4finance Reports Results for the Six Months Ending 30 June 2016
4finance Holding S.A. (the ‘Group’), Europe’s largest online and mobile consumer lending group, today announces unaudited consolidated results for the six months ending 30 June 2016 (the ‘Period’).
- Revenue up 25% to EUR 182.8 million in the Period compared with EUR 146.1 million in the prior year period.
- Adjusted EBITDA was EUR 62.2 million for the Period, up 15%, leading to an adjusted interest coverage ratio of 4.0x.
- The Group’s profit from continuing operations for the six months to 30 June 2016 was EUR 32.1 million, an increase of 8% from EUR 29.8 million in 2015.
- Average net loan portfolio for the Period, excluding acquisitions, of EUR 305.9 million, up 17% from a year ago.
- Cost to revenue ratio for the Period was 46%, vs. 39% for the six months to 30 June 2015, reflecting a 50% increase in staff numbers and investment across the platform for future growth and geographic / product diversification.
- Financial strength remains solid, with a capital-to-assets ratio of 34% as of 30 June 2016 (37% as of 30 June 2015).
- Credit discipline maintained, with non-performing loans to loan issuance ratio of 9.5% as of 30 June 2016 within expected range given growth of higher return markets with higher non-performing loan ratios.
- The number of registered customers, pre acquisitions, reached 5.3 million as of 30 June 2016, up 32% from a year ago.
- EUR 100 million bond with 5 year maturity issued in May and now listed on the regulated market segment in Frankfurt.
- Continued progress in Instalment Loan rollout with Spain launched in May and Romania in August.
- Strong business performance in Poland and Latvia following implementation of regulatory changes in first quarter.
- Corporate governance enhancements, with roles of Chairman and CEO separated in May and new Supervisory Board established at 4finance Group S.A. level in July.
- Successful completion of TBI Bank acquisition in August following receipt of all regulatory approvals.
- Acquisition of 80% of Friendly Finance, a profitable online consumer lender in five European countries, at end of June to diversify brand portfolio and consolidate market position.
George Georgakopoulos, CEO of 4finance, commented:
"These results for the first half of the year, with revenue up 25% and net profit of EUR 32.1 million, demonstrate steady progress for 4finance in line with our plans. Our diversified business continues to grow at the same time as investing for the future and adapting to market changes.
"We are pleased to have closed two acquisitions that both contribute towards building a long-term sustainable business. TBI Bank is a significant strategic addition to the Group and enhances our overall financial profile. The integration process will be gradual, but the bank gives us immediate scale in Bulgaria and Romania and we can deploy our cutting edge technology to enhance their customer experience and value proposition.
"The Friendly Finance acquisition adds strong brands to our portfolio and their database of over one million registered customers adds to our valuable proprietary data assets. It reinforces our position in core markets such as Poland, Czech Republic and Spain - and as the clear European market leader.
"We see a substantial growth opportunity in coming years as we diversify our portfolio of responsible lending products in Europe and develop in Latin America. The carefully planned investments we are making this year will allow 4finance to capture this opportunity fully."
Key Financial Ratios
|Net loan portfolio (in millions of EUR)(1)||322.7||283.3||308.3||241.4|
|Capital/net loan portfolio(3)||63%||51%||56%||47%|
|Adjusted interest coverage(4)||4.0x||4.1x||4.2x||3.7x|
|Profit before tax margin(5)||21%||26%||23%||27%|
|Return on average equity(6)||34%||37%||41%||54%|
|Net impairment to revenue ratio(8)||26%||26%||25%||25%|
|Non-performing loans to loan issuance ratio(9)||9.5%||8.9%||9.0%||8.8%|
(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/interest expense.
(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. 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 June 2016: 1 April 2014 to 31 March 2016.
|HQ Address:||Lielirbes iela 17a-8, Riga, LV-1046, Latvia|
A conference call with management to discuss these results is scheduled for Wednesday, August 31 at 15:00 UK time. To register, please visit www.4finance.com/investors.
Established in 2008, 4finance is the largest and fastest growing online and mobile consumer lending group in Europe with operations in 15 countries. Putting innovative data-driven analysis into all aspects of the business, 4finance has grown rapidly, issuing over EUR 3 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, Finland, Georgia, Latvia, Lithuania, Mexico, Poland, Romania, Spain, Slovakia and Sweden. To support its international expansion, 4finance continues to pursue a twin-track strategy of strong organic growth bolstered by targeted acquisition.
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.
