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QIWI Announces Third Quarter 2021 Financial Results

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QIWI Announces Third Quarter 2021 Financial Results
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QIWI plc, a leading provider of cutting-edge payment and financial services in Russia and the CIS, today announced its financial results for the third quarter ended September 30, 2021.

3Q 2021 Key Operating and Financial Highlights1

3Q 2020 3Q 2021 YoY 9M 2020 9M 2021 YoY 3Q 2021
RUB million RUB million % RUB million RUB million % USD million(1)
Consolidated
Group results
Revenue 10,833 11,746 8.4% 29,663 31,793 7.2% 161.4
Total Net Revenue 6,637 6,419 (3.3%) 19,736 17,629 (10.7%) 88.2
LFL Total Net Revenue(2) 6,557 6,419 (2.1%) 18,122 17,629 (2.7%) 88.2
Adjusted EBITDA 4,020 3,834 (4.6%) 10,223 10,504 2.7% 53
Adjusted EBITDA margin 60.6% 59.7% (0.8%) 51.8% 59.6% 7.8% 59.7%
Net Profit 3,043 8,836 190.4% 6,479 13,423 107.2% 121.4
Adjusted Net profit 3,275 2,705 (17.4%) 7,785 7,470 (4.0%) 37.2
Adjusted Net profit margin 49.3% 42.1% (7.2%) 39.4% 42.4% 2.9% 42.1%
Payment
Services (PS)
PS Net Revenue 6,108 5,855 (4.1%) 16,826 16,295 (3.2%) 80.5
PS Payment Net Revenue 5,303 4,856 (8.4%) 14,507 13,857 (4.5%) 66.7
PS Payment Volume, billion 435 490 12.6% 1,153 1,332 15.6% 6.7
PS Payment Net Revenue Yield 1.22% 0.99% (0.2%) 1.26% 1.04% (0.2%) 0.99%
PS Other Net Revenue 805 999 24.1% 2,320 2,438 5.1% 14
Adjusted Net profit 3,633 3,231 (11.1%) 9,927 8,753 (11.8%) 44
Adjusted Net profit margin 59.5% 55.2% (4.3%) 59.0% 53.7% (5.3%) 55.2%

(1) Throughout this release dollar translation calculated using a ruble to U.S. dollar exchange rate of RUB 72.7608 to U.S. $1.00, which was the official exchange rate quoted by the Central Bank of the Russian Federation as of September 30, 2021.
(2) Like-for-like Total Net Revenue excludes discontinued Consumer Financial Services (Sovest) and Rocketbank segments.

Key events in 3Q 2021 and after the reported period

  • Alexey Mashchenkov was appointed as CFO of QIWI.
  • The Board of Directors approved an interim dividend for 3Q 2021 in the amount of 30 cents per share.
  • QIWI completed the sale of its 40% stake (45% economic interest) in Tochka2 resulting in total gain on disposal of RUB 6.2 billion, including RUB 2.7 billion of accrued performance adjustment income contingent to Tochka’s earnings for the year 2021.
  • The role of a single Unified Interactive Bets Accounting Center (ETSUP) was announced. Since October 2021 the newly-appointed ETSUP replaced TSUPIS of QIWI. The Company ensured a seamless transition of clients to the ETSUP. QIWI wallet remains a payment method for making bets and receiving winning payouts.
  • Factoring PLUS was rebranded into ROWI.

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1 Total Net Revenue, adjusted EBITDA, adjusted EBITDA margin, adjusted Net profit, adjusted Net profit margin, financial results on a like-for-like basis in this release are “non-IFRS financial measures”. Please see the section “Non-IFRS Financial Measures and Supplemental Financial Information” for more details as well as reconciliation at the end of this release.

2021 Guidance3

QIWI upgraded its FY 2021 guidance following strong results for 9M 2021:

  • Total Net Revenue is expected to decrease by 10% to 15% YoY;
  • Payment Services Net Revenue is expected to decrease by 5% to 10% YoY;
  • Adjusted Net Profit is expected to decrease by 10% to 15% YoY.

Our outlook reflects (1) recent changes in the betting industry landscape described in the “Recent developments” section, (2) conservative projections of recovery of cross-borders operations, and (3) sale of stake in Tochka project, previously accounted for under the equity pick-up method.

These are our current views and expectations only which are based on the trends we see as of the day of this press release. If such trends were to deteriorate or improve further the impact on our business and operations could deviate from that currently expected.

The Company reserves the right to revise guidance in the course of the year or when additional information regarding the effect of the ongoing events becomes available.

