QIWI Announces Third Quarter 2021 Financial Results

Rhea-AI Summary

QIWI reported an 8% increase in revenue from continued operations, totaling RUB 11,746 million, while Total Net Revenue from continued operations fell by 2% to RUB 6,419 million. Net Profit surged 190% YoY to RUB 8,836 million. However, Adjusted Net Profit decreased 17% YoY to RUB 2,705 million. The company upgraded its FY 2021 guidance, anticipating a Total Net Revenue decline of 10% to 15%. The Board approved interim dividends of $0.30 per share. Significant changes in the betting industry may affect future earnings, particularly following new regulatory measures.

Positive

• Net Profit increased by 190% YoY to RUB 8,836 million.
• Interim dividend of $0.30 per share approved by the Board.

Negative

• Total Net Revenue from continued operations decreased by 2% YoY to RUB 6,419 million.
• Adjusted Net Profit decreased 17% YoY to RUB 2,705 million.
• Anticipated decline in Total Net Revenue of 10% to 15% for FY 2021.

Revenue from continued operations increased 8% YoY to RUB 11,746 million
Total Net Revenue from continued operations decreased 2% YoY to RUB 6,419 million
Net Profit increased 190% YoY to RUB 8,836 million (or RUB 140.71 per diluted share)
Adjusted Net Profit decreased 17% YoY to RUB 2,705 million (or RUB 43.32 per diluted share)
QIWI upgraded FY 2021 guidance
Board of Directors approved interim dividends of 30 cents per share

NICOSIA, Cyprus, Nov. 23, 2021 (GLOBE NEWSWIRE) -- QIWI plc (NASDAQ and MOEX: QIWI) (“QIWI” or the “Company”), 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.
² For more details please refer to the respective press release disclosed at Company’s website:
https://investor.qiwi.com/news-releases/news-release-details/qiwi-completes-sale-its-stake-tochka-project.

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

The call will be webcast live from the Company’s website at https://www.qiwi.ru under the Corporate Investor Relations section or directly at http://investor.qiwi.com/.

About QIWI plc.

For over 20 years we stood at the fore point of fintech innovations to facilitate and secure digitalization of payments. Our mission is to connect our clients providing unique financial and technological solutions to make the impossible accessible and simple.

QIWI is a leading provider of cutting-edge payment and financial services in Russia and the CIS. We offer a wide range of products under several directions: QIWI payment and financial services ecosystem for merchants and B2C clients across digital use-cases, ROWI digital structured financial products for SME, Flocktory services in marketing automation and advertising technologies, and several other startups.

QIWI has an integrated proprietary network that enables payment services across online, mobile and physical channels and provides access to financial services for retail customers and B2B partners. Our network allows over 27 million of customers and partners to accept and transfer RUB 148 billion of cash and electronic payments monthly. Company’s money remittance payment platform connects businesses and people from over 185 countries via over 670 thousand service points. Our customers and partners can use cash, stored value, prepaid cards and other electronic payment methods in order to pay for goods and services or transfer money across virtual or physical environments interchangeably, as well as employ QIWI’s open API infrastructure and highly customizable, sophisticated payment solutions to serve their business or personal needs. Our ROWI brand serves businesses with digital factoring, bank guarantees and other financial solutions for SMEs.

For the FY 2020 QIWI had revenue of RUB 40.6 billion and an Adjusted EBITDA of RUB 13.8 billion. QIWI's American depositary shares are traded on the NASDAQ and Moscow Exchange (ticker: QIWI). QIWI has a credit rating from Standard & Poor's of BB-/B.

For more information, visit investor.qiwi.com.

