QIWI Plc (NASDAQ: QIWI) Q4 2020 earnings call dated Mar. 30, 2021
Corporate Participants:
Tatiana Vlasova — Acting Head of Investor Relations
Boris Kim — Chief Executive Officer
Andrey Protopopov — Chief Executive Officer of Payment Services
Pavel Korzh — Chief Financial Officer
Analysts:
Vladimir Bespalov — VTB Capital — Analyst
Maria Sukhanova — BCS — Analyst
Andrey Mikhailov — Sova Capital — Analyst
Presentation:
Operator
Good day, everyone, and welcome to the QIWI Fourth Quarter and Full Year 2020 Earnings Conference Call. [Operator Instructions] At this time, I would like to turn the call over to Ms. Tatiana Vlasova, Acting Head of Investor Relations of QIWI. Please go ahead.
Tatiana Vlasova — Acting Head of Investor Relations
Thank you, operator, and good morning, everyone. Welcome to the QIWI fourth quarter and full year earnings call. I am Tatiana Vlasova, Acting Head of Investor Relations, and with me today are Boris Kim, our Chief Executive Officer; Andrey Protopopov, Chief Executive Officer of the Payment Services segment; and Pavel Korzh, Chief Financial Officer. A replay of this call will be available until Tuesday, April 15, 2021. 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 March 30, 2021.
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 today reflect 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 our forward-looking statements.
During today’s call, management will provide certain information that will constitute non-IFRS financial measures such as total 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.
Boris Kim — Chief Executive Officer
Thank you, Tatiana, and good morning, everyone. Thanks for joining us today on this call. I’m pleased to share our fourth quarter and full year 2020 results with you. 2020 was a year unprecedented changes for the world. But despite that, we demonstrated robust performance, driven by the solid results of Payment Services segment and cost optimization measures implemented in 2020, including the sale of SOVEST project and wind-down of Rocketbank. The growth of the Group was amplified by the development of Factoring PLUS and Flocktory projects. I’m glad to confirm that we delivered full year 2020 results in line or even above the guidance with full year total net revenue and adjusted net profit increased by 12% and 54%, respectively.
Now, onto our recent developments. As you know, in December 2020, following a routine scheduled audit of QIWI Bank, the Central Bank of Russia imposed certain restrictions on QIWI Bank’s operations. These restrictions suspended limited more types of our cross-border payments. And the current moment, the CBR restrictions continue to have a negative impact on our volumes and revenues, primarily in e-commerce and money remittance verticals. The CBR imposed these restrictions for six months period starting from December 2020. We are currently working closely with CBR. As a result of our negotiation, we were allowed to restart cross-border operations in favor of certain foreign merchants. I believe this easing of restrictions will allow us to maintain partnerships with our foreign merchants and retain some of our clients that use Qiwi Wallet for cross-border payments. However, we cannot be sure that CBR will ease all these restrictions. We also do not exclude that some of these restrictions may become permanent, including through the adoption of new laws and regulations. But even the CBR lifts these restrictions, we probably may not be able to gain back the business we lost because of these restrictions. And we will discuss the impact of the CBR restrictions in more details while I’ll move through the changes in betting industry landscape.
Sports betting continues to be a significant revenue stream for QIWI. Currently, we serve as one of the two TSUPIS that accept electronic bets on behalf of sports betting companies in Russia. In December 2020, a new law was adopted. This law established a Unified Gambling Regulator and a Unified Interactive Bets Accounting Center, or ETSUP. By the end of December 2021, the ETSUP will replace two existing TSUPIS. We have made a proposal to serve as the ETSUP. However, we cannot be sure that our bid will be successful. If we cannot become a part of the new industry landscape, we may experience a decrease in or complete loss of payment volume and income related to the TSUPIS. At the same time, we believe that we should be able to retain a part of our revenue generated from Qiwi Wallet services for the betting industry, which are not directly related to our TSUPIS, including betting account top-ups and winnings pay-offs.
