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Edited Transcript of QIWI earnings conference call or presentation 28-Mar-19 12:30pm GMT

Q4 2018 Qiwi PLC Earnings Call

NICOSIA Apr 9, 2019 (Thomson StreetEvents) -- Edited Transcript of Qiwi PLC earnings conference call or presentation Thursday, March 28, 2019 at 12:30:00pm GMT

TEXT version of Transcript

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Corporate Participants

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* Alexander Karavaev

Qiwi plc - CFO

* Sergey A. Solonin

Qiwi plc - CEO & Director

* Varvara Kiseleva

Qiwi plc - Head of IR

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Conference Call Participants

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* Andrey Mikhailov

Sova Capital Limited, Research Division - Research Analyst

* Cristopher David Kennedy

William Blair & Company L.L.C., Research Division - Associate

* Svetlana Sukhanova

Sberbank CIB Investment Research - Senior Analyst

* Vladimir Bespalov

VTB Capital, Research Division - Analyst of Industrials, Transportation, Infrastructure, Chemicals & Equities and Internet Analyst

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Presentation

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Operator [1]

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Good day, everyone, and welcome to QIWI Fourth Quarter and Full Year 2018 Earnings Conference Call. Today's conference is being recorded. At this time, would like to turn the call over to Ms. Varvara Kiseleva, Head of Investor Relations. Please go ahead.

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Varvara Kiseleva, Qiwi plc - Head of IR [2]

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Thank you, operator. And good morning, everyone. Welcome to the QIWI Fourth Quarter and Full Year Earnings Call. I am Varvara Kiseleva, Head of Investor Relations. And with me today are Sergey Solonin, our Chief Executive Officer; and Alexander Karavaev, our Chief Financial Officer.

A replay of this call will be available until Thursday, April 4, 2019. Access information for the replay is listed in today's earnings press release, which is available on our Investor Relations website at investor.qiwi.com. For those listening to the replay, this call was held and recorded on March 28, 2019.

Before we begin, I would like to remind everyone that this call may contain forward-looking statements as they are defined under the Private Securities Litigation Reform Act of 1995. These forward-looking statements about our expectations for future performance are subject to known and unknown risks and uncertainties. QIWI cautions that these statements are not guarantees of future performance.

All forward-looking statements made today reflect our current expectations only, and we undertake no obligation to update any statements to reflect the events that occur after this call. Please refer to the company's most recent annual report on Form 20-F filed with the Securities and Exchange Commission for factors that could cause our actual results to differ materially from any forward-looking statements.

During today's call, management will provide certain information that will consist of non-IFRS financial measures such as adjusted net revenue, adjusted EBITDA, adjusted net profit and adjusted net profit per share. Reconciliations to IFRS measures and certain additional information are also included in today's earnings press release.

With that, I will begin by turning the call over to Sergey Solonin, our Chief Executive Officer.

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Sergey A. Solonin, Qiwi plc - CEO & Director [3]

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Thank you, Varvara. And good morning, everyone. Thanks for joining us today. Today, I am excited to share our fourth quarter and full year results with you.

This year, we demonstrated outstanding performance, especially in our Payment Services business which delivered 31% segment net revenue and 26% segment net profit growth for the full year 2018. Moreover, growth in our payments business was accelerating throughout the year. And in the fourth quarter, Payment Services segment demonstrated 35% segment net revenue and 28% segment net profit growth. We also reached an important landmark and surpassed RUB 1 trillion in volumes this year. I want to thank my team for these incredible achievements.

Our impressive growth was driven by strong performance in our key areas, payment services for betting-related merchants, digital money remittances and projects we develop for self-employed and B2B2C customers; as well as by a more general expansion of our payments ecosystem. On top of that, our SME segment, which we operate through Tochka multibanking platform, showed strong growth trends.

I am glad to acknowledge that we were able to reaccelerate our business this year, and I believe that we have a strong foundation for future growth. We will continue to enhance our key products and use cases and develop new projects in order to offer clients in our key markets a larger suite of convenient solutions and services.

In 2018, we have invested heavily in the development of our ecosystem, including our retail- and SME-focused Financial Services projects SOVEST, Rocketbank and Tochka. I'll walk you through some latest developments in the corresponding segments in just a moment.

We believe that our performance provides a solid foundation for the expansion of our ecosystem. The significant cash flows that are generated by our core payment business support our strategy and allow us to carry on with investing in new business lines and projects in order to further build up our ecosystem, diversity our -- diversify our operation, prolong the life cycle of our clients and ultimately secure the long-term growth prospects of the company.

