Page 13 - bne_Tech_06_2020

Fintech & E-commerce
June 2020 www.intellinews.com I Page 13
Russia's Qiwi payment system solid in 1Q20
Russian electronic payment system Qiwi reported 17% revenue growth, and despite a 2% year-on- year dip in adjusted Ebitda, it posted a net income growth of 6% in 1Q20.
In the reporting quarter the Ebitda declined due to jump in staff costs and higher provisions in the Sovest loyalty card, reflecting the weaker macro outlook, while net income still grew due to earned profit in associates (Tochka) and a favourable FX impact, BCS Global Markets commented on May 20.
As reported by bne IntelliNews, at the end of 2019 uncertainty regarding the shareholder structure of Qiwi has been undermining the otherwise solid investment case for the company.
The company also decided to cut off the operations of loss-making Rocketbank, for which it could not find a buyer, which was expected to support profitability.
The company reiterated its guidance of a 10-30% net income increase in 2020, and 3-13% increase in net revenue, but was previously expected to
sustain damage on the cancellation of sports events due to coronavirus (COVID-19) and lower online betting volumes.
BCS GM sees 1Q20 results as solid, considering the direct exposure to weakness in betting, while reiterating its Buy call on the name with target price of $18, while suggesting focusing on updates on the impact from COVID-19, trends
in payments segment, Sovest, Tochka, and the approach to dividends.
Qiwi set a quarterly dividend for 1Q20 at $0.14/ share (1% yield), which suggests 35-40% net income payout (vs 50%+ target for the year), with the decision considering “current operating environment”.
In a separate comment VTB Capital (VTBC) on May 19 also maintained a Buy recommendation on Qiwi and commented that the "potential resumption
of major sporting events in the coming weeks, in particular the European football championships, is likely to give a strong boost to Qiwi's revenues related to servicing betting merchants."
Russian online express delivery supermarket Perekrestok.Express to cover all of Moscow
Russia’s biggest retailer X5 Retail Group says it will accelerate the roll-out of its online express delivery service Perekrestok.Express to 46 supermarkets, up from the current nine, to cover the whole of the Russian capital.
The average delivery time is one hour and there are 400 orders per day with an average of 14 items and a ticket of RUB2,100 ($29). No minimum
order is required, while the assortment ranges between 9,000-14,000 SKU, depending on the store, VTB Capital (VTBC) said in a note. The order is assembled by in-store personnel, while the delivery is made by a specialised grocery delivery service.
X5 already became Russia’s leading supermarket in terms of revenue in 2019, overtaking long-