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 total net revenue, adjusted net profit and net revenue yield, dividend payments, payment volume growth, growth of physical and virtual distribution channels, trends in each of our market verticals and statements regarding the development of our ROWI and Flocktory businesses, the impact of the COVID-19 pandemic and related public health measures on our business, merchants, customers, and employees, the impact of the restrictions imposed on us by the CBR on December 7, 2020, in particular with respect to payments to foreign merchants, developments in the betting industry in the Russian Federation and its regulation, and others. 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, the macroeconomic conditions of the Russian Federation and in each of the international markets in which we operate, growth in each of our market verticals, competition, the introduction of new products and services and their acceptance by consumers, QIWI’s ability to estimate the market risk and capital risk associated with new projects, a decline in net revenue yield, regulation, QIWI’s ability to grow physical and virtual distribution channels, cyberattacks and security vulnerabilities in QIWI’s products and services, QIWI’s ability to expand geographically, the risk that new projects will not perform in accordance with its expectations and other risks identified under the Caption “Risk Factors” in QIWI’s Annual Report on Form 20-F and in other reports QIWI files with the U.S. Securities and Exchange Commission. QIWI undertakes no obligation to revise any forward-looking statements or to report future 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 millions)
	As of December 31,		As of September 30,		As of September 30,
	2020		2021 (unaudited)		2021 (unaudited)
	RUB		RUB		USD
Assets
Non-current assets
Property and equipment	1,893		1,476		20.3
Goodwill and other intangible assets	10,813		10,546		144.9
Investments in associates	1,635		-		-
Long-term debt securities and deposits	3,495		1,117		15.4
Long-term loans	214		641		8.8
Other non-current assets	112		133		1.8
Deferred tax assets	209		202		2.8
Total non-current assets	18,371		14,115		194.0
Current assets
Trade and other receivables	7,445		7,713		106.0
Short-term loans	5,799		7,798		107.2
Short-term debt securities and deposits	2,888		10,260		141.0
Prepaid income tax	197		27		0.4
Other current assets	1,202		1,077		14.8
Cash and cash equivalents	47,382		37,478		515.1
Assets held for sale	31		-		-
Total current assets	64,944		64,353		884.4
Total assets	83,315		78,468		1,078.4
Equity and liabilities
Equity attributable to equity holders of the parent
Share capital	1		1		0.0
Additional paid-in capital	1,876		1,876		25.8
Share premium	12,068		12,068		165.9
Other reserve	2,575		2,559		35.2
Retained earnings	14,602		24,131		331.6
Translation reserve	554		540		7.4
Total equity attributable to equity holders of the parent	31,676		41,175		565.9
Non-controlling interests	96		103		1.4
Total equity	31,772		41,278		567.3
Non-current liabilities
Long term debt	4,923		4,942		67.9
Long-term deferred income	-		750		10.3
Long-term lease liabilities	762		346		4.8
Other non-current liabilities	80		79		1.1
Deferred tax liabilities	1,161		1,417		19.5
Total non-current liabilities	6,926		7,534		103.5
Current liabilities
Trade and other payables	29,528		19,060		262.0
Customer accounts and amounts due to banks	12,301		8,136		111.8
Short-term debt	1,640		991		13.6
Short-term lease liability	354		301		4.1
VAT and other taxes payable	147		184		2.5
Other current liabilities	647		984		13.5
Total current liabilities	44,617		29,656		407.6
Total equity and liabilities	83,315		78,468		1,078.4