Now on to some operating highlights. For the fourth quarter of 2018, our Payment Services segment volume increased by 31% to reach RUB 329 billion, driven by significant growth in E-commerce and Money Remittance vertical, which grew 80% and 46%, respectively. The growth was largely driven by the secular trends and development of our core categories, including sports-based market triggered by football World Cup 2018, reinforced by the expansion of products offering for the betting merchants; the rollout of our projects we developed for our partners as part of our B2B2C strategy; development of self-employed use cases; and expansion of our B2B ecosystem.

Our total Consumer Financial Services segment payment volume reached RUB 5.8 billion for the fourth quarter of 2018 and RUB 16 billion for the full year.

As of December 31, 2018, we have issued over 700,000 SOVEST cards and built a credit portfolio of over RUB 5 billion. This year, we have significantly advanced in development in scaling our SOVEST project. We also significantly enhanced our SOVEST product offering by introducing a number of consumer-paid value-added options. Moreover, we have further improved in many key operating dimensions.

We have built up and optimized our distribution channels, securing low consumer acquisition costs and improved our costs of reaching positive customer unit economics. We see an ample room for developments going forward and have an impressive product pipeline for 2019. We will further focus on developing SOVEST's value proposition and testing the multibank platform.

Our SME segment, which we developed through Tochka multibank platform together with Otkritie Bank, continued to demonstrate robust operating financial performance in the fourth quarter of 2018 while we were investing in acquiring new customers and increasing market share.

Positive volume dynamics in our key market verticals converted into strong Payment Services segment net revenue growth and, together with our SME segment, contributed to the overall robust performance of our business. Alexander will walk you through the fourth quarter numbers in more detail just in a moment, while I would like to walk you through some recent developments.

This quarter, we have finalized the transfer of Rocketbank clients and processes to Qiwi Bank. As of December 31, 2018, Rocketbank has over 270,000 active clients, both transfers from Otkritie and newly acquired, with over RUB 12 billion current account balances.

We believe that Rocketbank has a unique proprietary product offering and profound expertise in areas like digital marketing, IT targets and exciting audience, millennials; and has a good potential to enrich our ecosystem. We are currently developing the strategy of Rocketbank, assessing the market and testing hypotheses regarding consumer behavior and preferences. We aim to provide the update of Rocketbank mid-term strategy by the end of the year.

Last but not least, I would like to take the chance to thank Alexander, our CFO, who will be leaving the company this May, for his excellent work, dedication and all the contributions he made to the company. I am very glad we have shared this journey. Moreover, I would like to say that we plan to announce Alexander's successor promptly to ensure a smooth and efficient transition.

With this, I will return the call over to Alexander, who will take you through our financial results in more details. Alexander?

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Alexander Karavaev, Qiwi plc - CFO [4]

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Thank you, Sergey. And good morning, everyone. First, I would like to provide an update on the segment presentation of our business.

Based on our annual results, we have revised our organizational structure and now distinguish 4 reportable segments as well as Corporate and Other category. Our key segments include Payment Services segment, represented by our core payments business; Consumer Financial Services segment, represented by our service project; Small and Medium Enterprises segment, represented by the Tochka business; and Rocketbank segment.

Now going to our numbers. Fourth quarter 2018 total adjusted net revenue increased by 41% to reach RUB 5.8 billion, up from RUB 4.1 billion in the fourth quarter of 2017. The increase was mainly driven by Payment Services and Small and Medium Enterprises segments' net revenue growth, slightly offset by negative net revenue contribution of Rocketbank segment.

Payment Services segment net revenue increased 35% to reach RUB 4.7 billion, to compare to RUB 3.5 billion in the prior year. Payment Services payment-adjusted net revenue increased 37% to RUB 4.1 billion, up from RUB 3 billion in the prior year, a result of the net revenue growth in our E-commerce and Money Remittance verticals, which grew 54% and 37%, respectively, offset by a decline in net revenue in Financial Services vertical by 8%.

Our financial results in these segments were driven both by increases in volumes, as Sergey just described; and the improvement of the payment average net revenue yield by 7 basis points year-over-year as a result of shift in product mix, offset by slight yield decline in most key categories. Payment Services other adjusted net revenue increased 26% to RUB 623 million, as compared to RUB 495 million in the prior year.

