Page 12 - bne_Tech_04_2020

Fintech & E-commerce
April 2020 www.intellinews.com I Page 12
Russian electronic payment system Qiwi posts solid 4Q19
Russian electronics payment system Qiwi reported 4Q19 IFRS results, posting 27% revenue growth (7% non-adjusted for the technical factor of its Tochka subsidiary's deconsolidation), with Ebitda growing 9% and net income up by 17%.
For the full year 2019 Qiwi grew consolidated revenue by 18% and adjusted net income by 61%, ahead of its own guidance of 45-55% increase in adjusted net income.
As reported by bne IntelliNews, in the end of 2019 uncertainty regarding the shareholder structure of Qiwi has been undermining the otherwise solid investment case for the company.
BCS Global Markets commented that 4Q19 results of Qiwi "were expectedly decent", while
noting that in 2020 Qiwi financials should be hit by the delay in sporting events, as much of its payments revenue, 30-40%, derives from online betting – company guides a -3% to +5% change in payments revenue (versus +27% in 2019).
At the same time, Qiwi decided to cut the operations of loss-making Rocketbank, for which it could not find a buyer, which would support profitability. The company thus still guides a 10-30% net income increase in 2020, and 3-13% increase in net revenue.
Qiwi suggested quarterly dividend per share (DPS) for 4Q19 would be set at $0.22 (2% yield), the same as for 3Q19, which suggests a 66% net income payout for 2019. For 2020 Qiwi targets 50%+ payout.