QIWI plc. Consolidated Statement of Comprehensive Income (in millions, except per share data)
	Three months ended (unaudited)
	September 30, 2020			September 30, 2021			September 30, 2021
	RUB(1)			RUB			USD
Continuing operations
Revenue:	10,833			11,746			161.4
Payment processing fees	9,348			9,667			132.9
Interest revenue calculated using the effective interest rate	476			962			13.2
Fees from inactive accounts and unclaimed payments	506			441			6.1
Other revenue	503			676			9.3
Operating costs and expenses:	(7,031	)		(8,201	)		(112.7	)
Cost of revenue (exclusive of items shown separately below)	(4,424	)		(5,327	)		(73.2	)
Selling, general and administrative expenses	(669	)		(986	)		(13.6	)
Personnel expenses	(1,645	)		(1,496	)		(20.6	)
Depreciation and amortization	(273	)		(277	)		(3.8	)
Credit loss expense	(20	)		(103	)		(1.4	)
Impairment of non-current assets	-			(12	)		(0.2	)
Profit from operations	3,802			3,545			48.7
Gain on disposal of an associate	-			6,213			85.4
Share of gain of an associate and a joint venture	256			-			-
Foreign exchange gain/(loss), net (2)	134			3			0.0
Interest income and expenses, net	(13	)		2			0.0
Other income and expenses, net	17			31			0.4
Profit before tax from continuing operations	4,196			9,794			134.6
Income tax expense	(908	)		(958	)		(13.2	)
Net profit from continuing operations	3,288			8,836			121.4
Discontinued operations
Loss after tax from discontinued operations	(245	)		-			-
Net profit	3,043			8,836			121.4
Attributable to:
Equity holders of the parent	3,014			8,787			120.8
Non-controlling interests	29			49			0.7
Other comprehensive income
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Foreign currency translation:
Exchange differences on translation of foreign operations	116			10			0.1
Debt securities at fair value through other comprehensive income (FVOCI):
Net gains arising during the period, net of tax	-			(21	)		(0.3	)
Net gains recycled to profit or loss upon disposal	-			(2	)		(0.0	)
Total other comprehensive income/(loss), net of tax	116			(13	)		(0.2	)
Total comprehensive income, net of tax effect of nil	3,159			8,823			121.3
Attributable to:
Equity holders of the parent	3,128			8,774			120.6
Non-controlling interests	31			49			0.7
Earnings per share:
Basic, profit attributable to ordinary equity holders of the parent	48.36			140.71			1.93
Diluted, profit attributable to ordinary equity holders of the parent	48.29			140.71			1.93
Earnings per share for continuing operations
Basic, profit from continuing operations attributable to ordinary equity holders of the parent	52.29			140.71			1.93
Diluted, profit from continuing operations attributable to ordinary equity holders of the parent	52.22			140.71			1.93

_______________________

(1) Following the divestiture of SOVEST and the wind-down of Rocketbank, certain amounts have been reclassified to Discontinued operations in order to conform to the current period’s presentation.
(2) Starting December 31, 2020, we present foreign exchange gain and foreign exchange loss on a netted basis. This change in presentation was implemented to make our financial statements comparable with industry peers. 

QIWI plc. Consolidated Statement of Comprehensive Income (in millions, except per share data)
	Nine months ended (unaudited)
	September 30, 2020			September 30, 2021			September 30, 2021
	RUB(1)			RUB			USD
Continuing operations
Revenue:	29,663			31,793			437.0
Payment processing fees	25,079			26,444			363.4
Interest revenue calculated using the effective interest rate	1,687			2,305			31.7
Fees from inactive accounts and unclaimed payments	1,497			1,295			17.8
Other revenue	1,400			1,749			24.0
Operating costs and expenses:	(18,950	)		(22,169	)		(304.7	)
Cost of revenue (exclusive of items shown separately below)	(11,777	)		(14,164	)		(194.7	)
Selling, general and administrative expenses	(1,872	)		(2,147	)		(29.5	)
Personnel expenses	(4,422	)		(4,726	)		(65.0	)
Depreciation and amortization	(802	)		(848	)		(11.7	)
Credit loss expense	(45	)		(260	)		(3.6	)
Impairment of non-current assets	(32	)		(24	)		(0.3	)
Profit from operations	10,713			9,624			132.3
Gain on disposal of an associate	-			6,213			85.4
Share of gain of an associate and a joint venture	495			306			4.2
Foreign exchange gain/(loss), net (2)	(105	)		(39	)		(0.5	)
Interest income and expenses, net	(57	)		(25	)		(0.3	)
Other income and expenses, net	(6	)		(42	)		(0.6	)
Profit before tax from continuing operations	11,040			16,037			220.4
Income tax expense	(2,253	)		(2,614	)		(35.9	)
Net profit from continuing operations	8,787			13,423			184.5
Discontinued operations
Loss after tax from discontinued operations	(2,308	)		-			-
Net profit	6,479			13,423			184.5
Attributable to:
Equity holders of the parent	6,417			13,348			183.5
Non-controlling interests	62			75			1.0
Other comprehensive income
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Foreign currency translation:
Exchange differences on translation of foreign operations	269			(14	)		(0.2	)
Debt securities at fair value through other comprehensive income (FVOCI):
Net gains arising during the period, net of tax	32			(21	)		(0.3	)
Net gains recycled to profit or loss upon disposal	(47	)		(2	)		(0.0	)
Total other comprehensive income/(loss), net of tax	254			(37	)		(0.5	)
Total comprehensive income, net of tax effect of nil	6,733			13,386			184.0
Attributable to:
Equity holders of the parent	6,658			13,311			182.9
Non-controlling interests	75			75			1.0
Earnings per share:
Basic, profit attributable to ordinary equity holders of the parent	103.16			213.81			2.94
Diluted, profit attributable to ordinary equity holders of the parent	102.94			213.72			2.94
Earnings per share for continuing operations
Basic, profit from continuing operations attributable to ordinary equity holders of the parent	140.27			213.81			2.94
Diluted, profit from continuing operations attributable to ordinary equity holders of the parent	139.96			213.72			2.94

