Moscow, Russia  QIWI plc, (Nasdaq:QIWI) today announced results for the fourth-quarter and year ended December 31, 2013.

Fourth-Quarter Adjusted Net Revenue increased 35% to RUB 1,700 million and Adjusted Net Profit increased 33% to RUB 567 Million or RUB 10.69 per share. Full-Year 2013 Adjusted Net Revenue increased 48% to RUB 6,168 Million and Adjusted Net Profit increased 66% to RUB 2,174 Million or RUB 41.44 per share. The Board of Directors recommends a dividend of 32 cents per share to be approved by Annual General Meeting.

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.