With increasing competition of the payments market, changes in e-payments regulation, rising scrutiny to cyberspace and cross-border payments, as well as changes in betting industry landscape, 2021 presents a number of novel challenges. Nevertheless, I believe that our resilient ecosystem will serve as a solid foundation for our future growth. We strive for innovations and will continue to reinvent our business model to better reflect the changing environment, fully serve the needs of our customers and diversify QIWI’s ecosystem. This being said, we continue to focus on optimizing and improving efficiency of our operations across all projects. We see many opportunities we to have, and we’ll pursue our ultimate goal of securing the sustainable growth of the category.
Now onto some operational highlights. Fourth quarter 2020 total net revenue was RUB6.2 billion. The decrease was mainly driven by Customer Financial Services segment net revenue decline due to the sale of the SOVEST project in July 2020, which was partially offset by Payment Services segment net revenue growth. For the full year 2020, total net revenue increased by 12% to reach RUB26 billion, up from RUB23.2 billion in the prior year, primarily as a result of Payment Services segment net revenue growth and Rocketbank net revenue contribution generated from the termination of the loyalty program due to project wind-down. Andrey will discuss the performance of our Payment Services segment in a minute, while I will walk you through the operating results of our other projects.
For the full year 2020, Factoring PLUS net revenue more than doubled and reached RUB679 million compared to RUB285 million in the previous year. Factoring PLUS offers its clients two types of services: digital factoring financing and digital bank guarantees. The core clients of factoring financing are small and medium size entrepreneurs, operating mainly in food processing industry, pharmaceutical industry and real estate. As of the end of 2020, Factoring PLUS had more than 470 active clients using factoring financing with a total factoring portfolio of RUB5.7 billion. Factoring PLUS project has already issued over 60,800 bank guarantees with digital bank guarantees portfolio reaching RUB20.9 billion as of the end of 2020. Factoring PLUS clients involve primarily into building and construction business new digital bank guarantees on the broad range of transactions, primarily performance guarantees for public procurement participation and execution. That said, the NPL level of the bank guarantees portfolio is below 0.2%. Despite the challenging macroeconomic environment in 2020, the project demonstrated strong operating and financial results. In 2021, we aim to focus on enhancing the current services of Factoring PLUS clients and development of new projects, which will be strengthening our position in SME market.
The consolidation of Flocktory project starting from December 2019 also contributed to total net revenue growth. The Flocktory full year 2020 net revenue amounted to RUB499 million. For the full year 2020, Tochka net revenue declined by 41% to RUB588 million as a result of a decline in revenue generated from cash and settlement services due to lower number of active Tochka clients being served by QIWI Bank, as well as by the transfer of the Tochka business to JSC Tochka, our equity associates, starting from February 1, 2019. Finally, last year, we successfully completed the optimization process and divested two loss-making projects, SOVEST and Rocketbank.
Moving on, I’m glad to confirm that in accordance with the decision of the Board, we will be distributing 50% of our adjusted net profit for 2020. The final amount of dividends as well as record and payment dates will be announced following the publication of our audited full year results. Further, considering our expectations about the Group’s performance and our anticipated level of investments in 2021, the Board of Directors approved a target dividend payout ratio of at least 50% of Group adjusted net profit for 2021. The Board of Directors reserves the right to distribute the dividends on a quarterly basis, as it deems necessary so that the total annual payout is in accordance with the target provided, though the payout ratios for each of the quarters may vary and be above or below provided target.
Now onto our guidance. Looking ahead, there remains significant uncertainty in 2021, primarily related to the long run effect of CBR restrictions and our ability to recover or replace current [Indecipherable] cross-border operation, as well as our ability to secure a place in the new betting industry landscape. We remain cautious and closely monitor the situation on the market. Having said that, we expect Group total net revenue to decrease by 15% to 25% over 2020, Payment Services segment net revenue to decrease by 15% to 25% over 2020, while adjusted net profit is expected to decrease by 15% to 30% over 2020. Our outlook reflects our current views and expectations only and based on the trends we see as of the day of the earnings call. If such trends were to deteriorate further, the impact on our business and operations could be more severe than currently expected. At the time, we reserve the rights to revise the guidance in the course of the year on the scope and extent of factors impacting our results become clear.
