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QIWI Announces First Quarter 2013 Results

Adjusted Net Revenue Increased 50% to RUB 1,284 Million

Adjusted Net Profit Increased 216% to RUB 455 Million

Successfully Completed Initial Public Offering in May

MOSCOW, June 4, 2013 (GLOBE NEWSWIRE) -- QIWI plc, (Nasdaq:QIWI) ("QIWI" or the "Company") today announced results for the first quarter ended March 31, 2013.

First Quarter 2013 Operating and Financial Highlights

  • Adjusted Net Revenues increased by 50% to RUB 1,284 million ($41.3 million) from RUB 857 million in the prior year period.
  • Adjusted EBITDA increased by 105% to RUB 611 million ($19.6 million) from RUB 298 million in the prior year period. Adjusted EBITDA margin improved to 47.6% from 34.7% in the prior year period.
  • Adjusted Net Profit increased by 216% to RUB 455 million ($14.7 million) from RUB 144 million in the prior year period.
  • The number of active Visa QIWI wallet accounts as of March 31, 2013 was approximately 13.0 million (on a rolling 12 months basis), representing an increase of 49% over 8.7 million as of March 31, 2012.
  • Visa QIWI Wallet payment volume increased by 107% to RUB 53.7 billion ($1.73 billion), and average net revenue yield increased by 3 basis points (bps) to 0.94% over the prior year period.
  • QIWI Distribution payment volume increased by 14% to RUB 117.3 billion ($3.77 billion), and average net revenue yield increased by 8 bps to 0.65% over the prior year period.

"QIWI is pleased to report a strong start to 2013. Our first quarter results are a testament to the value of our integrated proprietary network, our comprehensive suite of differentiated payment services, and our leading position in the fast-growing markets we serve," said Sergey Solonin, QIWI's chief executive officer. "We remain excited by the wide range of growth opportunities available to us including continuing to capitalize on strong secular trends in the Russian and CIS markets and the rapid adoption of our Visa Qiwi Wallet. We will continue to build on our accomplishments with a focus on creating long-term value."

First Quarter 2013 Results

Revenues: Adjusted net revenue was RUB 1,284 million ($41.3 million), representing an increase of 50% as compared to RUB 857 million in the prior year.

QIWI Distribution segment net revenue for the quarter ended March 31, 2013 was RUB 758 million ($24.4 million), representing an increase of 29% as compared to RUB 590 million for the same period in the prior year. QIWI Distribution segment net revenue growth was primarily driven by an increase in payment volume in active kiosks and terminals and an increase in net revenue yield primarily driven by growth of our value added services.

Visa QIWI Wallet segment net revenue for the quarter ended March 31, 2013 was RUB 505 million ($16.2 million), representing an increase of 113% as compared to RUB 236 million for the same period in the prior year. Visa QIWI Wallet segment net revenue growth was primarily driven by an increase in payment volume.

Adjusted EBITDA: For the quarter ended March 31, 2013 Adjusted EBITDA was RUB 611 million ($19.6 million), representing an increase of 105% as compared to RUB 298 million for the same period in the prior year. The increase in Adjusted EBITDA was primarily driven by the aforementioned growth in revenue and significant operating leverage in the business. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total Adjusted Net Revenues) improved significantly to 47.6% from 34.7% in the prior year.

Adjusted Net Profit: For the quarter ended March 31, 2013 Adjusted net profit was RUB 455 million ($14.7 million) or (RUB 8.75 per diluted share), representing an increase of 216% as compared to RUB 144 million or (RUB 2.77 per diluted share) for the same period in the prior year. The increase in Adjusted net profit was primarily driven by the same factors impacting Adjusted EBITDA.

Other Operating Data: For the quarter ended March 31, 2013 QIWI Distribution payment volume was RUB 117.3 billion ($3.77 billion), representing an increase of 14% as compared to RUB 103.2 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 for the same period was 0.65%, representing an increase of 8 bps as compared to 0.57% in the prior year period.

For the quarter ended March 31, 2013 Visa QIWI Wallet payment volume was RUB 53.7 billion ($1.73 billion), representing an increase of 107% as compared to RUB 26.0 billion in the prior year. The increase in payment volume in Visa QIWI Wallet resulted from several major factors, including the continued increase in the number of active users and the increase in the average volume per Visa QIWI Wallet account. The number of active Visa QIWI Wallet accounts in the first quarter 2013 was approximately 13.0 million, representing an increase of 49% compared to approximately 8.7 million in the first quarter 2012. Average volume per Visa QIWI Wallet in the first quarter of 2013 was RUB 4,134 ($133), representing an increase of 38% compared to RUB 2,987 ($96) in the prior year. Average Visa QIWI Wallet net revenue yield for the same period was 0.94%, representing an increase of 3 bps compared to 0.91% in the first quarter 2012 or an increase of 16 bps as compared with 0.78% in the fourth quarter 2012.

