MULTITUDE SE
Ferratum Oyj: Nine Months Report January - September 2017: Ferratum Group reports strong revenue
and profit growth; on track to achieve the upper end of full year 2017 revenue guidance
^
DGAP-News: Ferratum Oyj / Schlagwort(e):
Quartals-/Zwischenmitteilung/9-Monatszahlen
Ferratum Oyj: Nine Months Report January - September 2017: Ferratum Group
reports strong revenue and profit growth; on track to achieve the upper end
of full year 2017 revenue guidance
16.11.2017 / 07:30
Für den Inhalt der Mitteilung ist der Emittent verantwortlich.
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Nine Months Report January - September 2017
Ferratum Group reports strong revenue and profit growth; on track to achieve
the upper end of full year 2017 revenue guidance
Helsinki, 16 November 2017 - Ferratum Oyj (ISIN: FI4000106299, WKN: A1W9NS)
("Ferratum" or the "Group") announces preliminary unaudited results for the
9 months ended 30 September 2017 ("9M 2017").
Highlights
- Revenue of EUR 161.0 million - up 48.2% year-on-year
- Operating profit (EBIT) of EUR 23.8 million - up 67.3% year-on-year
- Improved EBIT margin of 14.8%
- Profit before tax (EBT) of EUR 17.6 million - up 85.9% year-on-year
- EPS (basic and diluted) increased 76.9% year-on-year to EUR 0.69 per share
- Net book value of loan portfolio up 32% over 9M 2017 to EUR 242.9 million
(31 December 2016: EUR 184.3 million)
- Loan coverage ratio remained stable at 25.3% (31 December 2016: 25.4%)
- Customer deposits increased by 50% over 9M 2017 to EUR 155.3 million (31
December 2016: EUR 101.4 million)
- Full year 2017 Group revenue now expected to be in the upper end of
previously published guidance
- Fiscal year 2017 guidance has today been narrowed to estimate that Group
revenue will range between EUR 215 and EUR 225 million. Operating
profitability margin (EBIT margin) for fiscal year 2017 is now expected to
range between 14% and 16%
Key Figures
9 months ended 30 September
EUR '000 2017 2016 % change
Revenue 161,006 108,645 +48.2%
Operating profit (EBIT) 23,810 14,231 +67.3%
Profit before tax 17,575 9,456 +85.9%
Profit before tax % 10.9% 8.7% +25.4%
9 months
ended 30
September
EUR '000 2017 2016 %
chan-
ge
Net cash flows from operating activities 75,579 40,242
before movements in portfolio and deposits
received
Net cash flows from operating activities 14,691 43,806
Net cash flows from investing activities (6,862) (6,038)
Net cash flows from financing activities 34,617 17,958
Net increase/decrease in cash and cash 42,446 55,726
equivalents
Earnings per share, basic (EUR) 0.69 0.39 +76.-
9%
Earnings per share, diluted (EUR) 0.69 0.39 +76.-
9%
EUR '000 30 Sept 31 Dec %
2017 2016 change
Accounts receivable - consumer loans 242,866 184,346 +31.7%
(net)
Deposits from customers 155,345 101,436 +53.1%
Cash and cash equivalents 116,198 73,059 +59.0%
Total assets 403,814 295,683 +36.6%
Non-current liabilities 108,728 72,246 +50.5%
Current liabilities 194,564 135,563 +43.5%
Equity 100,522 87,875 +14.4%
Equity ratio % 24.9 29.7
Net debt to equity ratio 1.86 1.53
Key Developments and Progress
Ferratum continues to make excellent progress and has delivered another
quarter of record revenues. Group revenue of EUR 57.3 million in the third
quarter was 6.7% ahead of Q2 2017 and means that in just nine months, the
Group has generated revenues of EUR 161.0 million, an increase of 48.2%
year-on-year and 4.5% ahead of total Group revenue for the full year 2016.
Ferratum's premium, higher margin products such as PlusLoan and Credit Limit
now represent almost three quarters of total Group revenue for 9M 2017,
while Ferratum's business lending to SMEs over the same period accounts for
a further EUR 9 million, or 5.6% of Group revenue. As expected, Microloan
continues to decline as a proportion of total Group revenue, although the
EUR 32.7 million generated in 9M 2017 (20.3% of Group revenue) is only
marginally lower than the 21.2% of total Group revenue attributable to
Microloan for the first six months of 2017. While Microloan remains a
valuable lower risk tactical asset to help Ferratum understand customer
behaviour and needs in new markets, the core growth products of Ferratum's
digital lending activities - PlusLoan, Credit Limit and SME business lending
- are now firmly established as the core drivers of Group revenue.