3Q Results

Net Revenue breakdown by segments4

3Q 2020 3Q 2021 YoY 9M 2020 9M 2021 YoY 3Q 2021
RUB million RUB million % RUB million RUB million % USD million
Total Net Revenue 6,637 6,419 (3.3 %) 19,736 17,629 (10.7 %) 88.2
LFL Total Net Revenue 6,557 6,419 (2.1 %) 18,122 17,629 (2.7 %) 88.2
Payment Services (PS) 6,108 5,855 (4.1 %) 16,826 16,295 (3.2 %) 80.5
PS Payment Net Revenue 5,303 4,856 (8.4 %) 14,507 13,857 (4.5 %) 66.7
PS Other Net Revenue 805 999 24.1 % 2,320 2,438 5.1 % 13.7
Consumer Financial Services (СFS) 64 (100.0 %) 1,067 (100.0 %)
Rocketbank 16 (100.0 %) 548 (100.0 %)
Corporate and Other 449 564 25.6 % 1,295 1,334 3.0 % 7.8

Total Net Revenue from continued operations decreased by 2.1% YoY to RUB 6,419 million ($88.2 million) driven by PS segment Net Revenue decline. Including discontinued operations of Sovest (reflected in CFS) and Rocketbank Total Net Revenue decreased by 3.3% YoY.

PS Net Revenue in 3Q 2021 was RUB 5,855 million ($80.5 million) – 4.1% lower compared to last year driven by decrease of PS Payment Net Revenue.

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3 Guidance is provided in Russian rubles
4 Total Net Revenue, PS Net Revenue, PS Payment Net Revenue, PS Other Net Revenue, СFS Net Revenue, Rocketbank Net Revenue, Corporate and Other Net Revenue in this release are “non-IFRS financial measures”. Please see the section “Non-IFRS Financial Measures and Supplemental Financial Information” for more details as well as reconciliation at the end of this release.

PS Payment segment breakdown by verticals5

3Q 2020 3Q 2021 YoY 9M 2020 9M 2021 YoY 3Q 2021
RUB RUB % RUB RUB % USD
PS Payment Volume (billion)(1) 435.4 490.5 12.6% 1,152.6 1,332.1 15.6% 6.7
E-commerce 133.9 118.8 (11.3%) 343.3 312.4 (9.0%) 1.6
Financial services 65.2 71.8 10.1% 186.5 200.5 7.5% 1.0
Money remittances 185.9 261.1 40.5% 472.4 694.9 47.1% 3.6
Telecom 36.2 28.6 (21.0%) 118.9 89.3 (24.9%) 0.4
Other 14.3 10.2 (28.3%) 31.5 35.0 10.9% 0.1
PS Payment Net Revenue (million)(2) 5,303 4,856 (8.4%) 14,506 13,857 (4.5%) 66.7
E-commerce 3,123 2,286 (26.8%) 8,523 6,361 (25.4%) 31.4
Financial services 331 134 (59.6%) 931 462 (50.4%) 1.8
Money remittances 1,605 2,316 44.3% 4,274 6,553 53.3% 31.8
Telecom 143 115 (19.2%) 573 392 (31.6%) 1.6
Other 102 4 (95.7%) 206 90 (56.4%) 0.1
PS Payment Net Revenue Yield(3) 1.22% 0.99% (0.23%) 1.26% 1.04% (0.22%) 0.99%
E-commerce 2.33% 1.93% (0.41%) 2.48% 2.04% (0.45%) 1.93%
Financial services 0.51% 0.19% (0.32%) 0.50% 0.23% (0.27%) 0.19%
Money remittances 0.86% 0.89% 0.02% 0.90% 0.94% 0.04% 0.89%
Telecom 0.40% 0.40% 0.01% 0.48% 0.44% (0.04%) 0.40%
Other 0.71% 0.04% (0.67%) 0.65% 0.26% (0.40%) 0.04%

(1) PS Payment Volume by market verticals and consolidated payment volume consist of the amounts paid by our customers to merchants or other customers included in each of those market verticals less intra-group eliminations.
(2) PS Payment Net Revenue is calculated as the difference between PS Payment Revenue and PS Cost of Payment Revenue (excluding D&A). PS Payment Revenue primarily consists of merchant and consumer fees. Cost of PS Payment Revenue primarily consists of commission to agents.
(3) PS Payment Net Revenue Yield is defined as PS Payment net revenue divided by Payment Services payment segment volume.

In 3Q 2021 PS Payment Net Revenue decreased by 8.4% YoY and amounted to RUB 4,856 million ($66.7 million) as a result of a decrease of PS Payment Net Revenue Yield by 23bps YoY partially compensated by an increase of the PS Payment volume by 12.6%.

PS Payment Volume increased by 12.6% to RUB 490 billion primarily due to the Money remittance and Financial services verticals.

