Fourth-Quarter Adjusted Net Revenue Increases 35% to RUB 1,700 Million and Adjusted Net Profit Increases 33% to RUB 567 Million or RUB 10.69 per share
Full-Year 2013 Adjusted Net Revenue Increases 48% to RUB 6,168 Million and Adjusted Net Profit Increases 66% to RUB 2,174 Million or RUB 41.44 per share
Board of Directors Recommends Dividend of 32 cents per share to be approved by Annual General Meeting
MOSCOW, Russia, March 12, 2014 (GLOBE NEWSWIRE) -- QIWI plc, (Nasdaq:QIWI) today announced results for the fourth-quarter and year ended December 31, 2013.
Fourth-Quarter 2013 Operating and Financial Highlights
- Adjusted Net Revenue increased 35% to RUB 1,700 million ($51.9 million)
- Adjusted EBITDA increased 30% to RUB 733 million ($22.4 million)
- Adjusted Net Profit increased 33% to RUB 567 million ($17.3 million), or RUB 10.69 per diluted share
- Visa QIWI Wallet payment volume increased 47% to RUB 78.6 billion ($2.4 billion)
Full-Year 2013 Operating and Financial Highlights
- Adjusted Net Revenue increased 48% to RUB 6,168 million ($188.4 million)
- Adjusted EBITDA increased 61% to RUB 2,978 million ($91.0 million)
- Adjusted Net Profit increased 66% to RUB 2,174 million ($66.4 million), or RUB 41.44 per diluted share
- Visa QIWI Wallet payment volume increased 68% to RUB 255.1 billion ($7.8 billion)
- Visa QIWI Wallet active accounts increased 35% to 15.4 million
- QIWI Distribution payment volume increased 12% to RUB 520.0 billion ($15.9 billion)
"Our fourth-quarter results cap another year of strong revenue and profit growth for QIWI, and a great first year as a public company," said Sergey Solonin, QIWI's chief executive officer. "Our performance is a testament to the value of our integrated payment network and differentiated service offerings, as well as our leading position in the fast-growing markets we serve. In 2014, we will continue to expand the number of participants in our network, increase the utilization of our services, and drive the adoption of Visa QIWI Wallet. We see growth opportunities in these areas, and remain confident of our ability to continue to deliver financial performance in line with our medium-term targets."
Fourth-Quarter 2013 Results
Revenues: Adjusted Net Revenue for the quarter ended December 31, 2013 was RUB 1,700 million ($51.9 million), an increase of 35% compared to RUB 1,262 million in the prior year. Adjusted Net Revenue excluding revenue from fees for inactive Visa QIWI Wallet accounts increased 24% compared to the same period in the prior year.
QIWI Distribution net revenue was RUB 807 million ($24.7 million), a decrease of 4% compared to RUB 845 million in the prior year. The decrease in QIWI Distribution net revenue was driven primarily by a decline in advertising revenue, partially offset by increased payment volume at active kiosks and terminals.
Visa QIWI Wallet net revenue was RUB 859 million ($26.2 million), an increase of 108% compared to RUB 413 million 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. Revenue from fees for inactive accounts was RUB 137 million ($4.2 million) in the fourth-quarter of 2013 compared to nil in the corresponding 2012 period. Visa QIWI Wallet net revenue, excluding revenue from fees for inactive accounts, increased 75% compared to the same period in the prior year.
Adjusted EBITDA: For the quarter ended December 31, 2013, Adjusted EBITDA was RUB 733 million ($22.4 million), an increase of 30% compared to RUB 565 million in the prior year. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total Adjusted Net Revenue) was 43.1% compared to 44.8% in the prior year. Adjusted EBITDA excluding the effect of revenue derived from inactive accounts was RUB 596 million, an increase of 5% as compared to the same period in the prior year. Adjusted EBITDA margin, excluding the effect of revenue derived from inactive accounts, was 38.1% compared to 44.8% in the prior year period. The decline in Adjusted EBITDA margin excluding the effect of revenue derived from inactive accounts primarily resulted from an investment in marketing activities in the fourth quarter, which amounted to approximately 8% of Adjusted Net Revenue excluding inactivity fees, as well as certain other non-recurring items.
