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QIWI Announces Third Quarter 2021 Financial Results

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

3Q 2021 Key Operating and Financial Highlights1

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

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

Key events in 3Q 2021 and after the reported period

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

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

2021 Guidance3

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

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

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

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

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

3Q Results

Net Revenue breakdown by segments4

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

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

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

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

PS Payment segment breakdown by verticals5

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

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

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

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

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

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

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

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

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

PS Other Net Revenue breakdown

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

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

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

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

Payment Services other operating data

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

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

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

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

Corporate and Other (CO) Net Revenue breakdown

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

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

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

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

Operating expenses and other non-operating income and expenses

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

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

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

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

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

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

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

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

Income tax expense

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

Profitability results

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

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

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

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

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

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

Consolidated cash flow statement

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

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

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

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

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

Dividends

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

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

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

Recent Developments

Betting industry regulation

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

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

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

Earnings Conference Call and Audio Webcast

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

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

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

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

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Seed Wealth and unleash Power with FBM®’s Xing Fú Fortune™ Money Trees multi-game in Mexico!

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Xing Fú Fortune™ Money Trees is now available with a multi-game configuration! Power and Wealth are the two themes of this product joining FBM®’s slot games portfolio. Mexican players can now enjoy seven exciting gaming dynamics with varying bet levels and experience the thrills of a common bonus based on the Prosperity, Strength, and Fortune money trees, along with four jackpots to conquer.

The impressive performance of the Xing Fú Fortune Money Trees slot game in its early months captured the attention and curiosity of Mexican slot enthusiasts, leaving them eager for more. Responding to market demand, FBM developed an extension of this product featuring a multi-game configuration. Players can now experience the mechanics of the Xing Fú Fortune Money Trees game through two distinct themes: Wealth, with bets of 58 credits, and Power, with game rounds of 88 credits.

This step allows FBM to cover a wider audience of players, offering them the chance to live the unique gaming experience delivered by Xing Fú Fortune Money Trees with different bet levels. The Wealth and Power themes keep the feature set and unpredictability behind the high levels of player engagement and retention registered by the single-game version, adding new graphic elements and betting options to the casino operators’ customers.

Three Money Trees are the foundation for this entertaining FBM slot game

The Xing Fú Fortune Money Trees Power and Xing Fú Fortune Money Trees Wealth share a link bonus with three accumulators, which can start with a blue, red, or green coin obtained on any game round.

The Prosperity, Fortune and Strength money trees can unlock the bonus independently or in combination, offering up to seven distinct game experiences. Now let’s recap the rewarding effect of each one of these features:

  • Prosperity – the coins of Prosperity are blue, and attribute a random prize for players to collect when they appear on the reels.
  • Strength – the red coins symbolize Strength, and they multiply the values of all coins available on the reels to get a numeric prize value then.
  • Fortune – the Fortune coins are green, and have the collector effect. When they appear on the reels, they accumulate the value of all the other coins.

The link bonus is also the game mode that allows players to conquer four jackpots: Mini, Minor, Major or Grand.

A disruptive FBM slot game is now available in two configurations

Xing Fú Fortune Money Trees transports players into a universe inspired by Oriental culture and becomes available for casino operators to install and players to enjoy in both single-game and multi-game configurations.
Bonsais, dragons, frogs, carps, ema plaques, fans, white tigers, lanterns, lotus flowers, turtles and phoenixes are some of the typical symbols representing the Asian culture showcased in the Wealth and Power versions of the product. The carefully crafted sounds and graphics blend smoothly with these visual elements, creating an immersive and authentic connection between the player, the slot game and the Asian roots.

Available for the Galaxy II and Auria casino cabinets, Xing Fú Fortune Money Trees ensure a friendly integration on different casino floor layouts in both product configurations.

Following the positive debut of the single-game version, FBM offers the Mexican casino operators a renewed version of the Xing Fú Fortune Money Trees product with additional options for their players. This launch reaffirms the brand’s commitment to the continuous reinvention and evolution of the Mexican gaming industry.

For more details about Xing-Fú Fortune Money Trees Power and Xing Fú Fortune Money Trees Wealth, check the landing page with all details about this product configuration »

 

The post Seed Wealth and unleash Power with FBM®’s Xing Fú Fortune™ Money Trees multi-game in Mexico! appeared first on Gaming and Gambling Industry in the Americas.

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Georgia Lottery Takes Retail Experience to Next Level with Scientific Games’ SCiQ Technology

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SCiQ Ecosystem Modernizes Lottery Scratch Game Sales, Simplifies Retail Operations

The Georgia Lottery Corporation is taking a major step forward in transforming the way players experience instant scratch games at retail with the launch of Scientific Games’ award-winning SCiQ retail ecosystem at 1,500 locations statewide. The breakthrough retail technology modernizes how scratch games are sold and managed, bringing greater operational efficiency to retailers and a convenient, streamlined purchasing experience for players.

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The innovative retail technology rollout is the latest milestone in a long-standing partnership between the Georgia Lottery and metro Atlanta-based Scientific Games, a collaboration that began at the Lottery’s inception in 1993. Through the long-standing partnership, Scientific Games has worked with the Lottery to launch its first scratch game, first second-chance promotion and is soon to launch its first loyalty program.

