Qiwi (QIWI) 19 Aug 212021 Q2 Earnings call transcript

Good day, everyone, and welcome to the QIWI Second Quarter 2021 Earnings Conference Call. Today's conference is being recorded. At this time, I'd like to turn the call over to Mr. Dmitry Kovalenko, Head of Investor Relations of QIWI. Please go ahead, sir.

presentation. the begin may You

me Thank announcement replay Nikonova, you, joining until X, unaudited Thank for Executive XXXX. XXXX. The day, results Andrey Access results Protopopov, Interim our and to Chief of discuss presentation replay good press Chief With of us September quarter and and A the everyone. and review the in the this for call earnings for are on Thursday, Elena you Officer; Relations second operator, the to QIWI’s financial is available Financial Officer. will listed today's be our available at website are information release. Investor investor.qiwi.com. operating

this was the those recorded to For held call listening on replay, and XXXX. August XX,

actual occur statements statements reflect undertake no Commission factors on statements. Form any and the to and made the would with current materially may Securities we and results to to this our statements our are the our of cautions that like reflect that expectations to differ that Please Reform these Securities they as forward-looking future I contain Exchange update subject and future for forward-looking events recent today only, statements under of obligation performance refer everyone call. call are All known the Annual guarantees defined Report our expectations after Private not about from unknown could statements performance. QIWI that for Act our risks Litigation remind we uncertainties. to Before most These this forward-looking to company's XX-F XXXX. forward-looking cause begin, filed are

and profit, constitute adjusted provide Protopopov. also measures, to certain forward now During Andrey, net we as in adjusted share. Andrey questions. today's IFRS profit financial call QIWI's today's certain non-IFRS per net turn net the over our revenue, measures to such adjusted Reconciliation call, taking information that are total will additional will to press will release. look After CEO, EBITDA, and information earnings please. your included remarks, I management

thanks earnings call in us everyone This group. day, CEO joining is and today. Good for the of the of position my first

I the priorities team with myself. the and So to like set would start for

and our in customer all return driven centric decisions. are We

countless the focus economy customers new to We all To deliver areas superior drivers digital on employed while to directions. To we key deliver growth self project. on parts money level commerce expertise, of united clients partners. that, team sustainable clear for profitable proposition through in main the the are have mandate and we I looking to it our portfolio, current Those entertainment, challenges. are navigate the with digital strong namely develop maintaining infrastructure and our it, already to our no with of professionals the and remittance keep required second achieve delivered. factoring the just product of Services service our this numbers underpinned and and into to of Historically, stand, where and rapidly IT once digitalization emerging environment overall now knowledge regulatory There's have results, around big From future find managed new ready of to in pleased again. are and issues. And doubt changing payment. I am take by broad I opportunities quarter segment Payment our ambition growth, talented place, do we we we essential

revenue into of volume managed the key share business revenue and restriction, Although in the by wake underlying to CBR resulting compensate to of net in lost we by initiatives, year-on-year. development of our have growth X% significant our we it X%

increasing payments of XX% service payment X% remarkable Payment and payment Payment revenue net Core volume Service segment by shows Our Service results year-on-year. growth with

line with $X.XX same divestiture of of quarter the Then dividend increased volume, In target I time, Elena XX% initiative group key XX% average EBITDA payout in profit operating decline. of some Board revenue adjusted results, announced development growth history. and of as the to of in earlier. margin reaching Service the loss-making quarter back net the with share net X% profit strong net adjusted Payment margin, profitability payments At adjusted on add second interim compensated level net color Directors right highest this our payment financials approved of quarter and ratio will per and cover will optimization projects. XX% superior the was of we volume the while now revenue terms after. demonstrated yield of by

of which In observed the boarded with We net on recovery of paid increased on team resulting money We the XXXX. CBR strong active sound till streamline, increasing remittance thanks XX%, interest in by dozens restrictions growth betting basically metal QIWI base Payout companies to XXX built net XX% out X offset other use partially the year-on-year. and of continue but XX promo year-on-year overall TSUPIS self-employed Remittance account remittance. System decline the our over largely in enjoyed performance June job was partnership market growth quarter by demonstrated to increase revenue of partners also second XXX% cases last billion driven negative tourism with volumes offset activities QIWI in quarter, we money and to by volume by new significant versus the at Russian our last peer-to-peer Wallet volume points. doubled matches number Volume Korea. exceptional the taxi to amazing payout overall which aiding yield representing vertical uplift. of growth to growth. and XXXX. and working companies self-employed of did other which as in year-on-year, attributed model, Euro holders year-on-year reaching We connected to impact volume help by [indiscernible] in our second weaker Contact industries. vertical XX% of RUBXXX and remitter off BXBXC we revenue Zoom, product E-commerce of due in to develop winning contributed X% the transactions XX% an from Money growth. times, year, taxi to exciting Our show and platform increase year. also Moreover, the increased the scrap companies The basis XX by

