Business Wire

4finance Reports Results for the Nine Months Ending 30 September 2016

Del

4finance Holding S.A. (the ‘Group’), Europe’s largest online and mobile consumer lending group, today announces unaudited consolidated results for the nine months ending 30 September 2016 (the ‘Period’).

Financial Highlights

  • Revenue up 25% to EUR 287.3 million in the Period compared with EUR 229.3 million in the prior year period.
  • Adjusted EBITDA was EUR 101.8 million for the Period, up 16%, leading to an adjusted interest coverage ratio of 4.0x.
  • The Group’s profit from continuing operations for the nine months to 30 September 2016 was EUR 49.2 million, an increase of 7% from EUR 46.0 million in 2015.
  • Net loan portfolio reached EUR 510.4 million as of 30 September 2016, up 66% during the year.
  • Cost to revenue ratio for the Period was 47%, vs. 39% for the nine months to 30 September 2015, reflecting a significant increase in staff numbers during the year, acquisitions and investment for future growth.
  • Financial strength remains solid following recent acquisitions, with a capital to assets ratio of 26% as of 30 September 2016 and a capital to net loans ratio of 44%.
  • Credit discipline maintained, with a non-performing loans to online loan issuance ratio of 9.6% as of 30 September 2016, within the expected range, and stable asset quality within banking portfolios.

Operational Highlights

  • The number of registered online lending customers reached 5.7 million as of 30 September 2016, up 32% from a year ago, with a further 1.4 million registered banking customers added through TBI Bank.
  • Continued product diversification in existing European markets: introduced the line of credit product in Latvia in September (kimbi.lv) and instalment loans in Romania in August (onnen.ro).
  • Targeted expansion in new markets: launch of single payment loans in Dominican Republic in August (vivus.com.do).
  • TBI Bank purchase finalised and showing a strong financial performance post acquisition in mid-August.
  • Friendly Finance delivered 9% of overall Q3 online lending issuance volumes and was profitable for the quarter.
  • Developed the responsibleborrowing.com financial education platform with customer advice websites now active in 9 countries.

George Georgakopoulos, CEO of 4finance, commented:

"With revenue growth of 25% and net profit of EUR 49.2 million, our nine months results are further evidence that 4finance is building a strong track record of delivering solid profits whilst growing the business. We have successfully adapted to market changes this year and strengthened our competitive position.

"The acquisitions we have carried out have contributed to profitable growth in the third quarter. Friendly Finance is seeing strong volume growth as we coordinate marketing efforts. TBI Bank is seeing growth in both consumer lending and deposits in a liquid local market.

"We are excited about the potential of our Latin American operations, with more than 1,500 loan applications now processed daily across three countries, over half of which are via smartphone.

"We have invested significantly over the last couple of years in new products, new markets and acquisitions. Our growth plans are well supported and the capabilities are in place to deliver revenue growth and build a diversified, sustainable business."

Key Financial Ratios

 

Nine Months
Ended 30
September
2016

 

Nine Months
Ended 30
September
2015

 

Year Ended
31 December
2015
audited

 

Year Ended
31 December
2014
audited

2016 2015 2015 2014
 
Net loan portfolio (in millions of EUR)(1) 510.4 299.1 308.3 241.4
Capital/assets ratio(2) 26% 38% 40% 35%
Capital/net loan portfolio(3) 44% 54% 56% 47%
Adjusted interest coverage(4) 4.0x 4.2x 4.2x 3.7x
Profit before tax margin(5) 22% 26% 23% 27%
Return on average equity(6) 33% 45% 41% 54%
Cost/revenue ratio(7) 47% 39% 42% 37%
Net impairment to revenue ratio(8) 24% 25% 25% 25%
Non-performing loans to loan issuance ratio(9) 9.6% 9.0% 9.0% 8.8%

_____________________________________________________
Notes:
(1) Gross loan portfolio less provisions for bad debts.
(2) Total equity/total assets (2014 assets adjusted for effect of bond defeasance).
(3) Total equity/net loan portfolio.
(4) Adjusted EBITDA/fixed charges (interest expense excluding interest on deposits).
(5) Profit before tax/interest income.
(6) Profit from continuing operations/average equity (total equity as of the start and end of each period divided by two).
(7) General administrative expenses/interest income.
(8) Net impairment losses on loans and receivables/interest income.
(9) Non-performing loans with a delay of over 90 days/value of loans issued, excluding acquisitions. The value of loans issued represents loans issued for the two-year period before commencement of the 90 day past-due period, eg for 30 September 2016: 1 July 2014 to 30 June 2016.