Adjusted Net Profit: For the quarter ended December 31, 2013, Adjusted Net Profit was RUB 567 million ($17.3 million), an increase of 33% compared to RUB 425 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 the effect of revenue derived from inactive accounts (net of tax) increased 8% compared to the same period in the prior year.
Other Operating Data: For the quarter ended December 31, 2013, QIWI Distribution payment volume was RUB 145.3 billion ($4.4 billion), an increase of 10% compared to RUB 131.9 billion in the prior year. The increase in QIWI Distribution payment volume was driven primarily by an increase in Visa QIWI Wallet users reloading their wallets through the QIWI Distribution network. Average QIWI Distribution net revenue yield was 0.56% compared to 0.64% in the same period in the prior year. The decrease in QIWI Distribution net revenue yield was predominantly due to the aforementioned decline in advertising revenue.
For the quarter ended December 31, 2013, Visa QIWI Wallet payment volume was RUB 78.6 billion ($2.4 billion), an increase of 47% as compared to RUB 53.5 billion in the prior year. The increase in Visa QIWI Wallet payment volume resulted primarily from an increase in the number of active accounts and an increase in the average volume per Visa QIWI Wallet account. The number of active Visa QIWI Wallet accounts was approximately 15.4 million (on a rolling 12 months basis), an increase of 35% compared to approximately 11.4 million in the prior year. Average volume per Visa QIWI Wallet was RUB 5,104 ($156), an increase of 9% compared to RUB 4,693 in the prior year. Average Visa QIWI Wallet net revenue yield was 1.09%, representing an increase of 32 bps compared to 0.77% 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 17 bps to net revenue yield in the fourth-quarter of 2013. Visa QIWI Wallet net revenue yield, excluding revenue from fees for inactive accounts, was 0.92% in the fourth-quarter of 2013 representing an increase of 15 bps compared to 0.77% in the prior year.
Full-Year 2013 Results:
Revenues: Adjusted Net Revenue for the year ended December 31, 2013 was RUB 6,168 million ($188.4 million), an increase of 48% compared to RUB 4,169 million in the prior year. Adjusted Net Revenue excluding revenue from fees for inactive Visa QIWI Wallet accounts increased 38% compared to the prior year.
QIWI Distribution net revenue was RUB 3,182 million ($97.2 million), an increase of 12% compared to RUB 2,845 million in the prior year. QIWI Distribution net revenue growth was primarily driven by an increase in payment volume at kiosks and terminals.
Visa QIWI Wallet net revenue was RUB 2,884 million ($88.1 million), an increase of 132% compared to RUB 1,241 million 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. Revenue from fees for inactive accounts was RUB 549 million ($16.8 million) in 2013 compared to RUB 97 million in the prior year.
Adjusted EBITDA: For the year ended December 31, 2013, Adjusted EBITDA was RUB 2,978 million ($91.0 million), an increase of 61% compared to RUB 1,851 million in the prior year. The increase in Adjusted EBITDA was primarily driven by revenue growth. Adjusted EBITDA margin was 48.3% compared to 44.4% in 2012. Adjusted EBITDA excluding the effect of revenue derived from inactive accounts was RUB 2,429 million, an increase of 39% compared to 2012. Adjusted EBITDA margin, excluding the effect of revenue derived from inactive accounts, was 43.2% compared to 43.1% in the prior year.
Adjusted Net Profit: For the year ended December 31, 2013, Adjusted Net Profit was RUB 2,174 million ($66.4 million), an increase of 66% compared to RUB 1,306 million in the prior year. Adjusted Net Profit excluding the effect of revenue derived from inactive accounts (net of tax) increased 41% compared to the same period in the prior year.
Other Operating Data: For the year ended December 31, 2013, QIWI Distribution payment volume was RUB 520.0 billion ($15.9 billion), an increase of 12% compared to RUB 464.8 billion for the prior year. Average QIWI Distribution net revenue yield was 0.61% compared to 0.61% in the same period in the prior year.
