WOOD Flash – QIWI: 2Q20 results further prove the resilience of the business
QIWI’s strong 2Q20 results, reported yesterday (19 August), serve as evidence of the company’s resilient business model (net cash of c.RUB 5bn, 60% net margin from the core payment segment), as well as the increasing diversification of its revenue streams, in our view. The quarterly dividend of USD 0.33/share (almost a 7% annualised yield) is equally a strong sign. We continue to view QIWI as one of the most misunderstood and undervalued companies in the sector, with the market being concerned by the sustainability of the revenue from betting, the recent management changes, and the risks of a share overhang related to the Otkritie sale. QIWI trades at 7x P/E, based on our FY21E estimates, and offers a high single-digit dividend yield, as it distributes over 50% of its earnings to shareholders.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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