DGAP-News: Mogo Finance S.A. / Key word(s): Quarter Results/Quarter Results
14.05.2021 / 15:07
The issuer is solely responsible for the content of this announcement.
From strong product performance and high-quality portfolio to consistent profits
OPERATIONAL AND STRATEGIC HIGHLIGHTS
FINANCIAL HIGHLIGHTS AND PROGRESS
Modestas Sudnius, CEO of Mogo Finance, commented: "The Group continued to demonstrate strong performance for the third consecutive quarter after the initial Covid-19 shock. In the first quarter of 2021, our revenues continued to improve, reaching EUR 32.8 million. Revenue growth was achieved through smart capital allocation by shifting capital from the markets put on hold to operational markets, and by steadily improving portfolio quality.
The consistent and steadily improving performance across the 11 vehicle finance markets in tandem with the consumer financing business were the key drivers for strong financial results. Even though movement restrictions imposed on some markets had an impact on car sales, the demand for vehicle financing did not decrease, only the vehicle purchase cycle became longer. Now, with all the major markets seeing vaccination programs being rolled out and markets opening, we see an opportunity to accelerate issuances and continue strengthening our market position.
During the first quarter of 2021, we managed to achieve significant operational and corporate milestones. I am pleased that, despite the challenging economic climate, we managed continue successfully developing Premium car financing solution together with a local bank in Latvia and motorcycle taxi financing in Kenya. Further development of these solutions is part of our future strategy. Also, we will continue to digitize our processes across the Group, with a focus on improving automated debt collection engine and optimizing our web platform.
The Group looks to the future with confidence. Our recent performance in tandem with a dedicated team and the necessary technology in place makes me very confident that we will succeed in creating value to all our stakeholders. We also anticipate the future with a revised corporate strategy and rebranding from Mogo Finance to Eleving Group. We will keep offering products with the "Mogo" brand across our countries, yet, with the new corporate identity, the Group makes the transition from product and service orientation to impact making. The ultimate goal of our business is to empower diverse communities around the world by providing them with financial inclusion thus enabling upward social mobility. The revised mission statement closely intertwines with the newly established non-financial reporting practice as well as the launch of several social and ESG initiatives that will reflect in our product performance as well."
Maris Kreics, CFO of Mogo Finance: "The Q1 results of 2021, with almost than 50% higher year-over-year revenue and nearly three times higher comprehensive income before forex, provide a conclusive proof that the actions taken during 2020, with a bolt-on acquisitions among them, paid off. Our forex situation during the first quarter of 2021 remained contained without major adverse or overly positive effects. This can be attributed to both our hedging strategy as well as decreased exposure to volatile currencies.
Over the course of the last quarter, the Group's portfolio quality slowly but constantly improved. Still, in its underwriting policy, the Group remained more conservative than before March 2020; however, the company started to relax some underwriting policy guidelines. These relaxations were performed in the countries where the macroeconomic climate is stable, and the portfolio quality exceptionally good.
We are also positive regarding our prospects with regard to our Eurobonds refinancing. To that end, we have been deploying certain amounts of capital towards Eurobonds repurchases over the last several months, and we have been increasingly focused on the simplification of our balance sheet, including decreasing receivables for Longo sales transaction, divesting selected markets, and the like. Our positive outlook towards the prospective Eurobond refinancing has been further strengthened by the excellent reception of our Latvian bond refinance that took place during the first quarter, with more than 600 new investors joining our community."
The full unaudited report for the nine months ended 31 March 2021 is available under: https://mogo.finance/investment/results-and-reports/
A conference call in English with the Group's management team to discuss these results is scheduled for 18 May 2021 at 15:00 CET.
Please register http://emea.directeventreg.com/registration/7055899
Maris Kreics, Chief Financial Officer (CFO)
About Mogo Finance:
Mogo Finance Group is international and fast-growing Financial Technology company with vast reach across the globe. Mogo Finance Group, keeping car financing business as predominant, also utilizes consumer financing in selective markets. Recognizing the niche underserved by traditional lenders, Mogo Finance provides financial inclusion and disruptively changes the used car and consumer financing industry across its countries. Up to date the Company has issued over EUR 650 million secured loans and running a net loan and used car rent portfolio of over EUR 200 million. Established in 2012, with headquarters in Riga, Latvia, Mogo Finance operates in 14 countries in the Baltics, Central, Eastern and South-Eastern Europe, the Caucasus, Central Asia, and Eastern Africa.
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A Premium car financing solution created through a strategic partnership with a local bank, which allows to achieve a combination of bank-level product pricing with FinTech speed, exceptional customer service, automation, and flexibility. Primero Finance is bridging the gap between conventional banking/leasing sector and subprime consumer financing.
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