  • Money Remittances vertical went up by 40.5% YoY reaching a historical high level of RUB 261 billion represented by increased volumes across key streamlines, namely (i) B2B2C payments from QIWI wallet accountholders and payouts on cards (up 110% YoY) resulting largely from the development of our product offering for self-employed and increase in peer-to-peer operations, and (ii) repayment of customers’ betting winnings on the QIWI wallet (up 29% YoY).
  • Volume growth in the Financial services vertical by 10.1% YoY was driven by increased bank and micro loans repayments.
  • E-commerce vertical Volume went down by 11.3% YoY on decrease in payment volumes to foreign merchants due to temporary restrictions imposed by the CBR6 in December 2020 and expired in May 2021 which were partially offset by increased TSUPIS operations and recovery of tourism.
  • Telecom volume decreased by 21.0% YoY to RUB 29 billion on lower volumes coming through MNOs7 and adverse impact of the downsizing kiosk network.
  • Other category comprising a broad range of merchants in utilities and other government payments as well as charity organizations to which we offer payment processing services decreased by 28.3% YoY to RUB 10 billion.

We note significant growth within the B2B and B2B2C streamlines as we continuously enhance our customer value proposition. These transactions mostly represent use-cases connected to peer-to-peer transactions, light banking, collection of proceeds services we provide to self-employed customers, etc. We believe that significant growth in revenue from peer-to-peer transactions may not be representative of revenue from such transactions in future periods.

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5 Please see the section “Non-IFRS Financial Measures and Supplemental Financial Information” for more details as well as reconciliation at the end of this release.
6 Disclosed in the Report of Foreign Private Issuer on Form 6-K furnished to the SEC on December 9, 2020.
7 Mobile network operators.

A decline in PS Payment Net Revenue Yield by 23bps to 0.99% was mainly driven by a combination of (1) decreased E-commerce Net Revenue Yield by 41bps to 1.93% and (2) lower share of E-commerce vertical in total PS volume by 6.5ppt to 24.2%, both resulting from the temporary restrictions imposed on higher-yielding cross-border payments.

Any changes in the regulatory regime or in the interpretation of current regulations that affect the continuation of one or more types of transactions currently facilitated by our system may materially adversely affect our results of operations.

PS Other Net Revenue breakdown

3Q 2020 3Q 2021 YoY 9M 2020 9M 2021 YoY 3Q 2021
RUB million RUB million % RUB million RUB million % USD million
PS Other Net Revenue 805 999 24.1 % 2,320 2,438 5.1 % 13.7
Fees for inactive accounts and unclaimed payments 506 441 (12.8 %) 1,497 1,295 (13.5 %) 6.1
Other Net Revenue 299 558 86.8 % 823 1,143 38.9 % 7.7

PS Other Net Revenue increased by 24.1% YoY and stood at RUB 999 million ($13.7 million).

Fees for inactive accounts and unclaimed payments were RUB 441 million ($6.1 million) or 12.8% lower compared to 3Q 2020 due to extension of inactivity terms from 6 to 12 months as well as decreased number of QIWI wallet accounts.

Other Net Revenue largely composed of interest revenue, revenue from overdrafts provided to agents, and advertising increased by 86.8% YoY up to RUB 558 million ($7.7 million) mainly driven by higher interest revenue on more efficient cash allocation underpinned by increased interest rates.

Payment Services other operating data

September 30, 2020 September 30, 2021 YoY %
Active kiosks and terminals (units)(1) 117,137 96,369 (17.7 %)
Active QIWI wallet accounts (million)(2) 19.7 14.9 (24.5 %)

(1) We measure the numbers of our kiosks and terminals on a daily basis, with only those kiosks and terminals being taken into calculation through which at least one payment has been processed during the day, which we refer to as active kiosks and terminals. The period end numbers of our kiosks and terminals are calculated as an average of the number of active kiosks and terminals for the last 30 days of the respective reporting period.
(2) Active QIWI wallet accounts calculated on a yearly basis, i.e. an active account is an account that had at least one transaction within the last 12 months from the reporting date.

The number of active kiosks and terminals was 96,370, including Contact and Rapida physical points of service, a decrease of 17.7% compared to the previous year. The number of kiosks and terminals is generally decreasing as market evolves towards a higher share of digital payments. Nevertheless, our physical distribution network remains an important part of our omni-channel infrastructure allowing consumers to use physical currency for online payments and offering merchants access to a large pool of customers that use cash.

The number of active QIWI wallet accounts was 14.9 million as of the end of 3Q 2021, a decrease of 4.8 million YoY. The decrease primarily resulted from the introduction of limitations on the anonymous wallets and enhancement of certain KYC, identification and compliance procedures. The number of active QIWI wallets was also affected by the CBR restrictions imposed in December 2020 resulting in outflow of clients that customarily used our services specifically for payments to merchants that have become subject to the restrictions. We also note 1.3 million of QIWI wallet accounts previously created solely for the purposes of making bets via QIWI TSUPIS using other than QIWI wallet payment method. These QIWI wallets are at risk as QIWI stopped providing TSUPIS services in October 2021. We are focused on diversification of our product proposition and increase of payment volumes per QIWI wallet account. In 3Q 2021 payment volume per active QIWI wallet account8 was 92% higher YoY.