Finally, I would like to announce that I have notified the Board of Directors regarding my intention to resign from the position of the CEO with effect from the date of the 2020 Annual General Meeting. Together with the QIWI team, we achieved growth that I initially had in mind when [Indecipherable] CEO position. We refined our business model and improved the operation of the Group, and we also revised our strategy. I would like to thank our team for this job. And I’m also happy to share that our Board of Directors has recommended that Andrey Protopopov take the position of Chief Executive Officer of QIWI. The recommendation comes after a profound executive search undertaken by the Board from among internal and external candidates, and is the result of a long-running strategic process to transform QIWI into a management-driven business that is able to succeed without reliance on its founder team. Andrey has long played in a vital role at QIWI, particularly in product development function. And I believe the nomination of Andrey will ensure continuity of our strategy focused on development of our payment ecosystem and the growth in our solutions, as well as enhancement of our other projects. For the last couple of years, Andrey has been actively involved in management of the operation of the business, and I believe his skills and commitment, supported by our leadership team, will help QIWI to fulfill our long-term goals.
With this, I will turn the call over Andrey for an update on our Payment Services business. Andrey?
Andrey Protopopov — Chief Executive Officer of Payment Services
Thank you, Boris, and good morning, everyone. It’s my pleasure to be here with you today. First of all, I would like to thank the Board of Directors for the trust they have placed on me. Since joining QIWI in 2013, I have been involved in different aspects of the business, and I’m very confident in QIWI’s potential. I am eager to take the helm and execute our strategy, focusing on enhancement of our Payment Service segment market position, as well as development of our other projects, including Factoring PLUS and Flocktory.
Now, onto the result of our Payment Service segment. Despite all challenges we faced in 2020, we processed over RUB1.6 trillion in cash and electronic payments and increased our payment volume by 9%. I would like to thank our entire team for their contribution and engagement. This result proves the resilience of our ecosystem and clearly emphasizes the value and relevance of solutions that we have developed so far and aim to develop further.
I will begin with a discussion of the impact of the CBR restriction on our Payment Services segment. The restrictions had and continue to have a negative effect on our operations. As Boris mentioned earlier, our e-commerce and money remittance market verticals continue to be constrained. Cross-border payments in general have higher commissions, and therefore, CBR restrictions significantly depressed our fourth quarter payment average net revenue yield, with e-commerce adjusted net revenue yields decline by 58 basis points. Following the yield decline, e-commerce net revenue decreased by 8% compared to the fourth quarter of the prior year. We believe that the total impact of the restriction on Payment Services net revenue in the fourth quarter of 2020 was between RUB500 million and RUB600 million.
Now, let’s move on to the operating results. For the fourth quarter of 2020, our Payment Services segment volume increased by 60% to reach RUB464 billion, driven by significant growth in money remittance and the e-commerce market verticals, which grew by 33% and 21% respectively. The growth in e-commerce and money remittances verticals was largely driven by the development of our key streams, mainly digital entertainment and self-employed, where we focus on extending our partner network and building our relations with our existing partners. The fourth quarter volume growth was muted by CBR restrictions.
Payment Services segment net revenue increased by 6% in the fourth quarter of 2020 to reach RUB5.8 billion compared to RUB5.5 billion in the prior year. Payment Services payment adjusted net revenue increased by 4% to RUB5 billion, up from RUB4.8 billion in the prior year, primarily as a result of the net revenue growth in our money remittance vertical, which grew by 22%. The continuous growth. In money remittance vertical was driven mainly by the strong performance of the Contact Money Remittance System and the significant increase in payouts, resulting from the scaling of our strategic self-employed stream. In the fourth quarter of 2020, we connected to our platform over 550 taxi companies, continued to improve our services for taxi park [Phonetic] and other self-employed use cases in order to support future growth of the stream.
Our payment average adjusted net revenue yield was down by 12 basis points year-over-year by [Phonetic] 1.09%, driven by the yield decline in our e-commerce and money remittance market verticals. Such reduction was driven primarily by the CBR restrictions, as well as a change in product mix as we continued to see an increase in the volume of several low-yielding services such as online acquiring. Payment Services other adjusted net revenue increased by 18% to RUB766 million as compared to RUB647 million in the prior year as a result of the growth of for inactive accounts and unclaimed payments, as well as due to some cost optimization measures we implemented in 2020.
