Published: 2020-07-27 09:28:41 CEST
Financial Statement Release

Mogo Finance reports Unaudited results for the six months ended 30 June 2020

Successful transition through Covid-19 - Strong signs of recovery towards the end of H1 2020


  • Measures implemented in response to Covid-19 prove to be effective – Operating countries nearly back to normal


  • Declining issuances in H1 2020 recovering since May from troughs in April, but still below pre-Covid-19 levels and H1 2019


  • Debt collection close to pre-Covid-19 level at end of H1 2020 – gradually increasing since April


  • Strict underwriting and focus on debt collection resulted in cash accumulation


  • Admin expenses decreased quarter on quarter – reductions in headcount effective in profit or loss from Q3 and onwards


  • Covid-19 triggering proactive portfolio optimization - clear focus on the most profitable markets


FINANCIAL HIGHLIGHTS AND PROGRESS                           

  • Interest and similar income including income from used car rent up strongly by 19.9% to EUR 42.1 million (6M 2019: EUR 35.1 million)


  • EBITDA on previous year's level at EUR 14.9 million (6M 2019: EUR 15.0 million) showing remarkable resilience against Covid-19-related headwinds


  • Net profit before FX decreased to EUR 0.2 million (6M 2019: EUR 4.6 million) due to net impairment losses on loans and receivables


  • Growth in total equity by 4.2% to EUR 30.0 million (31.12.2019: EUR 28.8 million) following capital injection by shareholders


  • Eurobond covenants with sufficient headroom with increased capitalisation and despite corona-related cost burdens on profitability


  • Fitch Affirms Mogo at B-, while Outlook remains negative due to Covid-19


Modestas Sudnius, CEO of Mogo Finance, commented:

“As expected after the first quarter of 2020, the development of the business activities of Mogo Finance in the first half of the year was dominated by the Covid-19 pandemic. It is noteworthy, that we have successfully made it through the first wave. After reaching the low point in April as a result of the containment measures, we have been seeing signs that our operations are returning to normal levels since the measures were eased in May. We are recording an upward trend in relevant financial figures. Most encouraging is the fact that our debt collection has already reached the pre-Covid level again.

The measures we have implemented to mitigate the crisis showed the intended result in cash flow. We have also significantly reduced our cost base and strengthened our equity. The impact of our high cash position on the interest coverage ratio is temporary and is partially offset by the repayment of most expensive P2P loans. The effects of our cost-cutting measures are particularly noticeable compared with the first quarter and will further materialize in the following quarters. We expect our achieved efficiency improvements and operational optimizations transformed Mogo Finance into a leaner organization.

With the increasing stabilization of the economy in our markets as a result of the easing measures, we feel more comfortable looking forward to the future. Overall, we are rapidly recovering from the initial damage caused by the pandemic and we are a cash-surplus generating company. However, the Covid-related impairments will have a negative impact on EBITDA for the full year. As a secured lender, our portfolio is covered by assets, so money not yet collected is not lost.

Based on the current situation and for the further recovery, we also see attractive opportunities for inorganic growth to expand our position as the leading international used car finance and rental company. Given the high cash surplus, capturing these opportunities is the only way of immediate EBITDA growth recovery and return on the path of consistent profitability. The acquisition of Sebo Credit SRL after the end of the reporting period, which significantly strengthens the Mogo Finance portfolio with its profitable operations, provides this proof.”


The full unaudited report for the six months ended 30 June 2020 is available under


Conference Call:

A conference call in English with the Group's management team to discuss these results is scheduled for 29 July 2020, at 16:00 CET.


Please register:


The presentation for the conference call will be available here as of 29 July 2020, at 09:00 CET.




Mogo Finance

Maris Kreics, Chief Financial Officer (CFO)




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 560 million up to date and running a net loan and used car rent portfolio over EUR 176 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.




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