Corporate and Other (CO) Net Revenue breakdown

3Q 2020 3Q 2021 YoY 9M 2020 9M 2021 YoY 3Q 2021
RUB million RUB million % RUB million RUB million % USD million
CO Net Revenue 449 564 25.6 % 1,295 1,334 3.0 % 7.8
Tochka 126 126 0.4 % 457 282 (38.3 %) 1.7
ROWI 182 295 61.8 % 488 670 37.4 % 4.1
Flocktory 135 152 13.2 % 341 412 20.8 % 2.1
Corporate and Other projects 6 (10 ) (262.3 %) 10 (30 ) (409.8 %) (0.1 )

CO Net Revenue in 3Q 2021 increased by 25.6% YoY to RUB 564 million ($7.8 million) driven by ROWI, Flocktory and Other projects Net Revenue growth:

  • Tochka Net Revenue remained generally flat YoY and stood at RUB 126 million ($1.7 million). In the 3Q 2021 QIWI completed the sale of its 40% stake (45% economic interest) in the capital of Tochka associate to Otkritie Bank. The Company continues to work with Tochka and Otkritie Bank on joint B2B2C projects providing a bundle of services for taxi, courier delivery, transportation companies, self-employed individuals and other users.
  • In 3Q 2021 QIWI Factoring business was rebranded into ROWI. ROWI Net Revenue increased by 61.8% YoY to RUB 295 million ($4.1 million) on further expansion of bank guarantees and factoring portfolios as well as launch of new products:
    • Bank Guarantees portfolio increased by 86% YoY to RUB 31.2 billion with average check growth by 66% to RUB 1.1 million.
    • Factoring portfolio increased by 83% YoY and reached RUB 7.0 billion with number of active clients going up by 48% YoY to 592.
    • In 3Q ROWI launched two new finance products – online loans for government contracts execution and loans for marketplaces suppliers based on sales analytics. Net Revenue of new products in 3Q 2021 reached RUB 28 million.
  • Flocktory Net Revenue increased by 13.2% YoY and reached RUB 152 million ($2.1 million) driven by growing number of clients and traffic-providers using Flocktory’s platform and marketing services underpinned by growth of average check.
  • Corporate and Other projects Net Revenue include result of operations of different projects in the start-up stage and in 3Q 2021 it amounted to RUB 10 million ($0.1 million) of loss.

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8 Payment volume per active QIWI wallet account for the period is calculated as total amount of outgoing payments for the period including peer-to-peer transactions divided by number of active QIWI wallet accounts involved in transactions within the period.

Operating expenses and other non-operating income and expenses

3Q 2020 3Q 2021 YoY 9M 2020 9M 2021 YoY 3Q 2021
RUB million RUB million % RUB million RUB million % USD million
Operating expenses (3,026 ) (2,874 ) (5.0 %) (10,764 ) (8,005 ) (25.6 %) (39.5 )
% of Net Revenue (45.6%) (44.8%) 0.8% (54.5%) (45.4%) 9.1%
Selling, general and administrative expenses (711) (986) 38.7% (2,634) (2,147) (18.5%) (13.6)
% of Net Revenue (10.7%) (15.4%) (4.6%) (13.3%) (12.2%) 1.2%
Personnel expenses (1,983) (1,496) (24.6%) (6,204) (4,726) (23.8%) (20.6)
% of Net Revenue (29.9%) (23.3%) 6.6% (31.4%) (26.8%) 4.6%
Depreciation, amortization & impairment (317) (289) (8.8%) (1,101) (872) (20.8%) (4.0)
% of Net Revenue (4.8%) (4.5%) 0.3% (5.6%) (4.9%) 0.6%
Credit loss (expense) (15) (103) 586.7% (825) (260) (68.5%) (1.4)
% of Net Revenue (0.2%) (1.6%) (1.4%) (4.2%) (1.5%) 2.7%
Other non-operating income and expenses excluding gain on disposal of an associate 321 36 (88.8%) (441) 200 (145.4%) 0.5
% of Net Revenue 4.8% 0.6% (4.3%) (2.2%) 1.1% 3.4%
Share of gain of an associate and a joint venture 256 (100.0%) 495 306 (38.2%)
% of Net Revenue 3.9% 0.0% (3.9%) 2.5% 1.7% (0.8%)
Foreign exchange loss, net 125 3 (97.6%) (130) (39) (70.0%) 0.0
% of Net Revenue 1.9% 0.0% (1.8%) (0.7%) (0.2%) 0.4%
Interest income and expenses, net (23) 2 108.7% (88) (25) 71.6% 0.0
% of Net Revenue (0.3%) 0.0% 0.4% (0.4%) (0.1%) 0.3%
Other income and expenses, net (37) 31 183.8% (718) (42) 94.2% 0.4
% of Net Revenue (0.6%) 0.5% 1.0% (3.6%) (0.2%) 3.4%
Gain on disposal of an associate 6,213 6,213 85.4
% of Net Revenue 96.8% 35.2%

Operating expenses went down by 5.0% YoY to RUB 2,874 million ($39.5 million) and improved by 82bps to 44.8% as percent of Total Net Revenue driven by divestiture of Rocketbank project that offset Total Net Revenue decline due to temporary restrictions imposed on cross-border payments.

