MAGNIT PJSC (MGNT)
02-Jul-2021 / 12:50 MSK
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
MAGNIT ISSUES 5 MILLION MAGNIT PAY CARDS
Krasnodar, July 02, 2021: Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, tallies up the results of its payment service Magnit Pay for seven months.
Since the launch in December 2020, the Company has issued 5 million virtual payment cards. At the same time, about 65% of holders use this service for purchases outside Magnit ecosystem. Most often, virtual cards are used in grocery stores, cafes, and restaurants, as well as for payment for delivery services.
Holders of virtual cards are frequent visitors of Magnit stores. Average ticket of customers using Magnit Pay increased by about 15% during the first month of using the card. Besides, holders of Magnit Pay cards visit Magnit stores twice as often as the participants of the Company's loyalty program.
Deputy Chief Executive Officer, Executive Director
"We are pleased with the interim results of Magnit Pay development. 5 million virtual cards is an impressive result that has been achieved organically without active marketing. We will continue developing the payment service by adding new features and benefits to create additional value for our customers."
A member of the Management Board of VTB
"In the first six months of operation of Magnit Pay, the number of issued virtual cards exceeded 5 million and continues growing. The project with Magnit is one of the first ventures developed as part of VTB's efforts to build an open ecosystem, which we are creating together with our partners. We are ready to offer industry leaders the most popular and high-tech services for every day. We plan to deepen our partnership with Magnit Retail Chain by developing and expanding our line of financial products with financial services relevant to its customers".
In December 2020, Magnit announced the development of its super app based on the existing loyalty program to unite online shopping, payment and credit solutions, lifestyle and other non-financial customer services, as well as benefits from its partners.
The launch of Magnit Pay payment service, developed jointly with VTB Group, was the first step. This spring the Company became the first retailer in Russia to add mobile, Internet and TV payment services, as well as a feature enabling to top up transport cards, to its loyalty program application. All these payments are processed without any commission. Later, Magnit launched a solution that enabled Magnit Pay cardholders to pay for their purchases using the same QR code as used in the loyalty program. And in June, the Company launched the online Credit Broker service, which is now at the MVP (Minimum Viable Product) stage. With the help of this service, any user of the Magnit mobile app can apply for a credit card and shortly receive a response from the partner banks connected to the service. In the near future Magnit intends to incorporate new options into the application, including services to pay utilities, fines, taxes, etc.
Note to editors
Public Joint Stock Company "Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of March 31, 2021, Magnit operated 39 distribution centers and 21,900 stores (15,098 convenience, 471 supermarkets and 6,331 drogerie stores) in 3,770 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the audited IFRS 16 results for FY 2020, Magnit had revenues of RUB 1,553.8 billion and an EBITDA of RUB 178.2 billion. Magnit's local shares are traded on the Moscow Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT) and it has a credit rating from Standard & Poor's of BB.
This document contains or may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected sales growth rate and/or store openings are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. Any forward-looking statement is based on information available to Magnit as of the date of the statement. All written or oral forward-looking statements attributable to Magnit are qualified by this caution. Magnit does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances.