Published: 2015-05-19 08:00:01 CEST
Mash Group Oyj
Press release

Euroloan Group PLC interim report 1.1.-31.3.2015

Strong growth in total balance and more than doubled cash reserves during the first quarter. Significant increase in lending volumes from the end of the quarter with strong growth continuing also during the second quarter. Improved EBIT/Sales as both turnover and EBIT exceed 2014 level.

Helsinki, Finland, 2015-05-19 08:00 CEST (GLOBE NEWSWIRE) --  

At the end of February, Euroloan secured a new financing facility of 15 million euro. Lending volumes that had previously been constrained by funding limitations grew significantly toward the end of the first quarter and the growth has continued during the second quarter.

The total balance continued to grow during the first quarter. The 18,2% quarterly growth equals a corresponding annualized compounded growth rate of over 95%. Both turnover and EBIT exceeded the average for 2014, with a marked increase toward the end of the quarter when more funding became available. Profitability (EBIT/sales) also increased. The Group’s equity ratio was lower than before due to the significant increase in funding during the second half of the quarter. Cash reserves increased by 148%, and current receivables increased by 6% due to successful new customer acquisition and improved utilization of existing credit limits.

  Q1 2015  2014*
Balance (million EUR) 53,4 45,2
Balance Growth 18 % 41 %
Turnover (million EUR) 2,6 9,9
EBIT (million EUR) 0,7 2,5
EBIT/Sales 28 % 26 %
Net profit (million EUR) 0 0
Equity ratio 33 % 39 %

*Full-year figure

In November 2014, Euroloan mandated a consortium of four international financial services providers to raise capital to meet Euroloan's rapid growth targets and to strengthen the Group's capital structure ahead of Basel III and CRD IV capital requirements. The total planned structure includes a combination of Common Equity Tier I, Additional Tier I, Tier II and senior debt exceeding total of EUR 100 million during the next 2-3 years, of which Euroloan has secured 15 million Euros. A strong capital base gives the Group flexibility to grow while maintaining high capital ratios on its balance sheet.

Chairman Tommi Lindfors states: “Euroloan Group has successfully strengthened its capital base during the past 12 months, especially Tier 1 common equity. The group has excellent solidity, which enables rapid future growth through debt leveraging with a low relative risk level for debt investors”.

Assets have increased mainly in the form of current consumer receivables, which is the result of increasing lending volumes and a growing customer base. Demand outgrows supply in all markets, due to innovative marketing solutions, new sales channels, competitive rates and the popular online virtual credit card service. The balance growth of the group is strong and almost entirely due to the increase in current receivables assets and cash reserves.

Credit losses have decreased significantly and stayed at a much lower level than before due to improved customer selection and better scoring. The current business model has significantly lowered risks, and profits from continuing operations have improved considerably due to lower credit losses and lower variable costs due to continuous business process optimization. Customer loyalty has also improved.

Interim Financial Statement

BALANCE SHEET Q1 2015 2014*
   Intangible assets 11 353 465,97 11 072 293,61
   Tangible assets and investments 28 526,20 28 526,20
TOTAL NON-CURRENT ASSETS 11 381 992,17 11 100 819,81
  Current Receivables 31 592 124,87 29 872 532,29
  Cash and Bank Receivables 10 402 105,02 4 192 692,81
TOTAL CURRENT ASSETS 41 994 229,89 34 065 225,10
TOTAL ASSETS 53 376 222,06 45 166 044,91
  Share capital and issue 1 434 998,00 1 434 998,00
  Translation difference -30 503,71 -30 503,71
  Reserve for invested non-restricted equity 15 108 290,66 15 108 290,66
  Retained earnings 1 193 444,58 1 210 578,95
  Profit for the Financial period 11 971,58 6 793,63
TOTAL EQUITY 17 718 201,11 17 730 157,53
GROUP RESERVE 28 004,63 28 004,63
    Non-current Liabilities 21 212 000,00 18 815 000,00
    Current Liabilities 14 418 016,32 8 592 882,75
TOTAL LIABILITIES 35 630 016,32 27 407 882,75
TOTAL EQUITY & LIABILITIES 53 376 222,06 45 166 044,91

*Full-year figure


TURNOVER 2 630 386,65 9 900 552,63
Other operating income 160,48 4 510,59
Materials and services -28 233,58 -91 137,34
Personnel costs -481 282,64 -1 433 396,14
Depreciation -93 827,64 -680 040,34
Other business-related costs -1 283 652,37 -5 152 751,39
EBIT 743 550,90 2 547 738,01
Financial income and expenses -731 579,32 -2 623 187,76
EBT 11 971,58 -75 449,75
Tax 0,00 82 243,38
Net Profit 11 971,58 6 793,63

*Full-year figure

The interim financial figures provided are unaudited, and based on the Company management’s estimates of the situation with the information currently available and planned development. The estimates include, for instance, planned and partially realized one-time costs, investments, amortization and depreciation, financial and other costs. Q1 2015 figures include, for example, one-time costs of EUR 0.2 million. Calculated taxes, which have not been finalized at this point, and impairment of goodwill are not included in Q1 2015 figures. Unexpected events, decisions by authorities, service providers, market disturbances and other factors may affect the actual financial figures significantly compared to these estimates. The reader is advised to read the 2014 annual review and financial statement for the latest audited figures and more information about the Group.


CEO Samuli Korpinen comments: “The increased funding base has enabled Euroloan to grow considerably in its main consumer finance markets. Successful new customer acquisition has been the main growth driver, together with improved utilization of existing credit limits. The full impact of the revenue growth that started in the first quarter can be seen during the second quarter. The group expects both a significant growth in turnover for the second quarter and, due to the growth in current receivables, higher incoming cash flows from repaid loans for the following months”.

The outlook regarding turnover, income and total balance sheet for the financial year is that they will grow from the previous year, but the Board notes that the availability of liquidity in particular will affect the outcome significantly for the second half of 2015. The current outlook regarding funding and growth for 2015 is very positive.

Euroloan Group PLC (Euroloan) is a rapidly growing international finance group specialized in financial technology (FinTech). The group’s headquarters are located in Helsinki, Finland, with offices in Stockholm, Sweden and Warsaw, Poland. Euroloan has developed the most efficient financing business models and systems in the market. Euroloan’s fully automated and internationally scalable cloud banking services provide real-time credit solutions for consumers, customers of selected partners and online stores. Euroloan has consolidated its market position and increased its market share continuously since the company was established in 2007. More information about the company can be found at

         For more information, please contact:
         Jonas Lindholm
         Euroloan Group PLC
         Tel +358 10 217 1003