Nasdaq-listed Russian payment processor QIWI plc (PC42 profile) offering payment and financial services in Russia and the CIS, announced its first-quarter 2022 financial results that ended March 31, 2022. The company headed by the Russian CEO Andrey Protopopov has its official headquarters in Cyprus.

Despite the Russian invasion of Ukraine and the Western sanctions, QIWI’s Total Net Revenue increased by 22.2% YoY to RUB 6,305 million ($75.0 million). The adjusted Like-for-like Total Net Revenue increased by 48.6% YoY resulting from improved Payment Net Revenue Yield by 10 bps and increased Other Net Revenue due to higher interest income.

Evidently, QIWI experienced some impacts of the Western sanctions against Russia as the Payment Volume was 7.2% lower YoY and amounted to RUB 356.5 billion due to terminated TSUPIS & related acquiring services.

However, the Payment Net Revenue increased by 1.3% YoY and amounted to RUB 4,119 million ($49.0 million) driven by a 10 bps higher Payment Net Revenue Yield. This compensated for the Payment Volume decline of 7.2%.

QIWI informed that although to date they have had no material direct impact from sanctions imposed on Russia on their day-to-day operations, and their financial position remains strong, the Board continues to keep the payment of future dividends under review and will update shareholders through further announcements as appropriate.

Furthermore, QIWI pointed out technical complications for the distribution of dividends, for example, existing Central Bank of Russia restrictions on the distribution of dividends to foreign parent companies and a lack of communication between Euroclear and the Russian National Settlement Depositary (“NSD”).

The full impact of sanctions on the Russian economy and QIWI would be unclear at this point and requires cautiousness for the benefit of all shareholders and the Company.

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