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QIWI (NASDAQ:QIWI) have announced results for the third quarter ended September 30, 2013.
Third Quarter 2013 Operating and Financial Highlights:
· Adjusted Net Revenue increased by 49% to RUB 1,622 million ($50.2 million) from RUB 1,086 million in the prior year period.
· Adjusted EBITDA increased by 46% to RUB 793 million ($24.5 million) from RUB 542 million in the prior year period.
· Adjusted Net Profit increased by 56% to RUB 605 million ($18.7 million), or RUB 11.63 per share from RUB 389 million or RUB 7.48 per share in the prior year period.
· Visa QIWI Wallet active accounts increased by 53% to 15.0 million from 9.8 million in the prior year period.
· Visa QIWI Wallet payment volume increased by 63% to RUB 64.1 billion ($2.0 billion) from RUB 39.4 billion in the prior year period.
· QIWI Distribution payment volume increased by 12% to RUB 133.3 billion ($4.1 billion) from RUB 118.7 billion in the prior year period.
“We are pleased to report another strong quarter,” said Sergey Solonin, QIWI’s chief executive officer. “Our third quarter performance is the result of the continued successful execution of our growth strategy, and the value of our differentiated payments network and solutions to our customers.” “We remain excited by the many opportunities ahead for QIWI and will continue to invest for long-term growth.”
Third Quarter 2013 Results:
Revenues: Adjusted Net Revenue for the quarter ended September 30, 2013 was RUB 1,622 million ($50.2 million), an increase of 49% compared to RUB 1,086 million for the third quarter of 2012. Adjusted Net Revenue excluding revenue from fees for inactive Visa QIWI Wallet accounts increased 42% compared to the same period in the prior year.
QIWI Distribution net revenue for the quarter ended September 30, 2013 was RUB 835 million ($25.8 million), an increase of 13% compared to RUB 739 million for the same period in the prior year. QIWI Distribution net revenue growth was primarily driven by an increase in payment volume in active kiosks and terminals.
Visa QIWI Wallet net revenue for the quarter ended September 30, 2013 was RUB 764 million ($23.6 million), an increase of 134% compared to RUB 326 million for the same period in the prior year. Visa QIWI Wallet net revenue growth was primarily driven by: (i) an increase in active accounts and payments volumes; (ii) an increase in net revenue yield; and (iii) an increase in revenue from fees for inactive accounts, which amounted to RUB 134 million ($4.2 million) and constituted approximately 18% of Visa QIWI Wallet net revenue in the quarter. The corresponding amount in the third quarter of 2012 was RUB 38.5 million ($1.2 million). Visa QIWI Wallet net revenue, excluding revenue from fees for inactive accounts, increased 120% compared to the same period in the prior year.
Adjusted EBITDA: For the quarter ended September 30, 2013, Adjusted EBITDA was RUB 793 million ($24.5 million), an increase of 46% compared to RUB 542 million in the same period in the prior year. The increase in Adjusted EBITDA was primarily driven by revenue growth and continued operating leverage in the business, partially offset by additional overhead expenses in the quarter ended September 30, 2013 mainly driven by our move to a new office building. Adjusted EBITDA margin (Adjusted EBITDA as a percentage of total Adjusted Net Revenue) was 48.9% compared to 49.9 % in the same period in 2012 Adjusted EBITDA excluding the effect of revenue derived from inactive accounts was RUB 659 million, an increase of 31% as compared to the same period in 2012. Adjusted EBITDA margin, excluding the effect of revenue derived from inactive accounts, was 44.3% compared to 48.1% in the same period in the prior year.
The decline in adjusted EBITDA margin excluding the effect of revenue derived from inactive accounts primarily resulted from the additional overhead expenses in the quarter ended September 30, 2013 related to the move to a new office building, which decreased the adjusted EBITDA margin by approximately 330 bps. These additional overhead expenses are non-recurring and will not affect the profitability of our operations in the future.
Adjusted Net Profit: For the quarter ended September 30, 2013, Adjusted net profit was RUB 605 million ($18.7 million), an increase of 56% compared to RUB 389 million in the same period in the prior year. The increase in Adjusted Net Profit was primarily driven by the same factors impacting Adjusted EBITDA. Adjusted Net Profit excluding the effect of revenue derived from inactive accounts (net of tax) increased 39% compared to the same period in the prior year.
Other Operating Data: For the quarter ended September 30, 2013, QIWI Distribution payment volume was RUB 133.3 billion ($4.1 billion), an increase of 12% compared to RUB 118.7 billion for the same period in the prior year. The increase in payment volume in QIWI Distribution was primarily driven by an increase in Visa QIWI Wallet users reloading their wallets through the QIWI Distribution network. Average QIWI Distribution net revenue yield was 0.63% compared to 0.62% in the same period in the prior year.
For the quarter ended September 30, 2013, Visa QIWI Wallet payment volume was RUB 64.1 billion ($2.0 billion), an increase of 63% as compared to RUB 39.4 billion in the same period in the prior year. The increase in Visa QIWI Wallet payment volume resulted primarily from an increase in the number of active accounts. The number of active Visa QIWI Wallet accounts was approximately 15.0 million (on a rolling 12 months basis), an increase of 53% compared to approximately 9.8 million in the same period in the prior year. Average volume per Visa QIWI Wallet was RUB 4,280 ($132), an increase of 6% compared to RUB 4,023 ($124) in the same period in the prior year. Average Visa QIWI Wallet net revenue yield was 1.19%, representing an increase of 36 bps compared to 0.83% in the same period in the prior year.
The increase in Visa QIWI Wallet net revenue yield was primarily driven by increased payment volumes associated with higher revenue generating transactions such as e-commerce, and higher revenue from fees for inactive accounts which contributed an additional 21 bps to net revenue yield in the third quarter of 2013. Visa QIWI Wallet net revenue yield, excluding revenue from fees for inactive accounts, was 0.98% in the third quarter of 2013 representing an increase of 25 bps compared to 0.73% in the same period in the prior year. QIWI expects that the revenue derived from charges for inactive accounts will not affect Visa QIWI Wallet net revenue yield to such a significant extent going forward.
