Qiwi EBITDA showed a record decline due to a reduction in the number of terminals of the company and business restructuring
The financial results of the Qiwi payment system in the third quarter were mixed. For the first time in the company's history, EBITDA (earnings before interest, taxes and depreciation) decreased by 12% yoy and amounted to 1.34 billion rubles. Its profitability decreased (to 0.68%) in terms of turnover (net revenue yield) by 39 pp compared to the same period in 2014. At the same time, the turnover itself grew by 64.5% to 270.5 billion rubles.
The adjusted Qiwi revenue grew by 6% year-on-year to 2.53 billion rubles, while in Q2 2015, the growth was 20%. At the same time, the company confirmed its forecast for revenue growth and net profit in 2015 by 18–22%, given to Qiwi in September.
Nevertheless, investors reacted positively to the statements - yesterday on the NASDAQ ADS Qiwi quotes to 19.25 Moscow time rose by 9.82% to $ 17.56 per share. However, outside experts find in this both positive and negative sides.
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The company's results are related to the general macroeconomic decline in Russia, as well as the tightening of the rules for the operation of Qiwi agents - owners of payment terminals, as quoted by the Qiwi press service, the words of general director Sergei Solonin.
In 2015, loans in Russia are issued less than in the past, respectively, the number of loan payments decreases, commissions for which are received by Qiwi, explains a company representative.
In the third quarter of 2015, Qiwi for the first time fully consolidated the results of the Contact and Rapida money transfer systems purchased from Otkritie group . This explains both a sharp increase in turnover and a decrease in profitability on it: the commissions in Contact and Rapid are significantly lower than the Qiwi average, according to a Qiwi spokesman.
Tighter regulation of the activities of the owners of the terminals also affected the financial results of the company. At the end of October 2015, Qiwi announced a reduction in the number of terminals in its network in Russia. For three months, their number decreased by about 15%.
Moreover, the problem of terminals is aggravated by the increase in payments to the remaining agents. According to experts, because of all this, QIWI in 2015 may well lose almost 1 billion rubles, and the next loss will reach 3.8 billion. According to agents of payment systems that sell small lots of terminals, they note the loss of a significant part of the profits due to the need to transfer money to special accounts and the prohibition to set zero commission.
By this decision, the company pushed the Central Bank of Russia, which is struggling with illegal cash withdrawals. The Central Bank found large-scale violations of cash handling rules by the owners of payment terminals. According to the rules of the Central Bank, money from the terminal should be credited to special accounts in order to control the cash flow, but in reality only 8% of the funds were credited to them. From June 2015, the Central Bank began to combat this phenomenon, the regulator gathered the largest players and set the goal to bring this share to 98% by September, which was done, according to Vedomosti.
Qiwi’s turnover and revenues will disproportionately affect the network, a person close to the company said in October. The fact is that the number of terminals was redundant: for example, there could be several terminals close to each other, he explains. Therefore, a decrease in their number was partially offset by an increase in turnover per terminal. Qiwi has taken the actions necessary to maintain the agents, and does not expect further substantial deterioration of the agent network, the company press service quotes Solonina as saying.
The fact that Qiwi has maintained its forecast for revenues and profits is positive news for investors, said Gazprombank analyst Sergey Vasin. As the results of the company showed, the reduction in the number of terminals was not strongly reflected in its turnover, he notes. But low profitability in terms of turnover may persist for a long time - in a crisis, payers and partners of Qiwi are trying to minimize commissions, Vasin explains. In this situation, it would be logical for Qiwi to look for ways to increase turnover, and also to expand the range of client services at the expense of high-yield segments, such as e-commerce, he said.
QIWI has attempted to diversify its business. The network of terminals has decreased by 15%, but the company has learned to make better money on electronic payments.
