QIWI Plc (NASDAQ:QIWI) Q2 2020 Earnings Conference Call - Final Transcript
Aug 19, 2020 • 08:30 am ET
believe that the performance of Payment Services business, as well as our other projects, demonstrated resilience of the digital solutions we have developed so far, their value and relevance for our customers.
This quarter, we focused on optimizing our operations and loss-making projects. We also prioritized the health and well-being of our employees. Hence, the absolute majority of our employees is still working remotely. I'm glad to note however, that our business continued to operate smoothly on all projects including the wind down of Rocketbank and the sale of SOVEST, notwithstanding the challenges of the remote work.
We strive to further improve the efficiency of our operations across all key segments and projects. Today, we aim to focus on our Payment Services business, in order to grow it further by targeting our core niches and areas of expertise, creating new use cases well fitted to serve our clients. Simultaneously, we strive to expand our B2B proposition through projects like Factoring Plus and Flocktory.
Having said that, I'm glad to acknowledge that we continue to see many opportunities both in the payment space and in the adjacent markets. I believe we are very well positioned to continue to strengthen and enhancing our ecosystem in order to secure our long-term growth prospect.
Although the current recovery and performance give us optimism, we remain cautious. We continue closely monitoring the situation across the world and stay prepared for potential negative developments. At the same time, I do believe that we are well positioned to continue developing our business and strengthen our ecosystem to provide our clients the best-in-class digital solutions.
Now, onto some of the operating highlights. Second quarter 2020, net revenue increased by 23% to reach RUB6.8 billion, up from RUB5.6 billion in the second quarter of 2019. The increase was mainly driven by Rocketbank segment net revenue, as well as by Payment Services segment and Consumer Financial Services segment's net revenue growth. Andrey will discuss the performance of our Payment Services segment in a minute while I'll walk you through the results of our other segments.
Rocketbank net revenue was equal to RUB509 million for the second quarter of 2020 as compared negative net revenue of RUB132 million in the second quarter 2019. That significant growth resulted primarily from measures taken as part of wind-down process that we are implementing from the late March 2020, including mostly the termination of the Rocketbank loyalty program.
Moreover, I'm happy to confirm that we have substantially completed the wind-down process and reached our initial operating targets in terms of the number of clients and the amount of client balance. We believe that the termination of the current Rocketbank services offerings will be completed shortly and the total net loss of Rocketbank for the full year 2020 will be slightly below our initial expectations.
At the same time, we continue to review different ways to reuse Rocketbank assets. We are piloting certain B2B2C-focused products in our Payment Services segment, such as, for example, debit card