Selling, general and administrative expenses increased by 38.7% to RUB 986 million ($13.6 million). SG&A expenses as percent of Total Net Revenue increased by 4.6ppt YoY to 15.4% primarily due to (i) advisory services for market research while reviewing Company’s strategy and (ii) higher tax expenses as a result of increased share of operations with financial companies which are non-deductible for VAT purposes.

Personnel expenses decreased by 24.6% YoY to RUB 1,496 million ($20.6 million) and improved by 6.6ppt to 23.3% as percent of Total Net Revenue primarily driven by divestiture of Rocketbank project.

Depreciation, amortization and impairment decreased by 27bps YoY to 4.5% as percent of Total Net Revenue driven by divestiture of Rocketbank project.

Credit loss increased by 1.4ppt YoY to 1.6% as percent of Total Net Revenue driven by provisions accrued in 3Q 2021 resulting from ROWI business portfolio growth and other factors.

Other non-operating income and expenses excluding gain on disposal of an associate in 3Q decreased by 88.8% YoY to RUB 36 million ($0.5 million) mainly driven by (i) no contribution from Tochka equity pick up due to sales of stake in the project, and (ii) lower forex exchange gain driven by currency rates fluctuations. Other insignificant changes are driven by divestiture of Rocketbank project.

Gain on disposal of an associate in the 3Q 2021 resulted from sale of stake in Tochka and stood at RUB 6.2 billion including: (i) base deal amount of RUB 4.95 billion, (ii) accrued expected performance adjustment gain contingent on Tochka’s earnings for the year 2021 in the amount of RUB 2.7 billion, (iii) dividends received in 3Q in the amount of RUB 0.5 billion, and (iv) less carrying amount of disposed investment in the amount of RUB 1.95 billion. Contingent amount is expected to be received in 2Q 2022.

Income tax expense

Income tax expense increased by 7.8% YoY to RUB 958 million mainly resulting from divesture of SOVEST and Rocketbank projects. Effective tax rate in 3Q 2021 was 12.8ppt lower YoY and stood at 9.8% as a result of recognition of non-taxable gain on disposal of Tochka.

Profitability results

3Q 2020 3Q 2021 YoY 9M 2020 9M 2021 YoY 3Q 2021
RUB million RUB million % RUB million RUB million % USD million
Adjusted EBITDA 4,020 3,834 (4.6%) 10,223 10,504 2.7% 52.7
Adjusted EBITDA margin, % 60.6% 59.7% (0.8%) 51.8% 59.6% 7.8% 59.7%
Adjusted Net Profit 3,275 2,705 (17.4%) 7,785 7,470 (4.0%) 37.2
Adjusted Net Profit margin, % 49.3% 42.1% (7.2%) 39.4% 42.4% 2.9% 42.1%
Payment Services 3,633 3,231 (11.1%) 9,927 8,753 (11.8%) 44.4
PS Net Profit margin, % 59.5% 55.2% (4.3%) 59.0% 53.7% (5.3%) 55.2%
Consumer Financial Services (137) (100.0%) (793) (100.0%)
Rocketbank (165) (100.0%) (781) (100.0%)
Corporate and Other (CO) (56) (526) (848.2%) (568) (1,283) (125.8%) (7.2)
Tochka 281 5 (98.3%) 590 328 (44.4%) 0.1
ROWI 72 122 69.7% 164 156 (4.6%) 1.7
Flocktory 44 (6) (114.3%) 57 (109) (291.7%) (0.1)
Corporate and Other projects (453) (647) (42.7%) (1,378) (1,658) (20.3%) (8.8)

Adjusted EBITDA decreased by 4.6% YoY to RUB 3,834 million ($52.7 million) driven by Total Net Revenue decline and modest Adjusted EBITDA margin decline by 84bps to 59.7%. Adjusted EBITDA margin decreased mainly due to PS Payment Net Revenue decline partially offset by optimization measures resulting from divesture of Rocketbank project.

Adjusted Net Profit in 3Q 2021 decreased by 17.4% YoY to RUB 2,705 million ($37.2 million). Adjusted Net Profit margin declined by 7.2ppt and stood at 42.1% driven by (i) Adjusted EBITDA dynamics, (ii) no share gain from Tochka associate, and (iii) lower forex exchange gain.

