CORRECTION: Mogo Finance reports Unaudited results for the nine months ended 30 September 2020
CORRECTION: updated capitalization ratio in report
First tangible signs of success towards leaner and more profitable organization
OPERATIONAL AND STRATEGIC HIGHLIGHTS
Performance in mogo markets recovered from initial pandemic shock; progress in focus on most profitable markets
Issuances and debt collection back to pre-Covid-19 level – portfolio quality recovering
Admin expenses unchanged y-o-y; adjusted for expansion of business - decreasing
Integration of acquired consumer lending businesses well on track and contributing to successful results
Launch of car portal in 13 markets supporting cross-selling potential of re-possessed car sales and car financing
Increasing share of productive lending through business-linked loans to self-employed customers
FINANCIAL HIGHLIGHTS AND PROGRESS
Interest and similar income up rapidly 16.3% to EUR 64.9 million (9M 2019: EUR 55.8 million)
EBITDA sharply up 8.3% to highest level ever at EUR 24.7 million (9M 2019: EUR 22.8 million) reflecting leaner structure and cost base as well as focus on most profitable markets; Q3 biggest contributor to 9M EBITDA
EBITDA adjusted for mezzanine EUR 1.3 million warrant repayment up 14.0% to EUR 26.0 million
Net profit before FX decreased to EUR 2.5 million (9M 2019: EUR 4.5 million) due to net impairment losses on loans and receivables; adjusted for mezzanine warrant repayment - decreased to EUR 3.8 million
Decrease in total equity by 5.9% to EUR 27.1 million (31 December 2019: EUR 28.8 million) attributable to net loss for the period caused by unrealized FX
Eurobond covenants with good headroom – sufficient profitability despite Covid-19 related impairments
Modestas Sudnius, CEO of Mogo Finance, commented:
“Mogo Finance has successfully mastered the challenge of the Covid-pandemic during the nine-month period, as underlined by the results in Q3. We have made a smooth transition into the “new normal” by building a more effective, productive, and lean organizational structure and thus showing strong results. Historically highest EBITDA, Q3 contribution to which was the most significant, proves that our multi-channel fintech approach is winning and sustainable in long term. We have adapted Mogo Group's corporate strategy, including the optimized regional HUB structures and a reassessment of the cost base in all markets. By consistently focusing on the most profitable and highest-ROI developed markets, Mogo has also optimized its portfolio and left some markets in early stages of development. Cash surplus generated in months of low issuances has been selectively allocated to the business expansion – bold acquisition of developed consumer loan companies, thus contributing to and strengthening revenues of Mogo Finance. The consumer credit activities also contributed to the consolidation of operations and cost optimization of existing car loan financing. Our focus on Mogo Finance's portfolio and investments will continue to be on secured car financing as a technology-oriented, data-driven and innovative lender in disruptive development of both business areas.”
The full unaudited report for the nine months ended 30 September 2020 is available under https://mogo.finance/investment/results-and-reports/.
A conference call in English with the Group's management team to discuss these results is scheduled for 12 November 2020 at 15:00 CET.
Please register http://emea.directeventreg.com/registration/6588847
Maris Kreics, Chief Financial Officer (CFO)
About Mogo Finance:
Mogo Finance is one of the leading and fastest-growing used car secured financing companies on a global scale. In selective markets, the Company also utilizes consumer lending as a strategic capital allocation vehicle to leverage its performance and customer base. Recognizing the niche underserved by traditional lenders, Mogo Finance provides financial inclusion and disruptively changes the used car and consumer financing industry across 14 countries. Up to date the Company has issued over EUR 585 million secured loans and running a net loan and used car rent portfolio of over EUR 192 million. Mogo offers secured loans up to EUR 15,000 with a maximum tenor of 84 months making used car financing process convenient, both for its customers and partners. Wide geographical presence and diversified revenue streams grant Mogo with unique scale and pace unmatched by its rivals. Mogo Finance operates a multi-channel fintech approach through its own branch network, more than 2,000 partner locations and a strong online presence. Physical footprint enriched with excellent customer journey makes Mogo Finance top of mind brand in its industry. A state-of-the-art car portal supports cross-selling potential from re-possessed cars to leasing and vice versa. Established in 2012, with headquarters in Riga, Latvia, Mogo Finance operates in Baltics and Europe with a strong focus on GDP-dynamic countries in Central, Eastern and South-Eastern Europe. Operating regions also include the Near East, the Caucasus and Central Asia as well as Eastern Africa.
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