DGAP-News: Mogo Finance S.A.
/ Key word(s): Quarter Results/Quarter Results
Mogo Finance reports Unaudited results for the three months ended 31 March 2020
Strong profitability in terms of EBITDA despite unprecedented headwinds of global Covid-19 pandemic
OPERATIONAL AND STRATEGIC HIGHLIGHTS
- In line with the announced commitment, Mogo Finance shareholders have injected additional EUR 5 million of capital during Q12020. This marks total new capital of EUR 10 million injected into the Group since September 2019
- By following its profitable growth strategy, the Group has managed to deliver profitability of now 8 markets (3M 2019: 6 markets) measured by net profit before FX and 12 markets (3M 2019: 8 markets) measured by EBITDA
- A global Covid-19 pandemic caused decrease in loan issuance volumes has prompted us to react quickly to address the cost base both with temporary and permanent optimisations all done with the goal to emerge more competitive post crisis
FINANCIAL HIGHLIGHTS AND PROGRESS
- Interest and similar income including income from used car rent up strongly by 29.8% to EUR 22.2 million (3M 2019: EUR 17.1 million)
- A growth in total equity by 9.7% to EUR 31.6 million (31.12.2019: EUR 28.8 million)
- A continuous rapid increase in quarterly EBITDA by 39.7% now to reaching EUR 8.8 million (3M 2019: EUR 6.3 million)
- Net profit before FX for the period has remained unchanged at EUR 1.2 million (3M 2019: EUR 1.2 million) despite Covid-19 caused headwinds
Modestas Sudnius, CEO of Mogo Finance, commented:
"Looking back at first quarter results we need to split this period into 2 parts - pre and post Covid-19. During January, February and the first half of March we were executing our yearly strategy outstandingly and beating the budgeted figures with very strong EBITDA, portfolio and profitability growth. However, during the second part of March we had to change our strategy and shift our focus completely. I am very grateful to our team which in 2 weeks managed to accomplish significant changes in core processes across the organisation from IT to Debt collection.
Maintaining a safe working environment for our employees as well as providing the best possible service to customers is our top priority during the virus outbreak. Mogo is following local healthcare instructions and taking extra steps to make sure that all employees could work from home.
Understanding the current reality and economic effect on many of our existing customers, Mogo will be offering flexible restructuring solutions so that our clients could overcome short-term financial turbulence and continue using Mogo services. When it comes to newest issuances, in countries which are not in full lock-down, Mogo continues offering its services to the best client segments with significantly stricter underwriting procedures to be able to follow responsible lending requirements.
Without a doubt upcoming period will be challenging for the whole industry as well as Mogo group. We have already performed necessary actions to reduce our cost base significantly, strengthen our equity and will continue looking for efficiencies and potential optimisation across our operations. We strongly believe that our prudent secured product, strong processes as well as clear focus on liquidity and cash generation will allow us to limit negative effects caused by Covid-19. This will allow us to strengthen our position as a leading international used car lender once the situation in the world stabilises."
The full unaudited report for the three months ended 31 March 2020 is available under https://mogo.finance/investment/results-and-reports/.
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Mogo Finance operates through its own branch network, more than 2,000 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, Uzbekistan, Kazakhstan, North Macedonia, Bosnia and Herzegovina, Kenya and Uganda.
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.
14.04.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
|Company:||Mogo Finance S.A.|
|8-10 avenue de la Gare|
|Listed:||Regulated Market in Frankfurt (General Standard)|
|EQS News ID:||1021015|
|End of News||DGAP News Service|