SBRCY - Qiwi Is A Compelling FinTech At A Discount Valuation
Qiwi Bank (QIWI) is high growth, high margin and debt-free dominant Russian payment operator growing revenues in the high teens over the coming years. Yet, it trades at 10x the core payments business earnings after deducting corporate expenses. This despite profitability expected to triple in three years (see below). Supportive secular digital payments trends are highly likely to continue for many years as Russian payments, which today are 70% cash, migrate online.
Source: Qiwi Investor Day November 2018
Fragmented e-Commerce Helps Qiwi
Furthermore, fragmented Russian e-Commerce, where Qiwi is well-positioned can illustratively ultimately