Consumer Financial Services segment net revenue was RUB 199 million for the fourth quarter 2018, as compared with RUB 35 million in the fourth quarter of the prior year, showing the growth of the SOVEST project underpinned by the introduction of new consumer-paid value-add options.

Net revenue of the Small and Medium Enterprises segment increased by 83% and was equal to RUB 1.1 billion in the fourth quarter 2018 compared with RUB 0.6 billion in the prior year, showing attractive growth of the Tochka deal.

Although the joint stock company Tochka has been established since July 2018, the business situations of the new entity were not launched until February 1, 2019, due to the [recurring] legal procedures. Thus, we continue to recognize Tochka project net revenues, which include mostly Tochka revenues in information and technology service agreements with Otkritie Bank for providing services to Tochka clients that have their accounts with Otkritie Bank, in full for the fourth quarter and full year 2018. Although, we begin accounting Tochka as an equity associate and correspondingly will deconsolidate Tochka's revenues in information and technology service agreements with Otkritie Bank, starting from February 1, 2019.

Moving on to expenses. Strong operating performance of our Payment Services business that continued to generate substantial cash flows supported our investments in the development of our new projects. This being said, adjusted EBITDA increased 53% to RUB 1.5 billion, up from RUB 1 billion in the prior year. Adjusted EBITDA margin was 25% compared with 23% in the prior year.

Adjusted EBITDA margin expansion primarily results from adjusted net revenue growth offset by several factors including: the increase in personnel expenses and related taxes, excluding effect of share-based payments; higher SG&A compensation to employees and related taxes; as well as increase in client acquisition and advertising expenses all incurred mostly in connection to the development of the SOVEST and Tochka projects as well as the acquisition of Rocketbank; and credit loss expenses incurred due to scaling up of the SOVEST project.

Group adjusted net profit increased 58% to RUB 1 billion, up from RUB 0.6 billion in fourth quarter of the prior year. Adjusted net profit was largely affected by the same factors as adjusted EBITDA.

Payment Services segment net profit increased 28% to RUB 2.6 billion compared with RUB 2 billion in the prior year, driven primarily by Payment Services segment net revenue growth. Consumer Financial Services segment net loss was RUB 538 million in the fourth quarter 2018, as compared to a net loss of RUB 647 million in the same period of the prior year, resulting from the expansion of the operation of the SOVEST project and improvement of user economics, as Sergey previously mentioned.

SME segment net loss was RUB 281 million, as compared with RUB 64 million in the fourth quarter 2017, driven mostly by a loss recognized on the setup of associate in the amount of RUB 267 million resulting from the setup and launch of Tochka platform operations to joint stock company Tochka, our joint entity with Otkritie Bank.

Rocketbank segment net loss was RUB 584 million for the fourth quarter 2018, as compared to a net loss of RUB 309 million for the same period in 2017. The net loss was primarily driven by expenses incurred in connection with transfer and operational launch of Rocketbank in QIWI, including primarily personnel expenses as well as client acquisition and marketing costs.

Finally, I would like to provide a brief update regarding our dividend distribution intentions. As you saw in our earnings release, our Board of Directors refrained from distributing the dividend for the fourth quarter and full year 2018.

However, aiming to promote transparency in regards of our dividend distribution practices and considering our expectations about the performance of the group, as well as our anticipated level of investments in 2019, the board decided to provide the dividend guidance for 2019 and set a target dividend payout ratio for the corresponding periods. In accordance with the decision of the board, the company aims to distribute within 60% to 85% of its adjusted net profits for 2019, starting from the first quarter 2019.

The Board of Directors reserves the right to distribute the dividends on a quarterly basis as it can necessitate. Further, the total annual payout is in accordance with the target range provided, although the payout ratios for each of the quarters may vary and be outside of this range. It remains a long-term intention of the company to distribute all excess cash to the shareholders.

Now on to our guidance. Firstly, I would like to emphasize certain accounting changes and assumptions that are embedded in 2019 guidance. Although we stop recognizing part of Tochka revenues associated with information and technology services agreements with Otkritie Bank for providing services to Tochka clients that have their accounts with Otkritie Bank, starting from February 1, 2019, as Tochka business is transferred to joint stock company Tochka.

Such revenues were recognized in full for the full year 2018. However, they will only be recognized for 1 month in 2019. For the avoidance of doubt: Only the revenues related to Tochka clients that have their accounts with Qiwi Bank will be recognized as QIWI booked revenues in 2019. We will correspondingly account joint stock company Tochka as an equity associate going further.

