MAGNIT PJSC (MGNT)
Press-release | Krasnodar | February 9, 2021.
Magnit Sums Up First Results of Magnit Pay
Krasnodar, Russia (February 9, 2021): Magnit PJSC (MOEX and LSE: MGNT; the Company, Magnit), one of Russia's leading retailers, has disclosed the first results of its Magnit Pay service, developed in cooperation with the VTB Group. The launch of the service in mid-December 2020 represented the first stage in the development of a super app centered around Magnit's loyalty program.
Since the payment service was brought online, about 100,000 Magnit customers have become its active users, of which 55,000 users have added a Magnit Pay card to contactless payment services (Apple Pay, Google Pay, etc.) for offline usage. Every day, about 30,000 virtual payment cards are issued via Magnit's app, with their total number already standing at about 1.5 million.
Magnit Pay can be used to pay for purchases in any store - online and offline, inside and beyond Magnit. To get a virtual card, a customer needs to sign up via Magnit's loyalty program app. After passing a simplified identification procedure in the app, customers can keep up to 60,000 rubles on their card and spend up to 200,000 rubles a month.
Almost half of Magnit Pay customers used it to pay for goods and services also purchased outside the Family of Magnit stores. Most often, the virtual card was used in grocery stores, cafes, regular and fast-food restaurants, as well as to pay for delivery services and purchases in liquor stores. The highest number of Magnit Pay's active users are located in Moscow as well as the regions of Central Russia and the North Caucasus.
Moreover, virtual card holders made purchases more actively in Magnit stores as well: they went shopping 19% more often than other members of the loyalty program, and their average ticket was 4% higher. Loyalty program members receive an additional 0.5% of the purchase amount paid using Magnit Pay as a bonus, and twice as much during the first 30 days.
In the near future, Magnit Pay will introduce the possibility to pay by presenting a QR code at the checkout, as well as credit broker services. The Company also plans to enable customers to pay for services in its loyalty app: for example, customers will be able to pay for communication services or top up their travel card. In the future, Magnit's super app might include such non-financial services as ordering a taxi, buying tickets for events, booking restaurant reservations, and ordering food delivery. In addition, the app will integrate the Company's own service for delivery of goods from all Magnit formats.
"We are satisfied with the first results of Magnit Pay," said Florian Jansen, Magnit's Deputy CEO and Executive Director, "These results were achieved without any marketing support on our part. This spring, we are going to launch a special program to promote the service, which will help us significantly expand its audience. We have big plans for future development of Magnit Pay, we want to make it a financial service seemlessly integrated in modern shopping experience."
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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 December 31, 2020, Magnit operated 38 distribution centres and 21,564 stores (14,911 convenience, 470 supermarkets and 6,183 drogerie stores) in 3,752 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the unaudited IFRS 16 management accounts 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 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.
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