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 19, 2013
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 2013 Results” press release dated November 19, 2013 |
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 19, 2013 | By: | /s/ Alexander Karavaev | ||||
| Alexander Karavaev | ||||||
| Chief Financial Officer | ||||||
Exhibit 99.1
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, RUSSIA – November 19, 2013 – 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. EDT. 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. EDT 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.
Contact
Yakov Barinskiy
Head of Investor Relations
+7.499.709.0192
ir@qiwi.com
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 |
402,460 | 529,921 | 16,383 | |||||||||
|
|
|
|
|
|
|
|||||||
| attributable to: |
||||||||||||
| 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 |
544,537 | 1,330,966 | 41,149 | |||||||||
|
|
|
|
|
|
|
|||||||
| attributable to: |
||||||||||||
| 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 epuity holders of the parent |
12.20 | 26.30 | 0.81 | |||||||||
| Basic, profit from continuing operations attributable to ordinary epuity holders of the parent |
15.42 | 26.30 | 0.81 | |||||||||
| Diluted, profit attributable to ordinary epuity holders of the parent |
12.20 | 26.19 | 0.81 | |||||||||
| Diluted, profit from continuing operations attributable to ordinary epuity 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.