Further, we believe that the financial results of Rocketbank as well as underlying business trends and targets of this segment will be in line with the first half of 2019, throughout the year, and thus include the associated full year forecast in our guidance. However, we reserve the right to adjust the Rocketbank strategy and corresponding financial forecasts for the segment throughout the year based on the results of our review of Rocketbank's strategy.

Given all the above, we expect group adjusted net revenue to increase by 0% to 8% of 2018. And I will again stress that the accounting perimeter of revenue recognition in 2019 differs from 2018.

Payment Services segment net revenue to increase by 10% to 18% over from 2018, group adjusted net profit to increase by 15% to 25% over 2018, while Payment Services segment net profit is expected to increase by 8% to 16% over 2018. Although we see our 2018 results as a solid foundation for future growth, certain other factors remain beyond our control, and hence we reserve the right to revise guidance in the course of the year.

With that, operator, please open up the call for questions.

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Questions and Answers

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Operator [1]

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(Operator Instructions) Our first question is from Cris Kennedy with William Blair.

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Cristopher David Kennedy, William Blair & Company L.L.C., Research Division - Associate [2]

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Alexander, best of luck in the new opportunity. Sergey, I just wanted to follow up on SOVEST. You mentioned you have positive unit economics in that business. And can you just talk about the long-term margin opportunity in SOVEST and kind of the road map for that?

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Sergey A. Solonin, Qiwi plc - CEO & Director [3]

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Sorry. Can you repeat? I missed half your question.

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Cristopher David Kennedy, William Blair & Company L.L.C., Research Division - Associate [4]

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The -- can you talk about the long-term margin opportunity in SOVEST and the road map to get there?

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Sergey A. Solonin, Qiwi plc - CEO & Director [5]

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Okay. So initially we organized SOVEST on a presumption that we will reach a certain number of clients that will lead us to have a substantial part or proportion of the revenue for the -- of the merchant to be on the SOVEST behalf. So for us, we thought that it will be around 10-or-more percent of the revenue stream should belong to SOVEST.

So with that, we planned that our average discount for SOVEST on the merchant side would be around 5%. And we're not there, so we are moving very slowly. And the -- and because of the competition right now with Halva, it seems that it is not very obvious that we will reach the 5%. So we started to do a different program that is based on different services, additional services that we give to the consumers so that we have additional revenues from this stream.

And today, if you look -- for today, we are much more -- the projects looks like -- much more like Afterpay or Affirm in U.S. Maybe that could be a good comparable to where we're heading today. And the also the average margins will be more or less the same. That's how we think it will go forward. Thank you.

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Operator [6]

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Our next question is from Vladimir Bespalov with VTB Capital.

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Vladimir Bespalov, VTB Capital, Research Division - Analyst of Industrials, Transportation, Infrastructure, Chemicals & Equities and Internet Analyst [7]

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My first question will be on Rocketbank. You mentioned that you'll develop the strategy for this asset by the end of the year, but for the first half of the year, how much in net losses this business is going to generate? Do you expect any revenue streams? Maybe you could provide some color on that.

And the second question that I have is on your guidance. You're effectively guiding that the margins in the Payment Services will be going down a little bit given that the revenue trend probably looks stronger than the net income trend, so maybe you could also provide some color on why do you expect this deterioration of margins; and why the growth is slowing down that significantly compared to -- let's say, to the fourth quarter of last year.

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Alexander Karavaev, Qiwi plc - CFO [8]

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Yes. So thank you for your question. It's Alexander. So on Rocketbank. So we expect to have a net loss of Rocketbank slightly more than RUB 1 billion for the first half of the year.

On the Payment Services we don't really expect a substantial deterioration of yields. We just really expect them to be stable for a while. And longer term, they likely are going to be declining in line -- actually in line with the general [conditional] payment, but this actually historically was taking kind of a lot of time. And that's what we expect going to be happening in the future. And I'm sorry. I think I missed your third question.

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Vladimir Bespalov, VTB Capital, Research Division - Analyst of Industrials, Transportation, Infrastructure, Chemicals & Equities and Internet Analyst [9]

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It was on the slowdown of the revenue trend. Because the growth that we've seen over the past several quarters, it was extremely strong, but the guidance for the full year implies that it will slow down quite significantly. And maybe you also could provide some color on the trends in the first quarter because we're at the end of the quarter.