James Etherington, +44 (0)7766 697 950
Om Business Wire
(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
Summer Business with Yourtyres.co.uk: New Shop Feature and High-Performance Tyre Models16.3.2018 14:11 | Pressemelding
Each year, summer trade means great challenges for car garages and tyre dealers. As a result and at just the right time, Yourtyres.co.uk, the online trade customer shop by Europe’s leading online tyre dealer Delticom, is introducing a new feature intended to make the daily work of the shop’s customers easier: An advice mode is available from now on at Yourtyres.co.uk. When changing from the purchasing to the sales view, the individual end customer prices are displayed instead of the actual purchase prices. In order to use this feature, users of Yourtyres.co.uk simply have to insert their individual markups for the different item groups. From the markup and the purchase price, the online shop automatically calculates the personal end customer price. The usual purchasing view is also still available. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180316005448/en/ An advice mode immediately helps trade customers use the full pot
Available Now: The Smartphone Made for the Way We Communicate Today, the Galaxy S9 and S9+16.3.2018 12:00 | Pressemelding
Samsung Electronics America, Inc. announced that the new, award-winning Galaxy S9 and Galaxy S9+, which have been recognized by smartphone reviewers worldwide for their best-in-class display, design and camera, are now available for purchase at U.S. wireless network providers and retail stores. The phones come in three colors: Midnight Black, Coral Blue, and the new Lilac Purple. The Galaxy S9 has a suggested retail price of $719.99, while the Galaxy S9+ is available for $839.99. Both unlocked and carrier versions of the Galaxy S9 and Galaxy S9+ are also available for purchase on Samsung.com. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180316005175/en/ Designed for the way we communicate today, Samsung's new Galaxy S9 and Galaxy S9+ are available in the U.S. at wireless network providers, retailers and on Samsung.com. (Photo: Business Wire) “The Galaxy S9 and S9+ are designed for the visual and social generation—the consum
CONQUEST Group Announced the Expansion of its Asset Management Business with the Appointment of Philippe Taillardat to the Role of Director16.3.2018 09:00 | Pressemelding
Philippe Taillardat brings to CONQUEST over 25 years of Asset Management and Investment Banking experience, primarily in principal investing, financial advisory, equity and debt financing across global infrastructure and sustainable energy sectors. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180316005030/en/ Philippe Taillardat (Photo: CONQUEST Group) Philippe was most recently Co-Head of Infrastructure Investments Europe at First State Investments, which he helped transform into one of the leading billion+ European infrastructure fund manager in core / core+ strategies. Earlier in his career, Philippe held various senior banker and investment roles at Amundi, Credit Agricole CIB, Credit Suisse, AXA and BNP Paribas. Frédéric Palanque, Managing Director of CONQUEST Group, said, "We are delighted to welcome such a recognized professional. CONQUEST is trusted for providing value-added advice in complex and highly confidential
AccelStor All-Flash Solutions Unlock Data Possibilities for AI and Cloud16.3.2018 09:00 | Pressemelding
AccelStor, an innovative all-flash array (AFA) provider for the big data era, is excited to announce its participation in the upcoming Cloud Expo Europe, taking place from March 21 to 22 at Booth C1850 in the ExCel London exhibition centre. Besides presenting latest all-flash storage solutions breaking through performance and availability barriers for artificial intelligence (AI), virtualization and private cloud, AccelStor will present a live demonstration of its new generation NeoSapphire high availability models, one of the highlights not to be missed this year. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180316005010/en/ AccelStor's new generation NeoSapphire High Availability all-flash array AccelStor NeoSapphire all-flash arrays are highly integrated with virtualization and private cloud platforms, supporting VMware vSphere and OpenStack Cinder. NeoSapphire’s “high availability” series features symmetric active-activ
Westinghouse Completes First Major Decommissioning Work at a Nordic Commercial Nuclear Reactor16.3.2018 08:45 | Pressemelding
Westinghouse Electric Company announced today that it has completed a major decommissioning project at the former Barsebäck nuclear power plant in Skåne, Sweden. Barsebäck Unit 2 ceased operation in 2005 and decommissioning work began in August 2016. Westinghouse’s scope of work included the underwater segmentation and packaging of the reactor vessel internals, as well as the upfront engineering studies and equipment manufacturing and qualification. “Westinghouse is proud to deliver this major decommissioning project on time and on budget,” said Yves Brachet, Westinghouse senior vice president, Global Decommissioning, Decontamination, Remediation and Waste Management. “Our global expertise in this area will help our customers in the Nordic region to safely manage a variety of end-of-life opportunities for commercial nuclear power plants.” Leadership at Barsebäck Kraft AB (BKAB) is equally satisfied with this successful initial step of the first dismantling of a commercial nuclear power
Lighting Manufacturer LTS Licht & Leuchten, Part of the Fargerhult Group, to Offer Selected Spot- & Downlights with Seoul Semiconductor’s SunLike Series Natural Spectrum LEDs16.3.2018 08:02 | Pressemelding
Seoul Semiconductor, a global innovator of LED products and technology, announced that its SunLike Series natural spectrum LEDs, which implement light closest to the spectrum of natural sunlight, has been adopted for selected luminaires of LTS Licht & Leuchten GmbH, a German manufacturer of high-quality luminaires for hospitality, retail, and office applications. This press release features multimedia. View the full release here: http://www.businesswire.com/news/home/20180316005206/en/ LTS Jett 100 spotlights equipped with SunLike LED technology (Photo: Business Wire) LTS has adopted SunLike natural spectrum LEDs for selected products, including the Jett 100 and CSA 60 spotlights. A series of spotlights with a discreet and individual appearance, and clear, straightforward design lines, Jett spotlights harmoniously blend in with any type of retail application. The high color rendering and superior luminous intensity of these spotlights enable lighting designers to achieve accentuated ar