to on adjusted onboarding yield driven our payments, force substantially we This TikTok network Payment some partners Tochka yielding have Factoring note quarter from of to which the marketplaces and temporary half XX via the in by due yields portfolio X,XXX. net the Service by launched Digital portfolio XX% of other e-commerce soft projects to billion Factoring number XX% by with increased Number to of [indiscernible]. time year. net declined and contract one-off to year-on-year. via by by and market product. and rating significantly while guarantees affected is connected reached restrictions reduced continue Flocktory Factoring be Tochka base, year-on-year services expansion demand RUBXX.X launched we revenue of PLUS for seasonal credit for the of net growth product [ph] for for up to is by QIWI over by also increased points XXX. revenue customers clients to XX% XX% switch Factoring cross-border by On going second vertical. our XX% basis by platform our higher top payments payments our have loans net and customer Corporate Tochka driven provide expected mainly increased the imposed high to billion. of started increased XX% year-on-year, declined bank execution revenue XX% active Tochka, for portfolio at Please year-on-year active decreased RUBX.X bank. and and grow.

on The our stake Tochka expected about amount We performance subject to have announced quarter, sell to XX%. earlier on dependent X.Xx operating results in investment from the seize. year resulted is to IRR going is certain billion, or adjustment Tochka that which our of RUBX.XX next the for Tochka results. we XXXX In are total audit on fiscal return due in impact

Now, let the results. me walk through to floor financial Elena our you and pass

Thank profit to XX%. of XX% measure net EBITDA margin optimization successfully adjusted cost and implemented adjusted and margin you, was Profitability XXXX. in reaching Andrey. Thanks the robust

on percentage our X.X% and negative year-on-year year-on-year, efficiency percentage X.X cross-border and temporary absolute the by terms, effect primarily restrictions leverage Services by by the net The respectively, X.X% the divestiture our margin points. payments. CBR imposed overall went of increased X.X compensated In profit. of significantly margins EBITDA by adjusted points X.X net operating and X.X% decrease for net declined have percentage profit revenue of and by and profit driven total points year-on-year net XX%. by SOVEST driven Payment We adjusted by for Rocketbank EBITDA driven operations, decreased up by adjusted decline

to continue see negative First on to payment of we cross-border restriction. margins all, due implications

costs in agents accrued lower by to Corporate year-on-year. and net reverse to ForEx personnel declined by a one-off million in than it align RUBXX million RUBXX employees our was category of by due Factoring Decrease compensation reviewing one-off or second also impact by the profits on net RUBXXX adjusted of to and expenses Net XXXX. RUBXXX level. other loss are loss XX% offset RUBXX million market by revenues quarter more million. We million decrease

to our to financial few the We to in I on now profitable and monitor sustain a optimize highlights continue group ensure operations of upgraded OpEx performance healthy our growth. and net sustainable and its will guidance. revenue ratio and order give margins

the define effect operations earnings recover in of previously remains see could only, the the and such restricted And to to operations restriction call. than reflects we trends at on the replace there subject change, well outlook our our significant on like as as I expected. this ability primarily XXXX, that and Our still our run more use would moment, as cross-border the long to place expectations our the deviate or betting current ability landscape. and the of business uncertainty of note our related CBR is impact in currently day to industry based to were and trends

of reflects net in second conservative the revenue outlook. on guidance betting industry eliminates of landscape, guidance half and contribution that, net of profit respect expected the upgraded operations our year. in Our in projections of sale cross-border XXXX the Tochka as in we -- stake in which project, said recovery converse Having changes

the over XX% We We profit decrease Services total now the net of right revenue is call by XX% expected of extent the the Payment Andrey I our the net results or when segment decrease to adjusted to for XX% become decrease course to over expect to remain clear. provide to while will XX% XXXX, reserve remarks. XXXX. XX% factors cautious year XXXX. and impacting XX% guidance over back by the closing revenue to net to and scope give some in And by