“Retail environments are evolving, and the Georgia Lottery is proud to lead with smart technology solutions that align with how today’s consumers want to shop,” said Gretchen Corbin, President and CEO of the Georgia Lottery Corporation. “SCiQ brings a modern retail presence to our instant games, helps our retailers operate more efficiently and ultimately supports our mission to maximize revenues for the HOPE Scholarship and Georgia Pre-K program.”

A Gold Winner in the 2025 American Business Awards for Operations Management Solution and Bronze Winner in the 2025 International Business Awards for Achievement in Product Innovation, SCiQ is being deployed across the diverse mix of Georgia Lottery retailers, including both major chain and independent stores. Each will benefit from:

  • Real-time inventory tracking proven to reduce out-of-stocks and drive increased product sales
  • Advanced sales analytics to help optimize sales performance and strategic planning
  • Easy-to-use reporting tools that reduce operational time and provide management insights
  • Dynamic digital menu boards that elevate the product’s in-store presence and promotion while providing players with real-time updated information
  • Game dispensing bins that secure products, reduce theft and provide ticket-by-ticket operational tracking

“We are especially proud to bring the benefits of SCiQ to our home state,” said John Schulz, President of the Americas for Scientific Games. “The Georgia Lottery has always been a forward-thinking partner, and this retail modernization initiative is another move to ensure future growth for its instant game business to sustain future funding for Georgia’s students.”

A leading innovator in the industry, the Georgia Lottery ranked No. 2 in the world for scratch game per capita sales (La Fleur’s 2025 World Almanac). It has been a participant in the Scientific Games Enhanced Partnership program since the Lottery’s inception, benefiting from instant game design and production, portfolio management and game planning services, data analytics, advanced logistics, licensed brand services and retail sales and marketing support. Used by more than 20 lotteries, including five of the top six performing instant game lotteries worldwide, the SGEP program drove 31% better performance for U.S. partners in fiscal year 2023-24.

As the world’s largest lottery games company and the fastest-growing lottery systems provider in North America, Scientific Games currently serves more than 150 lotteries in 50 countries around the world.

SCiQ® is a registered trademark of Scientific Games. ©2025 Scientific Games, LLC. All Rights Reserved.

 

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$50 MILLION GUARANTEED IN ACR POKER’S BIGGEST-EVER TOURNAMENT SERIES: THE ONLINE SUPER SERIES XL, LAUNCHING THIS WEEKEND

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  • $4.25 million guaranteed in Monster Main Events across three tourneys, plus
  • $2.8 million guaranteed in Multi-Flight Events

Fresh off the massive Dual Venom tournaments with over $10 million in prize pools, ACR Poker announces the return of its flagship Online Super Series (OSS) XL. From this Sunday through Tuesday, September 30th, players of all bankrolls can jump into supersized poker action and compete for a staggering $50 million in guaranteed prize pools.

Headlining the OSS XL schedule are three monster Main Events. Starting Sunday, September 21st, players can take their shot at the $2 million guaranteed ($2,650 buy-in), the $1.5 million guaranteed ($1,050 buy-in), and the $750,000 guaranteed ($215 buy-in) Main Events.

Adding to the excitement is the high-energy Survivor Flips tourney ($130 buy-in), offering a $150,000 guarantee. Phase 1 and Steps Flips run from Wednesday, September 17th to Sunday, September 21st at 3pm ET. Phase 2 is a regular tournament on September 21st at 3:05pm ET where all players start in the money.

“After heated back-to-back Venom tourneys, the OSS XL feels like the perfect follow-up,” said ACR Pro Chris Moneymaker. “This series offers every type of player a mix of incredible value with a lot of variety. From Main Events to Survivor Flips and Mystery Bounties, plus big guarantees on top, it’s the kind of schedule that gets the whole community fired up, and I can’t wait to dive in.”

In addition, the jam-packed schedule features plenty of multi-flight action. The $630 buy-in Multi-Flight tournament boasts a $1.5 million guarantee, with Day 1’s starting on Sunday, September 7th and Day 2 on Monday, September 29th.

There are also four Mystery Bounty Multi-Flight events, including two $500,000 guaranteed $109 buy-in events, with Day 1’s starting on September 7th and September 21st. Players can jump into the $200,000 guaranteed ($33 buy-in) and $100,000 guaranteed ($5.50 buy-in) events, with the final flight and Day 2 on September 28th.

To add further sweat, ACR Poker’s Leaderboard Contest returns with $65,000 in cash and tourney tickets across three tiers. The High Stakes ($104.50 buy-ins and above) will award a $15,000 top prize, while the Mid Stakes ($16.50 to $88 buy-ins) and Low Stakes (under $15 buy-ins) will award $7,500 and $4,000, respectively.

For further details on the OSS XL, read the ACR Poker blog or visit ACRPoker.eu.

The post $50 MILLION GUARANTEED IN ACR POKER’S BIGGEST-EVER TOURNAMENT SERIES: THE ONLINE SUPER SERIES XL, LAUNCHING THIS WEEKEND appeared first on Gaming and Gambling Industry in the Americas.

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