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We accept as true with that QIWI Plc QIWI is overvalued. QIWI is a Russian company that trades on the Nasdaq. We see that many traders have a poor realizing of the business’s strategies. QIWI is losing out as a result of the competition of essential gamers. it’s extremely stylish on one business line, which is has regulatory and aggressive risks. below we can provide our element of view on QIWI.
No core competence to grasp in a more difficult market
in their 20-F SEC filing, QIWI admits that competitors will negatively affect the enterprise’s market place:
As predominant business and retail banks boost their on-line and virtual presence and come up with increasingly refined items at once competing with our core advantage, our competitive place can be severely undermined, resulting in decreased demand for our products, both with appreciate to our price features company and the different monetary capabilities initiatives that we are pursuing.
Let’s study QIWI’s e-commerce section. In 2017, the e-commerce section internet profits comprised fifty one% of enterprise’s total web profits. in accordance with credit score Suisse analysis on QIWI from April 7, 2017, eighty five% of QIWI e-commerce payments come from having a bet, gaming, and hospitable networks. but the variety of charge alternate options for a consumer continues expanding as new gamers enter the market. agen piala dunia
right here is an instance: the on-line gaming business. Mail.ru estimates on-line gaming market in Russia to be ₽fifty six.7bn in 2016 $0.9bn with a CAGR of 24% over the final five years; based on our estimates, Mail.ru controls about 50% of this market. In 2017, mobile operators Megafon, MTS, Veon, Tele2, and Yota all started to fight for players’ funds and even canceled commissions. right here is Warface through Mail.ru’s payment page, and these days avid gamers have eleven distinctive alternatives to pay for his or her purchase: Warface
beneath is a screenshot of a charge web page from Liga Stavok, which controls 9.three% of the Russian offline activities making a bet market and is the third most visited having a bet site in Russia:
A participant has eight different alternatives to make a no-fee price, together with right here:
by card: ninety.6% of all Russian web users have at the least one financial institution card