Operating expenses of EUR 81.1 million for 9M 2017 grew by 36.8%
year-on-year, less than Group revenue growth, and illustrative of the
positive impact of the Group's enhanced efficiency initiatives of the past
12 months. Changes to the acquisition and upsell strategy for customers
continued to have impact on on credit losses and marketing cost. While
credit losses as a proportion of revenue increased slightly over the period
(9M 2017: 35.0% of Group revenue vs. 9M 2016: 32.4%, ie. up by 2.6%),
savings from changes to the acquisition and upsell strategy for customers
continued to have a positive impact in reducing marketing costs as a
proportion of revenues (9M 2017: 15.5% of Group revenue vs. 9M 2016: 19.3%,
ie. down by 3.8%). As a result, the Group delivered strong operating profit
(EBIT) of EUR 23.8 million for 9M 2017, a 67.3% increase year-on-year.
The total finance result continues to benefit from deposit taking, i.e. a
higher share of refinancing with low or non interest bearing deposit
products. This resulted in profit before tax (EBT) for 9M 2017 of EUR 17.6
million, an 85.9% year-on-year increase and thus growing faster than the
operating profit (EBIT).
Product and Country Launches
2017 has been another busy year for new products and country launches, and
the Group also achieved another milestone in its geographic expansion
shortly after the 9M period end with the launch of Microloan in the African
continent. The launch, through a strategic partnership with Interswitch in
Nigeria, is described in more detail in the section entitled Subsequent
Events.
As disclosed in the Group's results for the first six months of 2017,
Ferratum has continued to diversify the size and duration of its loan
products to cater for customers with longer term financial objectives. The
launch of 'Primeloan' in Finland not only offers significantly larger sums
of up to EUR 20,000 for longer terms of up to 10 years, but the product
tests a new risk model which links pricing to the risk profile of the
customer, tailoring the loan terms more closely to the customer's
circumstances and purpose of the loan.
Also in May, Ferratum entered the consumer lending market in Brazil,
establishing a subsidiary in São Paulo, which will initially focus on Credit
Limit, offering flexible credit facilities in sums up to BRL 3,000 (EUR
850).
Ferratum Business was introduced in the UK in June. Ferratum Business
provides fast, easy working capital loans of up to £50,000 to small and
medium sized enterprises ("SMEs") in the UK for periods of between 6 and 12
months.
Also in June, the Mobile Bank was launched in France and Spain, two of
Europe's largest retail banking markets. The introduction of Ferratum's
Mobile Bank in these two important markets brings the total number of
countries where the Mobile Bank is currently available to five, following
its launch in Germany, Sweden and Norway in 2016. As at 30 September 2017,
customer deposits were EUR 155.3 million. On 1 September, Ferratum announced
the appointment of Jussi Mekkonen as the new Chief Exective Officer of
Ferratum Bank p.l.c. Mr Mekkonen assumed his responsibilities on 1 November
2017 and will play a key role in accelerating the roll-out of the Mobile
Bank across further markets in Europe.
Operational Developments
Twelve months ago, Ferratum commenced an important series of initiatives to
ensure that the Group's management structure, IT infrastructure, customer
systems and processes would remain resilient and scalable as Ferratum
continues to grow.
The centralization programme covers both mobile banking and digital lending
customer services and collections The centralization initiatives have
resulted in increased staff cost in 2017 but are intended to to deliver a
range of group-wide cost and efficiency benefits from 2018 on, such as the
streamlining of resources, harmonization and standardization of processes,
adoption of common key performance indicators across regions and cost
reductions that avoid the duplication of country practices.
Having centralized the customer services, marketing, back office and
collection functions of 14 countries into the Group's Malta operations in
the first half of 2017, two more countries followed in the third quarter.
The centralization programme is expected to be completed by mid-2018.
Treasury Update
Net receivables from customers have grown by 31.7% over the first nine
months of 2017 to EUR 242.9 million, from EUR 184.3 million at the end of
2016. The impaired loan coverage ratio has remained stable at 25.3%,
reflecting a decreasing share of non-performing loans and an improving
portfolio quality.
Ferratum ended the nine months reporting period with a significantly
stronger cash position of EUR 116.2 million (31 December 2016: EUR 73.1
million). The increased figure inlcudes some extra liquiy from the positive
deposit growth in Ferratum Bank p.l.c. . The excess liquidity will be used
in 2018 for the incerasing lending volumes in Ferratum Bank p.l.c. resulting
from both organic growth and the migration of additional countries to
operate under the bank.
During the first half of 2017, the EUR 20 million bond for Ferratum Bank
p.l.c. was repaid with proceeds from the EUR 25 million senior unsecured
bonds due March 2020 [WKN: A189MG] issued in December 2016. In June 2017
Ferratum Bank p.l.c. successfully concluded a tap issue of EUR 15 million of
the same bonds [WKN: A189MG] within the facility of an existing EUR 60
million bond issuance programme.
In July 2017, Ferratum Capital Germany GmbH, a subsidiary of Ferratum Oyj,
issued a EUR 20 million senior unsecured bond due October 2018 [WKN:
A2GS10], following a successful private placement with institutional
investors in Germany and Poland. The bond has a coupon of 4 per cent per
annum and is listed on the Frankfurt Stock Exchange (Open Market).