have brief the banking on restriction primarily changes restriction expired. like vertical. CBR in current Unfortunately, with situation give long will by and operation, have I Elena. lasting CBRS the from on XXXX on impact market. negative update in e-commerce the the a a our restriction the effect Thanks, would market cross-border you payments The December to the imposed on

foreign but well change We It accurately on be have to is estimated highly never may dependent the onboard recovery cannot process started as customer be restored. merchants behavior. as

our in in industry the We reflected which assumptions, guidance. also our Update are on conservative is betting regulation.

made as pursuant the a regulatory ETSUP have a serve to proposal We regime. to new

services if lose you're landscape, end secure However, sports our a assurance the that an be be bundle not the businesses our company bids to ability directly may in certain winning a generate in ETSUP role are negatively related XXXX, volume of September appointed new in can we provider. likely newly able no to there acquiring to industry If both to and income existing the and Russia take payouts over duration of with provided TSUPIS operations. affect will TSUPIS the betting we most active and successful. will the By

oriented XXXX believe should businesses we betting I At well Services our For a believe the Payment time, which and revenue. the strongly of consumer our from and package revenue to accounts payouts, Payment be XX% payment we billion for and team about ups same or as industry, payouts winning payments of TSUPIS Services the generated acquiring my retain net able first resilience as in RUBX.X part Wallet top of half winning payment betting services accounting QIWI services system. net of XX% represents related revenue. and that

expertise. for of of Our will will line our sustainable opportunities are ready the securing profitable and take are and of our ahead Kennedy further comes we We questions. and Instructions] product Thanks goal for many company. William Blair. we question [Operator the the of growth areas develop proposition your listening, to Chris with key niches pursue ultimate first There the

proceed with You your may question.

QIWI. Hey, will bit guys, the little you to call, details Russia? Can ecosystem taking sit in X-year a focus give the Andrey, of a for bit the vision little your gave X of thanks core where on for QIWI question. in more for you your of just the at top kind

Yes. Hello, for Chris. question. your Thank you

looking markets the for Moreover, in growing be entertainment, about, are services including compensate with of loss we for So will on as able we'll because commerce. revenue as years believe see us that, -- SME we will to And the to soon with proposition niches ETSUP. are same least digital we the key self-employed, opportunities potential initiatives the that time, that with yet not on Board focus the be and unsolved, themselves to payment update. keep. We as our market many to services, niches, And those remittance grow in the other be at in to growth years will on come. continue are those And for growth of I are because still factoring quite current revenue a strong informing is the opportunities big several come. Difficulty while we uncertain. money segments for you clear we good At is opportunities focused well, we how we fees. working told ready, the situation on in for and the our we to and volume be the as there ETSUP digital Directors cases we are together

sports or income? if betting of Appreciate were lot there net that the that on costs out business lose it’s the with take And would of that impact cost then a are contract, contract how Right. initiatives could question. one, last What to that. you type guys. you Thanks

Okay.

related year. that, quarter stopped of cost primarily continuous our businesses for these was in we as second top and and Rocketbank well. side, difficult situation in projects we So, with that and last cutting in the we smaller with impact well cost the at XXXX as restrictions cost of the biggest beginning the would in some of On to level looking I are constantly CBR business and end say, uncertainty need -- some given the XXXX core ETSUP service

Thank Right you.

the Capital. of question with Andrey next Our from comes Mikhailov Sova line

question. with You may your proceed

thank have and much I'll for Hello I you them very questions. call. several one. by the one ask

first onboarding noted The merchants. restrictions to that June. CBR. were And you by relates you started They to question the listed foreign in

are allowed questions. you, were X the word are to re-onboard question and or months. And some to can home you. you my So is, payments another have only merchants you essentially basically that the for merchants new Thank those [ph] prohibited I during

you Hello, Andrey. question. your Thank for

So, yes, June Bank expired. imposed term Central the in XXXX, restrictions by of

started to analyzing as time foreign So the July we At procedures regulations. same those cross-border still and board new are introduced. were required KYC And regulations, one merchants, and amendments we in including the on really regulations the additional on well. terms based XXXX, certain old