For the year ended December 31, 2013, Visa QIWI Wallet payment volume was RUB 255.1 billion ($7.8 billion), an increase of 68% as compared to RUB 151.5 billion in the prior year. The increase in Visa QIWI Wallet payment volume resulted from several factors, including the continued increase in the number of active users and an increase in the average volume per Visa QIWI Wallet account. The number of active Visa QIWI Wallet accounts was approximately 15.4 million (on a rolling 12 months basis), an increase of 35% compared to approximately 11.4 million in the prior year. Average volume per Visa QIWI Wallet was RUB 16,565 ($506), an increase of 25% compared to RUB 13,260 in the prior year. Average Visa QIWI Wallet net revenue yield was 1.13%, an increase of 31 bps compared to 0.82% in the prior year. The increase in Visa QIWI Wallet net revenue yield was mainly driven by increased payment volumes associated with higher revenue generating transactions such as e-commerce, and higher revenue from fees for inactive accounts. Visa QIWI Wallet net revenue yield, excluding revenue from fees for inactive accounts, was 0.92% in 2013 representing an increase of 17 bps compared to 0.75% in 2012. QIWI expects that the revenue derived from charges for inactive accounts will affect Visa QIWI Wallet net revenue yield in 2014 to a lesser extent as compared to 2013.
Recent Developments
Dividend: QIWI announces that following the determination of fourth-quarter 2013 financial results its Board of Directors recommended a dividend of 32 cents per share, which has to be approved by the Annual General Meeting.
2014 Guidance
QIWI reiterates its mid-term guidance in respect of its 2014 outlook, i.e.:
- Adjusted Net Revenue is expected to increase by 20% to 22% over 2013.
- Adjusted Net Profit is expected to increase by 25% to 27% 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 fourth quarter and full year 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 13576180. The replay will be available until Wednesday, March 12, 2014. The call will be webcast live from QIWI's website at https://www.qiwi.ru under the 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 million virtual wallets, over 168,000 kiosks and terminals, and enabled merchants to accept over RUB 49 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 revenue, net profits and net revenue yield, dividend payments, the growth of Visa QIWI Wallet, payment volume growth, and growth in QIWI's distribution network. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause the actual results, performance or achievements of QIWI plc. to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Various factors that could cause actual future results and other future events to differ materially from those estimated by management include, but are not limited to, competition, a decline in average net revenue yield, fees levied on QIWI's consumers, regulation, QIWI's ability to grow Visa QIWI Wallet, QIWI's ability to expand geographically and other risks identified under the Caption "Risk Factors" in QIWI's Registration Statement on Form F-1 and in reports QIWI files with the U.S. Securities and Exchange Commission. QIWI undertakes no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events that may affect such forward-looking statements unless QIWI is required to do so by law.
| QIWI plc. | |||
| Consolidated Statement of Financial Position | |||
| (in thousands, except per share data) | |||
| As of December 31, | As of December 31, | As of December 31, | |
| 2012 (audited) | 2013 | 2013 | |
| RUB | RUB | USD(1) | |
| Assets | |||
| Non-current assets | |||
| Property and equipment | 105,653 | 307,500 | 9,395 |
| Goodwill and other intangible assets | 1,975,930 | 2,405,645 | 73,502 |