_____________________

(1) Following the divestiture of SOVEST and the wind-down of Rocketbank, certain amounts have been reclassified to Discontinued operations in order to conform to the current period’s presentation.
(2) Starting December 31, 2020, we present foreign exchange gain and foreign exchange loss on a netted basis. This change in presentation was implemented to make our financial statements comparable with industry peers.

QIWI plc. Consolidated Statement of Cash Flows (in millions)
	Nine months ended (unaudited)
	September 30, 2020			September 30, 2021			September 30, 2021
	RUB			RUB			USD(1)
Operating activities
Profit before tax from continuing operations	11,040			16,037			220.4
Loss before tax from discontinued operations	(2,509	)		-			-
Profit before tax	8,531			16,037			220.4
Adjustments to reconcile profit before tax to net cash flows generated from operating activities
Depreciation and amortization	967			848			11.7
Foreign exchange loss, net	130			39			0.5
Interest income, net	(2,145	)		(1,898	)		(26.1	)
Сredit loss expense	825			260			3.6
Share of gain of an associate and a joint venture	(495	)		(306	)		(4.2	)
Loss on forward contract to sell Sovest loans’ portfolio	712			-			-
Gain on disposal of an associate				(6,213	)		(85.4	)
Impairment of non-current assets	134			24			0.3
Other	65			(29	)		(0.4	)
Changes in operating assets and liabilities:
Decrease in trade and other receivables	1,222			2,125			29.2
Decrease/(increase) in other assets	(115	)		86			1.2
Decrease in customer accounts and amounts due to banks	(11,437	)		(4,163	)		(57.2	)
Decrease in accounts payable and accruals	(1,243	)		(10,444	)		(143.5	)
(Decrease)/Increase in other liabilities	(432	)		1,142			15.7
Decrease in loans issued from banking operations	5,993			(2,418	)		(33.2	)
Cash used in operations	2,712			(4,910	)		(67.5	)
Interest received	2,621			2,579			35
Interest paid	(421	)		(428	)		(5.9	)
Income tax paid	(1,465	)		(2,167	)		(29.8	)
Net cash flow used in operating activities	3,447			(4,926	)		(67.7	)
Investing activities
Cash paid for acquisition	(89	)		(10	)		(0.1	)
Purchase of property and equipment	(226	)		(208	)		(2.9	)
Proceeds from sale of an associate				4,947			68.0
Purchase of intangible assets	(179	)		(122	)		(1.7	)
Proceeds from sale of fixed and intangible assets	162			12			0.2
Loans issued	(12	)		(23	)		(0.3	)
Repayment of loans issued	-			12			0.2
Purchase of debt securities and deposits	(2,355	)		(8,058	)		(110.7	)
Proceeds from sale and redemption of debt securities	3,230			2,885			39.7
Dividends received from an associate	153			532			7.3
Net cash used in investing activities	684			(33	)		(0.5	)
Financing activities
Repayment of borrowings	105			(649	)		(8.9	)
Payment of principal portion of lease liabilities	(275	)		(270	)		(3.7	)
Dividends paid to owners of the Group	(3,201	)		(3,822	)		(52.5	)
Dividends paid to non-controlling shareholders	(67	)		(64	)		(0.9	)
Net cash (used in)/generated from financing activities	(3,438	)		(4,805	)		(66.0	)
Effect of exchange rate changes on cash and cash equivalents	1,411			(140	)		(1.9	)
Net increase in cash and cash equivalents	2,104			(9,904	)		(136.1	)
Cash and cash equivalents at the beginning of the period	42,101			47,382			651.2
Cash and cash equivalents at the end of the period	44,205			37,478			515.1

