QIWI, a Russian fintech service provider, announced its Q3 2023 financial results, revealing several critical developments and performance metrics. Founded in 2007 by Sergey Solonin, Boris Kim, and Andrey Romanenko, QIWI went public on NASDAQ in 2013. In response to Western sanctions against Russia, QIWI Group underwent a strategic division in the summer of 2023, separating its Russian and international operations.
The QIWI restructuring led to the Russian business falling under Qiwi JSC, based in Moscow. At the same time, Qiwi plc in Cyprus now oversees operations in Kazakhstan, a move aimed at preventing delisting from NASDAQ.
As a fintech group controlled by Russian owners, QIWI is not having an easy time in times of Western sanctions against Russia. From July 26, 2023, the Central Bank of Russia has restricted certain QIWI Bank operations. The Q3 2023 results reflect this difficult situation. The key highlights of the Q3 QIWI announcement include:
- Corporate Restructuring: QIWI underwent corporate restructuring, receiving NASDAQ’s consent to maintain its listing until January 31, 2024.
- Revenue: Total Net Revenue rose slightly by 0.8% YoY to RUB 8.793 billion ($90.3 million) despite challenges from Central Bank of Russia restrictions.
- EBITDA fell by more than 36% to 3.5 billion RUB compared to Q3 of the previous year. Consequently, the profit also slumped by more than 35% to just under 3 billion RUB.
- Segment Performance: Payment Services (PS) Net Revenue declined by 12.9%, while Digital Marketing (DM) Net Revenue soared by 542.8% YoY. Corporate and Other (CO) Net Revenue also saw a 5.8% increase.
- Operational Challenges: The company faced increased operating expenses by 66.0% YoY, mainly due to investments in personnel and operational improvements.
- Profitability: Adjusted EBITDA and Net Profit both saw significant declines due to higher expenses and investment in growth.
- Dividend Distribution: QIWI’s Board decided to review dividend distribution due to market infrastructure issues.
- Company’s Outlook: QIWI continues to innovate in payment and financial services, emphasizing its role in the digitalization of payments and financial technology solutions.
This summary highlights QIWI’s adaptive strategies amid regulatory and market challenges, indicating a cautious yet forward-looking approach in a dynamic financial landscape.
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