FERRATUM Interim Report January - March 2016: Continued dynamic growth

FERRATUM Interim Report January - March 2016

Continued dynamic growth

Q1/2016 (compared with Q1/2015)

  • Year-on-year revenue up 44.2 % to EUR 33.2 million
  • Operating profit (EBIT) doubled to EUR 5.2 million (Q1 2015: EUR 2.6 million)
  • Improved EBIT margin of 15.6 % (Q1 2015: 11.2 %)
  • Improved portfolio quality: declining impaired loan coverage ratio to 32.5 % (Q1 2015: 41.7 %)

Helsinki/Berlin, May 12, 2016 - Ferratum Oyj (ISIN: FI4000106299, WKN: A1W9NS), a pioneer in the field of financial technology and an international provider of mobile consumer loans and small corporate loans, was able to continue last year's growth trend during the first three months of 2016. The positive development of key figures continued: By showing both strong topline growth with group revenues up 44.2 % and increased bottom line profitability with (diluted) earnings per share of EUR 0.15 (Q1 2015: EUR 0.10), the company once again delivered on its objective of profitable growth.

Product developments in Q1 2016

  • Mobile Bank launched to the public in Sweden
  • Deposit taking started in Germany
  • CreditLimit launched in Spain and Poland
  • SME lending launched in Lithuania and Denmark (also in the Netherlands in May 2016)

The combined revenue share of PlusLoans (including SME lending) and Credit Limit grew from 37.6 % in Q1 2015 to 59.6 % while the revenue share of the microloans business decreased to 40.4 % (Q1 2015: 62.4 %).



Key Figures, EUR '000 Jan-Mar 2016 Jan-Mar 2015
Revenue 33,213 23,033
Operating Profit  5,193 2,583
Profit before tax 3,792 2,551
Net cash flows from operating activities before movements in portfolio 13,171 8,268
Net cash flows from operating activities (11,419) (9,003)
Net cash flows from investing activities (2,041) (78)
Net cash flows from financing activities 7,832 40,422
Net increase/decrease in cash and cash equivalents (5,629) 31,342
Profit before tax % 11.4 11.2

                             

Key Figures, EUR '000 31-Mar-2016 31-Dec-2015
Accounts receivable - consumer loans (net) 121,801 106,758
Cash and cash equivalents 11,184 17,452
Total assets 152,388 140,127
Non-current liabilities 49,075 48,927
Current liabilities 22,834 13,562
Equity 80,479 77,638
Equity ratio 52.8 55.4
Net debt to equity ratio 0.75 0.58
       

CEO Jorma Jokela comments the first quarter

"I'm pleased with the published results, we consistently implement a clear growth strategy that focuses on the diversification of our product portfolio, the geographic expansion and the development of a leading mobile bank. We have reached new milestones in all three areas during the first quarter of 2016. We have launched the Mobile Bank to the public in Sweden and expanded our deposit product offering to the German market. Further more we could launch our business lending in two more countries and we could launch our consumer lending product credit limit also in two more countries. With the acquisition of FCB Firmen-Credit Bank we have made an important step in developing our SME business.

Our conservative risk provision model, in which the expected defaults are already booked during the disbursement of a new loan, helps us grow our PlusLoan and Credit Limit products which even more depend on our big data and scoring expertise because of the larger loan amounts and longer term. However, this makes it possible to increase our revenue per customer based on a stable payment behavior.

Our most important strategic goal for 2016 is the introduction of the Mobile Bank in the European market. We believe that our innovative platform will revolutionize the banking business - by turning your smartphone into a bank."

Events today

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About Ferratum Group:

The Finnish Ferratum Group, a pioneer for mobile consumer loans in Europe, offers short-term consumer loans for private customers. Ferratum's customers can utilize digital media to apply for consumer credit in amounts varying between EUR 25 and EUR 3,000. Moreover, Ferratum offers successful small businesses installment loans with a term of six to twelve months. Managed by its founder Jorma Jokela, Ferratum has expanded rapidly since it was founded in 2005: Ferratum has more than 1.3 million active and former customers who have been granted one or more loans in the past and 3.9 million total user accounts in its database (as of 31 March 2016). Ferratum is represented in 23 markets.

Contacts:

Ferratum Group                                
Dr. Clemens Krause, CFO                       
T: +49 30 88715308                            
F: +49 30 88715309                            
M: [email protected]

Ferratum Group   
Paul Wasastjerna
Head of Investor Relations
T: +358 40 7248247
F: +358 20 741 1614
M: [email protected]

cometis AG
Henryk Deter | Maximilian Breuer
T: +49 611 20 58 55-22
F: +49 611 20 58 55-66
M: [email protected]


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