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QIWI Announces Third Quarter 2021 Financial Results
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
Heavyweight Club by GR8 Tech Signals New Era of Operator Ambition at iGB L!VE

The iGaming industry got a taste of heavyweight ambition at iGB L!VE London 2025, where GR8 Tech unveiled its Heavyweight Club—an exclusive community that takes domination in iGaming markets as seriously as world champion Oleksandr Usyk takes defending his undisputed heavyweight title.
“iGB L!VE London was the ignition point for the Heavyweight Club. We showcased top-tier tech and connected with operators ready to lead, scale, and dominate. The energy, the conversations, the demand for real performance confirmed what we’ve always believed: the iGaming industry is hungry for heavyweight solutions and GR8 Tech is here to deliver,” said Sergey Ghazaryan, GR8 Tech’s CRO.
Industry Response Points to Market Appetite
With increased competition making differentiation more challenging, speed-to-market pressure intensifying as new markets emerge, and technology debt from legacy systems hindering operators’ growth, the industry is at a critical juncture. In 110 meetings with the sales team and over 65 conducted demos, operator feedback consistently centered on these exact challenges.
This shift is evident across the ecosystem. Mariia Shmelova, CEO of Aff.Tech—GR8 Tech’s proprietary affiliate management platform—observed similar patterns: “One major trend is the demand for greater transparency and performance accountability. Operators want to see exactly what’s driving traffic, conversions, and ROI. That’s why we’ve been doubling down on data—not just analytics, but actionable insights that affiliates and operators can use in real time. We’re also seeing growing interest in multi-geo, multi-brand campaigns, and our platform is built to support those kinds of complex setups with ease. Flexibility, automation, and smart integrations are the future.”
The conversations revealed a clear understanding: champion ambitions require champion tools. Operators emphasized the need for high-performance solutions that deliver geo-specificity for local market domination and margin mastery that turns competitive pressure into profit advantage. The response highlighted how operators are seeking partners who understand that every champion needs exactly the right tools for their specific fight.
GR8 Tech’s approach resonated because it addresses this reality with three key solutions designed for different use scenarios:
- Hyper Turnkey, which delivers fully managed casino and sportsbook operations that scale with ambition;
- ULTIM8 Sportsbook iFrame with its lightning-fast integration and market-specific customization capabilities;
- Infinite Casino Aggregation, offering premium gaming experiences with an operator-first flexibility.
This comprehensive approach ensures every operator gets precisely what they need to overcome their unique market challenges and achieve championship-level performance.
Heavyweight Club Momentum Builds Toward Next Championship Round
The “Fight for Greatness” collection drew significant attention on the show floor. Attendees’ enthusiasm for the showcased apparel and accessories, paired with strong performance of the online store, confirmed that the Heavyweight Club resonates far beyond technology—it’s a mindset people want to embody and a philosophy they want to wear.
GR8 Tech’s AR experience featuring Oleksandr Usyk became a magnet for attendees, with over 80 participants stepping into the champion’s world in one of the most memorable activations on the show floor. Winners of the AR experience didn’t just walk away with impressive pictures—they earned tickets to witness Usyk defend his undisputed heavyweight title against Daniel Dubois this July.
Just as Usyk will defend his title at Wembley, the Heavyweight Club will continue its championship journey beyond iGB L!VE. The next epic edition awaits at SBC Summit in September, where the movement will expand with new challenges and opportunities for operators ready to dominate their markets.
Ready to fight for greatness? Connect with GR8 Tech and step into the ring.
GR8 Tech. Platform for Champions
GR8 Tech is an award-winning provider, delivering high-performance sportsbook and iGaming solutions that empower operators to lead and win in competitive markets. Key elements of GR8 Tech’s comprehensive portfolio include the Hyper Turnkey solution, ULTIM8 Sportsbook iFrame, Infinite Casino Aggregation, and Platform Acceler8 suite, featuring its proprietary affiliate management platform, Aff.Tech.
With a geo-specific approach to solutions, a focus on practical innovations, and an operator-first mindset, GR8 Tech helps its clients achieve measurable results in their target markets quickly and efficiently. Trusted by top operators worldwide, GR8 Tech has over 100 successful cases and earned multiple recognitions, including the title of the Best Sports Betting Provider in CEE by GamingTECH Awards 2025.
The post Heavyweight Club by GR8 Tech Signals New Era of Operator Ambition at iGB L!VE appeared first on European Gaming Industry News.
Latest News
Booming Games Goes Live on Ivy Casino, Strengthening UK Market Presence

Booming Games is pleased to announce the successful integration of its slot titles with Ivy Casino, one of the UK’s fastest-rising online gaming brands. The partnership marks an exciting milestone as Booming Games continues to gain traction across the UK market.
Ivy Casino players now have access to a growing portfolio of Booming Games’ titles, including the standout hit 64 Gold Coins Hold & Win. Known for its engaging mechanics and strong performance on some of the UK’s biggest platforms, Booming Games is quickly becoming a go-to provider for UK players seeking fresh, high-quality content.
Matt Attard, Account Management Team Lead at Booming Games, commented: “We’re thrilled to see our games now live on Ivy Casino, a brand that’s already establishing itself as a serious player in the UK market. Our titles, especially 64 Gold Coins Hold & Win, are designed to deliver excitement and engagement, and we’re confident Ivy Casino’s players will respond well to our growing portfolio.”
Mark Good, representing Ivy Casino, added: “Booming Games brings a fresh and exciting addition to Ivy Casino’s growing library. Their titles, especially 64 Gold Coins, have been getting great exposure across established UK brands, and Ivy Casino is pleased to now offer them directly to its players. It’s a great fit as Ivy Casino continues expanding the premium content available to its users.”
The integration is now live, with more titles expected to follow in the coming months as both teams collaborate to bring even more variety and innovation to UK players.
The post Booming Games Goes Live on Ivy Casino, Strengthening UK Market Presence appeared first on European Gaming Industry News.
Ahmed Baker Chief Commercial Officer at Incentive Games
INCENTIVE GAMES SECURES MICHIGAN GAMING LICENSE

Incentive Games, a leading B2B games provider, is proud to announce that it has been awarded a Provisional Michigan gaming licence by the Michigan Gaming Control Board (MGCB), effective today. This achievement allows the company to bring its innovative suite of Real-Money Games to operators and players across the state.
The Michigan licence represents Incentive Games’ first foray into the North American regulated market. This comes shortly after the launch of Incentive Studios, the company’s dedicated Real-Money Gaming division, which is set to drive its ambitious growth in this sector. The licence underscores the company’s unwavering commitment to maintaining the highest standards of compliance, security, and operational integrity. Obtaining this licence, which requires excellence in areas such as robust security protocols and comprehensive responsible gaming measures, provides access to one of the most dynamic iGaming markets in the United States.
Ahmed Baker, Chief Commercial Officer at Incentive Games, said, “Securing our Michigan licence marks an exciting new chapter for Incentive Games. It’s a testament to our unwavering commitment to meeting the highest regulatory standards and unlocks a significant opportunity for us in a critical North American growth market. This will allow Incentive Games to forge new partnerships and bring our highly engaging Real-Money Games directly to players in Michigan. We’re very grateful to the MGCB for this achievement, which is a pivotal step in our global expansion strategy as we continue to deliver world-class products and build strong partnerships in the region.”
The post INCENTIVE GAMES SECURES MICHIGAN GAMING LICENSE appeared first on Gaming and Gambling Industry in the Americas.
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