Our financial and operations results were negatively affected by COVID-19 pandemic and related restrictions imposed globally. We adjusted [Phonetic] declines in revenues we derive from our services from the betting industry due to the cancellation of numerous major sports events and the drop in marketing events, primarily resulting from an overall slowdown in business activity. We also experienced a decline in the use of our kiosk and terminal network due to the lockdown measures, which led to decrease in the number of kiosks and terminals. The full impact of COVID-19 pandemic on the global economy is difficult to predict due to the lack of clarity of how long it could be expected to last. Nevertheless, QIWI is actually building new technology platform, highly valued by both customers and partners and very limited [Phonetic] supply demanded by the market. Despite the uncertainty and challenging operational environment, we see diverse opportunities for growth in the mid and long term, including through general digitalization trends. In accordance with our updated strategy, we will focus on the development of new services and products through our key initiatives, including digital entertainment, self-employed, digital [Phonetic] commerce and money remittance, in order to increase our penetration in those markets.
I do believe that we are well positioned to continue developing our business and strengthening our ecosystem to provide our clients with the best-in-class digital solutions. With this, I will pass over Pavel for more details on the financial performance of the Group. Pavel?
Pavel Korzh — Chief Financial Officer
Thank you, Andrey. Moving on to expenses, in 2020, the Payment Services business demonstrated strong operating performance and continued to generate substantial cash flows, supporting our investments in the development of the new projects. For the full year 2020, we have significantly increased the overall efficiency of our operations and our margins through successful divestiture of the key investment-intensive projects and other cost control and optimization measures that we were implementing throughout the year. The full year net revenue growth, which was underpinned by the decrease in expenses, supported an increase of profitability of the Group.
Before we move on, I would like to highlight that going forward, I will refer to the segment numbers that include the effects of both continued and discontinued operations under IFRS. For the avoidance of doubt, as of December 31, 2020, SOVEST and Rocketbank projects are presented as discontinued operations in our IFRS financials.
This being said, adjusted EBITDA for the fourth quarter of 2020 increased by 125% to RUB3.6 billion from RUB1.6 billion for the same period in the prior year. Adjusted EBITDA margin was 58% compared with 26% in the previous year. For the full year 2020, adjusted EBITDA increased by 52% to RUB13.8 billion from RUB9.1 billion rubles in the prior year due to total net revenue growth. Adjusted EBITDA margin was 53% compared with 39% in the prior year. Adjusted EBITDA margin increase mostly resulted from the decrease in selling, general and administrative expenses due to the decline in advertising, client acquisition and related expenses, driven by the divestiture of SOVEST and the wind-down of Rocketbank and lower other administrative expenses, mostly related to traveling.
Group adjusted net profit increased by 116% in the fourth quarter 2020 to RUB2.5 billion from RUB1.2 billion in the fourth quarter of the prior year, while for the full year 2020, group adjusted net profit increased by 54% to RUB10.3 billion from RUB6.7 billion in the preceding year. Adjusted net profit growth largely resulted from the same factors impacting adjusted EBITDA, offset by an increase in income tax expense.
Payment Services segment net profit for the fourth quarter 2020 increased 1% to RUB2.7 billion, driven primarily by Payment Services segment net revenue growth, offset by the growth of personnel expenses, excluding the effect of share-based payment expenses. Corporate and other category net loss for the fourth quarter decreased by 23% to RUB162 million from RUB210 million in the fourth quarter of the prior year, while corporate and other category full year 2020 net loss decreased by 35% to RUB730 million from RUB1,128 million in the previous year as a result of Tochka net profit growth by 121% to RUB785 million, primarily due to the higher equity pick-up, driven by the project growth and strong performance. Factoring PLUS net profit was RUB206 million compared to a net loss of RUB23 million in the prior year.
We continue to optimize our operations in order to improve operating and financial performance of the Group and ensure sustainable growth. With that, operator, please open up the call for questions.
Questions and Answers:
Operator
[Operator Instructions] Our first questions come from the line of Vladimir Bespalov of VTB Capital. Please proceed with your questions.
Vladimir Bespalov — VTB Capital — Analyst
Hello, congratulations on the numbers. I have a few questions. My first question will be on betting. It remains like six months before the new operator of the unified TSUPIS is going to start operations. So with this time remaining, probably there should be more clarity to, say, the company which will be providing these services has to make IT solutions something like this. Maybe could be update on the status? What is going on? What is the status of your talks and what are the options? Could you serve for example, as an outsourcing company for solutions to be provided? And what kind of revenue this option can generate?