of important in that, is that more on top last is quite well. behavior KYC changed moving this, And which helping following is the process So months, what X has as not the durability customer and recovery is stringent slowly. procedures, requirements, also

that's process So reconnect one. if estimates take able to merchants all at guidance and don't provide any are some able not of to will this partners why actually this and on all, how we provide we but be we long the

the particular, you in authorizer you those process, to betting see the right revenues [indiscernible] centralize [indiscernible] for revenues, X approximately provide if funds second billion payments? for question lose Thank comprise Do could you much. operations My sports that that the I is on are that months betting here. acquiring, you ones correctly these that in in estimates understand related sports we that the and TSUPIS the related are RUBX.X you the first very that estimate

that's Yes, correct.

So we that our divide into parts. getting for revenue basically here two are Russian breaking we from

And I TSUPIS provider QIWI operation we is first would in to The is be participants, online to can landscape. case replicate out operation much we billion, self certain market that of operations for half are will extent if one Wallet easily RUBX.X second say. the RUBX.X type where regulation and cut related this the obviously operations which believe to and first billion of way done other acquiring them winnings we by QIWI operations, the only are is new of not a be it for -- so any we keep one part Wallet able be that can a more

Thank you expect have you September, When for you force you. announcement like One, be but that you follow-up any the Thank set who would centralized this? that. made, on a for into in that. operator. And such up if -- the would question say come announcements to that expectations to becomes you

far. news No so

So for so but no update that will the official that news whole far. available we for think, waiting be, are I market

are well. We waiting as

as Thank you. as is relates QX. those making doubled card-to-card of My customers the the banking you. operations volumes by their actually from and how much next Thank QIWI cards question those leading just transfers return? QIWI in volumes is to money transfers question represented or whose well never that of QIWI, my out year-on-year And Wallets

last I sorry, …? What of didn't Andrey, half. the portion those get volumes

What QIWI QIWI portion completely by from their and is their funds represented wallets. withdrawing customers closing

don't continues would small have this is, No, number, -- it's volume operation. the don't of for a but -- say, majority I actually active with have direct I wallet that with one we

them then case, then part getting via goods be, say, So provided. cases. or the And that customers banking use give can the they're because to is in money not specific by a to she on certain to bank color employed, to for let's using actually to cards is this, for their, most either of payment use of of other QIWI services or person to accumulated how They some some say, this accounts other daily or more it Wallet type way let's for he you it let's is self it's say QIWI transaction use the once as employed peer-to-peer bigger of it usually it self Wallet, spend operation. paid the on one transfer

to kind put it of be here. and bank So use big cases it's their That of their getting then revenue account. one would the

much. very you Thank

Sounds be operations provide growth on on operations in you some Kazakhstan and Thank I there, on the particular grateful Kazakhstan. question in rates Russia? if in really would the color Final nice. you. is versus could

sound The you is can repeat not good. please? Andrey,

that. sorry developing Operations Unfortunately, about are I’m Kazakhstan, Russia? compared they to well especially in how

grown, would in Russia would and don't XXXs different say, And like of I them. We a was of Kazakhstan. we second Volumes get is any here quarter, taxi added that also Kazakhstan add to are Kazakhstan I obviously, I companies you, with of revenues it the have, Kazakhstan. last in over Yes, and year. growing versus from market. lot restrictions have type

volumes growing. So are

Any specific comments estimates? growth on rates, the any

Probably not.

Okay, all okay. That's you. me. you. Thank Thank for

Thank you.

the of from comes [indiscernible]. Alex next Our question line

question. proceed may You with your

Good It international on is drivers, etcetera, morning. markets. competing My markets for QIWI. such as players with QIWI air the for such travel seems over made advantage established drivers, is Uber and taxi recent taxi question developing for targeted emphasis that travelers, regarding here for competitive be tailor Expedia to solutions as

is competitive what over question players? established my international edge So those is QIWI's

international competing that are with travel I would level not say we Expedia really players. Uber,

with proceeded operating landlords. Uber business was payout our payout to and we card the let's We in and for are say, example in on area, those players well, Uber prepaid -- different with distributing the Russian taxi international of actually proceeding, one when as sales our the airbnb partner Russia, the was

