QIWI Plc (NASDAQ:QIWI) Q1 2019 Earnings Conference Call Transcript
May 16, 2019 • 08:30 am ET
and technology service agreements with Otkritie Bank for providing services to Tochka clients that have their accounts with Otkritie Bank as Tochka business was transferred to JSC Tochka.
Such revenues were recognized in full for the full year 2018; however, they are only be recognized for one month in 2019. For the avoidance of doubt, only the revenues related to Tochka clients that have their accounts with QIWI bank are recognized as QIWI Group revenues starting from February 1, 2019. We correspondingly account JSC Tochka as an equity associate.
Further, we believe that the financial results of Rocketbank as well as underlying business trends and targets of this segment will not change materially for all of the year and include corresponding estimates into full year guidance. However, we reserve the right to adjust the Rocketbank strategy and corresponding financial forecasts for the segment throughout the yea,r based on the results of our review of Rocketbank strategy.
Given all the above, we have raised our 2019 guidance to reflect strong performance of our payment services business and underlying trends that (inaudible) We expect group adjusted net revenue to increase by 9% to 15% over 2018. Payment Services segment net revenue to increase by 19% to 25% over the last year. Group adjusted net profits to increase by 40% to 50% over 2018, while payment services segment and profits is expected to increase by 19% to 25% or from each in line with the net revenue growth. Although, we show our first quarter results as a solid foundation for future growth, should not affect us remain beyond our control and hence, we reserve the right to revise guidance in the course of the year.
And lastly, on a personal note, I would like to thank Sergey, our team and our Board of Directors for their invaluable support through all these years. Also, my sincere congratulation to Varvara in respect of her new role. I truly enjoyed being a part of Qiwi for all these years and wish Qiwi every success in the future, also wish Varvara every success in her new role.
With that, operator, please open up the call for questions.