Non-IFRS Financial Measures and Supplemental Financial Information

This release presents Total Net Revenue, PS Payment Net Revenue, PS Other 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 Total Net Revenue, PS Payment Net Revenue and PS Other 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 Total Net Revenue, PS Payment Net Revenue, PS Other Net Revenue, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Net Profit, and Adjusted Net Profit per share, including a quantitative reconciliation of Total Net Revenue, PS Payment Net Revenue, PS Other Net Revenue, Adjusted EBITDA and Adjusted Net Profit to the most directly comparable IFRS financial performance measure, which is revenue in the case of Total Net Revenue, PS Payment Net Revenue and PS Other 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.

We define non-IFRS financial measures as follows:

• “Adjusted EBITDA” as Net profit plus: (1) depreciation and amortization (2) other income and expenses (3) foreign exchange gain/loss (4) gain on disposal of an associate (5) share of gain of an associate and a joint venture (6) Interest income and expenses (7) Offering expenses (8) loss from sale of Sovest loans’ portfolio (9) share-based payment expenses (10) impairment of non-current assets
• “Adjusted Net profit” as Net profit plus: (1) fair value adjustments recorded on business combinations and their amortization (2) impairment of non-current assets (3) share-based payment expenses (4) offering expenses (5) gain on disposal of an associate (6) loss from sale of Sovest loans’ portfolio (7) effect of taxation of the above items
• “Adjusted EBITDA Margin” as Adjusted EBITDA divided by Total Net Revenue.
• “Adjusted Net profit Margin” as Adjusted Net profit divided by Total Net Revenue.

QIWI presents PS Payment segment breakdown by verticals and we define these measures as follows:

• PS Payment Net Revenue is the Net Revenue consisting of the merchant and consumer fees collected for the payment transactions.
  • E-commerce payment net revenue consists of fees charged to customers and merchants that buy and sell products and services online, including online games, social networks, betting, online stores, game developers, software producers, coupon websites, tickets and numerous other merchants.
  • Financial Services payment net revenue primarily consists of fees charged for payments accepted on behalf of our bank partners and microfinance companies.
  • Money Remittance payment net revenue primarily consists of fees charged for transferring funds via money remittance companies, card-to-card transfers and certain wallet-to-wallet transfers.
  • Telecom payment net revenue primarily consists of fees charged for payments to MNOs, internet services providers and pay television providers.
  • Other payment net revenue consists of consumer and merchant fees charged for a variety of payments including multi-level-marketing, utility bills, government payments, education services and many others.
• PS Other Net Revenue primarily consists of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, rent of space for kiosks, cash and settlement services and advertising. 