Payment Services Net Profit decreased by 11.1% YoY to RUB 3,231 million ($44.4 million) as a result of a combination of PS Net Revenue decline by 4.1% YoY mainly due to temporary restrictions imposed on higher-yielding cross-border payments and PS Net Profit margin contraction by 4.3ppt to 55.2% primarily driven by higher tax expenses due to changing base for VAT and adverse forex exchange impact.

CO Net Loss in 3Q 2021 increased to RUB 526 million ($7.2 million) driven primarily by the following factors:

  • Corporate and Other projects Net Loss in 3Q 2021 increased by 42.7% YoY to RUB 647 million mainly due to advisory services for market research while reviewing Company’s strategy, increased costs for insurance of Directors and Officers and higher income tax expenses.
  • Tochka Net Profit decreased to RUB 5 million followed by sale of QIWI stake in the project.
  • ROWI Net Profit increased by 69.7% YoY to RUB 122 million as a result of project scale up reflected in portfolio growth.
  • Flocktory Net Loss in 3Q 2021 stood at RUB 6 million primarily driven by (i) increased personnel expenses mainly due to selective review of salaries and new hires, and (ii) negative forex exchange impact.

Consolidated cash flow statement

9M 2020 9M 2021 YoY 9M 2021
RUB million RUB million % USD million
Net cash generated from operating activities before changes in working capital 8,724 8,762 0.4 % 120.4
Change in working capital (6,012 ) (13,672 ) 127.4 % (187.9 )
Net interest and income tax paid 735 (16 ) (102.2 %) (0.2 )
Net cash flow used in operating activities 3,447 (4,926 ) (242.9 %) (67.7 )
Net cash received from investing activities 684 (33 ) (104.8 %) (0.5 )
Net cash used in from financing activities (3,438 ) (4,805 ) 39.8 % (66.0 )
Effect of exchange rate changes on cash and cash equivalents 1,411 (140 ) (109.9 %) (1.9 )
Net decrease in cash and cash equivalents 2,104 (9,904 ) (570.7 %) (136.1 )
Cash and cash equivalents at the beginning of the period 42,101 47,382 12.5 % 651.2
Cash and cash equivalents at the end of the period 44,205 37,478 (15.2 %) 515.1

Net cash generated from operating activities before changes in working capital for 9M 2021 slightly increased by 0.4% YoY to RUB 8,762 million ($120.4 million) as decrease in Net Revenue by 10.7% YoY due to temporary suspension of cross-border operations was compensated by improved profitability on divesture of loss making SOVEST and Rocketbank projects. Net cash flow used in operating activities for 9M 2021 stood at RUB 4,926 million ($67.7 million) driven by significant changes in working capital and increased income tax paid. Change in working capital for 9M 2021 resulted in cash outflow of RUB 13,672 million primarily due to (i) lower accounts payable and accruals of RUB 10,444 million resulted from discontinuation of payments to foreign merchants on the back of the temporary CBR prescriptions related to cross-border operations; (ii) decrease in customer accounts and amounts due to banks in the amount of RUB 4,163 million driven predominantly due to the wind-down of Rocketbank and seasonality; (iii) increase in loans issued from banking operations of RUB 2,418 million mainly related to ROWI business development, and (iv) decrease in trade and other receivables by RUB 2,125 million mainly due to seasonal factor. Net interest and income tax paid increased by RUB 751 million mainly resulting from divesture of loss making SOVEST and Rocketbank projects.

Net cash flow used in investing activities for 9M 2021 stood at RUB 33 million ($0.5 million). The net cash outflow was primarily driven by purchase of debt securities in the amount of RUB 8.1 billion, which was partially offset by proceeds from sale of Tochka of RUB 4.95 billion.

Net cash flow used in financing activities for 9M 2021 increased by 39.8% YoY to RUB 4,805 million ($66.0 million). The increase in net cash outflow was primarily driven by (i) repayment of borrowings of RUB 649 million and (ii) higher dividend payments during 9M 2021 by RUB 621 million compared to the same period of last year due to an increase of distributable profit and lower payout ratio in 2020 due to the COVID-19 outbreak.

As a result of factors described above cash and cash equivalents as of September 30, 2021 were RUB 37,478 million ($515.1 million) – a decrease by 15.2% compared to September 30, 2020.

Dividends

In March 2021, the Board of Directors has approved a target dividend payout ratio for 2021. In accordance with the decision of the Board of Directors, the Company aims to distribute at least 50% of Group Adjusted Net Profit for 2021.

Following the determination of 3Q 2021 financial results and taking into consideration the current operating environment, the Board of Directors approved a dividend of USD 30 cents per share. The dividend record date is December 6, 2021, and the Company intends to pay the dividend on December 8, 2021. The holders of ADSs will receive the dividend shortly thereafter.

