 1.80% 2.53% 2.5%
Financial services 0.66% 0.97% 1.0%
Money remittances 1.23% 1.57% 1.6%
Telecom 0.50% 0.50% 0.5%
Other 0.69% 0.75% 0.7%
Total average Net Revenue Yield 1.17% 1.35% 1.35%
Active kiosks and terminals (units) 169,481 171,043 171,043
Active Qiwi Wallet accounts(4) 14.1 15.8 15.8
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 33.630 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 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
Six months ended
June 30, 2013 June 30, 2014 June 30, 2014
RUB RUB USD(1)
Payment volume (billion)(2) 258.0 305.9 9.1
E-commerce 29.7 35.3 1.0
Financial services 64.6 95.7 2.8
Money remittances 14.0 28.5 0.8
Telecom 127.2 121.0 3.6
Other 22.4 25.5 0.8
Payment adjusted net revenue (million)(3) 1,896.0 2,923.9 86.9
E-commerce 522.1 830.6 24.7
Financial services 409.4 843.7 25.1
Money remittances 169.1 424.5 12.6
Telecom 640.9 622.6 18.5
Other 154.5 202.6 6.0
Payment average net revenue yield 0.7% 1.0% 1.0%
E-commerce 1.8% 2.4% 2.4%
Financial services 0.6% 0.9% 0.9%
Money remittances 1.2% 1.5% 1.5%
Telecom 0.5% 0.5% 0.5%
Other 0.7% 0.8% 0.8%
Total average Net Revenue Yield 1.10% 1.30% 1.30%
Active kiosks and terminals (units) 169,481 171,043 171,043
Active Qiwi Wallet accounts(4) 14.1 15.8 15.8
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 33.630 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of June 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
Quarter ended
March 31,
2013
June 30,
2013
September 30,
2013
December 31,
2013

FY 2013

FY 2013
RUB RUB RUB RUB RUB USD(1)
Payment volume (billion)(2) 124.5 133.5 143.2 159.3 560.5 17.1
E-commerce 14.6 15.2 15.3 17.9 62.9 1.9
Financial services 31.1 33.5 38.0 47.4 150.1 4.6
Money remittances 6.0 7.9 9.4 12.2 35.6 1.1
Telecom 61.5 65.6 70.3 67.6 265.0 8.1
Other 11.3 11.2 10.2 14.3 46.9 1.4
Revenue 2,533 2,879 2,975 3,279 11,666 356
Minus: Cost of revenue (exclusive of depreciation and amortization) 1,476 1,527 1,560 1,833 6,396 195
Plus: Compensation to employees and related taxes 227 209 207 255 898 27
Total Adjusted Net Revenue 1,284 1,561 1,622 1,700 6,168 188
Payment Revenue(3) 2,082 2,243 2,381 2,679 9,385 287
Minus: Cost of payment revenue (exclusive of depreciation and amortization)(5) 1,372 1,414 1,434 1,569 5,789 176.9
Plus: Compensation to employees and related taxes allocated to payment revenue(6) 190 167 172 195 724 22.1
Payment adjusted net revenue (million)(4) 900 996 1,119 1,305 4,320 132
E-commerce 249 273 311 374 1,207 37
Financial services 188 221 264 337 1,010 31
Money remittances 71 98 123 158 450 14
Telecom 314 327 350 341 1,332 41
Other 78 77 72 95 322 10
Other Revenue(7) 451 637 594 600 2,281 70
Minus: Cost of other revenue (exclusive of depreciation and amortization)(8) 105 113 126 263 607 18.5
Plus: Compensation to employees and related taxes allocated to other revenue(6) 37 42 35 60 174 5.3
Other Adjusted Net Revenue 383 566 503 395 1,848 56
Payment average net revenue yield 0.7% 0.7% 0.8% 0.8% 0.8% 0.8%
E-commerce 1.7% 1.8% 2.0% 2.1% 1.9% 1.9%
Financial services 0.6% 0.7% 0.7% 0.7% 0.7% 0.7%
Money remittances 1.2% 1.2% 1.3% 1.3% 1.3% 1.3%
Telecom 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%
Other 0.7% 0.7% 0.7% 0.7% 0.7% 0.7%
Total average net revenue yield 1.03% 1.17% 1.13% 1.07% 1.10% 1.1%
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.729 to U.S.$1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of December 31, 2013.
(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 revenue primarily consists of the merchant and consumer fees charged for the payment transactions.
(4) 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.
(5) 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.
(6) 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.
(7) Other revenue primarily consists of revenue from inactivity fees, interest on deposits and on overdrafts provided to agents, cash and settlement services and advertising.
(8) 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.

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.comSource:QIWI plc