We payouts as are for this well. TikTok the quarter connected

that of or either are specifically the payment payment market Russian a to method, the the as would that an of one payouts extend are international in players we I the kind Kazakhstan So well. Wallet and with for the gateway payments, to as for to certain QIWI need say

right. All

what basically it market, terms provide when you're for Is enter actually So try QIWI in services. of correct? to asking that and support saying come they international players Russian financial into to

we are It's as like working are one player those players are obviously with but of are and well. only And case, for one. other not of we the the example, we players, on lot Yes. international [indiscernible], there this obviously

And have questions. related Okay. a of I couple

secure solutions reliable how and So competitors? versus QIWI's financial

a elaborate …? reliable you how do what Could you bit mean

Like you provide financial payments. solutions in of terms

reliable how how those solutions? and secure So

for in operating time solutions and market were are we believe the a long our Solutions, reliable. that we

with of any very issues have We of and with like very, our for no our any time. long major products customers a

know key all. That for with of how clients, us are if time. I -- years, any at data remember, we links those have [indiscernible] will our So our customers a not majority the, for of including like don't working don't many long I

So that company reliable are believe services. payments we financial we

be to say fair would that reliable as So both credit it as solutions solutions?

believe I so.

of for anonymous wallets Wallet was All anonymous was last in QIWI's my QIWI's if related right. And important a it quarter accounts, seems to at customers, to be remain significant question feature wallets. is, last which least primarily decrease

At Yes, There of the And to international CBR and international available, to there's the impact, why those will trends for as procedures. doing was those related anonymous many different work quarter with because a course, the bigger reasons of of payments not to -- soon are several wallets our wallets some the clients how were payments wallets time is obviously the as already time, merchants, changes with different time. -- payments decreased number that lot and as of merchants. the some QIWI some of actually exist. a over of restrictions same are of period related certain this we

Thank you very much.

more on Wallets anonymous I than With growing with wallets will through of simplified XX% or the add KYC. And either full are as KYC, well. wallets volumes KYC just QIWI

lifetime. So a of the wallets product is anonymous like more stage

they are or majority wallets wallet KYC That's wallet. they -- usually for with KYC, money use to starting the some wallets. or of to required soon the with do that people to need us requires use either anonymous operations as more and spend simplified is need as why with So the as not KYC they full anonymous

the that change of quarters? in still number the months looks Is there trend it is coming And any a expectation wallets like or Understand. will decreasing.

self-employed, continue as mentioned kind that that will same. for I believe for the already -- important longer cases would, the like because I of trends, one related -- related it the significant -- demonstrate payments will questions At mentioned that the trends previous it's the quite to believe card to like use are same from for volumes the was that for we time, are to we us, example, the QIWI We we in roles of of wallet, and those payments actually able the Wallet. one

say, let's growing. certain at of while, the So number in use is time important the the operations same yes decreasing, wallets, are cases for us

So RUBXX,XXX. Payment almost used in It the payment know be release, QIWI may active year, the about press is it you account per Services actually last volume is RUBXX,XXX, that quarter the while about Wallet to XX%. increasing currently in

So is active Wallet targeting. utilization that per or is QIWI what volume account, and growing we're

on just customers they anonymous into statement full and made -- fraction, solution. joined the you they that then what's And typically transfer follow-up as

So wallets? what's the current fraction of anonymous

total are As X% QIWI of I the volumes volumes -- volume wallets Wallet. said, that of -- anonymous the number generated the

number the anonymous disclosing wallets. not are We of

questions. Thank you. much my for Thank you taking very

you. Thank

from Our next Vladimir question line of comes VTB Capital. the Bespalov with

with You question. proceed may your

Hello. very my for much Thank you questions. taking

ask question your First like of guidance. I to about all, would a

part for the net guidance would which second bound for It's a billion Tochka, example, lower growth this revenues, the of related second it you if higher profit -- the revenues of way from for betting to year, mean, for lower looks half attributable like should the the net of lose RUBX.X the the exceed Even losses we increased lot like the the we from look growth guidance, adjusted potential contribution You net like at and very -- for net net very Tochka, left but quarter. it the low or to conservative of because unchanged. something profit if than still if losses, guidance I be even not streams. is profit, adjusted adjust at this total

So bit all little elaborate is behind what these could you maybe a assumptions?

