EQS-News

Eleving Group S.A.: Steady portfolio growth while maintaining excellent profitability

EQS-News: Eleving Group S.A. / Key word(s): Half Year Results Eleving Group S.A.: Steady portfolio growth while maintaining excellent profitability 09.08.2023 / 08:42 CET/CEST The issuer is solely responsible for the content of this announcement.

---

Operational and Strategic Highlights 
 

• The Group closed the first half of 2023, recording steady financial performance. The six-month revenues remained relatively unchanged compared to the corresponding period last year, reaching EUR 90.6 mln. Meanwhile, the Group’s net portfolio achieved 1.7% growth QOQ and totaled EUR 295.1 mln.  
• Diversified business operations and a balanced revenue stream from all three core business lines:  
  • Flexible lease and subscription-based products contributed EUR 25.2 mln to the 6M 2023 revenues—up by 7.2% compared to 6M 2022, driven by the solid performance in productive lending in the motorcycle-taxi segment in East Africa and a successful scale-up of rental products in the Baltics; 
  • Traditional lease and leaseback products contributed EUR 34.0 mln to the 6M 2023 revenues—up by 7.9% compared to 6M 2022. The respective revenue growth was mainly generated by portfolio growth in Romania; however, nearly all the other of the Group’s markets also experienced positive incremental growth;
  • Revenues from the consumer loan segment contributed EUR 27.6 mln to the 6M 2023 revenues—down by 11.0% compared to 6M 2022. The negative revenue development exclusively stemmed from the run-down of the Ukrainian portfolio, as the revenues of all the other consumer finance markets have increased during the corresponding time span. 
• In early July, Eleving Group announced that it had obtained¹ EC Finance Group through the integration and combination of both companies’ equity amounts. EC Finance Group, better known by the product brand name ExpressCredit, is a consumer finance provider operating in four Southern African countries. As a result of the transaction, the Group will take over the company’s assets, subsidiaries, and client portfolio worth EUR 28 mln, and increase the Group’s equity. 
• In early July, Renti Plus business operations in Latvia were sold² to Transporent Ltd, a Latvian subsidiary of the international mobility services provider SIXT. The respective transaction included a sale of more than 100 vehicles from the Renti Plus fleet and its active customer portfolio. With closing of the deal, the Group will continue to develop its financing services in the retail and SME segments in Latvia, with a primary focus on streamlining existing products. 
• The end of Q2 marked the first full year of the Group’s electric car-sharing product’s OX Drive operations in Latvia. Within the first year, the product generated more than half a million euros in revenues and the mobile app was downloaded more than 30k times. Also, the vehicle fleet has increased two-fold since the launch and surpasses the 100-vehicle threshold. Given the high demand for electric vehicle car-sharing services, the Group plans to double its existing electric vehicle fleet by the end of 2023. 
• In the ESG space, the Group has continued to expand its electric motorcycle-taxi financing product in Kenya, with 80 units financed during 2023 and a goal of 500 vehicles financed by the end of the year. The same electric motorcycle-taxi financing product is also currently under development in Uganda, with an estimated time of launch towards the end of 2023. Lastly, the Group is proud to share that the 2 million kilometers traveled using OX Drive product has saved the same CO2 emissions that 10k trees could have captured within one year.