Contacts

Email:  

investorrelations@4finance.com

HQ Address: Lielirbes iela 17a-8, Riga, LV-1046, Latvia
Website:

www.4finance.com

Conference call

A conference call with management to discuss these results is scheduled for Thursday, November 10 at 15:00 UK time. To register, please visit www.4finance.com/investors.

About 4finance

Established in 2008, 4finance is the largest and fastest growing online and mobile consumer lending group in Europe with operations in 16 countries. Putting innovative data-driven analysis into all aspects of the business, 4finance has grown rapidly, issuing over EUR 3.5 billion in single payment and instalment loans to date.

4finance operates through a portfolio of market leading brands with strong regional presence including Vivus, SMSCredit and Zaplo. A responsible lender, offering simple, convenient and transparent products and service, 4finance is meeting growing customer demand from those under-served by conventional lending.

4finance has group offices in Riga (Latvia), London (UK) and Miami (USA), and currently operates in Argentina, Armenia, Bulgaria, the Czech Republic, Denmark, the Dominican Republic, Finland, Georgia, Latvia, Lithuania, Mexico, Poland, Romania, Spain, Slovakia and Sweden. The group also provides consumer and SME lending through TBI Bank, its EU licensed banking operations in Bulgaria and Romania.

Forward looking statements

Certain statements in this document are “forward-looking statements”. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements.

Contact information

4finance
James Etherington
Investor Relations
Email: investorrelations@4finance.com
+44 (0)7766 697 950

Om Business Wire

Business Wire
Business Wire
24 Martin Lane
EC4R 0DR London

+44 20 7626 1982http://www.businesswire.co.uk

(c) 2018 Business Wire, Inc., All rights reserved.

Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.

Følg saker fra Business Wire

Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.

Siste saker fra Business Wire

H.I.G. Capital Announces the Sale of KidsFoundation19.7.2018 19:50Pressemelding

H.I.G. Capital (“H.I.G.”), a leading global private equity investment firm with more than €21 billion of equity capital under management, announced today that one of its affiliates has entered a definitive agreement to sell the KidsFoundation Group (“KidsFoundation”), the Dutch market leader in childcare services, to Onex Corporation (“Onex”)(TSX:ONEX). Terms were not disclosed. Headquartered in Almere, the Netherlands, KidsFoundation provides high-quality childcare to nearly 30,000 children between the ages of six weeks and 12 years. H.I.G. created KidsFoundation in 2014 through the acquisition of assets from the estate of Estro Group. During H.I.G.’s ownership, the company has developed strongly with significant capital invested by H.I.G. to create a high-quality childcare offering. H.I.G. worked with KidsFoundation management to optimise the footprint of the company by exiting loss-making locations, introduce new IT systems to drive operational improvement and develop an internal M&

SIG Combibloc Group Holdings S.à r.l.: 2018 Second Quarter Results19.7.2018 16:01Pressemelding

We are pleased to announce our quarterly conference call to discuss the results of SIG Combibloc Group Holdings S.à r.l. for the second quarter ended June 30, 2018. Date: Monday, July 23, 2018 Time: 15.00 CEST / 14.00 BST / 9.00 EDT The call information will be distributed on our secure site. If you would like access to our call, please contact investor.relations@sig.biz . Regards, SIG Combibloc Group Holdings S.à r.l. View source version on businesswire.com: https://www.businesswire.com/news/home/20180719005634/en/ Contact information SIG Combibloc Group Holdings S.à r.l. Jennifer Gough investor.relations@sig.biz

NEORIS Announces Creation of Innovation Labs Worldwide to Create a Smarter Future19.7.2018 15:32Pressemelding

