Russia’s Qiwi cuts 2015 net profit guidance to 16-18%

MOSCOW, Feb 3 (PRIME) -- Russia’s Qiwi, a distant payment operator, has downgraded its 2015 adjusted net revenue guidance to 15–16% from 18–22% and adjusted net profit guidance to 16–18% from 18–22%, the company said Wednesday in a statement.

“Notwithstanding the revised guidance and current challenging market environment, we maintain high levels of operating leverage and have kept our costs under control,” Qiwi CEO Sergei Solonin said.

“Although we believe that 2016 will continue to be challenging we anticipate new opportunities ahead and continue to execute our strategy and offer our customers convenient and innovative products and services.”

The reduction in the company’s adjusted net revenue guidance is primarily due to the continued economic recession in Russia as well as weak consumer demand pressured by high inflation and decreasing real income, which has resulted in performance that was lower than anticipated across certain market verticals, in particular e-commerce and money remittance, the company said.

The cut of the adjusted net profit guidance is primarily caused by a downward revision in the adjusted net revenue guidance and a substantial increase in bad debt expense compared to the full year ended December 31, 2014, resulting from an increase in reserves for receivables from several of Qiwi’s agents who have shown signs of financial instability.

End