Published: 2016-11-22 13:57:47 CET
Euroloan Group Oyj
Press release

Euroloan Group Plc Interim Report 1.7.-30.9.2016

The Group's development is progressing according to plan as new markets Sweden and Poland are growing rapidly. E-Commerce, Point-of-Sales and credit card solutions also offer great potential according to CEO Korpinen.

Helsinki, Finland, 2016-11-22 13:57 CET (GLOBE NEWSWIRE) -- Total income for 2016 is on track to a new record, as the total income for the first three quarters of 2016, EUR 12,0 million, were significantly higher than for the corresponding period Q1-Q3 2015 (EUR 10,1 million). Earnings before tax for the first three quarters of 2016 were close to EUR 5 million, increasing by 832% from EUR 0,5 million for the corresponding period in 2015.

Origination (sales) volumes of the Consumer Finance business in Sweden and Poland increased dramatically compared to 2015. In Sweden, the growth during the first three quarters of 2016 was steady, with an over threefold increase compared to the same period the previous year. In Poland the corresponding increase was over sevenfold. Temporary third-party issues that occurred early in the third quarter had a negative impact on the Finnish SEO market for the quarter. An increased focus on new channels of loan origination, such as E-Commerce, POS (Point-of-sales) and credit cards is expected to significantly limit the effects of similar occurrences in the future.

Additional funding was secured during the quarter, with an emphasis on long-term funding (non-current liabilities). With an equity ratio of 51%, the Group’s solidity remains excellent.

Key Figures

  Q3 2016 Q2 2016 Q3 2015 Q1-Q3 2016 FY 2015
Balance (million EUR) 55,5 47,3 54,9 55,5 49,5
Total income* (million EUR) 2,9 5,2 3,2 12,0 13,4
EBIT (million EUR) 1,1 3,5 1,0 6,6 6,6
EBIT Growth 16 % 78 % 53%** 94 % 160 %
EBIT/Total Income* 39 % 67 % 30 % 55 % 49 %
Net profit (million EUR) 0,7 2,8 -0,1 4,9 2,2
Equity ratio 51 % 59 % 32 % 51 % 50 %

*includes turnover and other operating income

**estimated growth based on 2014 annual figures

 

Interim Financial Statement

BALANCE SHEET Q3 2016 Q2 2016 Q3 2015 Q1-Q3 2016 FY 2015
ASSETS          
NON-CURRENT ASSETS          
   Intangible assets 17 722 791,82 16 468 861,67 11 327 475,22 17 722 791,82 14 199 735,89
   Tangible assets and investments 13 945,64 13 945,64 17 760,85 13 945,64 13 945,64
TOTAL NON-CURRENT ASSETS 17 736 737,46 16 482 807,31 11 345 236,07 17 736 737,46 14 213 681,53
           
CURRENT ASSETS          
  Current Receivables 33 956 175,09 29 473 703,17 41 654 341,62 33 956 175,09 32 526 944,20
  Cash and Bank Receivables 3 769 928,70 1 303 595,58 1 906 071,65 3 769 928,70 2 716 185,34
TOTAL CURRENT ASSETS 37 726 103,79 30 777 298,75 43 560 413,27 37 726 103,79 35 243 129,54
TOTAL ASSETS 55 462 841,26 47 260 106,07 54 905 649,35 55 462 841,26 49 456 811,07
           
EQUITY & LIABILITIES          
EQUITY          
  Share capital and issue 80 000,00 80 000,00 80 000,00 80 000,00 80 000,00
  Translation difference -116 266,99 -116 266,99 -30 503,71 -116 266,99 -116 266,99
  Reserve for invested non-restricted equity 21 463 288,66 21 463 288,66 16 567 254,34 21 463 288,66 21 463 288,66
  Retained earnings 2 119 549,73 2 128 844,24 569 585,38 2 119 549,73 826 857,78
  Profit for the Financial period 4 921 856,06 4 243 408,70 392 250,74 4 921 856,06 2 238 160,91
TOTAL EQUITY 28 468 427,46 27 799 274,61 17 578 586,75 28 468 427,46 24 492 040,36
           
MINORITY INTEREST 0,00 0,00 0,00 0,00 0,00
GROUP RESERVE 13 393,63 13 393,63 28 004,63 13 393,63 13 393,63
           
LIABILITIES          
    Non-current Liabilities 14 408 750,00 10 293 500,00 6 414 250,00 14 408 750,00 404 250,00
    Current Liabilities 12 572 270,17 9 153 937,83 30 884 807,96 12 572 270,17 24 547 127,08
TOTAL LIABILITIES 26 981 020,17 19 447 437,83 37 299 057,96 26 981 020,17 24 951 377,08
TOTAL EQUITY & LIABILITIES 55 462 841,26 47 260 106,07 54 905 649,35 55 462 841,26 49 456 811,07