The Board of Directors reserves the right to distribute the dividends on a quarterly basis, as it deems necessary so that the total annual payout is in accordance with the target range provided, though the payout ratios for each of the quarters may vary and be outside of this range.

Recent Developments

Betting industry regulation

Since 2016, we have been operating an Interactive Bets Accounting Center (TSUPIS), which we established together with one of the self-regulated associations of bookmakers in order to enable us to accept electronic bets on behalf of sports betting companies and process related payments. In December 2020, a new law was adopted, establishing a Unified Gambling Regulator as a new governmental agency with broad authority to oversee the betting market, and creating the role of a single Unified Interactive Bets Accounting Center (ETSUP). QIWI made a proposal to serve as the ETSUP but it was not successful. Since October 2021, the newly-appointed ETSUP solely processes betting operations replacing both TSUPIS operators. As a result, QIWI lost the ability to generate volume and income directly related to TSUPIS business in Russia starting from 4Q 2021. It will most likely also affect our acquiring services provided to sports betting companies in a bundle with TSUPIS operations. At the same time, part of the betting revenues generated from QIWI wallet services, including commissions for betting accounts top-ups and winning payouts are expected to be retained. We note that there can be no assurance that recent changes will not have adverse impact on the overall usage of QIWI wallet.

The combined betting stream for 9M 2021 represented 26% (or RUB 351.6 billion) of PS Payment Volume and 38% (or RUB 5,225 million) of PS Payment Net Revenue. QIWI’s TSUPIS business and related acquiring services for 9M 2021 accounted 23% (or RUB 3,246 million) of PS Payment Net Revenue.

We are looking for different options to share our expertise and technologies to transform and secure our place on the new betting landscape.

Earnings Conference Call and Audio Webcast

QIWI will host a conference call to discuss 3Q 2021 financial results today at 8:30 a.m. ET. (1:30 p.m. London time; 4:30 p.m. Moscow time)

Hosting the call will be (i) Andrey Protopopov, CEO, (ii) Alexey Mashchenkov, CFO and (iii) Elena Nikonova, Deputy CFO for Corporate Finance.

To participate in the conference call, please use the following details:

Live call Toll Free (US)
Toll International
Toll Free (Russia)
+1 (877) 407-3982
+1 (201) 493-6780|
88 00 100 6268
Replay Toll Free (US)
Toll International
+1 (844) 512-2921
+1 (412) 317-6671
available since Tuesday, November 23, 2021, 11:30 a.m. ET till Tuesday, December 7, 2021
Confirmation Code 13724831

Latest News

Stats Perform co-founder launches social gaming disruptor PickGuru with £2.6m investment round back by leading angels including Paddy Power.

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Stats Perform co-founder launches social gaming disruptor PickGuru with £2.6m investment round back by leading angels including Paddy Power.
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PickGuru, a brand new social gaming platform, has secured £2.6m in seed funding in their quest to revolutionise the interaction between real-money wagering and live sport. The new platform will allow friends and fans to challenge each other in a wide variety of exciting sports prediction games.

With a concept built and refined by some of the most successful sports entrepreneurs in the UK, PickGuru will allow users to test their knowledge to win big cash pots for small stakes in nationwide leagues or compete with their friends in mini-leagues. Powered by seamless real-time data feeds, PickGuru leaderboards will update dynamically as games progress and reward successful sports gurus with cash prizes.

The funding round will be used to launch and scale PickGuru, set for early 2022.

PickGuru is headed by an experienced founding team including Oliver Slipper (co-founder of Stats Perform/DAZN), Paul Cobley (founder of Matulo Software), Paul Watkins (ex-FP&A director at Stats Perform/DAZN, ex-finance director at Sportquake), Jon Owen and Jon Youell (founders of Pitch International) and Adam Perrin (co-founder of Masomo Games, ex-brand director at Paddy Power).

What began as a competition amongst friends is now set to change the way fans interact with live sports forever. As told by PickGuru’s founders, the platform’s origins started as a manual spreadsheet-based tipping competition which was shared with friends and colleagues during the 2020 Masters tournament. After the game spread across the UK and became a viral sensation, the idea for a new and innovative platform to bring sports fanatics together was born.

PickGuru, is currently looking to fill 10 roles across development, compliance and marketing with a view to recruit a further 20 roles over the next 12 months.

Speaking about the latest fund raise, Oliver Slipper, chairman and co-founder of PickGuru, said: “I certainly didn’t expect things to take off less than a year after sending out a simple game to friends but the massive popularity of it convinced me that I was onto something.

“Following months of hard graft and huge investment, we’re proud to be building the first UK-focused platform that uniquely combines elements of fantasy sports, gaming and live action, and strongly believe users will love the result.”

