QIWI plc (QIWI)

QIWI plc: A Comprehensive Overview

Company Profile

History and Background: QIWI plc is a leading provider of online payment and financial services in Russia and the CIS countries. Founded in 2007, the company was listed on the NASDAQ exchange in 2013. QIWI operates an extensive self-service cash payment terminal network and a digital payments platform.

Business Areas:

• Payment Network: Physical and online terminals offering payment processing and financial services like bill payments, top-ups, money transfers, and online games.
• Financial Services: QIWI Wallet and QIWI Visa Card, offering online payment wallets connected to VISA, MasterCard, and other payment systems.
• Ecommerce: QIWI provides digital payment solutions to online businesses.
• Cash Management Services: Cash deposit, withdrawal, and transfer services for businesses.

Leadership and Structure:

• CEO: Marina Treshkova (appointed 2020)
• Chairman: Boris Kim
• Board of Directors comprises independent directors and company representatives.
• QIWI plc operates in over 20 countries, including Russia, Kazakhstan, Uzbekistan, Belarus, and Moldova.

Top Products and Market Share

Top Products:

• QIWI Terminal Network: Around 208,000 terminals in Russia and CIS countries, processing billions of transactions annually.
• QIWI Wallet: Over 21 million active users, enabling online and mobile payments.
• QIWI Visa Card: Allows contactless payment and cash withdrawals internationally.
• QIWI Cash Management: Offers cash management solutions for small and medium-sized businesses.

Market Share:

• QIWI holds the largest market share in the Russian payment terminal market with around 40%.
• The company has a dominant position in online payments and cash-to-digital solutions in Russia.
• In the global context, QIWI competes with other payment giants like PayPal, Western Union, and Yandex.Money.

Product Performance & Comparison:

• QIWI terminals offer high transaction volume with over 200 payment options.
• QIWI Wallet boasts ease of use and accessibility. However, international expansion is limited compared to global players.

Total Addressable Market

The global online and digital payments market is estimated to reach $14.67 trillion in 2023, indicating significant growth potential for QIWI. The Russian and CIS region represents a valuable market for QIWI, with its large population and underbanked demographics.

Financial Performance

Recent Financials:

• Revenue (2022): US$652 million
• Net Income (2022): US$28 million
• Profit Margin (2022): 4.3%
• EPS (2022): US$0.14

Financial Comparison:

• Revenue and net income have remained relatively stable over the past five years.
• Profit margin is low compared to global payment companies, highlighting potential for improvement.
• Cash flow statement and balance sheet indicate a healthy financial situation.

Dividends and Shareholder Returns

Dividend History: QIWI plc initiated dividend payments in 2022. The current annual dividend yield is 0.8%, and the payout ratio is approximately 20%.

Shareholder Returns: QIWI stock has experienced significant fluctuations, offering a total return of -30% over the past year and -10% over the past five years.

Growth Trajectory

Historical Growth: QIWI's revenue has remained relatively flat, reflecting market saturation in Russia. Future Growth Projections:

• Expansion into international markets is a potential growth driver.
• Development of innovative financial and e-commerce solutions is crucial.
• Partnerships with major online retailers can increase user base.

Market Dynamics

Industry trends:

• The online and mobile payments market is rapidly expanding.
• Technological advancements like digital currencies and contactless payments are shaping the landscape.
• Regulatory changes in various markets can affect QIWI's operations.

QIWI’s positioning:

• The company has a strong position in Russia's established payment network.
• Its digital platform needs further development and expansion to compete in a globalized market.

Key Competitors

• Yandex Money: Russian digital wallet provider.
• PayPal: Global online payment giant.
• Western Union: Leading money transfer service provider.
• Tinkoff Bank: Digital-first Russian bank with growing online payment solutions.

Competitive Landscape

• QIWI's advantage lies in its established payment terminal network and strong brand recognition in Russia.
• Global competitors possess more advanced digital platforms and broader product portfolios.
• QIWI needs to adapt to technological advancements to stay competitive.

Potential Challenges & Opportunities

Challenges:

• Maintaining market share in a saturated Russian market.
• Expanding international operations and adapting to diverse regulatory frameworks.
• Keeping up with technological innovation and competition in digital payments space.

Opportunities:

• Partnering with major online retailers and e-commerce platforms.
• Expanding into new geographical markets with high growth potential.
• Introducing innovative payment solutions and leveraging emerging technologies like blockchain.

Recent Acquisitions (2019-2023)

Acquisition Summary:

• QIWI acquired several smaller companies in the past three years to enhance its e-commerce payment services.
• Examples include PayOnline.ru (2019), Contact (2020), and SmartCard.ru (2022).
• These acquisitions helped expand QIWI’s reach into specific sectors like online games and public services, strengthening its e-commerce presence.

AI-based Fundamental Rating:

Rating: 6 out of 10.

• QIWI has strong brand recognition in Russia and a robust payment terminal network. However, its international expansion is limited.
• The company needs to improve profitability and develop its digital platform further.
• Future growth depends on successful execution of expansion strategies and innovation initiatives.

Sources and Disclaimers

Data sources:

• QIWI plc Investor Relations website: https://ir.qiwi.com/
• Yahoo Finance
• Statista

Disclaimer: This report provides information for educational purposes only and should not be considered investment advice. Please do your own research and due diligence before making any investment decisions.

Overall

QIWI plc holds a strong position in the Russian payment market. However, international expansion and digital development are crucial for future growth. Investors should carefully analyze QIWI's financials, competitive landscape, and growth initiatives before investing.