Business Wire

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’).

Financial Highlights

  • 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.

Operational Highlights

  • 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


Six Months
Ended 30 June 2016


Six Months
Ended 30 June 2015


Year Ended
31 December 2015


Year Ended
31 December 2014

2016   2015   2015   2014
Net loan portfolio (in millions of EUR)(1) 322.7 283.3 308.3 241.4
Capital/assets ratio(2) 34% 37% 40% 35%
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%
Cost/revenue ratio(7) 46% 39% 42% 37%
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

Conference call

A conference call with management to discuss these results is scheduled for Wednesday, August 31 at 15:00 UK time. To register, please visit

About 4finance

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.

Contact information

James Etherington, +44 (0)7766 697 950

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