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Alexander Karavaev, Qiwi plc - CFO [10]

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Okay, I got it. I mean generally we -- as always, we want to be conservative in our guidance. And again, we as of now would love to be -- to continue to be conservative. Our kind of first results of this year in Q1 are repricing. So we -- it is obviously still premature to judge how the whole year will go. I mean in general the trends from Q4 and from last year continue both on the consumer engagements and in macro trends. So I hope that helps...

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Sergey A. Solonin, Qiwi plc - CEO & Director [11]

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And I will add that actually we really stopped some marketing activities on Rocketbank before we will improve the strategy on the board. So -- or we tested that all the mechanisms are working well. So as soon as we agree, we will start the campaign again. And it will be -- it should be better, but before this -- before we agree with the strategy, we are putting conservative numbers right now.

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Operator [12]

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Our next question is from Sveta Sukhanova with Sberbank.

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Svetlana Sukhanova, Sberbank CIB Investment Research - Senior Analyst [13]

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Quick follow-up on SOVEST. First, on number of cards. Do you disclose number of SOVEST cards issued?

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Alexander Karavaev, Qiwi plc - CFO [14]

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Yes, we do. So it's more than 700,000 cards as of the end of the year.

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Svetlana Sukhanova, Sberbank CIB Investment Research - Senior Analyst [15]

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700,000 cards at the end of the year. My second question will be on SOVEST bank accounting. Since you made this multibank service model with AK Bars, do you plan to deconsolidate SOVEST and change accounting of it, or not yet? You need more partners to change accounting for multibanking model?

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Alexander Karavaev, Qiwi plc - CFO [16]

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No. Actually, no. I mean we still continue to -- kind of to onboard a substantial part of service operation onto Qiwi Bank, but in the accounting will change as such if and when the multibank operations will gain a lot of traction.

So it will change in a way that we're only going to be having just a part of the revenue, not the full revenue, because the -- let's assume half of the revenue will go to the bank partners; and half of the costs, essentially, for revenue. Something like funding costs and costs of risk will be taken by the banks, but given the declarations of AK Bars are not yet significant, we do not believe that we will see a lot of accounting changes through this year at least.

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Svetlana Sukhanova, Sberbank CIB Investment Research - Senior Analyst [17]

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Very clear. Can you please disclose how much -- what the -- what's amount of real cash which you had on your balance end of the year, net of your book?

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Alexander Karavaev, Qiwi plc - CFO [18]

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That is -- yes. Just I mean, if we part of the client list, it shall be slightly below USD 100,000 million.

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Svetlana Sukhanova, Sberbank CIB Investment Research - Senior Analyst [19]

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RUB 100,000 million?

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Alexander Karavaev, Qiwi plc - CFO [20]

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No, no, dollars.

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Svetlana Sukhanova, Sberbank CIB Investment Research - Senior Analyst [21]

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Dollars, okay and clear. And what kind of investments should we anticipate in SOVEST in 2019?

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Alexander Karavaev, Qiwi plc - CFO [22]

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Well, we don't -- I don't think we disclose this number separately. It shall be a few billion rubles, but it's -- it will be maybe less than in 2018, sorry.

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Svetlana Sukhanova, Sberbank CIB Investment Research - Senior Analyst [23]

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So if I heard you correctly, because line is not that good: You do expect investments in SOVEST in the current year in around last year amount of investments. Have I got you right?

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Alexander Karavaev, Qiwi plc - CFO [24]

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Slightly less. So 2018 (inaudible) invest -- correct.

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Svetlana Sukhanova, Sberbank CIB Investment Research - Senior Analyst [25]

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Slightly less. Understand. And can you help us in terms of banking services, how much will the area of total payments of Payment Services or whatever? Can you give us approximate the size of SMEs compared to the payment business as of now? Banking business. I mean banking business.

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Alexander Karavaev, Qiwi plc - CFO [26]

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I -- it is substantial part from the -- I mean all the loans involve the payment gateway. It's just around half of our business.

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Svetlana Sukhanova, Sberbank CIB Investment Research - Senior Analyst [27]

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Half of the payment business in terms of payments volumes or in terms of what?

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Alexander Karavaev, Qiwi plc - CFO [28]

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In terms of (inaudible).

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Svetlana Sukhanova, Sberbank CIB Investment Research - Senior Analyst [29]

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Payment -- is it half of E-commerce business or half of Payment Services business? Apologies.

