- ISIN LU2818110020
- Country Luxemburg
Eleving Group S.A.
Return to accelerated growth backed by historically highest profitability
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EQS-News: Eleving Group S.A.
/ Key word(s): Half Year Results
Operational and Strategic Highlights
Profitability
“This quarter has been historically strong, with exceptional performance in all key business areas, recording outstanding organic growth rate and portfolio quality results. The current growth pace has already kept up for the second consecutive quarter, which aligns with our 2023-end promise to return to a more rapid growth vector in 2024 by targeting a significant double-digit growth rate. In Q2, compared to Q1 of this year, we saw a significant increase in sales volumes in the vehicle financing segment, and the majority of our markets reached six-month budget goals early. Also, the number of applications received doubled, compared to Q2 a year ago, while we maintained the marketing costs and conversion rates across all markets at a conservative level. Even more than in other quarters, for this period, I would like to emphasize that our unit economics continue to strengthen; the EBITDA grows faster than the revenue, leading to growth that does not come at the expense of the profit. During the quarter, we also reached several notable operational milestones, including receiving the digital credit provider license in Kenya. We are one of the first asset financiers to obtain this license, which confirms that Mogo Kenya meets the expected governance, transparency, responsibility, and business ethics standards. We have also finished Romania’s digitalization and digital customer portal project. In the first half of the year, it has already brought significant value in issuance volumes and reduced customer delays as it helps streamline customer onboarding and handling the entire credit cycle. Following the success in Romania, similar upgrades of the system will be introduced in other European markets as well. In Q2, we appointed an international Supervisory Board consisting of experienced experts from the investment community and start-up ecosystem in the Baltics and USA. The functions of the newly appointed governance structure will include strengthening the company’s corporate governance, advising management on business decisions, overseeing a potential IPO or external equity raise, and contributing to the company’s future strategy. At the end of July, the new Supervisory Board and the Group’s Director’s board approved the new Eleving Group dividend policy as one of the first major joint decisions. On a different note, we have also maintained our sustainable mobility course. In Q2, we significantly increased our EV financing in Kenya and Uganda, and by the end of the quarter, we had financed around 700 e-motorcycles. It is four times the number financed in the last year. Seeing the increasing demand and improved logistics, we will soon overachieve our initial goals for the year, and a 1000 e-motorcycle benchmark will be reached already within the next few months. As for the following quarters, we plan to strengthen our position in promoting the transition to electric mobility in our Eastern African region markets.” Maris Kreics, the CFO of Eleving Group, comments: “Second quarter of 2024 has proven to be highly successful, showcasing healthy long-term development patterns for our business. The Group reported revenues of EUR 106.0 mln for the first six months of the year, reflecting a 20% increase over the same period last year. Our net portfolio expanded to EUR 343.5 mln, representing a 21% growth compared to one year ago. Additionally, the adjusted EBITDA climbed to EUR 43.7 mln for the first six months of the year, while the net profit was EUR 14.9 mln respectively, a 32% rise from the six months in 2023. These figures demonstrate the stability and capacity of the business to achieve profitable growth. The international credit rating agency Fitch Ratings has positively assessed the Group’s latest achievements from the financial results perspective and has upgraded Eleving Group’s credit rating from ‘B-’ to ‘B,’ with a stable outlook. The rating upgrade marks a significant milestone for the company and is a validation of the Group’s recent achievements in the following areas – execution of the strategy, financial results, corporate governance, and successful performance in the capital markets. During Q2, we continued to explore external equity raise options that could potentially result in a pan-Baltic IPO. This would make Eleving Group one of the most globally oriented companies on the Baltic stock exchange, potentially drawing significant international interest and providing new opportunities for Baltic and global investors. It could also result in one of the largest IPOs in the Baltics in recent years. Entering Q3, Eleving Group holds an even stronger market position and more robust balance sheet, demonstrating that we are prepared for the various decisions associated with capital markets and strong enough to ensure long-term growth that brings additional value to the company’s investors and its clients.” Full unaudited consolidated report on the 6M period ended on 30 June:https://eleving.com/investors/ Conference Call: A conference call in English with the Group’s management team to discuss the results is scheduled for 1 August 2024 at 15:00 CET. Link to register for a conference call can be foundhere. Eleving Group Edgars Rauza, Eleving Group Investor Relations Manager Email:edgars.rauza@eleving.com About Eleving Group Eleving Group has driven innovation in financial technology around the world since its foundation in Latvia in 2012. As of today, the group operates in 16 markets and 3 continents, encouraging financial inclusion and upward social mobility in underserved communities around the globe. Eleving Group has developed a multi-brand portfolio for its vehicle and consumer finance business lines, with around 2/3 of the portfolio comprising secured vehicle loans and mobility products, with Mogo as the leading brand, and around 1/3 of the portfolio including unsecured consumer finance products, with Kredo and Tigo as the segment’s flagship brands. Currently, 57% of the group’s portfolio is located in Europe, 30% in Africa, and 13% in the rest of the world. The Group’s historical customer base exceeds 660,000 customers worldwide, while the total volume of loans issued goes beyond EUR 1.8 billion. With headquarters in Latvia, Lithuania, and Estonia and a governance structure in Luxembourg, the Group ensures efficient and transparent business management, powered at the operational level by 2800 employees. For two consecutive years, the Group was listed among Europe’s 1000 fastest-growing companies published by the Financial Times in 2020 and 2021. 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.
31.07.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News – a service of EQS Group AG. |
| Language: | English |
| Company: | Eleving Group S.A. |
| 8-10 avenue de la Gare | |
| 1610 Luxembourg | |
| Luxemburg | |
| Internet: | www.eleving.com |
| ISIN: | XS2393240887 |
| WKN: | A3KXK8 |
| Listed: | Regulated Unofficial Market in Dusseldorf, Frankfurt, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; SIX |
| EQS News ID: | 1958161 |
| End of News | EQS News Service |
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