Qiwi PLC, which provides payment services in Russia, has decided to explore opportunities for the partial or complete sale of unit Rocketbank LLC.
Following the review of a strategic plan prepared for Rocketbank, Qiwi's board of directors concluded that Rocketbank's business plan has an investment profile that is incompatible with its parent's risk appetite, and that Rocketbank's business does not offer sufficient potential synergies with Qiwi's core business.
Rocketbank's net loss for the second quarter amounted to 511 million rubles, an increase of 425% compared with the same period a year ago, mainly due to expenses associated with the transfer and roll out of Rocketbank's operations in Qiwi. Rocketbank's net loss for the first half amounted to over 1 billion rubles, up from 170 million rubles in the year-ago period.
Qiwi also said Aug. 19 that it revised its 2019 outlook for total adjusted net revenue, payment services segment net revenue and payment services segment net profit, expecting them to grow by 11% to 16%, 23% to 27% and 25% to 29%, respectively, compared to 2018.
The company also maintained its 2019 outlook on its adjusted net profit, expecting it to increase by 40% to 50% from 2018. For the second quarter, Qiwi's adjusted net profit increased 125% to 1.97 billion rubles or 31.58 rubles per diluted share.
As of Aug. 19, US$1 was equivalent to 66.82 Russian rubles.