 

INCOME STATEMENT Q3 2016 Q2 2016 Q3 2015 Q1-Q3 2016 2015
Total income* 2 870 386,63 5 169 511,04 3 237 704,77 12 026 082,29 13 416 195,13
Materials and services -125 687,69 -126 199,94 -158 597,62 -355 333,55 -918 119,71
Personnel costs -319 900,67 -438 245,09 -235 740,28 -1 113 790,90 -1 322 844,30
Depreciation -305 971,27 -303 844,42 -249 469,19 -901 186,17 -937 325,25
Other business-related costs -988 847,30 -833 598,43 -1 616 951,16 -3 019 394,79 -3 614 434,83
EBIT 1 129 979,70 3 467 623,14 976 946,52 6 636 376,88 6 623 471,04
Financial income and expenses -451 532,34 -703 620,60 -1 088 469,36 -1 714 520,82 -3 782 657,28
EBT 678 447,36 2 764 002,54 -111 522,84 4 921 856,06 2 840 813,76
Tax 0,00 0,00 0,00 0,00 -602 652,85
Net Profit 678 447,36 2 764 002,54 -111 522,84 4 921 856,06 2 238 160,91

The interim financial figures provided are unaudited, and based on the Company management’s estimates of the situation with the information currently available. The estimates include, for instance, one-time items, investments, amortization and depreciation, financial and other costs. Calculated taxes, which have not been finalized at this point, are not included in the interim 2016 figures. Unexpected events, decisions by authorities, service providers, market disturbances and other factors may affect the actual financial figures significantly compared to these estimates. Please note that previously published (11.8.2016) estimated figures for Q2/2016 contained an error in the balance sheet retained earnings and current receivables of EUR 0,8 million. The correct equity ratio for Q2 was thus 59%, not 60%. This report shows the corrected figures. The reader is advised to read previous interim statements and to refer to the 2015 annual review and financial statement for the latest audited figures and more information about the Group.

“Our business development initiatives are progressing nicely, and according to plan”, says Samuli Korpinen, CEO of Euroloan Group. “This year we have done a massive amount of work in developing our capabilities for the future. We have opened our Luxembourg office, and have secured key resources and competences to take our bank project to the next level. We have also worked on optimizing our funding structure and developed our systems further. What is most exciting is that our E-Commerce solutions, POS and credit cards present a much bigger potential for growth than we had expected. The uptake on the market has been very good, and we aim for a very high customer satisfaction rate combined with rapid growth in several markets at once.”

“We correctly predicted that the focus of a finance company should be in real-time decision-making and proprietary, advanced systems, combining the online transaction efficiency of FinTech with the funding advantages of a bank”, Mr Korpinen continues.

According to Mr. Risto Illukka, CEO of Euroloan Consumer Finance PLC, a subsidiary of Euroloan Group, the reception of B2B solutions in the marketplace has been exceptional. “We started to sell limited E-Commerce solutions to 40 small reference customers earlier this year. During the third quarter we have focused on bigger clients, and have already started our services with the first three large clients who have a combined annual turnover exceeding EUR 200 million. We have been able to use our key competitive advantage in the market with the real-time features of our own systems, and expect very strong growth in this business area.”

About Euroloan Group

Euroloan Group PLC is a rapidly growing international group, specialized in highly automated financial services and financial technology (FinTech). The Group has offices in Helsinki (HQ), Luxembourg, Stockholm and Warsaw and the team includes around 50 professionals of 10 different nationalities.

The Group operates in a mobile online environment offering credit limits, loans, money transfers, webshop payment services, invoice payments and collection services as a real-time e-business to retail customers. For webshops and sales points, Euroloan offers pay-per-invoice and sales finance solutions that are easy, free of charge, and work under the merchants’ own brands. Euroloan originates high-quality structured consumer receivables portfolios with guaranteed performance and continuous monitoring and servicing.

All services are truly instant and automated and include origination and debt servicing functions that traditionally have been manual, such as identification, scoring, underwriting, payments, back-office, credit monitoring and debt collection. This is made possible by Euroloan’s proprietary cloud-based banking software and secured by its ISO27001:2013-certified information security management system.

More information about Euroloan Group is available at www.euroloan.com, Finland www.euroloan.fi, Poland www.euroloan.pl and in Sweden on www.euroloan.se.

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