By offering deposit products in Sweden, Norway, France, Germany and Spain,
Ferratum is diversifying its funding base. Over the first nine months of
2017 customer deposits volume have increased by 50% to EUR 155.3 million (31
December 2016: EUR 101.4 million). Besides the strong cash position, the
Group had unused credit lines amounting to EUR 15 million as at 30 September
2017.
Ferratum's group rating of BBB+ was confirmed by Creditreform Rating AG
during March 2017 in its regular annual review. Bonds issued in 2013 by
Ferratum Capital Germany GmbH are rated BBB+.
The BBB+ rating of the bearer bond [WKN: A1X3VZ] issued by Ferratum capital
Germnay GmbH was also confirmed by Creditreform Rating AG in September 2017.
Subsequent Events
On 6 October 2017, Ferratum announced the launch of Microloan in Nigeria in
partnership with Interswitch Limited. Interswitch, based in Lagos, builds
and manages transaction infrastructure and provides secure electronic
payment solutions. All Nigerian banks are connected to Interswitch, making
the company the most accessible e-payment network in Nigeria.
Interswitch has launched a new lending services platform in partnership with
five leading banks and three innovative credit providers, including
Ferratum. Ferratum will initially offer Microloan amounts of between NGN
1,000 and NGN 10,000 (approximately EUR 2.70 to EUR 27.00) to customers of
Interswitch who are resident in Lagos.
Outlook and fiscal year 2017 guidance
In view of the Group's record financial performance and strong operational
progress over the past three quarters, the Board of Directors of Ferratum is
confident that the Group will now achieve the upper end of previously
published revenue guidance for fiscal year 2017. Accordingly, the Board now
expects Group revenue for fiscal year 2017 to range between EUR 215 million
and EUR 225 million, and the Group operating profitability margin (EBIT
margin) to range between 14% and 16%.
About Ferratum Group:
Ferratum Group is an international provider of mobile banking and digital
consumer and small business loans, distributed and managed by mobile
devices. Founded in 2005 and headquartered in Helsinki, Finland, Ferratum
has expanded rapidly to 25 countries across Europe, Africa, South and North
America and the Asia-Pacific region.
As a pioneer in digital and mobile financial services technology, Ferratum
is at the forefront of the digital banking revolution. Ferratum Mobile Bank,
launched in 2016, is an innovative mobile banking platform offering a range
of banking services, including real time digital payments and transfers,
within a single app. It is currently available in five European markets. Led
by its founder, Jorma Jokela, Ferratum has approximately 1.8 million active
and former customers who have been granted one or more loans in the past (as
at 30 September 2017).
Ferratum Group is listed on the Prime Standard of Frankfurt Stock Exchange
under symbol 'FRU.' For more information, visit www.ferratumgroup.com.
Contacts:
Ferratum Group Dr. Clemens European media enquiries:
Krause, CFO T: +358 40 7248247 Edelman.ergo, A Daniel J Edelman
F: +358 20 741 1614 E: Company Alexander Schmidt | Andreas
[1]clemens.krause@ferratum.com Martin T: +49 69 27 13 89 26 E:
1. [1]Alexander.Schmidt@edelmanergo.co
mailto:clemens.krause@ferratum. m E:
com [2]Andreas.Martin@edelmanergo.com
1.
mailto:Alexander.Schmidt@edelmaner
go.com 2.
mailto:Andreas.Martin@edelmanergo.
com
Ferratum Group Paul Wasastjerna UK media enquiries: Smithfield, A
Head of Investor Relations T: Daniel J Edelman Company Alex
+358 40 7248247 F: +358 20 741 Simmons | Brett Jacobs T: +44 20
1614 E: 7903 0669 | +44 20 7903 0675 E:
[1]paul.wasastjerna@ferratum.com [1]asimmons@smithfieldgroup.com E:
1. [2]bjacobs@smithfieldgroup.com 1.
mailto:paul.wasastjerna@ferra mailto:asimmons@smithfieldgroup.com
tum.com 2.
mailto:bjacobs@smithfieldgroup.com
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16.11.2017 Veröffentlichung einer Corporate News/Finanznachricht,
übermittelt durch DGAP - ein Service der EQS Group AG.
Für den Inhalt der Mitteilung ist der Emittent / Herausgeber verantwortlich.
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Sprache: Deutsch
Unternehmen: Ferratum Oyj
Ratamestarinkatu 11 A
00520 Helsinki
Finnland
Internet: https://www.ferratumgroup.com
ISIN: FI4000106299
WKN: A1W9NS
Börsen: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
München, Stuttgart, Tradegate Exchange
Ende der Mitteilung DGAP News-Service
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Ferratum Oyj: Nine Months Report January - September 2017: Ferratum Group reports strong revenue and profit growth; on track to achieve the upper end of full year 2017 revenue guidance
Am 16. November 2017 um 07:31 Uhr
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