QIWI Plc (NASDAQ:QIWI) Q1 2019 Earnings Conference Call - Final Transcript
May 16, 2019 • 08:30 am ET
Thank you. We will now be conducting a question-and-answer session. (Operator Instructions). Our first question comes from the line of Ulyana Lenvalskaya with UBS. Please proceed with your question.
Hi everyone This is Ulyana from UBS. My first question will be on the number of e-wallets. This quarter you managed to add quite a lot. Almost 1 million of new e-wallets. Could you please tell us about the key drivers or the categories who were those customers are?
Ulyana, its Alexander. So, it is probably coming from the same growth points, primarily from e-commerce and money remittances. So basically this is the result of development of the B2C ecosystem and general increase of the volumes of the Company.
Okay.so, I remember a few quarters ago, we were discussing sort of the total number of customers reaching certain saturation. So now with this development of e-commerce and the self-employed and B2B, B2C would it be fair to say that you see new opportunities so?
Well, we certainly see new opportunities primarily, I mean around the growth of the average spend double so to say because we see the increasing engagement of the users. So although in terms of number of new consumers as well. But again, we are stepping to a new markets and some of those markets were just creating like self employed. So it's pretty difficult to estimate the total price of those markets yet. So but we generally see opportunities at least in terms of the substantial increase of volumes.
Okay. Thank you. And the second question will be on service net revenue yield, it's now almost a 4.5%. Where do you see the normalized level? How should we estimate this going forward?
I think, we still have a certain room for improvement there. So we have already achieved quite substantial levels. So it obviously, will depend on our promo campaign for some of those -- their net revenue but we as you remember, a couple years ago when we announced service reward ranging somewhat towards north of 5%, so this is something that we are going to be achieve in the next several months.
Thank you. Our next question comes from the line of Vladimir Bespalov with the VTB Capital. Please proceed with your question.
Hello, congratulations some very strong numbers and thank you for taking my question. My first question will be on your EBITDA margin for the quarter, it was very strong, but it looks like the trend like it outpaces significantly both the revenue growth and the net profit growth. Should we expect this to stay like this? Was there something one off may be behind this strong performance of EBITDA margin? So maybe you could provide some color on that. And also question on your revenue guidance for the full year, it implies a pretty significant slowdown compared to the first quarter of 2019. So what is behind? Are you trying to be cautious or you see some maybe headwinds for for