Financial technology company Eleving Group has maintained solid growth and profitability despite the global economic downturn.
The group’s net portfolio increased by 17.8% in the 12-month period compared to the same period a year earlier, while the adjusted net profit before currency exchange transactions reached 27.3 million euros.
The group ended 2022 with an adjusted EBITDA of EUR 71.8 million, which is 29.2% more than in the first twelve months of 2021. Meanwhile, the adjusted twelve-month profit before currency exchange transactions has increased to 27.3 million. EUR, which is by 8.8 million. euro more than in this period a year earlier.
On the other hand, the adjusted revenues (excluding revenues from commission fees) have reached 175.9 million. euros, or 14.37% more than in the corresponding period in 2021. Flexible rental and vehicle subscription products accounted for 50.8 million in revenue. euros and this is 91.1% more than in the 12 months of the previous year, but 4.8% less than in the third quarter of 2022. Meanwhile, revenues from financial and reverse leasing products amounted to 68.0 million. euros, representing a 32.5% increase compared to the corresponding period of 2021 and a 13.2% increase compared to the previous nine-month period. On the other hand, revenues from consumer products reached 57.1 million. euros, which is 12.1% less than in the twelve months of 2021, but 4% more than in the last quarter. The Group’s net portfolio has also reached a record high level – 288.9 million. euro. The group’s mobility and consumer products accounted for 221.8 million in the portfolio, respectively. EUR and 67.1 million euro.
“2022. we started the year with down-to-earth optimism. The turmoil caused by the Covid-19 pandemic had subsided, and it seemed that we could plan for moderate and predictable growth in the global economy. However, the unstable geopolitical situation in Eastern Europe and the war in Ukraine changed the market and macroeconomic outlook. Despite this, we have experienced a solid quarter and twelve month period with the best financial and operational results in the Group’s history. The main goal of 2022 was to maintain the quality of the portfolio, promote business efficiency, as well as reduce the size of the portfolio in markets that were negatively affected by economic and geopolitical fluctuations. We paid more attention to the efficiency of Group company management, cost optimization, capital management and a slightly more conservative business approach. Looking at the results, this strategy has fully paid off,” says Modestas Sudnius, CEO of Eleving Group, about the 2022 results.
In the fourth quarter, the Group continued to develop the local bond issuance program in Kenya and by the end of the year almost doubled the amount of investments attracted in the third quarter, the total amount of investments reaching 7.3 million. euro.
“Overall, we are seeing slightly slower portfolio growth compared to the previous quarter, but this has been our choice to mitigate potential business risks during these uncertain times. We have managed to diversify the Group’s portfolio and absorb the negative impact of the war by reducing the size of the portfolio in markets negatively affected by geopolitical conditions. The diversification of the Group’s funding structure also remains excellent and we are able to successfully leverage private borrowing opportunities, particularly in the African region.
In the coming quarters, we plan to continue to focus on controlled growth, improving existing products and maintaining the quality of the portfolio. Since the term of our three-year bonds in Latvia will end next year, we will also carefully follow developments in the capital markets,” adds Māris Kreics, financial director of Eleving Group.
Meanwhile, on February 9, 2023, Eleving Group won 1st place in the Nasdaq Baltic Awards category “Best Investor Relations” in the First North Bond list. According to the representatives of the company, this is an important Baltic-wide recognition, which reflects the successfully completed work in the field of investor relations in previous years.
Eleving Group is an international group of financial technology companies with an extensive presence around the world. The group is represented on three continents and its business lines include vehicle and consumer financing services. The group, which was founded in 2012 under the Mogo brand, currently operates in 14 countries around the world.
With its headquarters in Latvia, Eleving Group conducts business in the Baltics and Europe, the Caucasus and Central Asia regions, as well as East Africa. In 2020 and 2021, the business newspaper “Financial Times” included the company among the TOP 1000 fastest growing Fintech companies in Europe.
Since its establishment, Eleving Group has issued more than 1.2 billion. in euro loans, as well as served more than 500 thousand customers worldwide. The current active credit portfolio has exceeded 288 million. euro.
