EQS-News

An outstanding year with promising prospects for robust growth in the future

EQS-News: Eleving Group S.A. / Key word(s): Annual Results An outstanding year with promising prospects for robust growth in the future 12.02.2024 / 09:45 CET/CEST The issuer is solely responsible for the content of this announcement.

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Operational and Strategic Highlights 
 

• Eleving Group finished the year 2023 with the best-ever business performance. Revenues, including fee and commission income, for the corresponding period reached EUR 191.1 mln, recording an increase of EUR 15.6 mln compared to 2022. Meanwhile, the net portfolio grew by EUR 27.1 mln and landed at EUR 320.2 mln.
• Diversified business operations and a balanced revenue stream from all core business lines:
  • Flexible lease and subscription-based products contributed EUR 50.4 mln to the 2023 revenues – a decrease of 2% mainly due to selling of Renti Plus portfolio and and slightly decreasing Kenya motorcycle taxi loan portfolio (effect from unfavorable foreign currency rate development).
  • Traditional lease and leaseback products contributed EUR 68.0 mln to the revenue stream, up by 7% compared to the respective period a year ago. The recorded increase can be explained by a steady and controlled portfolio and interest income growth across most of the Group's markets, with the highest growth rates recorded in Romania, Lithuania, and Moldova.
  • Revenues from the consumer loan segment contributed EUR 72.7 mln to the 2023 revenues – a significant leap of over 20%. The successful results were driven by the efficient integration of the ExpressCredit business and outstanding performance in the Group’s European consumer markets. 

• In Q4, the Group issued EUR 50 mln of senior secured and guaranteed Eleving Group 2023/2028 bonds. As a result, over 2,000 new investors from the Baltic States and Europe were onboarded, and the debt maturity profile was significantly improved. Shortly after, Fitch Ratings assigned a rating of ‘B-‘ with a Recovery Rating of ‘RR4’ to the respective bonds.
• In January 2024, the Group received all the necessary approvals from Belarussian government authorities with respect to the Mogo Belarus sale. The sale is expected to be finished within 2024 once all aspects of the transaction, including asset refinance, will be implemented. For reporting purposes, Mogo Belarus is classified as a discontinued operation (also in comparatives).
• As part of its foreign currency exchange risk management strategy during Q4, the Group established cooperation with MFX Currency Risk Solutions (USA) and Absa Bank (Uganda). As a result, in January 2024, the Group companies entered in currency hedging contracts to fully cover the Group's exposure with respect to the Ugandan shilling.
• In the sustainable mobility area, Eleving Group continued to roll out its electric car-sharing service in Latvia and electric motorcycle financing in Kenya. In 2023, over 3.2 mln kilometers were commuted on pure electricity by the Group’s clients. Therefore, both green mobility services have reduced the potential CO2 emissions by approximately 300 to 315t, compared to the amount an internal combustion engine would have generated.
• In mid-Q4, the Group launched a new initiative in Kenya – retrofitting internal combustion engine motorcycles to electric. The main objective of this product is to intensify the introduction of sustainable mobility in Kenya and to give a second life to used motorcycles, thereby extending their life cycle. By the end of the year, Mogo Kenya had already retrofitted several motorcycles, and a healthy spike in demand is expected in 2024.
• An important milestone in digitization was reached by launching an advanced online client cabinet for the Romanian market. The respective project will ensure active onboarding of existing clients and 24/7 account access; it will provide real-time information on agreements, customer information, payment history, and plans. On top of that, it provides numerous payment methods that focus on promoting recurring (subscription) payments. It is planned to implement the respective project gradually across other Group markets.