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Alexander Karavaev, Qiwi plc - CFO [30]

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Half of Payment Services business.

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Svetlana Sukhanova, Sberbank CIB Investment Research - Senior Analyst [31]

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Payment Services business, very clear.

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Operator [32]

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(Operator Instructions) Our next question is from Andrey Mikhailov with Sova Capital.

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Andrey Mikhailov, Sova Capital Limited, Research Division - Research Analyst [33]

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I have a number of questions. I'll ask them one by one. The first one is on the break-even potential of the new products, if you could update it -- update us with your plans for SOVEST and Tochka to break even. And on Rocketbank, I assume there are no specific plans right now?

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Alexander Karavaev, Qiwi plc - CFO [34]

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So I mean, on Rocketbank, we only -- I mean look. We obviously have provided the guidance for the full year, but it's based on the assumptions that the Rocketbank will -- business will go as it kind of shaped up now. So -- but I mean we are in the process of performing certain experiments around the consumer's behavior and the unit economics. So this may change throughout the year. And this is something that we're going to be kind of taking for the few months to come, likely going to announce the new setup at the second half of the year.

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Andrey Mikhailov, Sova Capital Limited, Research Division - Research Analyst [35]

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And then SOVEST and Tochka, if possible, any update, since the Investor Day, on their -- on the periods when they can break even?

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Alexander Karavaev, Qiwi plc - CFO [36]

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On Tochka. Tochka, it will get to breakeven. So I mean it's going to be breakeven this year around that, for the full year. And going further, it will be profit making. Again, we discussed it several times. I mean the unit economics is working just fine in Tochka. So the only questions are besides for concerning the market share. SOVEST, we expect to break even in 2020.

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Andrey Mikhailov, Sova Capital Limited, Research Division - Research Analyst [37]

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Okay. So that's 2020, right? That's better than your previous expectations for 2021, if I'm not mistaken.

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Alexander Karavaev, Qiwi plc - CFO [38]

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It's we -- I think we were guiding for '19 and then we changed to '20. So it never was...

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Andrey Mikhailov, Sova Capital Limited, Research Division - Research Analyst [39]

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Okay, okay, okay...

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Sergey A. Solonin, Qiwi plc - CEO & Director [40]

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Well, on SOVEST, it is really dependent on the multibank project, how it will go. Because right now we have only a few banks and some banks in-line. And it depends how fast this project will grow, but right now we are guiding for 2020.

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Andrey Mikhailov, Sova Capital Limited, Research Division - Research Analyst [41]

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All right. My second question relates to Rocketbank. There were a press -- there was a press release, I think, or maybe in the presentation, by the new Rocketbank CEO, who said that he planned to launch credit products based on the Rocketbank platform this summer. Could you please elaborate on that, if possible?

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Sergey A. Solonin, Qiwi plc - CEO & Director [42]

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Yes. We hired Anastasia Uskova, who was a former employee of Rocketbank, as CEO of Rocketbank [perimeter]. And we really launched a new product that was jointly made in QIWI and Rocketbank, and I think there are a few more products to come. So this year, we will be showing up some new things and interesting products. Thank you.

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Andrey Mikhailov, Sova Capital Limited, Research Division - Research Analyst [43]

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I have to ask whether there are any specific plans for the loan book on the Rocketbank -- stemming from Rocketbank this year for loan book growth.

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Alexander Karavaev, Qiwi plc - CFO [44]

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I mean we don't have any specific plans.

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Andrey Mikhailov, Sova Capital Limited, Research Division - Research Analyst [45]

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Okay. And my last question is on the balance sheet structure. With the heavy influx of customer accounts and deposits now, I was expecting you to invest more into debt securities. And the debt securities line in the balance sheet, it hasn't expanded as much, so it seems that this customer deposit inflow was mainly direct into cash and cash equivalents. Do you expect this to change?

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Alexander Karavaev, Qiwi plc - CFO [46]

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Actually, not...

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Sergey A. Solonin, Qiwi plc - CEO & Director [47]

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We are discussing -- yes. Right now we are discussing different options but not -- it will not change materially the results. So yes, we're -- internally we're expecting different options to take.

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Operator [48]

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Thank you. This does conclude today's conference. You may disconnect your lines at this time. And thank you for your participation.

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Sergey A. Solonin, Qiwi plc - CEO & Director [49]

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Thank you very much. Goodbye.