Recent Developments

Initial Public Offering: On May 8, 2013 QIWI successfully completed its previously announced initial public offering of 12,500,000 Class B Shares in the form of American Depositary Shares (ADS) at a price of $17.00 per ADS.

Special dividend: On May 31, 2013 following the determination of first quarter 2013 financial results the Board of Directors of QIWI approved a special dividend of $15,080,000.00 or $0.29 per share. The dividend record date is June 17, 2013, and the Company intends to pay the dividend on June 18, 2013. The holders of ADSs will receive the dividend shortly thereafter.

2013 Guidance

  • Adjusted Net Revenue for 2013 is expected to increase from 23% to 26% over 2012.
  • Adjusted Net Profit for 2013 is expected to increase 27% to 33% over 2012.

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

Earnings Conference Call and Audio Webcast

The Company will host a conference call to discuss first quarter 2013 financial results today at 8:30 a.m. EDT. Hosting the call will be Sergey Solonin, chief executive officer, and Alexander Karavaev, chief operating 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. ET and can be accessed by dialing +1 (877) 870-5176 or +1 (858) 384-5517 for international callers; the pin number is 414881. The replay will be available until Tuesday, June 11, 2013. 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 approximately 13 million virtual wallets, over 165,000 kiosks and terminals, and enabled over 47,000 merchants to accept over RUB 41 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 and net profits, dividend payments, the growth of Visa QIWI Wallet, payment volume growth, and growth in the Company'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 any 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 unless we are 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 March 31, As of March 31,
2012 (audited) 2013 (unaudited) 2013 (unaudited)
RUB RUB USD(1)
Assets
Non-current assets
Property and equipment 105,653 100,204 3,224
Goodwill and other intangible assets 1,975,930 1,962,651 63,141
Long-term debt instruments 616,473 360,475 11,597
Long-term loans 185,384 136,723 4,399
Investments in associates 100,436 92,745 2,984
Deferred tax assets 101,805 133,058 4,281
Other non-current assets 16,377 51 1
Total non-current assets 3,102,058 2,785,907 89,627
Current assets
Trade and other receivables 3,437,671 2,205,348 70,949
Short-term loans 324,086 403,037 12,966
Short-term debt instruments 1,751,119 2,463,227 79,246
Prepaid income tax 37,835 41,505 1,335
VAT and other taxes receivable 19,511 12,548 404
Cash and cash equivalents 9,943,160 4,946,996 159,152
Other current assets 93,334 108,283 3,484
Total current assets 15,606,716 10,180,944 327,536
Total assets 18,708,774 12,966,851 417,163
Equity and liabilities
Equity attributable to equity holders of the parent
Share capital 904 904 29
Additional paid-in capital 1,876,104 1,876,104 60,357
Other reserve 101,124 178,807 5,752
Retained earnings 569,317 638,651 20,546
Translation reserve 705 (654) (20)
Total equity attributable to equity holders of the parent 2,548,154 2,693,812 86,664
Non-controlling interest (49,311) (63,830) (2,053)
Total equity 2,498,843 2,629,982 84,611
Non-current liabilities
Long-term borrowings 38,762 47,218 1,519
Long-term deferred revenue 43,605 39,474 1,270
Deferred tax liabilities 44,065 54,558 1,755
Total non-current liabilities 126,432 141,250 4,544
Current liabilities
Short-term borrowings 26,105 28,891 929
Trade and other payables 14,934,194 8,994,197 289,357
Amounts due to customers and amounts due to banks 944,549 692,590 22,282
Income tax payable 9,558 42,081 1,354
VAT and other taxes payable 138,742 117,931 3,794
Deferred revenue 30,048 21,553 693
Dividends payable -- 298,106 9,591
Other current liabilities 303 270 8
Total current liabilities 16,083,499 10,195,619 328,008
Total equity and liabilities 18,708,774 12,966,851 417,163
(1) Official exchange rate quoted as of March 31, 2013 by the Central Bank of the Russian Federation was RUB 31.0834 to $1.00.
QIWI plc.
Interim Condensed Consolidated Statement of Comprehensive Income
(in thousands, except per share data)
Three months ended (unaudited)
March 31, 2012
(Revised)(1)

