Revenue of DelfinGroup grew by 52% in the second quarter
The Latvian fintech company DelfinGroup continued to show stable growth in all business segments in the second quarter of 2023, which was reflected in the financial results. The company's revenue in the second quarter of 2023 increased by 52% compared to the same period last year, reaching 12.3 million euros. DelfinGroup EBITDA increased to 4.3 million euros, up 41% compared to Q2 2022, while profit before tax increased by 7% to 2 million euros. The company’s loan portfolio has reached 78.1 million euros, up 16% since the beginning of the year.
Summarising the results for the first half of 2023, DelfinGroup revenue has increased by 51% compared to the corresponding period last year, reaching 23.7 million euros. The company's EBITDA has also grown to 8.3 million euros, representing a 46% increase compared to the first half of 2022.
"DelfinGroup continues to implement a sound development strategy, which has enabled us to complete another successful quarter. We have grown both in lending and in pre-owned goods sales. The company's loan portfolio continues to grow, which, together with the rise in interest rates and financing costs, has had a natural impact on profit figures. At the same time, EBITDA increased by 41% to 4.3 million euros. The company’s growth allows us to develop new services, including promoting the principles of circular economy in society, encouraging the recycling of goods and generally taking care to reduce our carbon footprint and use our resources wisely," explains Didzis Ādmīdiņš, Chairman of the Management Board of DelfinGroup.
Overall, in the first half of this year, retail in pre-owned and new goods reached 6.8 million euros, a 39% increase compared to the same period last year. Additionally, loan issuance reached 45.7 million euros in the first half of this year, a 29% increase compared to the same period of the previous year.
He adds that this year, the largest Banknote XL circular economy store in Riga has been opened in the Imanta neighbourhood, where it is possible to buy pre-owned and new goods with a guarantee, as well as to sell items that are no longer used in the household. A new digital service – remote purchase of goods – has also been developed, making it easier for people to re-sell their goods. Also work continues on the development of the circular economy online store, which already offers more than 50 000 pre-owned and new goods in one place.
To ensure balanced growth and financial covenant fulfilment, DelfinGroup purposefully pursued a steady growth in loan issuance in Q2. As a result, loans worth 21.8 million euros have been issued this quarter, marking a 7% increase compared to the last year. Consequently, increasing loan issuance during the first half of the year resulted in a record-high net loan portfolio amount – 78.1 million euros, already surpassing the strategic aim to reach 77 million euros net loan portfolio at the end of 2023.
The company continues to adhere to responsible lending principles, which resulted in a good loan portfolio quality in the second quarter. Based on the consumer loan portfolio, DelfinGroup customers repay 94.7% of their loans within 30 days, and 97.8% of loans are repaid within 90 days.
In order to further ensure a diversified funding structure and to refinance existing liabilities, DelfinGroup issued two new bonds: a subordinated bonds of 5 million euros and an unsecured bonds of 15 million euros. After a completion of a private placement bond issue, on 3 July, the company listed a 10 million euros bond issue on Nasdaq Riga alternative market Nasdaq First North.
"The company's growth is also driving investor interest. In May this year, demand exceeded supply in a public offering of shares of DelfinGroup largest shareholders, resulting in 27.1% of the company's shares being in open trading. We also continue to pay regular quarterly dividends, providing shareholders with a stable and regular income," adds Didzis Ādmīdiņš.
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About DelfinGroup
DelfinGroup is a licenced fintech company established in 2009 and operates under the brand names Banknote and VIZIA. The company has been profitable every year since 2010. DelfinGroup continuously develops and offers consumer and pawn loans, loans developed for senior citizens, Buy now pay later loans (BNPL loans), and the sale of pre-owned goods online and at more than 90 branches across Latvia. Since 2014, DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer and, since 2021, as a listed company on the Baltic Main List. The company regularly pays dividends to its shareholders. The sustainability of DelfinGroup is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion, and facilitating the circular economy.
For further information, please contact:
Aldis Umblejs,
DelfinGroup Chief Financial Officer
Phone: +371 26189988
E-mail: IR@delfingroup.lv
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