Qiwi's revenue in the e-commerce segment (e-commerce) grew by 2% compared to the same period in 2014, to 677 million rubles. In e-commerce, Qiwi earns a commission that the company charges customers and partners who buy and sell products in online stores, social networks, online games, and so on. In the e-commerce segment, Qiwi gained about 27% of adjusted revenue in the third quarter. A year earlier, the share of income from e-commerce accounted for 22%, RBC reports .
The adjusted Qiwi revenue grew by 6% year-on-year to 2.53 billion rubles, while in Q2 2015, the growth was 20%. At the same time, the company confirmed its forecast for revenue growth and net profit in 2015 by 18–22%, given to Qiwi in September.
Nevertheless, investors reacted positively to the statements - yesterday on the NASDAQ ADS Qiwi quotes to 19.25 Moscow time rose by 9.82% to $ 17.56 per share. However, outside experts find in this both positive and negative sides.
')
The company's results are related to the general macroeconomic decline in Russia, as well as the tightening of the rules for the operation of Qiwi agents - owners of payment terminals, as quoted by the Qiwi press service, the words of general director Sergei Solonin.
In 2015, loans in Russia are issued less than in the past, respectively, the number of loan payments decreases, commissions for which are received by Qiwi, explains a company representative.
In the third quarter of 2015, Qiwi for the first time fully consolidated the results of the Contact and Rapida money transfer systems purchased from Otkritie group . This explains both a sharp increase in turnover and a decrease in profitability on it: the commissions in Contact and Rapid are significantly lower than the Qiwi average, according to a Qiwi spokesman.
Tighter regulation of the activities of the owners of the terminals also affected the financial results of the company. At the end of October 2015, Qiwi announced a reduction in the number of terminals in its network in Russia. For three months, their number decreased by about 15%.
Moreover, the problem of terminals is aggravated by the increase in payments to the remaining agents. According to experts, because of all this, QIWI in 2015 may well lose almost 1 billion rubles, and the next loss will reach 3.8 billion. According to agents of payment systems that sell small lots of terminals, they note the loss of a significant part of the profits due to the need to transfer money to special accounts and the prohibition to set zero commission.
By this decision, the company pushed the Central Bank of Russia, which is struggling with illegal cash withdrawals. The Central Bank found large-scale violations of cash handling rules by the owners of payment terminals. According to the rules of the Central Bank, money from the terminal should be credited to special accounts in order to control the cash flow, but in reality only 8% of the funds were credited to them. From June 2015, the Central Bank began to combat this phenomenon, the regulator gathered the largest players and set the goal to bring this share to 98% by September, which was done, according to Vedomosti.
Qiwi’s turnover and revenues will disproportionately affect the network, a person close to the company said in October. The fact is that the number of terminals was redundant: for example, there could be several terminals close to each other, he explains. Therefore, a decrease in their number was partially offset by an increase in turnover per terminal. Qiwi has taken the actions necessary to maintain the agents, and does not expect further substantial deterioration of the agent network, the company press service quotes Solonina as saying.
The fact that Qiwi has maintained its forecast for revenues and profits is positive news for investors, said Gazprombank analyst Sergey Vasin. As the results of the company showed, the reduction in the number of terminals was not strongly reflected in its turnover, he notes. But low profitability in terms of turnover may persist for a long time - in a crisis, payers and partners of Qiwi are trying to minimize commissions, Vasin explains. In this situation, it would be logical for Qiwi to look for ways to increase turnover, and also to expand the range of client services at the expense of high-yield segments, such as e-commerce, he said.
QIWI has attempted to diversify its business. The network of terminals has decreased by 15%, but the company has learned to make better money on electronic payments.
Qiwi's revenue in the e-commerce segment (e-commerce) grew by 2% compared to the same period in 2014, to 677 million rubles. In e-commerce, Qiwi earns a commission that the company charges customers and partners who buy and sell products in online stores, social networks, online games, and so on. In the e-commerce segment, Qiwi gained about 27% of adjusted revenue in the third quarter. A year earlier, the share of income from e-commerce accounted for 22%, RBC reports .
Source: https://habr.com/ru/post/296228/
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