Published: 2020-04-14 10:58:36 CEST
mogo
Interim report (Q1 and Q3)

Mogo Finance reports Unaudited results for the three months ended 31 March 2020

Strong profitability in terms of EBITDA despite unprecedented headwinds of global Covid-19 pandemic

OPERATIONAL AND STRATEGIC HIGHLIGHTS

  • In line with the announced commitment, Mogo Finance shareholders have injected additional EUR 5 million of capital during Q12020. This marks total new capital of EUR 10 million injected into the Group since September 2019

 

  • By following its profitable growth strategy, the Group has managed to deliver profitability of now 8 markets (3M 2019: 6 markets) measured by net profit before FX and 12 markets (3M 2019: 8 markets) measured by EBITDA

 

  • A global Covid-19 pandemic caused decrease in loan issuance volumes has prompted us to react quickly to address the cost base both with temporary and permanent optimisations all done with the goal to emerge more competitive post crisis

 

FINANCIAL HIGHLIGHTS AND PROGRESS                           

  • Interest and similar income including income from used car rent up strongly by 29.8% to EUR 22.2 million (3M 2019: EUR 17.1 million)

 

  • A growth in total equity by 9.7% to EUR 31.6 million (31.12.2019: EUR 28.8 million)

 

  • A continuous rapid increase in quarterly EBITDA by 39.7% now to reaching EUR 8.8 million (3M 2019: EUR 6.3 million)

 

  • Net profit before FX for the period has remained unchanged at EUR 1.2 million (3M 2019: EUR 1.2 million) despite Covid-19 caused headwinds

 

Modestas Sudnius, CEO of Mogo Finance, commented:

“Looking back at first quarter results we need to split this period into 2 parts – pre and post Covid-19. During January, February and the first half of March we were executing our yearly strategy outstandingly and beating the budgeted figures with very strong EBITDA, portfolio and profitability growth. However, during the second part of March we had to change our strategy and shift our focus completely. I am very grateful to our team which in 2 weeks managed to accomplish significant changes in core processes across the organisation from IT to Debt collection.

Maintaining a safe working environment for our employees as well as providing the best possible service to customers is our top priority during the virus outbreak. Mogo is following local healthcare instructions and taking extra steps to make sure that all employees could work from home.

Understanding the current reality and economic effect on many of our existing customers, Mogo will be offering flexible restructuring solutions so that our clients could overcome short-term financial turbulence and continue using Mogo services. When it comes to newest issuances, in countries which are not in full lock-down, Mogo continues offering its services to the best client segments with significantly stricter underwriting procedures to be able to follow responsible lending requirements.

Without a doubt upcoming period will be challenging for the whole industry as well as Mogo group. We have already performed necessary actions to reduce our cost base significantly, strengthen our equity and will continue looking for efficiencies and potential optimisation across our operations. We strongly believe that our prudent secured product, strong processes as well as clear focus on liquidity and cash generation will allow us to limit negative effects caused by Covid-19. This will allow us to strengthen our position as a leading international used car lender once the situation in the world stabilises.”

 

The full unaudited report for the three months ended 31 March 2020 is available under https://mogo.finance/investment/results-and-reports/.

 

Conference Call:

A conference call in English with the Group's management team to discuss these results is scheduled for 15 April 2020, at 15:00 CET.

 

Please register: http://emea.directeventreg.com/registration/4758607

 

The presentation for the conference call will be available here as of 15 April 2020, at 09:00 CET.

   

Contact:

Mogo Finance

Maris Kreics, Chief Financial Officer (CFO)

Email: maris.kreics@mogofinance.com

 

About Mogo Finance:

Mogo Finance is one of the largest and fastest-growing secured used car financing companies in Europe.  Recognizing the niche in used car financing underserved by traditional lenders, Mogo Finance has expanded its operations to 17 countries issuing over EUR 550 million up to date and running a net loan and used car rent portfolio over EUR 196 million. Mogo offers secured loans up to EUR 15,000 with maximum tenor of 84 months making used car financing process convenient, both for its customers and partners. Wide geographical presence makes Mogo unique over its rivals and diversifies revenue streams.

 

Mogo Finance operates through its own branch network, more than 2,000 partner locations and strong online presence. Physical footprint makes Mogo Finance top of mind brand in used car financing. Established in 2012, headquartered in Riga, Latvia Mogo Finance operates in:  Latvia, Estonia, Lithuania, Georgia, Poland, Romania, Bulgaria, Moldova, Albania, Belarus, Armenia, Uzbekistan, Kazakhstan, North Macedonia, Bosnia and Herzegovina, Kenya and Uganda.

 

IMPORTANT INFORMATION

The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or any other countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Persons into whose possession this announcement may come are required to inform themselves of and observe all such restrictions.

 

This announcement does not constitute an offer of securities for sale in the United States. The bonds have not been and will not be registered under the Securities Act or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

 

This announcement does not constitute a prospectus for the purposes of Directive 2003/71/EC, as amended (the "Prospectus Directive") and does not constitute a public offer of securities in any member state of the European Economic Area (the "EEA").

 

This announcement does not constitute an offer of bonds to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the bonds. Accordingly, this announcement is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this announcement as a financial promotion may only be distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the "Order") or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as "Relevant Persons"). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents.

 

PROFESSIONAL INVESTORS ONLY - Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as the bonds do not constitute packaged products and will be offered to eligible counterparties and professional clients only.


Report_Q1_2020_ENG.pdf