QIWI plc. Reconciliation of IFRS to Non-IFRS Operating Results (in millions, except per share data)
	Three months ended (unaudited)
	September 30, 2020			September 30, 2021			September 30, 2021
	RUB(1)			RUB			USD
Revenue (2)	11,087			11,746			161.4
Minus: Cost of revenue (exclusive of depreciation and amortization) (3)	4,450			5,327			73.2
Total Net Revenue	6,637			6,419			88.2
Segment Net Revenue
Payment Services Segment Revenue	10,398			10,902			149.8
PS Payment Revenue(4)	9,348			9,667			132.9
Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(5)	4,045			4,811			66.1
PS Payment Adjusted Net Revenue	5,303			4,856			66.7
PS Other Revenue(6)	1,050			1,235			17.0
Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(7)	245			236			3.2
PS Other Adjusted Net Revenue	805			999			13.7
Payment Services Segment Net Revenue	6,108			5,855			80.5
Consumer Financial Services Segment Revenue	72			-			-
Minus: Cost of CFS revenue (exclusive of depreciation and amortization)	8			-			-
Consumer Financial Services Segment Net Revenue	64			-			-
Rocketbank Revenue	26			-			-
Minus: Cost of Rocketbank revenue (exclusive of depreciation and amortization)	10			-			-
Rocketbank Net Revenue	16			-			-
Corporate and Other Category Revenue	591			844			11.6
Minus: Cost of CO revenue (exclusive of depreciation and amortization)	142			280			3.8
Corporate and Other Category Net Revenue	449			564			7.8
Total Segment Net Revenue	6,637			6,419			88.2
Net Profit	3,043			8,836			121.4
Plus:
Depreciation and amortization	317			277			3.8
Other income and expenses, net	(17	)		(31	)		(0.4	)
Foreign exchange (gain)/loss, net	(125	)		(3	)		(0.0	)
Gain on disposal of an associate(9)	-			(6,213	)		(85.4	)
Share of gain of an associate and a joint venture	(256	)		-			-
Interest income and expenses, net	23			(2	)		(0.0	)
Income tax expenses	889			958			13.2
Offering expenses	55			-			-
Loss from sale of Sovest loans’ portfolio	54			-			-
Share-based payment expenses	37			-			-
Impairment of non-current assets	-			12			0.2
Adjusted EBITDA	4,020			3,834			52.7
Adjusted EBITDA margin	60.6	%		59.7	%		59.7	%
Net profit	3,043			8,836			121.4
Fair value adjustments recorded on business combinations and their amortization(8)	87			84			1.2
Impairment of non-current assets	-			12			0.2
Share-based payment expenses	37			-			-
Offering expenses	55			-			-
Gain on disposal of an associate(9)	-			(6,213	)		(85.4	)
Loss from sale of Sovest loans’ portfolio	54			-			-
Effect of taxation of the above items	(1	)		(14	)		(0.2	)
Adjusted Net Profit	3,275			2,705			37.2
Adjusted Net Profit per share:
Basic	52.55			43.32			0.60
Diluted	52.48			43.32			0.60
Weighted-average number of shares used in computing Adjusted Net Profit per share:
Basic	62,324			62,449			62,449
Diluted	62,404			62,449			62,449

_________________________

(1) The results presented in Reconciliation differ from IFRS results due to Rocketbank and CFS results are presented as discontinued operations in IFRS.
(2) Including revenue from discontinued operations of RUB 254 million for the third quarter ended September 30, 2020.
(3) Including cost of revenue from discontinued operations of RUB 26 million for the third quarter ended September 30, 2020.
(4) PS Payment Revenue represents payment processing fees, which primarily consists of the merchant and consumer fees charged for the payment transactions.
(5) Cost of PS Payment Revenue (exclusive of depreciation and amortization) primarily consists of transaction costs to acquire payments from our customers payable to agents, mobile operators, international payment systems and other parties.
(6) PS Other Revenue primarily consists of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, rent of space for kiosks, cash and settlement services and advertising.
(7) Cost of PS Other Revenue (exclusive of depreciation and amortization) primarily consists of direct costs associated with other revenue and other costs, including but not limited to: costs of call-centers and advertising commissions.
(8) Amortization of fair value adjustments primarily includes the effect of the acquisition of control in Contact and Rapida.
(9) Gain on disposal of an associate in the 3Q 2021 in the amount of 6.2 billion including: (i) base deal amount of RUB 4.95 billion from sale of stake in Tochka, (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. 