| Long-term debt instruments | 616,473 | 1,376,862 | 42,069 |
| Long-term loans | 185,384 | 10,637 | 325 |
| Investments in associates | 100,436 | -- | -- |
| Deferred tax assets | 101,805 | 183,333 | 5,602 |
| Other non-current assets | 16,377 | 38,394 | 1,173 |
| Total non-current assets | 3,102,058 | 4,322,371 | 132,065 |
| Current assets | |||
| Trade and other receivables | 3,437,671 | 2,772,297 | 84,705 |
| Short-term loans | 324,086 | 65,430 | 1,999 |
| Short-term debt instruments | 1,751,119 | 1,635,291 | 49,965 |
| Prepaid income tax | 37,835 | 60,537 | 1,850 |
| VAT and other taxes receivable | 19,511 | 12,478 | 381 |
| Cash and cash equivalents | 9,943,160 | 11,636,913 | 355,554 |
| Other current assets | 93,334 | 159,264 | 4,866 |
| Total current assets | 15,606,716 | 16,342,210 | 499,319 |
| Total assets | 18,708,774 | 20,664,581 | 631,384 |
| Equity and liabilities | |||
| Equity attributable to equity holders of the parent | |||
| Share capital | 904 | 907 | 28 |
| Additional paid-in capital | 1,876,104 | 1,909,172 | 58,333 |
| Other reserve | 101,124 | 304,186 | 9,294 |
| Retained earnings | 569,317 | 573,604 | 17,526 |
| Translation reserve | 705 | 10,757 | 329 |
| Total equity attributable to equity holders of the parent | 2,548,154 | 2,798,626 | 85,509 |
| Non-controlling interest | (49,311) | (94,766) | (2,895) |
| Total equity | 2,498,843 | 2,703,860 | 82,614 |
| Non-current liabilities | |||
| Long-term borrowings | 38,762 | 109,351 | 3,341 |
| Long-term deferred revenue | 43,605 | 31,629 | 966 |
| Deferred tax liabilities | 44,065 | 58,630 | 1,791 |
| Long-term accounts payable | -- | 7,625 | 233 |
| Total non-current liabilities | 126,432 | 207,235 | 6,332 |
| Current liabilities | |||
| Short-term borrowings | 26,105 | 635 | 19 |
| Trade and other payables | 14,934,194 | 16,768,973 | 512,358 |
| Amounts due to customers and amounts due to banks | 944,549 | 831,226 | 25,397 |
| Income tax payable | 9,558 | 10,823 | 331 |
| VAT and other taxes payable | 138,742 | 95,403 | 2,915 |
| Deferred revenue | 30,048 | 46,233 | 1,413 |
| Other current liabilities | 303 | 193 | 6 |
| Total current liabilities | 16,083,499 | 17,753,486 | 542,439 |
| Total equity and liabilities | 18,708,774 | 20,664,581 | 631,384 |
| (1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.7292 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. | |||
| QIWI plc. | |||
| Consolidated Statement of Comprehensive Income | |||
| (in thousands, except per share data) | |||
| Three months ended (unaudited) | |||
| December 31, 2012 | December 31, 2013 | December 31, 2013 | |
| RUB | RUB | USD(1) | |
| Revenue | 2,592,229 | 3,278,649 | 100,176 |
| Operating costs and expenses: | |||
| Cost of revenue (exclusive of depreciation and amortization) | 1,512,847 | 1,833,149 | 56,010 |
| Selling, general and administrative expenses | 659,402 | 779,173 | 23,807 |
| Depreciation and amortization | 31,574 | 32,046 | 979 |
| Impairment of intangible assets and goodwill | 3,636 | 2 | 0 |
| Profit from operations | 384,770 | 634,279 | 19,380 |
| Loss from disposal of subsidiaries | -- | -- | -- |
| Impairment of investment in associates | -- | -- | -- |
| Other income | 12,101 | 3,918 | 120 |
| Other expenses | 24 | (2,298) | (70) |
| Change in fair value of derivative financial assets | -- | -- | -- |
| Foreign exchange gain / (loss), net | (12,636) | 4,019 | 123 |
| Share of loss of associates | 8,400 | -- | -- |
| Interest income | 3,470 | 8,830 | 270 |
| Interest expense | (3,401) | (9,307) | (284) |
| Profit before tax from continuing operations | 392,728 | 639,441 | 19,537 |
| Income tax expense | (128,347) | (144,413) | (4,412) |
| Net profit from continuing operations | 264,381 | 495,028 | 15,125 |
| Discontinued operations | |||
| Loss from discontinued operations | -- | -- | -- |