He continued: “I’m delighted that some of the most successful sports entrepreneurs shared our vision and I thank them for backing our ambitious plans for the business.”

Following a £6m pre-money valuation, PickGuru brought together a list of angel investors including Paddy Power (ex-communications director, Paddy Power), Simon Wear (founder and chairman of Global Cycling Network), Oliver and Alexander Kent-Braham (founders of recent unicorn, Marshmallow) and Will Neale (founder of Grabyo).

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Latest News

Best sites for testing casinos for free

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When you’re buying a new car, you more often than not want to go for a test drive before making the final decision. Similarly, it’s understandable if you hesitate to spend real money at a casino you have never used before. That’s why it’s always a good idea to try casinos out for free. 

Another valid reason to do that is if you want to experience the thrill of gambling without spending heaps of money. In this article, we will tell you how to try out casinos for free and what are the best sites for doing that. 

How To Test Casinos For Free

There are two ways you can get a glimpse of the casino experience without paying a single penny and then make a decision whether you want to play for real money. 

You can peruse the game selection of an online casino and try out different aspects of the site without signing up. Many casinos allow you to play a wide selection of slot or table games without making an account and play the demo versions without making a real money bet. In addition, you can chat up with the support and see if they are quick, polite and do you enjoy your experience.

It’s easy and convenient because you do not have to create an account. However, the main drawback of this method is that it doesn’t really give you the full user experience of casinos – many games do not support demo play, and you cannot test many user-only features. 

That’s why the best way to try out a casino is by using a no deposit bonus. Upon signing up, these offers will give you either free funds to play casino games for free, for free spins at the most popular slot machines – sometimes even both. 

The biggest drawback of this method is that few casinos offer no deposit bonuses in comparison to those that require deposits. The best way to find a no deposit bonus offer is by using a site like Freespinsbonus24.

What Is A No Deposit Bonus

Bonuses make gambling easier. While this statement is true for all bonus types, it is particularly true for the no deposit bonus. While other kinds of bonuses more often than not require you to meet a certain deposit requirement to claim and use them, no deposit bonus, as the name implies, can be used without any payment. Just claim the offer and start playing!

That being said, just like most casino bonuses, no deposit bonuses have certain terms and conditions, such as wagering requirements. That’s why it’s a good idea to thoroughly read the T&Cs before claiming the bonus. 

By using a no deposit bonus, you can either get a set amount of bonus cash that you can spend at various casino games or a large number of free spins that let you have a go at slot machines for free. 

Free Spins Bonus

One of the most sought-after risk-free online casino bonuses is the free spins bonus. This bonus is mostly focused on slots and will allow you to play some of the biggest slot titles for free. If you are worried about the effect the bonus will have on the game quality, relax, you have nothing to worry about. The game will treat your free spin exactly the same as a real money spin.

Perfect for new players who are still learning the ropes of slot gaming, free spins will help you understand how the game works and try out its gameplay and features without any risk. It’s also a great way to try out brand new slots that just have arrived. All in all, this bonus is a must-have for all players who want to make real money while gambling at no cost.

Where To Find No Deposit Bonuses?

Free spins no deposit bonus is the best way to test out a casino, and Freespinsbonus24 is a great place to find all the best offers. It lists casinos that offer no deposit free spins or regular no deposit bonuses in a convenient place, with all the information about the casino you need. This site also does casino reviews, so you can learn all you need to know before signing up. 

Conclusion

If you want to try out an unfamiliar casino and see if you like it, there are two very good ways to do that. One way is playing demo games without signing up, and the other one is claiming a no deposit bonus. 

It’s a great and lucrative way to try out casinos for free and maybe get some wins, but finding a good no deposit offer is hard. That’s why using a site that finds the best no deposit bonus offers for you is a great idea. 

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Latest News

PLANETPAY365 BECOMES AS ROMA NEWEST OFFICIAL PARTNER!

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PLANETPAY365 BECOMES AS ROMA NEWEST OFFICIAL PARTNER!
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AS Roma is pleased to announce a new partnership with PlanetPay365, the multi-service platform owned by Planet Entertainment, the SKS365 division for value added services.

The brand will support the club throughout the 2021-22 season, enabling all Giallorossi supporters to benefit from the wide range of products on offer.

As an Official Partner, PlanetPay365 will be supporting AS Roma at all Serie A and Coppa Italia matches scheduled to take place at the Stadio Olimpico – not only through visibility on the sidelines, but also through various initiatives that Giallorossi fans will be able to take advantage of, involving PlanetPay365’s retail network.

PlanetPay365 will also enjoy visibility on the club’s online channels thanks to digital campaigns developed in collaboration with the club, the two parties working together in order to offer the best of its services to Giallorossi fans, from phone top-ups to the purchase of gift cards and digital content.

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