Boris Kim — Chief Executive Officer
Thank you for your questions. Sports betting continues to be a significant revenue stream for Qiwi. However, our future results depend on our ability to secure a place in the new betting industry landscape. In December 2020, a new law was adopted, establishing Unified Gambling Regulator as the new governmental agency with broad authority to oversee the betting market and creating the role of Unified Interactive Bets Accounting Center, ETSUP. This role is assigned to a quality institution specifically authorized by the President of Russia, based on the proposal made by the government. The new regulation enters into force in stages. By the end of the September 2021, ETSUP will be established and will replace the two existing TSUPIS.
At the current moment, we have submitted a proposal to serve as a ETSUP, and we are waiting for the announcement of the organization who will serve as ETSUP. Meanwhile, even if we are enabled to become ETSUP or somehow other participating ETSUP operations, we can retain a lot of revenue related to betting, primarily for services associated with Qiwi Wallet, including commissions for betting account top-ups and winnings pay-outs. We believe that QIWI has built a unique technology platform that is highly valued by both customers and partners and gathers unique expertise and that is sought after the market. We believe that our services will continue to be demanded by the market, and we’ll strive to maintain the quality and availability of our services.
Vladimir Bespalov — VTB Capital — Analyst
Okay. Thank you very much. And my other question is on the money remittance vertical. When I look at the numbers for the fourth quarter, I don’t see, at least on the surface, the impact from the Central Bank’s regulations because both yields are okay and growth is okay. So could you maybe comment a little bit to whether the negative impacts on the CBR regulation was offset by some other acceleration in this vertical? And maybe you could provide more color what is going on there.
Pavel Korzh — Chief Financial Officer
Hey, Vladimir, thank you for your question. I will cover this one. So first of all, we should mention that compact money remittances, that is a big portion of overall money remittances of Payment Service, they are not affected by CBR limitations. So this one was still allowed. Second big portion of money remittances is related to self-employed businesses, both peer-to-peer payments between the wallets that as well not affected by the CBR regulation, and payouts to the taxi companies and other companies that doing payouts to the self-employed. So, majority of those regulations as well not affected by the CBR regulation. So that’s why I would say that this vertical is growing quite nicely and is continuing to grow now as well.
Vladimir Bespalov — VTB Capital — Analyst
Okay. Thank you very much. And my third question would be on the trends in the e-wallet. You reported wallets [Indecipherable] the past 12 months. But if we look at the trends, let’s say, in — over the past three months after the regulation by the Central Bank was imposed on you, do you see any meaningful change of trends? Do you see the number of wallets declining, the flow-through wallet declining? Maybe some color on that. Thank you.
Pavel Korzh — Chief Financial Officer
I would say, it’s still early to say that we have any kind of consistent trend on the wallet number, so we won’t see the trends we saw before. Obviously, some wallets — we lost some wallets that they use an international operation. At the same time, we’re continuing to — as we said, we kept some of the operations with big merchants where a lot of wallets were involved, like for example, Ali Express. And our Russian business that is related to wallets, including, for example, TSUPIS business, is growing as well. So, I would say it’s a mix trend currently, and it’s too early to say how it will go further. And it as well will be affected by the fact how the CBR limitations will be lifted and how we’ll be able to get back the clients and some of the clients on volume that we had before.
Vladimir Bespalov — VTB Capital — Analyst
Thank you very much.
Operator
[Operator Instructions] Our next questions come from the line of Maria Sukhanova of BCS. Please proceed with your questions.
Maria Sukhanova — BCS — Analyst
Yes. Good afternoon. I have two questions. So first off, in the press release, you said that you are now able to make transactions with some of the foreign merchants. Just wanted to check with you how significant it is versus the amount of transactions that were suspended? That’s one.
And second with your guidance, do I get it right that this range — first off, the only factor you so far assume is suspension of CBR — CBR suspension, and you do not yet assume any problem, issues with betting. And second, this range, does it come from the timing whether the suspension is lifted [Phonetic]? Thank you.