March 31, 2013

March 31, 2013
RUB RUB USD(2)
Revenue 1,913,128 2,532,696 81,481
Operating costs and expenses:
Cost of revenue (exclusive of depreciation and amortization) 1,244,764 1,476,430 47,499
Selling, general and administrative expenses 413,599 542,906 17,466
Depreciation and amortization 39,475 26,154 842
Profit from operations 215,290 487,206 15,674
Other income 2,020 11,056 356
Other expenses (26,452) (1,098) (35)
Foreign exchange gain / (loss), net (44,891) 2,603 84
Share of loss of associates (1,152) (7,691) (247)
Interest income 8,864 4,147 133
Interest expense -- (6,253) (202)
Profit before tax from continuing operations 153,679 489,970 15,763
Income tax expense (50,541) (136,308) (4,385)
Net profit from continuing operations 103,138 353,662 11,378
Discontinued operations
Loss from discontinued operations (49,843)
Net profit 53,295 353,662 11,378
Attributable to:
Equity holders of the parent 78,641 365,334 11,753
Non-controlling interests (25,346) (11,672) (375)
Other comprehensive income
Exchange differences on translation of foreign operations 20,856 (2,107) (68)
Total comprehensive income, net of tax 74,151 351,555 11,310
attributable to:
Equity holders of the parent 88,965 363,975 11,710
Non-controlling interests (14,814) (12,420) (400)
Earnings per share:
Basic, profit attributable to ordinary equity holders of the parent 1.51 7.03 0.23
Basic, profit from continuing operations attributable to ordinary equity holders of the parent 2.10 7.03 0.23
Diluted, profit attributable to ordinary equity holders of the parent 1.51 7.02 0.23
Diluted, profit from continuing operations attributable to ordinary equity holders of the parent 2.10 7.02 0.23
(1) Revised to present foreign currency translation on a basis consistent with the current period.
(2) Official exchange rate quoted as of March 31, 2013 by the Central Bank of the Russian Federation was RUB 31.0834 to $1.00.
QIWI plc.
Interim Condensed Consolidated Cash Flow Statement
(in thousands, except per share data)
Three months ended (unaudited)
March 31, 2012
(Revised)(1)

March 31, 2013

March 31, 2013
RUB RUB USD(2)
Cash flows from operating activities
Profit before tax from continuing operations 153,679 489,970 15,763
Loss before tax from discontinued operations (36,786) -- --
Profit before tax 116,893 489,970 15,763
Adjustments to reconcile profit before income tax to net cash flows generated from operating activities
Depreciation and amortization 43,447 26,154 841
Loss on disposal of property and equipment 1,169 2,854 92
Foreign exchange loss (gain), net 18,508 (33) (1)
Interest income, net (43,724) (83,897) (2,699)
Bad debt expense, net 37,969 51,908 1,670
Share of loss of associates 2,639 7,691 247
Share of profit for the period attributable to non-controlling interest and accounted for as a liability 23,989 -- --
Share-based payments -- 77,683 2,499
Other 4,956 1,255 41
Operating profit before changes in working capital 205,846 573,585 18,453
Decrease in trade and other receivables 196,031 1,173,576 37,756
(Increase)/decrease in other assets 3,171 (1,413) (45)
(Increase)/decrease in inventories (3,561) 115 4
Decrease in amounts due to customers and amounts due to banks (676,594) (251,959) (8,106)
Decrease in accounts payable and accruals (5,046,225) (5,958,937) (191,708)
Loans issued from banking operations (163,331) (26,024) (838)
Cash used in operations (5,484,663) (4,491,057) (144,484)
Interest received 48,087 155,830 5,013
Interest paid (2,372) (3,849) (124)
Income tax paid (67,774) (128,216) (4,125)
Net cash flow used in operating activities (5,506,722) (4,467,292) (143,720)
Cash flows from/used in investing activities
Purchase of property and equipment (12,078) (10,972) (353)
Proceeds from sale of property and equipment 1,213 -- --
Purchase of intangible assets (599) (1,453) (47)
Loans issued (2,131) (11,262) (362)
Repayment of loans issued 5,779 4,321 139
Purchase of debt instruments -- (1,499,952) (48,256)
Proceeds from settlement of debt instruments 57,374 979,316 31,506
Net cash (outflow) on disposal of subsidiaries (12,938) -- --
Net cash flow from/used in investing activities 36,620 (540,002) (17,373)
Cash flows used in/generated from financing activities
Proceeds from borrowings 6,913 8,870 285
Repayment of promissory notes issued (16,194) -- --
Repayment of borrowings (1,736) -- --
Repayment of overdraft facilities, net (6,646) -- --
Transactions with non-controlling interest 6,720 -- --
Net cash flow used in/generated from financing activities (10,943) 8,870 285
Effect of exchange rate changes on cash and cash equivalents 1,542 2,260 74
Net decrease in cash and cash equivalents (5,479,503) (4,996,164) (160,734)
Cash and cash equivalents at the beginning 8,810,441 9,943,160 319,886
Cash and cash equivalents at the end 3,330,938 4,946,996 159,152
(1) Revised to present foreign currency translation on a basis consistent with the current period.
(2) Official exchange rate quoted as of March 31, 2013 by the Central Bank of the Russian Federation was RUB 31.0834 to $1.00.