conservative. some yes, percentage by decided Elena. I our net quite start, can of a This in are may But of respect effect guidance X also course, that is Usually, add more That's we comments. revenue. about year we we be we maybe points. firstly, to a like and are in only guidance have of some confident the it's in we and why upgrade Hi, bit of more case something conservative in and Tochka probably And or why half this of bit net we cautious net profit included respect Vladimir. second upgraded that net profit Andrey in is in guidance the will net why profit additional uncertainties are guidance we the and that's not respect the operations X revenue.

these there something elaborate uncertainties. little way deals? you bit in could previous as these a this But the understand about up? new those Are or uncertainties betting related far As I coming guidance, is

the most that guidance. that all mostly say this uncertainties probably I would uncertainty and still [indiscernible] with the betting includes our same. operations how the are We is do not know it will go

Okay. of on potential use very be Thank Tochka. proceeds question My of will second from you the sale much. the

you. expect, other have to dividend you when for you of how distributions, and going I get First expecting Thank proceeds, or plans? spend? are we all, those to some example, Can more

you cover. Yes, I try also to the for will thank question.

will expecting in consideration prior the of the are as our most -- the related the Tochka the audited in the We be part we of to deal we third to said press final quarter financials will issued. adjustment Tochka. have release when Also,

like next Board be Directors, our development for the highlight quarter dividends amount this the Also, a it of this distribute adjusted would the and in current also will project will the of to for it that paid we be only and Prior firstly this XXXX. new whether real we on. In for by investments at how will considering expand in this decision net of distribute at partly then of And of part Board highest this we in a XX% deal. the is value to I our focus as if working done, is Directors course, projects, And will to budget to we money year-end, least cash and for will adjusted distribute need of year sure. consideration, Tochka distribute. Board of real XX% or And right this there we're of somewhere a our to priority decided agreed now if profit. was to invest of of that the to in Directors. price the course, what cash, So consider profit decision will whether year the of of we XXXX, of create Directors respect have return the will And of did a distribute it, it any we And decision for understand be shareholders. to second on to net it decide Board and the strong dividends. be of our course, extended we to with our payment,

very much. question you Factoring on My Thank is PLUS. next

particular business I adjusted as far for longer some with some calls business? quarter this for during any a very in important not management the your medium second the this what medium from numbers the general. this looks it that in impressive in you one-off expect growth is changes As could part remember, even the your XXXX, at the And be in in like term? previous quarter the that of in of discussed performance But views we looking general, Are on to there term. it

well right, give Yes, while nicely last on looking the Generally, close of thank close Elena will overall is for related into two the mostly adjustments. example versus will and probably growing a will is team the new -- guarantees the number together revenue one-off to to on year, is growing you including, of I year-on-year. with color give for which of top as doubling Factoring we're you’re the bank quite and growth certain this not your more bank On clients. portfolio is growing numbers. which to If remarks of that, was guarantees which And portfolio, adding numbers, is -- top products factoring. question.

growth the also believe due half for specifics we that growth. the it a potential of So would coming the quite second of the that as strong a still from have the that, mention majority seasonality volume is and year. to I

add the one-off quarter. colors is last of second can of results adjustment on some you if So, adjustment this year, Elena, that the confusing kind --

factoring would effect, the agent commission company. was too call significant too deferral yes, related had some not will, in if that maybe for were not for year-over-year. you there that it group to I year significant the say the prior of And, preparations adjustments

you Andrey's will the you plans good take we increase profits are the prior guarantees, more in are it X rates. we they should as preparations. factoring years have and consider compared -- will to we better we add when If increasing well that same portfolio, economies to see to operations and you scale also off, bank word We the would that see also of that growing like year. also much project consider will also I and see will will the that see see if both projects quite growing growth

Yes, thank you very much.

And also increased clients this portfolio the factoring couple the in And The digital increased XX% bank XX% along XX% of XX% guarantees. grown number growth itself. comes the here over year-on-year, year-on-year. portfolio guarantees active just of digital Factoring bank in and figures deals by a with on portfolio by

are operating quite results impressive. the So

for Okay. Thank a medium very you But much. rate is normalized growth, of growth the think term terms business? of you kind of in this do kind what

Well, comment would of now probably project. the growth on right not this to medium rate we like

to same growth of obviously how business further, a Yes, I next continue the level need go to we'll But [indiscernible]. currently but for believe market of the years. see growing we of that potential couple there its is

question not my understanding very retain for e-commerce, revenues. go industry, those small that which related risk revenue operator the at going much. correct purely I Is to you're the revenues on the mean, which money and that last you Thank my scenario case is while to you're in those streams an Okay. betting going you And that to a be worst -- the of part technical remittances.

going Yes, are revenues, payouts through bigger the but this e-commerce, money part remittance. of the is winnings to to going cards one the

verticals be both will So affected.

very you Thank much.