| Net profit | 264,381 | 495,028 | 15,125 |
| Attributable to: | |||
| Equity holders of the parent | 275,928 | 505,043 | 15,431 |
| Non-controlling interests | (11,547) | (10,015) | (306) |
| Other comprehensive income | |||
| Exchange differences on translation of foreign operations | 1,337 | 13,941 | 426 |
| Total comprehensive income, net of tax | 265,718 | 508,969 | 15,551 |
| attributable to: | |||
| Equity holders of the parent | 277,091 | 520,325 | 15,898 |
| Non-controlling interests | (11,373) | (11,356) | (347) |
| Earnings per share: | |||
| Basic, profit attributable to ordinary equity holders of the parent | 5.30 | 9.69 | 0.30 |
| Basic, profit from continuing operations attributable to ordinary equity holders of the parent | 5.30 | 9.69 | 0.30 |
| Diluted, profit attributable to ordinary equity holders of the parent | 5.30 | 9.53 | 0.29 |
| Diluted, profit from continuing operations attributable to ordinary equity holders of the parent | 5.30 | 9.53 | 0.29 |
| (1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.7292 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. | |||
| QIWI plc. | |||
| Consolidated Statement of Comprehensive Income | |||
| (in thousands, except per share data) | |||
| Year ended | |||
| December 31, 2012 | December 31, 2013 | December 31, 2013 | |
| RUB | RUB | USD(1) | |
| Revenue | 8,911,438 | 11,666,050 | 356,444 |
| Operating costs and expenses: | |||
| Cost of revenue (exclusive of depreciation and amortization) | 5,454,288 | 6,396,499 | 195,438 |
| Selling, general and administrative expenses | 1,838,797 | 2,607,718 | 79,676 |
| Depreciation and amortization | 129,051 | 113,100 | 3,456 |
| Impairment of intangible assets and goodwill | 3,636 | 5,479 | 167 |
| Profit from operations | 1,485,666 | 2,543,254 | 77,706 |
| Loss from disposal of subsidiaries | (1,027) | -- | -- |
| Impairment of investment in associates | -- | (21,540) | (658) |
| Other income | 16,669 | 20,615 | 630 |
| Other expenses | (28,738) | (20,089) | (614) |
| Change in fair value of derivative financial assets | (328) | -- | -- |
| Foreign exchange gain / (loss), net | (21,126) | 8,021 | 245 |
| Share of loss of associates | (13,236) | (78,896) | (2,411) |
| Interest income | 25,510 | 22,204 | 678 |
| Interest expense | (7,520) | (28,686) | (876) |
| Profit before tax from continuing operations | 1,455,870 | 2,444,883 | 74,701 |
| Income tax expense | (407,729) | (609,509) | (18,623) |
| Net profit from continuing operations | 1,048,141 | 1,835,374 | 56,078 |
| Discontinued operations | |||
| Loss from discontinued operations | (240,363) | -- | -- |
| Net profit | 807,778 | 1,835,374 | 56,078 |
| Attributable to: | |||
| Equity holders of the parent | 910,138 | 1,873,226 | 57,234 |
| Non-controlling interests | (102,360) | (37,852) | (1,157) |
| Other comprehensive income | |||
| Exchange differences on translation of foreign operations | 2,477 | 4,561 | 139 |
| Total comprehensive income, net of tax | 810,255 | 1,839,935 | 56,217 |
| attributable to: | |||
| Equity holders of the parent | 912,095 | 1,883,278 | 57,542 |
| Non-controlling interests | (101,840) | (43,343) | (1,324) |
| Earnings per share: | |||
| Basic, profit attributable to ordinary equity holders of the parent | 17.50 | 36.00 | 1.10 |
| Basic, profit from continuing operations attributable to ordinary equity holders of the parent | 20.72 | 36.00 | 1.10 |
| Diluted, profit attributable to ordinary equity holders of the parent | 17.50 | 35.70 | 1.09 |
| Diluted, profit from continuing operations attributable to ordinary equity holders of the parent | 20.72 | 35.70 | 1.09 |
| (1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.7292 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. | |||
| QIWI plc. | |||
| Consolidated Cash Flow Statement | |||
