Ferratum Capital Germany GmbH

  • WKN: A1X3VZ
  • ISIN: DE000A1X3VZ3
  • Land: Deutschland

Nachricht vom 09.04.2014 | 18:14

Ferratum Group: Optimism for financial year 2014 based on successful business development in 2013

Ferratum Capital Germany GmbH / Key word(s): Final Results

09.04.2014 / 18:14

Ferratum Group: Optimism for financial year 2014 based on successful business development in 2013

- 2013 was the ninth consecutive year of record revenues, with an upward increase of approx. 19% up (when compared to 2012) to EUR 58.2 million

- Organic growth in existing markets increased the customer base by approx. 36%

- Successful expansion in new markets (Romania and Germany), new products, EU banking licence, investments in improved scoring and usability (especially on mobile devices) open further growth opportunities

- Improved corporate transparency through conversion of the financial reporting system to IFRS

Berlin, 9 April 2014 - The Ferratum Group, a pioneer in mobile micro credits in Europe, today publishes its consolidated financial statements for the financial year 2013. For the first time the results of the financial year were prepared in accordance with the International Financial Reporting Standards (IFRS). The successful integration of the EU banking licence within the Group structure and the placement of a corporate bond, amounting to EUR 25 million, at the Entry Standard level of the Frankfurt Stock Exchange in 2013, were key elements in the Group's expansion strategy. Furthermore, the continuous development of the product portfolio and improved risk management systems provided positive impulses on the development of the business during the said year. Such developments inevitably lead towards the expansion of additional growth for the Group in the future.

2013 also saw the successful integration of the EU Banking Licence, obtained by the Group's subsidiary - Ferratum Bank Ltd - with its operations in Poland and Slovakia, aside from an increase in the Group's customer base by 36.0% to approximately 1.9 million customers (2012: 1.4 million customers) the expansion of business in existing markets, as well as a more diversified product portfolio. Ferratum currently offers three credit products: the 'traditional' Micro Loan, Installment Loans (PlusLoan), with larger amounts and longer payback times, as well as a Credit Limit product - all of which are positioned as small consumer loans with a maximum loan amount of EUR 2,000 and with a focus on high usability. As a result of these positive developments, revenues increased significantly by approximately 18.9% to EUR 58.2 million in the said reporting period (2012: EUR 48.9 million).

Investments and increased expenses were, on the other hand, responsible for the Group's slightly reduced operating profit, when compared to the year 2012. In fact, expenses related to the growth strategy saw operating expenditure increase by a total of 23.8% to EUR 51.0 million (2012: EUR 41.2 million).

Based on the above-mentioned business expansion, the portfolio of customer receivables (micro credits) rose significantly to EUR 44.7 million (2012: EUR 37.9 million). The impairments on loans increased accordingly to EUR 21.6 million, compared to EUR 15.0 million in the previous year 2012. As a result, the Group's profitability decreased slightly year-on-year. Consequently, earnings before interests and taxes (EBIT) stood at EUR 7.3 million (2012: EUR 8.6 million). The EBIT margin amounted to 13.2% in 2013 (2012: 17.5%). Earnings before taxes (EBT) decreased in the reporting period to EUR 3.9 million (2012: EUR 6.2 million), corresponding to an EBT margin of 6.7% (2012: 12.8%). Due to the current conversion on the accounting standards, the consolidated financial statements for the full financial year 2012 were also subsequently converted to IFRS in order to ensure the comparability of the relevant financial figures. Thus, the financial figures for 2012, as currently presented in accordance with IFRS, differ from the previously published figures for this financial year, which were in accordance with the Finnish Accounting Standards (FAS).

Jorma Jokela, founder and CEO of the Ferratum Group, is very satisfied of the results and the developments during 2013: "Since its foundation in 2005, the Ferratum Group has always been growing and maintaining its profitability, including during the latter financial year. The decrease of the equity ratio to 21.8% (2012: 28.3%) is predominantly based on the high liquidity generated by the bond. We have a solid balance sheet structure, with a comfortable liquidity position of cash and cash equivalents in the amount of EUR 17.5 million (2012: EUR 2.7 million). We also envisage significant growth in potential due to the development of the software-based testing method on the creditworthiness of our customers." In 2013 Ferratum has established the Finnish subsidiary, Personal Big Data Oy, to improve its risk management capabilities. Based on newly acquired software the latter subsidiary ensures an improved analysis of a broad range of customer data.

In the first three months of 2014 Ferratum also continued its positive growth trend, having recorded its best quarter ever, in addition to March being the best month ever in terms of revenues. As originally planned, the Group started to invest a portion of the proceeds from the bond issue in the market entry in Germany and Romania, as well as further growth in existing markets. Ferratum has commenced its operations in Romania in February 2014 and in Germany in March 2014. Jokela believes that this opens up significant opportunities for sustained positive business development: "As the geographic center and market driver of Europe, Germany is of course an interesting market with significant potential in revenue and earnings."

Unsurprisingly, given the above, Jokela is very optimistic for the financial year 2014 and beyond: "Based on our successful existing operations in 19 markets worldwide and through its banking license, we would like to enter other markets where such a license is a prerequisite for credit undertakings. For 2014 we expect significant growth in revenue in all core markets, and an increase in profitability. Our goal is to be the leading mobile bank in medium term."

The entire annual report for the financial year 2013 can be downloaded from the Website www.ferratumgroup.com in the section "bond" from today on.

About Ferratum Group:

The Finnish Ferratum Group, a pioneer for mobile micro credits in Europe, offers private short-term accommodation loans. Ferratum's customers can utilize digital media to apply for consumer credit in amounts varying between EUR 50 and EUR 2,000, with an average maturity of 33 days. Since the company's foundation in 2005 Ferratum has expanded rapidly: The company, managed by its founder Jorma Jokela, has a total of more than 1.9 million customers worldwide. In the fiscal year 2013 the annual revenue amounted to around EUR 58 million with an EBT margin of 6.7%. Ferratum is represented in 19 markets and employs more than 300 employees. Ferratum Bank Ltd, one of the Group subsidiaries, is a credit institution authorized and licenced in Malta.


Ferratum Group                  
Dr. Clemens Krause                  
T: +49 30 88715308                
F: +49 30 88715309                
M: clemens.krause@ferratum.com            

cometis AG
Henryk Deter | Mariana Kuhn
T: +49 611 20 58 55-61
F: +49 611 20 58 55-66
M: kuhn@cometis.de

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262494  09.04.2014

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