Ildar of & line comes Wood Our the with Company. Davletshin next question from

with may You proceed your question.

Thank my for Okay. question. very much you taking

asked. some questions mostly have follow-ups been Just to that the already

guidance, XX% XX% decline my question. that no be the regulator, the new regulator? you first to have confirm would that this you able So in role on assumes would betting So be the absolutely to that

to the to all -- Yes, negative we included this guidance. effects

Yes, that was well. understanding as my

so in current future there saying some cross-border be you about cautious kind on and was the transactions, on the or some impact trajectory sounded near-term performance. restrictions that And little Okay. second of a your there impact, comments could from

I'm the say, recovery? So the recovery start there just to from or have impact some in progress worst, So continued when cross-border sort second quarter was then months level? reported do like, this gradual X was of similar there it wondering understand transactions? quarter, of this now X.X, the these it What at continuing trends you year see? further some almost the June, is month-by-month you the let's terms that we I in of the Is since Is and recovery. a the numbers. Or biggest next

see now, We of … growth. still As still We still - we [indiscernible]. continuing see we

will I Yes, cover yes. Elena, you.

Okay.

that because by May we say, operations the the strong trends So, let's driven of on more our sort mostly this of like that overall some able growth of was TSUPIS that bigger and first the not from quarter last lockdown business, quite last growth separation starting same growth, are yes, about -- trends to was international growth month back. because as of because majority and quarter quarter I lockdown kind was the sports And year second the the for probably quarter, us, event. that was for year the of of well. talking cancellations color the sports I us was -- the were more it of the to you events remind last and to the of after for about the of guidance would third this robust with in are of lot numbers the and on best talking At would the quite here. the last would year, but this give transactions in to time, were like it was strong year, generally same a month-after-month say like I year basically worst quarter June. over impact establish year

last was bettings streams us. results in some key there for and very, So strong year very other

while its results quarter. that's year, are be in looking last numbers will base, of second obviously we the worse continuing the in it's high currently versus versus and So much quarter, kind why when second absolute a trends

see. I

follow-ups. Thank Okay. maybe very you. quick And just two

-- doing well. on is Kazakhstan, mentioned quite So which you apparently

in or percentage a curious than of I'm contribution us other volumes other you color this or So CIS, and if terms maybe a your as Russia, of revenue, …? of give like percentage broader maybe could countries some of the like operation, scale total

and you Only of think around Kazakhstan about payment services. is X% material, can somewhat

revenues? That's volumes of

Revenues.

you've over yield profitable. is around at project, basis. that yet be Do of Thank was given already you. Thank Have the ratio a seems about share payout buyback like asked XX% you more about to XX% are many current And have the income, early in net still about higher be so it you that more the dividend future all? the you given think an sometimes question becoming of your you than thought have there process, what buyback XX%, last alternatively, one think allocation, which dividend you of annualized already could you. more thought is, or net on use income, the maybe so growth percent mid-term, this some been paying a stage of capital bit adjusted but do less

cover will on one the I the vision the Elena of probably question. add additional will buyback, and midterm here,

stage So, say too I say. to it's will early at this

payout. year, set the for dividend this said, Board Directors we of As minimum

And opportunities be will other answering the Going based forward, and currently that the this grow difficulties investments future looking decisions we the we those I be the made. one. in dividends will opportunities to businesses. are are on for as Those we facing strategy future uncertainties with and given require TSUPIS question may on said discussing

our for on needed execution. So it capital will depend, its and I will strategy say,

through From Cyprus question are will of it's but we that a it's company not a the discussing, on second respect difficult a Okay. Cyprus. to difficult it's perspective, entity, buyback. it's now what table bit the holding is right make in the a another possible. I say like this possible. bit cover with buyback as the technical but would then And we I have

All right. Thank much. you very

today's we concludes also the This end gentlemen, and Ladies have conference. today's reached question-and-answer of session.

your time. this at day. lines the your disconnect Thank you participation. for of may rest You Enjoy your