Non-IFRS Financial Measures

This release presents Adjusted Net Revenue, Adjusted EBITDA, 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, or net profit, in the case of Adjusted EBITDA and Adjusted Net Profit, each prepared in accordance with IFRS. Furthermore, because these non-IFRS financial measures are not determined in accordance with IFRS, they are susceptible to varying calculations and may not be comparable to other similarly titled measures presented by other companies. We encourage 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 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
March 31, 2012
(Revised)(1)

March 31, 2013

March 31, 2013
RUB RUB USD(2)
Revenue 1,913,128 2,532,696 81,481
Minus: Cost of revenue (exclusive of depreciation and amortization) 1,244,764 1,476,430 47,499
Plus: Payroll and related taxes 188,314 227,380 7,315
Adjusted Net Revenue 856,678 1,283,646 41,297
Segment Net Revenue
Qiwi Distribution 589,606 757,746 24,378
Qiwi Wallet 236,468 504,834 16,241
Other 30,604 21,066 678
Total Adjusted Net Revenue 856,678 1,283,646 41,297
Net Profit 53,295 353,662 11,378
Plus:
Depreciation and amortization 39,475 26,154 841
Other income (2,020) (11,056) (356)
Other expenses 26,452 1,098 35
Foreign exchange (loss) gain, net 44,891 (2,603) (84)
Share of loss of associates 1,152 7,691 247
Interest income (8,864) (4,147) (133)
Interest expenses -- 6,253 201
Income tax expenses 50,541 136,308 4,386
Corporate costs allocated to discontinued operations 42,866 -- --
Offering expenses -- 19,623 632
Share-based payments expenses -- 77,683 2,499
Loss from discontinued operations 49,843 -- --
Adjusted EBITDA 297,631 610,666 19,646
Adjusted EBITDA margin 34.7% 47.6% 47.6%
Net profit 53,295 353,662 11,378
Loss from discontinued operations 49,843 -- --
Corporate costs allocated to discontinued operations 42,866 -- --
Amortization of fair value adjustments 8,233 5,545 178
Offering expenses -- 19,623 631
Share-based payments expenses -- 77,683 2,499
Effect of deferred taxation of the above items (10,220) (1,109) (35)
Adjusted Net Profit 144,017 455,404 14,651
Adjusted Net Profit per share:
Basic 2.77 8.76 0.28
Diluted 2.77 8.75 0.28
Shares used in computing Adjusted Net Profit per share
Basic 52,000 52,000 52,000
Diluted 52,000 52,048 52,048
(1) Revised to present foreign currency translation on a basis consistent with the current period.
(2) Official exchange rate quoted as of March 31, 2013 by the Central Bank of the Russian Federation was RUB 31.0834 to $1.00.
QIWI plc.
Other Operating Data
Quarters Ended
March 31, 2012 March 31, 2013 March 31, 2013
RUB RUB USD(1)
Qiwi Distribution
Active kiosks and terminals (units) 166,803 166,154 166,154
Payment volume (millions) 103,211 117,326 3,775
Average net revenue yield 0.57% 0.65% 0.65%
Qiwi Wallet
Active Qiwi Wallet accounts(2), (millions) 8.7 13.0 13.0
Payment volume (millions) 25,983 53,744 1,729
Average volume per Qiwi Wallet account (per quarter) 2,987 4,134 133
Average net revenue yield 0.91% 0.94% 0.94%
(1) Official exchange rate quoted as of March 31, 2013 by the Central Bank of the Russian Federation was RUB 31.0834 to $1.00.
(2) Number at period end on a rolling 12 months basis

In this release, Russian ruble (RUB) amounts have been translated into U.S. dollars at a rate of RUB 31.0834 to $1.00, the official exchange rate quoted as of March 31, 2013 by the Central Bank of the Russian Federation.

CONTACT: Investor Contact +7.499.709.0192 ir@qiwi.comSource:QIWI plc