Qiwi recognizes impairment loss of 14.4 bln rubles on divested Russian assets
MOSCOW. April 23 (Interfax) - Qiwi plc has recognized a loss of 14.4 billion rubles from the sale of Russian assets at a discount in 2023, the fintech group said in a statement.
An additional estimated loss on disposal of the Russian assets in the amount of 22.7 billion rubles will be recognized in 2024, it said.
Qiwi closed a deal at the end of January to sell its Russian assets consolidated under JSC Qiwi to the Hong Kong company, Fusion Factor Fintech Limited, which belongs to the former CEO of Qiwi plc, Andrei Protopopov. The transaction price was 23.75 billion rubles. The Central Bank of Russia revoked Qiwi Bank's license on February 21. The Deposit Insurance Agency, which has been acting as temporary administrator at the bank, is contesting the deal in a Russian court.
As a result of the Transaction, Qiwi will focus on developing its payment and financial services business in Kazakhstan (including payment acceptance through kiosks, mass payouts, internet acquiring, payment gateways and digital wallet), payment processing business in the growing region of UAE, as well as its investments in fast-growing fintech companies in the MENA, SEA and EU regions. The company is also actively analyzing global opportunities for non-organic growth through M&A in the payment and fintech sectors.
The restructuring of the business will enable Qiwi to maintain a listing on Nasdaq and the Moscow Exchange, the group has said - ADS trading has been suspended since February 28, 2022. The company believes it is in compliance with the OFAC rules and the Nasdaq listing requirements and intends to apply to OFAC for its confirmatory opinion. "We understand the response from OFAC may take considerable time, although there is no indication on how long the process will take. Until the opinion is obtained the trading halt of Qiwi securities on Nasdaq will remain," Qiwi said in the report.
The group in 2023 boosted net revenue 90% to 2.9 billion rubles. Qiwi's adjusted net profit in 2023 amounted to 1.3 billion rubles against a loss of 1.8 billion rubles in 2022. This grew on the back of higher net revenue, exchange rate gains, assets revaluation recovery of provisions.