August 6, 2021
During the First Half-year, DelfinGroup Increases Revenue to EUR 11.9 Million
According to the non-audited results, during the first six months of 2021 the Latvian financial group AS DelfinGroup has increased its revenue to EUR 11.9 million or by 6.4% year on year. During the first six months, EBIDTA increased by 8.7% and reached EUR 4.6 million, while profit before taxes on dividends increased by 9% and reached EUR 2.3 million. The increased revenue was mainly facilitated by the growth of activity in online segments of consumer lending, retail of preowned goods and pawn shop loans. Dynamic growth in offline retail was limited by restrictions imposed due to the COVID – 19 pandemic.
Irrespective of the restrictions, during the second quarter AS DelfinGroup managed to significantly improve the loan issuance indicators: the total credit portfolio increased from EUR 32.2 million in the first quarter to EUR 33.3 million in the second quarter. By the end of the first half-year, the value of the consumer loan portfolio reached EUR 30.4 million, which is increase by 50.3% year on year.
During the second quarter, consumer loan issuance increased by 21.3% compared to the first quarter. The growth is even more considerable comparing this year with 2020: during the first six months of 2021, consumer loan issuance has grown by close to 30.6%. However, due to the restrictions placed on offline servicing, during the first half of this year, pawn loan issuance decreased year on year (-18.7%). However, this did not have a lasting effect on overall growth, as pawn loan segment is also gradually recovering and demonstrating a growing trend. Comparing pawn loan issuance during the first and second quarter of 2021, there is an increased by 11.9%.
Didzis Ādmīdiņš, Chairman of the Board, AS DelfinGroup: “For DelfinGroup, this quarter was marked by resilient growth. We had very good results in the consumer loan segment, as well as in the online trade of pre-owned goods. Moreover, during the second quarter we also experienced growth in the pawn loan segment. Generally, we see quite high level of economic activity in the entire country, which is also reflected by increased interest in financial and pawnshop services offered by DelfinGroup. In many areas outside Riga, we are almost the only provider of accessible financial services. This year, we have also opened four new Banknote branches, increasing our branch network to 93 branches in Latvia. Industry organisations and local governments also appreciate the DelfinGroup services network. Including three Banknote branches, which were awarded with the prizes in the competition named “Best Latvian Trader 2020” organised by the Latvian Traders Association and the Latvian Association of Local and Regional Governments.
“At the moment, there are drawbacks for offline consumer loan issuance and in store sales of pre-owned goods, as due to the current restrictions, no more than one customer can be present in the premises of most branches. As a result, we continue developing digital platforms and introducing new automated lending solutions that allow us to improve customer service and serve our customers in less time. This year, the automation of the customer income review process was completed, and the entire review process is now fully automated. Furthermore, in all digital channels of DelfinGroup, we have experienced a rapid increase in customer flows that more than compensates for offline service restrictions,” underlines D. Ādmīdiņš.
The good results confirm that the corporate strategy has allowed DelfinGroup to form a more sustainable foundation for future development ensuring that the company is also able to deliver good results during crises and periods with high uncertainties. This supports also the results of an annual evaluation performed by the Institute of Corporate Responsibility and Sustainability: even during the first year of participation, DelfinGroup was able to reach the highly rated nomination of silver category.
During the second quarter, DelfinGroup completed preparations for the issue of bonds via a private placement. The offering was successfully completed at the beginning of July 2021, with the demand exceeding supply 1.85 times. The bonds worth five million euros were issued with a total interest rate of 9.75%, while the overall demand for bonds exceeded 9.26 million euros.
In March 2021, AS DelfinGroup announced its plans for the launch of an initial public offering (IPO) of its shares on the Nasdaq Riga exchange during the second half of 2021. LHV Bank and law firm Eversheds Sutherland Bitāns are acting as DelfinGroup planned IPO advisors. For more information about the planned IPO, sign up to news on our homepage: https://www.delfingroup.lv/invest.
AS DelfinGroup is a licensed financial services company founded in 2009 and represents the brands Banknote, VIZIA, and Rīgas pilsētas lombards (Riga City Pawnshop). The company employs 277 professionals in 93 branches operating in 38 Latvian cities. DelfinGroup is a member of the Latvian Chamber of Commerce and Industry and the Latvian Association of Alternative Financial Services and has received the Gold Level status of the State Revenue Service cooperation programme. DelfinGroup core services are the retail sale of pre-owned goods in branches and online, pawn loans, consumer loans, and loans specifically designed for people at retirement age. DelfinGroup bonds are listed on the Nasdaq Riga First North bond list. In 2020, the company's revenue was 23.7 million euros, the loan portfolio reached 34.7 million euros, EBITDA increased to 9.3 million euros and profit before taxes reached 4.6 million euros. DelfinGroup estimated taxes for 2020 are 3.42 million euros.
Member of the Management Board of AS DelfinGroup
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