| (in thousands, except per share data) | |||
| Year ended | |||
| December 31, 2012 | December 31, 2013 | December 31, 2013 | |
| RUB | RUB | USD(1) | |
| Cash flows from operating activities | |||
| Profit before tax from continuing operations | 1,455,870 | 2,444,883 | 74,701 |
| Loss before tax from discontinued operations | (233,535) | -- | -- |
| Profit before tax | 1,222,335 | 2,444,883 | 74,701 |
| Adjustments to reconcile profit before income tax to net cash flows generated from operating activities | |||
| Depreciation and amortization | 137,101 | 113,100 | 3,456 |
| Loss/ (gain) on disposal of property and equipment | (91) | 12,739 | 389 |
| Impairment of investment in associates | -- | 21,540 | 658 |
| Impairment of intangible assets and goodwill | 3,636 | 5,479 | 167 |
| Loss recognized in remeasurement to fair value before classification as assets held for sale | 167,333 | -- | -- |
| Foreign exchange loss (gain), net | (22,770) | (8,021) | (245) |
| Interest expense / (income), net | (243,490) | (346,013) | (10,572) |
| Bad debt expense / (recovery), net | 211,295 | 266,711 | 8,149 |
| Loss / (gain) on loans issued at rate different from market | (8,042) | -- | -- |
| Change in financial assets at fair value through profit and loss | 328 | -- | -- |
| Share of loss of associates | 13,236 | 78,896 | 2,411 |
| 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 | 65,718 | 230,937 | 7,056 |
| Other | 3,323 | 4,609 | 141 |
| Operating profit before changes in working capital | 1,528,691 | 2,824,860 | 86,311 |
| Increase / (decrease) in trade and other receivables | (1,028,028) | 508,751 | 15,544 |
| Increase in other current assets | (8,741) | (92,553) | (2,828) |
| Decrease in amounts due to customers and amounts due to banks | (490,038) | (102,750) | (3,139) |
| Increase in accounts payable and accruals | 4,041,454 | 1,593,765 | 48,696 |
| Loans (issued) / settled from banking operations | (324,199) | 257,194 | 7,858 |
| Cash used in operations | 3,719,139 | 4,989,267 | 152,442 |
| Interest received | 170,904 | 467,205 | 14,275 |
| Interest paid | (6,608) | (24,194) | (739) |
| Income tax paid | (384,281) | (706,512) | (21,587) |
| Net cash flow used in operating activities | 3,499,154 | 4,725,766 | 144,391 |
| Cash flows used in investing activities | |||
| Acquisitions of shares in subsidiaries, net of cash acquired | (1,062) | (44) | (1) |
| Payments for assignment of loans | -- | (90,750) | (2,773) |
| Net cash inflow on disposal of subsidiaries | 12,931 | 4,000 | 122 |
| Purchase of property and equipment | (35,587) | (182,823) | (5,586) |
| Proceeds from sale of property and equipment | 5,349 | 6,848 | 209 |
| Purchase of intangible assets | (42,229) | (192,385) | (5,878) |
| Loans issued | (17,752) | (24,508) | (749) |
| Repayment of loans issued | 33,638 | 29,715 | 908 |
| Purchase of debt instruments | (1,649,547) | (2,862,535) | (87,462) |
| Proceeds from settlement of debt instruments | 289,500 | 2,111,902 | 64,527 |
| Contribution to investments to associates | (92,859) | -- | -- |
| Net cash flow used in investing activities | (1,497,618) | (1,200,580) | (36,682) |
| Cash flows used in/from financing activities | |||
| Proceeds from borrowings | 52,253 | 34,068 | 1,041 |
| Repayment of promissory notes issued | (16,297) | -- | -- |
| Repayment of borrowings | (3,395) | (2,526) | (77) |
| Proceeds from / (disbursements of) from overdraft facilities, net | (47,452) | -- | -- |
| Transactions with non-controlling interest | 10,340 | -- | -- |
| Dividends paid to owners of the Group | (865,687) | (1,881,082) | (57,474) |
| Dividends paid to non-controlling shareholders | (914) | (2,098) | (64) |
| Underwriters' commission | -- | 72,836 | 2,225 |
| Distribution of underwriters' commission | -- | (67,643) | (2,067) |
