Mogo Finance reports unaudited results for the financial year ended 31 December 2018
Investments for further increases in profitability while improving performance quarter on quarter
OPERATIONAL AND STRATEGIC HIGHLIGHTS
- Significant growth in core business with Group loans issued increasing by 46.5% equalling EUR 121.5 million (FY 2017: EUR 82.9 million), of which EUR 88.4 million in mature markets (FY 2017: EUR 66.0 million)
- Consolidated number of active customers up significantly by approx. 47.7% to over 65,000 (31 December 2017: approx. 44,000)
- Armenia has transitioned from mid-tier country to a mature country being profitable on an annual basis
- Instalment loan product in Baltics used as a client retention and upsell tool
- Used car long-term rent business compliments existing leasing and leaseback product offerings contributing to future diversification
- Improved performance q-o-q 2018 underlining strategic investments in profitability
- Strong increase in interest and similar income of 9.2% in Q4 to EUR 16.7 million (Q3: EUR 15.3 million, Q2: EUR 14.0 million, Q1: EUR 12.4 million)
- Sustainable net interest income of EUR 12.2 million in Q4 up 14.0% (Q3: EUR 10.7 million, Q2: EUR 9.7 million, Q1: EUR 8.8 million)
- Significant improvement of +18.7% in gross profit in Q4 of EUR 7.6 million (Q3: EUR 6.4 million, Q2: EUR 5.4 million, Q1: EUR 4.1 million)
FINANCIAL HIGHLIGHTS AND PROGRESS
- Interest and similar income significantly up 52.1% to EUR 58.4 million (FY 2017: EUR 38.4 million)
- Rapid growth in net interest income of 42.8% to EUR 41.4 million (FY 2017: EUR 29.0 million)
- Adjusted EBITDA improved notably by 12.1% to EUR 23.2 million (FY 2017: EUR 20.7 million) with significant contribution from mature countries with adjusted EBITDA of EUR 28.5 million (FY 2017: EUR 23.0 million)
- Clear optimization of financing costs to 11.4% in FY 2018 (FY 2017: 13.2%)
- Slight increase in cost to income ratio to 35.6% (FY 2017: 27.9%) due to country launches and internal regional set up, largely offset by improved profitability in mature countries with cost to income ratio decreasing to 18.2% (FY 2017: 24.6%)
- Strong capitalization ratio at stable level of 11.5% (31 December 2017: 11.8%)
Modestas Sudnius, CEO of Mogo Finance, commented:
“Our strong FY 2018 results with revenues up 52.1% and improved performance quarter on quarter underline our decisions to invest in future profitability. A strong capitalization ratio and clearly optimized financing costs build a strong foundation for Mogo Finance Group to take both our start-up as well as our mid-tier countries to the next level with a sustainable prospect of profitability on a yearly basis.
Diverse product portfolio, well-developed teams and effective knowledge sharing across different regions and country levels will maintain the sustainable growth in mature countries and boost operational excellence in start-up and mid-tier countries."
The full unaudited report for the financial year ended 31 December 2018 is available here.
A conference call in English with the Group's management team to discuss these results is scheduled for 15 February 2019, at 15:00 CET.
Please register here: http://emea.directeventreg.com/registration/5997802
The presentation for the conference call will be available here as of 15 February 2019, at 9:00 CET.
Mogo Finance (CFO), Email: firstname.lastname@example.org
Maris Kreics +371 66 900 900
Aalto Capital, Email: email@example.com
Sven Pauly +49 89 8986777 0
About Mogo Finance:
Mogo Finance is one of the largest and fastest growing secured used car financing companies in Europe. Recognizing the niche in used car financing underserved by traditional lenders, Mogo Finance has expanded its operations to 13 countries issuing over EUR 358 million up to date and running a net loan portfolio over EUR 140 million. Mogo offers secured loans up to EUR 15,000 with maximum tenor of 84 months making used car financing process convenient, both for its customers and partners. Wide geographical presence makes Mogo unique over its rivals and diversifies revenue streams.
Mogo Finance operates through its own branch network, more than 1,500 partner locations and strong online presence. Physical footprint makes Mogo Finance top of mind brand in used car financing. Established in 2012, headquartered in Riga, Latvia Mogo Finance operates in: Latvia, Estonia, Lithuania, Georgia, Poland, Romania, Bulgaria, Moldova, Albania, Belarus, Armenia, Ukraine and Uzbekistan.
The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or any other countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Persons into whose possession this announcement may come are required to inform themselves of and observe all such restrictions.
This announcement does not constitute an offer of securities for sale in the United States. The bonds have not been and will not be registered under the Securities Act or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.
This announcement does not constitute a prospectus for the purposes of Directive 2003/71/EC, as amended (the "Prospectus Directive") and does not constitute a public offer of securities in any member state of the European Economic Area (the "EEA").
This announcement does not constitute an offer of bonds to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the bonds. Accordingly, this announcement is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this announcement as a financial promotion may only be distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as "Relevant Persons"). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents.
PROFESSIONAL INVESTORS ONLY – Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as the bonds do not constitute packaged products and will be offered to eligible counterparties and professional clients only.