DGAP-News Mogo Finance year-end update 2020 and outlook for FY 2021 - Continuing stronger performance and on track towards greater financial flexibility
DGAP-News: Mogo Finance S.A. / Key word(s): Forecast/Bond
Mogo Finance year-end update 2020 and outlook for FY 2021
Continuing stronger performance and on track towards greater financial flexibility
Riga, Latvia, 6 January 2021. Mogo Finance and its group companies (the "Group"), specialized in used car financing, is set to continue its strong performance in financial year 2021 under the ongoing COVID conditions. Following a successful 2020 based on a smooth transition to the "new normal" the Company achieved a record EBITDA of EUR 26 million in the nine months of 2020 (9M 2019: EUR 23 million) by establishing a more effective, productive and streamlined organizational structure. Progress was also made concerning the capital structure and financing conditions.
Preliminary discussions with leading investment banks on strengthening the capital structure as well as with investors and advisors on refinancing the Latvian subsidiary's bonds due in March 2021 and the Eurobonds maturing in July 2022 underline the recognition of the achievements.
Furthermore, Mogo Finance impressed by proving its compliance with the terms and conditions at all times, even following the temporary waiver of the financial covenants to ensure security for investors and growth and profitability for the Group in the changed economic environment of the COVID crisis. As a result, almost 40% of investors signaled their support for, among other things, the inclusion of a gradual reversal of the covenants to the original values in the bond terms and conditions to facilitate greater financial flexibility at a bondholders' meeting announced in fall.
As a result of portfolio optimization with a consistent focus on the most profitable and highest ROI markets, Mogo Finance expects revenues of EUR 90 to 95 million (FY 2019: EUR 77 million) and EBITDA of EUR 37 to 40 (FY 2019: EUR 32 million) million for the ended financial year 2020. With the new strategic orientation, the multi-channel fintech approach, while successful and sustainable in the long term, it is expected to develop further and lead to revenues of EUR 160 to 170 million and EBITDA of EUR 60 to 65 million in 2021.