NEORIS, a global digital consulting services company, announced today it is consolidating the most innovative solutions it has developed in different geographies and allocating unprecedented resources to deploy a network of Innovation Labs worldwide. The main objective is to lay the foundation for the continuous development of disruptive solutions for its four core industries: Manufacturing, Financial Services, Healthcare and Telecommunications. Due to its disruptive nature, NEORIS decided that its first Innovation Lab should be housed in the Monterrey Digital Hub, which today is the first-of-its-kind as it is a space where entrepreneurs, companies, universities and investors converge to foster an ecosystem for Digital Transformation. The lab inaugurated in Monterrey, Mexico is the first of a series of Innovation Labs that will open in the different countries that NEORIS operates, and is a space where customers can experience emerging technologies through real-life scenarios. One such

CORRECTING and REPLACING Albar Capital Deploys FlexNOW19.7.2018 15:29Pressemelding

Subhead of release should read: Out-of-the-Box Multi-Asset Execution Management System (instead of Easy-to-Install Multi-Asset Execution Management System). The corrected release reads: ALBAR CAPITAL DEPLOYS FLEXNOW Out-of-the-Box Multi-Asset Execution Management System FlexTrade (@FlexTrade) today announced that Albar Capital Ltd., a new hedge fund led by Javier Velazquez (formerly of Millennium Capital Partners LLP), is now trading equities and futures using FlexNOW, FlexTrade’s new execution management system. “The FlexNOW team was instrumental in solving several of our problems,” said Jason Ruder, Trader at Albar Capital. “Not only are they helping us with our compliance requirements, they are also responsive to requests that improve my workflow.” According to Rhyd Lewis, FlexNOW Product Manager, FlexNOW’s quick onboarding and easy installation process was critical for Albar Capital’s launch on 2 July. “We had no problem integrating FlexNOW with Albar’s portfolio and risk managemen

Full Core of Westinghouse Fuel Achieved at South-Ukraine Nuclear Power Plant Unit 319.7.2018 13:25Pressemelding

Westinghouse Electric Company announced today that Ukraine’s State Enterprise National Nuclear Energy Generation Company (SE NNEGC) Energoatom’s South-Ukraine NPP Unit 3 near Yuzhnoukrainsk in Mykolaiv province was loaded with a full core of Westinghouse VVER-1000 fuel. This is the first unit in Ukraine to operate with Westinghouse VVER-1000 fuel assemblies as the sole fuel source. “Westinghouse began supplying fuel to Ukraine in 2005, when the first lead test assemblies were delivered to South-Ukraine Unit 3,” said Aziz Dag, vice president and managing director, Northern Europe. “We are proud to continue supporting Ukraine with their energy diversification by supplying a full core of Westinghouse VVER-1000 fuel to our customer, Energoatom.” Westinghouse currently supplies fuel to six of Ukraine’s 15 nuclear power reactors. Beginning in 2021, the number of reactors with Westinghouse fuel will increase to seven. “Westinghouse has made significant investments over the last several years

Seoul Semiconductor Delivers Its Innovative LED "SunLike" to U.S. Lighting Market19.7.2018 13:00Pressemelding

Seoul Semiconductor Co., Ltd. (KOSDAQ:046890), a market leader in LED (light emitting diode) design and manufacturing, announced that its innovative LED “SunLike” is applied to brand new lightings to be launched by three lighting premium brands in U.S., Pure Edge Lighting, LEDRAbrands, Inc. and Elite Lighting. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20180719005377/en/ The product of LEDRAbrands, Inc., NU4RA-SUN, which applied SunLike of Seoul Semiconductor (Photo: Business Wire) Seoul Semiconductor supplies SunLike to pendant lighting for Pure Edge, a U.S. lighting solution company. It is applied to high-end lighting for museums and art galleries that require the highest color quality. The leading lighting design companies, LEDRAbrands, Inc. and Elite Lighting, apply SunLike to downlights and spotlights respectively. “We have selected Seoul Semiconductor’s innovative LED SunLike for our human centric lighting and believ