| Net cash flow used in financing activities | (871,152) | (1,846,445) | (56,416) |
| Effect of exchange rate changes on cash and cash equivalents | 2,335 | 15,012 | 459 |
| Net decrease in cash and cash equivalents | 1,132,719 | 1,693,753 | 51,751 |
| Cash and cash equivalents at the beginning | 8,810,441 | 9,943,160 | 303,803 |
| Cash and cash equivalents at the end | 9,943,160 | 11,636,913 | 355,554 |
| (1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.7292 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. | |||
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 | |||
| December 31, 2012 | December 31, 2013 | December 31, 2013 | |
| RUB | RUB | USD(1) | |
| Revenue | 2,592,229 | 3,278,649 | 100,176 |
| Minus: Cost of revenue (exclusive of depreciation and amortization) | 1,512,847 | 1,833,149 | 56,010 |
| Plus: Compensation to employees and related taxes | 182,190 | 254,742 | 7,783 |
| Adjusted Net Revenue | 1,261,572 | 1,700,242 | 51,949 |
| Segment Adjusted Net Revenue | |||
| Qiwi Distribution | 845,070 | 807,181 | 24,663 |
| Visa Qiwi Wallet | 413,155 | 859,100 | 26,249 |
| Other | 3,347 | 33,961 | 1,038 |
| Total Adjusted Net Revenue | 1,261,572 | 1,700,242 | 51,949 |
| Net Profit | 264,381 | 495,028 | 15,125 |
| Plus: | |||
| Depreciation and amortization | 31,574 | 32,046 | 979 |
| Other income | (12,101) | (3,918) | (120) |
| Other expenses | (24) | 2,298 | 70 |
| Change in fair value of derivative financial assets | -- | -- | -- |
| Foreign exchange (loss) gain, net | 12,636 | (4,019) | (123) |
| Share of loss of associates | (8,400) | -- | -- |
| Loss from disposal of subsidiaries | -- | -- | -- |
| Impairment of investment in associates | -- | -- | -- |
| Interest income | (3,470) | (8,830) | (270) |
| Interest expenses | 3,401 | 9,307 | 284 |
| Income tax expenses | 128,347 | 144,413 | 4,412 |
| Corporate costs allocated to discontinued operations | -- | -- | -- |
| Offering expenses | 83,190 | (18,045) | (551) |
| Share-based payments expenses | 65,718 | 85,174 | 2,602 |
| Loss from discontinued operations | -- | -- | -- |
| Goodwill impairment | -- | 2 | 0 |
| Adjusted EBITDA | 565,252 | 733,456 | 22,410 |
| Adjusted EBITDA margin | 44.8% | 43.1% | 43.1% |
| Net profit | 264,381 | 495,028 | 15,125 |
| Loss from discontinued operations | -- | -- | -- |
| Goodwill impairment | -- | 2 | 0 |
| Corporate costs allocated to discontinued operations | -- | -- | -- |
| Amortization of fair value adjustments | 14,020 | 5,867 | 179 |
| Loss from disposal of subsidiaries | 1,027 | -- | -- |
| Offering expenses | 83,190 | (18,045) | (551) |
| Share-based payments expenses | 65,718 | 85,174 | 2,602 |
| Effect of deferred taxation of the above items | (3,804) | (1,195) | (37) |
| Adjusted Net Profit | 424,532 | 566,831 | 17,319 |
| Adjusted Net Profit per share: | |||
| Basic | 8.16 | 10.88 | 0.33 |
| Diluted | 8.16 | 10.69 | 0.33 |
| Shares used in computing Adjusted Net Profit per share | |||
| Basic | 52,000 | 52,115 | 52,115 |
| Diluted | 52,000 | 53,032 | 53,032 |
| (1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.7292 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. | |||
| QIWI plc. | |||
| Reconciliation of IFRS to Non-IFRS Operating Results | |||
| (in thousands, except per share data) | |||
| Year ended | |||
| December 31, 2012 | December 31, 2013 | December 31, 2013 | |
| RUB | RUB | USD(1) | |
| Revenue | 8,911,438 | 11,666,050 | 356,444 |
| Minus: Cost of revenue (exclusive of depreciation and amortization) | 5,454,288 | 6,396,499 | 195,438 |
| Plus: Compensation to employees and related taxes | 712,360 | 897,975 | 27,437 |
| Adjusted Net Revenue | 4,169,510 | 6,167,526 | 188,442 |
| Segment Adjusted Net Revenue | |||
| Qiwi Distribution | 2,844,758 | 3,182,414 | 97,235 |