Boris Kim — Chief Executive Officer
Maria, thank you for the question. I’m not sure I fully heard the second one. Let me start from the first one and then we will clarify the second. So, talking about those merchants that were taken out from the CBR limitation, they’re probably not that significant in terms of the revenue that we are getting from our international operations but they are important in terms of the number of clients and in terms of the kind of overall position because they are kind of from the image, let’s say, standpoint because they are big merchants and they’re important for our customers. And as well, this one is important because it’s crucial to keep the relationship with those merchants, let’s say, unstoppable, while it will be easier to restart our operations with a long tail of smaller merchants than with a big one because if you once lose your contract, then it’s maybe difficult to repeat. So, it’s more kind of, I would say, related to the image with our clients than the volume and revenues.
For the second one on the guidance, could you repeat? Because I think there was something wrong with the sound.
Maria Sukhanova — BCS — Analyst
Yes, apologies. So with guidance, what scenario is it based on? Like, do you assume that the limitations are lifted in summer and that’s what it’s based on? Or you also assume some issues with betting? Just to give us some clarity, what are your assumptions?
Boris Kim — Chief Executive Officer
Yeah, exactly. The range that we have in the guidance is a reflection of those different scenarios. So the low range of the guidance implies that we may face certain limitations and certain issues with betting going forward. So, I would say that the range that is within the guidance is a reflection of some uncertainties that we still have for this year related both to CBR limitations and the regulation overall, as well as how this ETSUP story will continue.
Maria Sukhanova — BCS — Analyst
Thank you.
Operator
[Operator Instructions] Our next questions come from the line of Andrey Mikhailov of Sova Capital. Please proceed with your questions.
Andrey Mikhailov — Sova Capital — Analyst
Good afternoon. Thank you very much for the call. My first question is on the new betting regulation. You basically mentioned that if you don’t become this single processor of betting payments starting in September, you will still keep some part of your revenue related to top-ups and payments of winning bets. My question is, in this scenario — if this scenario had already been applied in Q4, how much revenue would you have lost in Q4 2020? And I have other questions afterwards.
Pavel Korzh — Chief Financial Officer
Yeah. Let me cover this one. You can think — we probably are not disclosing the exact numbers, but we’ll have, let’s say, from one-third to 40% of overall TSUPIS volumes and revenues with us in this scenario, from 30% to 40%.
Andrey Mikhailov — Sova Capital — Analyst
Just to clarify, that’s what you could keep right, not what you could lose?
Pavel Korzh — Chief Financial Officer
Yes.
Andrey Mikhailov — Sova Capital — Analyst
Thank you very much for this. My second question is on the audit of your FY ’20 financials. This year, you have not yet announced dividends together with the unaudited statements. Really is it because the audit is underway? And you also state that there maybe could be some adjustments in the audited statements versus the unaudited statements published today. Would you be able to elaborate on where and what magnitude these adjustments could be? Thank you.
Pavel Korzh — Chief Financial Officer
Thank you for your question. We’re waiting for the completion of the audit by the Company independent auditors, which is at the final stage. At this point in time, we’re not aware of any significant changes in the numbers, which would come from the audit completion.
Andrey Mikhailov — Sova Capital — Analyst
Thank you. And my final question is on the number of potential class action suits against you from a number of years. Law firms, there are various announcements about that. Could you elaborate on the current status of any such claims against the Company and the potential amount of provisions that you have already posted in the unaudited accounts published today or possibly in the audited accounts to be published later? Thank you.
Pavel Korzh — Chief Financial Officer
Thank you for your question. So, we are waiting for appointment of lead plaintiff, and we hope that happen — will happen in May. Until that, we don’t have much visibility to comment because we don’t have enough information at this stage.
Andrey Mikhailov — Sova Capital — Analyst
Thank you. Just to clarify, so no provisions have been posted yet? Is that correct?
Pavel Korzh — Chief Financial Officer
No, that’s correct.
Andrey Mikhailov — Sova Capital — Analyst
Thank you very much for this. That’s all from me. Thank you.
Operator
Thank you. There are no further questions at this time. I would like to turn the call back over to the management for any closing remarks.
Boris Kim — Chief Executive Officer
Thank you very much for attending the call. Thank you.
Andrey Protopopov — Chief Executive Officer of Payment Services
Thank you.
Operator
[Operator Closing Remarks]