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AS DelfinGroup publishes unaudited financial results for 3rd quarter and 9 months of 2021


According to the non-audited results, during the first 9 months of 2021 Latvian financial services company AS DelfinGroup has reached EUR 18.4 million in revenues which is an increase by 8.2% year on year. During the period of 9 months, EBIDTA increased by 1.2% year on year and reached EUR 7 million. The quarterly net profit reached EUR 1.02 million, which is an increase by 24% quarter on quarter.


In the 3rd quarter 2021 AS DelfinGroup issued loans in the amount of EUR 15.3 million, which is a 29% increase compared to the previous quarter and is the all-time highest amount of loans issued in a single quarter. The net loan portfolio at the end of Q3 2021 also reached a record level in the company’s history – EUR 38.2 million, a 10,1% increase comparing to the beginning of 2021. The quality of the consumer loan portfolio has also improved by the end of Q3, 2021. The proportion of non-performing loans, with payment delays over 90 days, has decreased to 3.6% of the total loan portfolio, which is another all-time best result of the company.


AS DelfinGroup chairman of the Board, Didzis Ādmīdiņš: “The company continues robust growth and achieves all the milestones of its long-term plan to reach EUR 51 million loan portfolio by the end of 2022 and a EUR 70 million loan portfolio by the end of 2024. We have successfully diversified our risks and, despite restrictions and uncertainties related to COVID-19, continue to provide healthy growth. Over the last six months the company’s net loan portfolio has been growing at a rate of approximately one million euros per month. At the end of the 1st quarter 2021 the loan portfolio was EUR 32.2 million, at the end of Q3 2021 it reached EUR 38,2 million. The increase rate of loan portfolio is in line with the plans to reach the targeted profit before tax of EUR 8.7 million for 2022. We already see profit before tax increasing each quarter and reaching EUR 1.2 million in the 3rd quarter. A better result of profit before tax was achieved only in Q3, 2020 due to the reversal of previously established provisions. Overall, this can be considered the best quarter in the company's history.”


“We keep automating and digitalizing our existing services along with implementing new ones. We have launched the new Banknote app to allow our customers to conveniently browse over all payments and available services. We see the most rapid increase of customer activity in online channels. I’d like to also emphasize the role of our pre-owned goods online store as a contributor to the circular economy and efficient use of resources,” says D.Ādmīdiņš.


During the 3rd quarter the most significant event in pawn loan segment for AS DelfinGroup was signing of a contract with AS Moda Kapitāls (the owner of the fourth largest pawn shop network in Latvia) to purchase the Moda pawn shop business by the end of 2021. AS Moda Kapitāls owned 25 pawn shop branches accross Latvia. Among other things, the contract provides for the sale of the AS Moda Kapitāls pawn loan portfolio. The approximate price of the transaction is 950 000 euros, but the precise contractual amount will be determined once the transaction is completed at the end of 2021.


During the 3rd quarter 2021 AS DelfinGroup made significant effort for strengthening its corporate governance. Accordingly, on 3 August 2021, Aldis Umblejs, the new CFO with international experience in the Fintech sector, joined the company. On 9 August 2021, the shareholder meeting of AS DelfinGroup took the decision to set up the Risk and Audit Committee. Independent members of the Supervisory Board of AS DelfinGroup: Edgars Voļskis and Gatis Kokins, as well Supervisory Board member Jānis Pizičs were elected to serve on the Committee for a period of three years. Furthermore, on 9 September 2021, the shareholders’ meeting of AS DelfinGroup decided to issue up to 450,000 shares as part of a long-term motivation program for the employees of the company. The shares are intended to be granted as share options. To recognize the implementation of sustainable good corporate governance practice in the company, AS DelfinGroup received Latvian Corporate Governance award 2021 in the category of the most successful selection of a supervisory board.


On 9 July 2021, AS DelfinGroup issued bonds via private placement in the amount of 5 million euros with an annual coupon interest rate of 9.75%, thus continuing to execute its long-term strategy. Demand for bonds exceeded the issue volume 1.85 times. The proceeds from the bond issue were used to refinance current liabilities, which ensured a reduction in the Company's total financing costs. Additionally, on 9 September 2021 the shareholders supported the possibility to issue new bonds up to EUR 10 million to cover the expected redemption and refinancing of existing and more expensive bonds. Following the reporting period , AS DelfinGroup redeemed bonds worth of EUR 5 million issued in 2016, as well announced for redemption before maturity of bonds in the amount of EUR 5 million issued in 2019.


In addition to the capital raised through bonds , during 3rd quarter 2021 AS DelfinGroup reduced financing costs for funds raised via peer-to-peer marketplace AS Mintos. The nominal interest rates of financing raised via peer-to-peer platform for selected loans reached as low as 6% per annum. AS Mintos has assigned for the company's loans a risk rating of 8 on a 10-point scale, which is the best rating among the loan originators on the marketplace.


On the 3 September 2021, the shareholders’ meeting of the Latvian financial service company AS DelfinGroup approved the financial results of the first half of 2021, and it was decided to pay out EUR 431 thousand in second-quarter dividends. AS DelfinGroup has established and adheres to a policy to make quarterly dividend payments, distributing up to 50% of quarterly profits to shareholders. In addition, once a year after the approval of the annual report, the company may opt to pay additional dividends (annual dividends). During the financial year, the company plans to distribute dividends to shareholders amounting to at least 50% of its consolidated profits. The shareholders’ meeting to decide on the results of the 3rd quarter 2021 is about to be held in December and will be convened accordingly.


During the 3rd quarter 2021 AS DelfinGroup published the company’s long-term financial targets for 2024. By the end of 2024, the company plans to double its consolidated net loan portfolio to over EUR 70 million. Gradually increasing its profitability, the company plans to reach EBITDA of EUR 17.6 million, as well as pre-tax profits of EUR 12.9 million in 2024. The targets are expected to be achieved considering the amount of EUR 8.09 million raised in the initial public offering (IPO).


The IPO of AS DelfinGroup was launched in the 3rd quarter of 2021 and successfully closed on 14 October and was the largest IPO in the history of Latvia in terms of investor activity. 5,927 investors participated in the IPO. On 19 October 2021 Nasdaq Riga decided to list AS DelfinGroup shares on the Baltic Main List as of 20 October 2021.


About AS DelfinGroup

AS DelfinGroup is a licenced technology-based financial services company that was established in 2009 and operates under the brand names Banknote and VIZIA. The company continuously develops and offers consumer and pawn loans, loans developed for senior citizens, Buy now pay later loans (BNPL loans), as well as sale of pre-owned goods both online and at more than 90 branches across Latvia. On average, 35,000 thousand loans are issued every month and serviced by the professional team of more than 270 AS DelfinGroup employees. The company has a total of over 400,000 registered customers. Since 2014, AS DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer and since 2021 as a share issuer on the Baltic Main List. The company’s IPO in 2021 was the largest in the history of Latvia in terms of investor activity having attracted almost 6000 new shareholders. The company regularly pays dividends to its shareholders. In 2020, the company's net loan portfolio grew to EUR 34.6 million, while its EBITDA reached EUR 9.3 million, with profits before income tax for dividends EUR 4.65 million. The company’s sustainability is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion and facilitating the circular economy. The company has been profitable every year since 2010.


For further information, please contact:
Kristaps Bergmanis,
AS DelfinGroup Management Board Member
Phone: +371 26189988
Whatsapp: +371 26189988
E-mail: [email protected]

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