QIWI plc. Reconciliation of IFRS to Non-IFRS Operating Results (in millions, except per share data)
	Nine months ended (unaudited)
	September 30, 2020			September 30, 2021			September 30, 2021
	RUB(1)			RUB			USD
Revenue (2)	32,277			31,793			436.9
Minus: Cost of revenue (exclusive of depreciation and amortization) (3)	12,541			14,164			194.7
Total Net Revenue	19,736			17,629			242.3
Segment Net Revenue
Payment Services Segment Revenue	28,214			29,594			406.7
PS Payment Revenue(4)	25,079			26,444			363.4
Minus: Cost of PS Payment Revenue (exclusive of depreciation and amortization)(5)	10,572			12,587			173.0
PS Payment Adjusted Net Revenue	14,507			13,857			190.4
PS Other Revenue(6)	3,135			3,150			43.3
Minus: Cost of PS Other Revenue (exclusive of depreciation and amortization)(7)	816			712			9.8
PS Other Adjusted Net Revenue	2,320			2,438			33.5
Payment Services Segment Net Revenue	16,826			16,295			224.0
Consumer Financial Services Segment Revenue	1,198			-			-
Minus: Cost of CFS revenue (exclusive of depreciation and amortization)	131			-			-
Consumer Financial Services Segment Net Revenue	1,067			-			-
Rocketbank Revenue	1,151			-			-
Minus: Cost of Rocketbank revenue (exclusive of depreciation and amortization)	604			-			-
Rocketbank Net Revenue	548			-			-
Corporate and Other Category Revenue	1,714			2,199			30.2
Minus: Cost of CO revenue (exclusive of depreciation and amortization)	419			865			11.9
Corporate and Other Category Net Revenue	1,295			1,334			18.3
Total Segment Net Revenue	19,736			17,629			242.3
Net Profit	6,479			13,423			184.5
Plus:
Depreciation and amortization	967			848			11.7
Other income and expenses, net	6			42			0.6
Foreign exchange (gain)/loss, net	130			39			0.5
Gain on disposal of an associate(9)	-			(6,213	)		(85.4	)
Share of gain of an associate and a joint venture	(495	)		(306	)		(4.2	)
Interest income and expenses, net	88			25			0.3
Income tax expenses	2,052			2,614			35.9
Offering expenses	65			-			-
Loss from sale of Sovest loans’ portfolio	712			-			-
Share-based payment expenses	85			8			0.1
Impairment of non-current assets	134			24			0.3
Adjusted EBITDA	10,223			10,504			144.4
Adjusted EBITDA margin	51.8	%		59.6	%		59.6	%
Net profit	6,479			13,423			184.5
Fair value adjustments recorded on business combinations and their amortization(8)	256			252			3.5
Impairment of non-current assets	134			24			0.3
Share-based payment expenses	85			8			0.1
Offering expenses	65			-			-
Gain on disposal of an associate(9)	-			(6,213	)		(85.4	)
Loss from sale of Sovest loans’ portfolio	712			-			-
Effect of taxation of the above items	54			(24	)		(0.3	)
Adjusted Net Profit	7,785			7,470			102.7
Adjusted Net Profit per share:
Basic	125.16			119.66			1.64
Diluted	124.88			119.60			1.64
Weighted-average number of shares used in computing Adjusted Net Profit per share:
Basic	62,200			62,428			62,428
Diluted	62,340			62,456			62,456

_____________________________

(1) The results presented in Reconciliation differ from IFRS results due to Rocketbank and CFS results are presented as discontinued operations in IFRS.
(2) Including revenue from discontinued operations of RUB 2,614 million for the nine months ended September 30, 2020.
(3) Including cost of revenue from discontinued operations of RUB 764 million for the nine months ended September 30, 2020.
(4) PS Payment Revenue represents payment processing fees, which primarily consists of the merchant and consumer fees charged for the payment transactions.
(5) Cost of PS Payment Revenue (exclusive of depreciation and amortization) primarily consists of transaction costs to acquire payments from our customers payable to agents, mobile operators, international payment systems and other parties.
(6) PS Other Revenue primarily consists of revenue from fees for inactive accounts and unclaimed payments, interest revenue, revenue from overdrafts provided to agents, rent of space for kiosks, cash and settlement services and advertising.
(7) Cost of PS Other Revenue (exclusive of depreciation and amortization) primarily consists of direct costs associated with other revenue and other costs, including but not limited to: costs of call-centers and advertising commissions.
(8) Amortization of fair value adjustments primarily includes the effect of the acquisition of control in Contact and Rapida.
(9) Gain on disposal of an associate in the 9M 2021 in the amount of 6.2 billion including: (i) base deal amount of RUB 4.95 billion from sale of stake in Tochka, (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.

FAQ

What were QIWI's financial results for Q3 2021?

QIWI reported a revenue increase of 8% YoY to RUB 11,746 million, with a net profit increase of 190% to RUB 8,836 million.

What is the updated guidance for QIWI's fiscal year 2021?

QIWI expects Total Net Revenue to decline by 10% to 15% for FY 2021.

What dividend was approved by QIWI's Board of Directors?

The Board approved an interim dividend of $0.30 per share.

How did QIWI's Adjusted Net Profit perform in Q3 2021?

Adjusted Net Profit decreased by 17% YoY to RUB 2,705 million.

What impact have regulatory changes had on QIWI's business?

New regulations in the betting industry may adversely affect QIWI's revenue from its betting-related services.