EQS-News

Steady portfolio growth while maintaining excellent profitability

EQS-News: Eleving Group S.A. / Key word(s): 9 Month figures Steady portfolio growth while maintaining excellent profitability 13.11.2023 / 13:54 CET/CEST The issuer is solely responsible for the content of this announcement.

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Operational and Strategic Highlights 
 

• Following the best quarter this year, the Group closed the nine months with healthy financial performance. The nine-month revenue reached EUR 136.0 mln, up by 2.6% compared to the corresponding period last year. Meanwhile, the Group’s net portfolio landed at EUR 327.3 mln, showing a significant increase of around 11% QOQ. Excluding the integrated ExpressCredit business, the Group still recorded a healthy portfolio growth of 2.8% QOQ.
• Diversified business operations and a balanced revenue stream from all three core business lines:   
  • Flexible lease and subscription-based products contributed EUR 37.7 mln to the 9M 2023 revenues— a steady result compared to the 9M 2022. The steady volumes in absolute figures can be explained by the selling of the Renti Plus portfolio and a slight decline in income from motorcycle taxi loans, which is compensated by improving results from Renti Lithuania operations.
  • Traditional lease and leaseback products contributed EUR 51.0 mln to the 9M 2023 revenues— an unchanged result compared to the 9M 2022, mainly affected by Belarus portfolio run-down.
  • Revenues from the consumer loan segment contributed EUR 47.3 mln to the 9M 2023 revenues— up by 8.0% compared to 9M 2022, mainly driven by the integration of the Express Credit business and successful results from the consumer segment in the Balkans.
• The respective quarter is the first since the integration of the ExpressCredit business into the Group's portfolio and operations. The new countries have already shown strong results in the first months, contributing to the Group's net portfolio with EUR 26 mln, recording revenues of EUR 5.0 mln, EBITDA of EUR 2.9 mln, and comprehensive income of EUR 0.4 mln.
• In Q3, the Group introduced a new B2B car sales platform to make car purchases more accessible and faster for small and medium-sized businesses. At the end of Q3, the platform is live in Lithuania, with a goal to gradually localize it across other Group markets.
• In the ESG and sustainability area, Eleving Group continued its course to introduce electric motorcycle financing in Kenya, with over 150 units financed. The Group sees increasing interest from self-employed and SMEs; therefore, in the coming months, by increasing supply capacity, the company expects to intensify e-boda financing significantly. In addition, the Group is steps away from launching e-boda financing services in Uganda.
• During Q3, OX Drive, an electric car-sharing service with Tesla vehicles, has continued to show notable operational results. Since the launch of the OX Drive last summer, more than 35,000 customers have used the service, and they have commuted over 2.5 million kilometers on 64,000 journeys. In Q3, the company was exploring new avenues to attract external investment for further expansion, resulting in the allocation of EUR 2.8 mln for fleet development provided by Industra Bank in late October.