Qiwi plc predicts a loss of 22.7 billion rubles due to a deal to sell its Russian business. For the same reason, the company recognized an impairment of 14.4 billion rubles. Following the revocation of the license in Russia, the group wants to focus on its businesses in Kazakhstan and the United Arab Emirates, the company said in a statement on its financial results for 2023.
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Qiwi plc included in the impairment loss on Russian assets the estimated value of competitive advantages (goodwill) – 8.7 billion rubles, the value of intangible assets – 4 billion rubles, as well as assets fixed – 1.6 billion rubles. The loss occurred “as a result of the sale of Russian assets at a discount to foreign ownership.”
Furthermore, over the past year, Qiwi’s continuing operations increased its net income by 87% year-on-year. Adjusted net profit amounted to 1.3 billion rubles “due to the growth of net income, the positive effect of exchange rate differences, the revaluation of assets and the restoration of reserves,” the report notes.
After the license was revoked, 2.3 billion rubles in cash from the international Qiwi group remained on Qiwi Bank’s accounts. The latter is working to return the funds.
According to the company, the revocation of the license caused a significant decline in the group’s activities. The negative trend may continue if the company fails to find new business partners to help restore operations and cash flow.
Author:
Karina Pardaeva
Source: RB
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