| Visa Qiwi Wallet | 1,241,156 | 2,883,784 | 88,111 |
| Other | 83,596 | 101,328 | 3,096 |
| Total Adjusted Net Revenue | 4,169,510 | 6,167,526 | 188,442 |
| Net Profit | 807,778 | 1,835,374 | 56,078 |
| Plus: | |||
| Depreciation and amortization | 129,051 | 113,100 | 3,456 |
| Other income | (16,669) | (20,615) | (630) |
| Other expenses | 28,738 | 20,089 | 614 |
| Change in fair value of derivative financial assets | 328 | -- | -- |
| Foreign exchange (loss) gain, net | 21,126 | (8,021) | (245) |
| Share of loss of associates | 13,236 | 78,896 | 2,411 |
| Loss from disposal of subsidiaries | 1,027 | -- | -- |
| Impairment of investment in associates | -- | 21,540 | 658 |
| Interest income | (25,510) | (22,204) | (678) |
| Interest expenses | 7,520 | 28,686 | 876 |
| Income tax expenses | 407,729 | 609,509 | 18,623 |
| Corporate costs allocated to discontinued international operations | 61,274 | -- | -- |
| Offering expenses | 109,237 | 84,732 | 2,589 |
| Share-based payments expenses | 65,718 | 230,937 | 7,056 |
| Loss from discontinued operations | 240,363 | -- | -- |
| Goodwill impairment | -- | 5,479 | 167 |
| Adjusted EBITDA | 1,850,946 | 2,977,502 | 90,974 |
| Adjusted EBITDA margin | 44.4% | 48.3% | 48.3% |
| Net profit | 807,778 | 1,835,374 | 56,078 |
| Loss from discontinued operations | 240,363 | -- | -- |
| Goodwill impairment | -- | 5,479 | 167 |
| Corporate costs allocated to discontinued international operations | 61,274 | -- | -- |
| Amortization of fair value adjustments | 42,471 | 22,183 | 678 |
| Loss from disposal of subsidiaries | 1,027 | -- | -- |
| Offering expenses | 109,237 | 84,732 | 2,589 |
| Share-based payments expenses | 65,718 | 230,937 | 7,056 |
| Effect of taxation of the above items | (21,749) | (4,437) | (136) |
| Adjusted Net Profit | 1,306,119 | 2,174,268 | 66,432 |
| Adjusted Net Profit per share: | |||
| Basic | 25.12 | 41.79 | 1.28 |
| Diluted | 25.12 | 41.44 | 1.27 |
| Shares used in computing Adjusted Net Profit per share | |||
| Basic | 52,000 | 52,034 | 52,034 |
| Diluted | 52,000 | 52,469 | 52,469 |
| (1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.7292 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. | |||
| QIWI plc. | |||
| Other Operating Data | |||
| Quarter Ended | |||
| December 31, 2012 | December 31, 2013 | December 31, 2013 | |
| RUB | RUB | USD(1) | |
| Qiwi Distribution | |||
| Active kiosks and terminals (units) | 169,102 | 168,236 | 168,236 |
| Payment volume (billions) | 131.9 | 145.3 | 4.4 |
| Average net revenue yield | 0.64% | 0.56% | 0.56% |
| Visa Qiwi Wallet | |||
| Active Qiwi Wallet accounts (number at period end), (millions) | 11.4 | 15.4 | 15.4 |
| Payment volume (billions) | 53.5 | 78.6 | 2.4 |
| Average volume per Qiwi Wallet account (per quarter) | 4,693 | 5,104 | 156 |
| Average net revenue yield | 0.77% | 1.09% | 1.09% |
| Year ended | |||
| December 31, 2012 | December 31, 2013 | December 31, 2013 | |
| RUB | RUB | USD(1) | |
| Qiwi Distribution | |||
| Active kiosks and terminals (units) | 169,102 | 168,236 | 168,236 |
| Payment volume (billions) | 464.8 | 520.0 | 15.9 |
| Average net revenue yield | 0.61% | 0.61% | 0.61% |
| Visa Qiwi Wallet | |||
| Active Qiwi Wallet accounts (number at period end), (millions) | 11.4 | 15.4 | 15.4 |
| Payment volume (billions) | 151.5 | 255.1 | 7.8 |
| Average volume per Qiwi Wallet account (per quarter) | 13,260 | 16,565 | 506 |
| Average net revenue yield | 0.82% | 1.13% | 1.13% |
|
(1) Calculated using a ruble to U.S. dollar exchange rate of RUB 32.7292 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. |
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In this release, Russian ruble (RUB) amounts have been translated into U.S. dollars at a rate of RUB 32.7292 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.