QIWI Plc (NASDAQ:QIWI) Q1 2020 Earnings Conference Call - Final Transcript

May 20, 2020 • 08:30 am ET

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QIWI Plc (NASDAQ:QIWI) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, everyone, and welcome to QIWI's First Quarter 2020 Earnings Conference Call. [Operator Instructions]

At this time, I would like to turn the call over to Varvara Kiseleva, Interim Chief Financial Officer of QIWI. Please go ahead.

Executive
Varvara Kiseleva

Thank you, operator, and good morning everyone. Welcome to the QIWI's first quarter earnings call. I am Varvara Kiseleva, Interim Chief Financial Officer. And with me today are Boris Kim, our Chief Executive Officer, and Andrey Protopopov, Chief Executive Officer of the Payment Services segment.

A replay of this call will be available until Wednesday, June 3, 2020. 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 May 20, 2020.

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 to date, reflects 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 constitute 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, we'll begin by turning the call over to Boris Kim, our Chief Executive Officer.

Executive
Boris Kim

Thank you, Varvara, and good morning everyone. Thanks for joining us today. Today, I would like to share our first quarter 2020 financial results with you.

This quarter, we demonstrated robust performance, given at the end of March, we have already started to see the negative impact of the COVID-19 and global lockdown on some of our segments and categories. It is fair to say that many of our key niches are impacted by the current crisis. For example, our Payment Services for betting merchants are affected by the suspension of the major sports events. Our SOVEST project is under pressure from the general downturn in Russia, while Tochka is affected by the correspondent significant decline in the SME activity. Many categories like Payment Services for online games and projects like Factoring and Flocktory [Indecipherable] in these turbulent times and demonstrate steady growth trends.

Despite the global challenges all of us are facing now, we believe that our performance proves the value and relevance of the payment ecosystem and digital solutions we have developed so far and aim to develop further. As an omni-channel