November 15, 2019

Mogo Finance reports Unaudited results for the nine months ended 30 September 2019

Increase in issuances continue to drive strong results

OPERATIONAL AND STRATEGIC HIGHLIGHTS

  • Group loans issued increased strongly by 40.2% equaling EUR 132.6 million (9M 2018:  EUR 94.6 million), of which EUR 76.3 million in mature markets (9M 2018: EUR 69.1 million)
  • Number of active customers in mid-tier markets up significantly by approx. 100.0% to over 17,000 (31 December 2018: approx. 8,500)
  • Near-prime product launched in Latvia in cooperation local Latvian bank
  • After testing phase Mogo Finance decided to temporarily stop operations in the Ukraine market                                                                                                                                                                

FINANCIAL HIGHLIGHTS AND PROGRESS                              

  • Interest and similar income including income from used car rent up strongly by 41.2% to EUR 55.8 million (9M 2018: EUR 39.3 million)
  • Rapid growth in net interest income of 35.5% to EUR 37.8 million (9M 2018: EUR 27.9 million)
  • Significant   increase   in   EBITDA   by   55.1%   to   EUR 22.8 million (9M   2018: EUR 14.7 million)
  • Net profit for the period improved notably by 82.1% to EUR 5.1 million (9M 2018: EUR 2.8 million)

Modestas Sudnius, CEO of Mogo Finance, commented:

“In the first nine months of 2019, growth of portfolio was supported by significant increase in key financial figures – net profit and EBITDA notably. Mid-tier markets are developing according to our strategy and increasingly contributing to the Group’s profitability. Mogo growth and success in 2019 so far is a result of consistent strategy, great and dedicated team work within the headquarters as well as all countries where Mogo has gathered all the best talent from the industry.”

The full unaudited report for the nine months ended 30 September 2019 is available under https://mogo.finance/investment/results-and-reports/.

Conference Call:

A conference call in English with the Group’s management team to discuss these results is scheduled for 20 November 2019, at 15:00 CET. 

Please register: http://emea.directeventreg.com/registration/4819519 

The presentation for the conference call will be available here as of 20 November 2019, at 09:00 CET. 

About Mogo Finance:

Mogo Finance is one of the largest and fastest-growing secured used car financing companies in Europe. Recognizing the niche in used car financing underserved by traditional lenders, Mogo Finance has expanded its operations to 14 countries issuing over EUR 450 million up to date and running a net loan and used car rent portfolio over EUR 180 million. Mogo offers secured loans up to EUR 15,000 with maximum tenor of 84 months making used car financing process convenient, both for its customers and partners. Wide geographical presence makes Mogo unique over its rivals and diversifies revenue streams.

Mogo Finance operates through its own branch network, more than 1,500 partner locations and strong online presence. Physical footprint makes Mogo Finance top of mind brand in used car financing. Established in 2012, headquartered in Riga, Latvia Mogo Finance operates in: Latvia, Estonia, Lithuania, Georgia, Poland, Romania, Bulgaria, Moldova, Albania, Belarus, Armenia, Uzbekistan, Kazakhstan and North Macedonia.

IMPORTANT INFORMATION

The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into the United States, Australia, Canada, Hong Kong, Japan, New Zealand, South Africa or any other countries or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. Persons into whose possession this announcement may come are required to inform themselves of and observe all such restrictions

This announcement does not constitute an offer of securities for sale in the United States. The bonds have not been and will not be registered under the Securities Act or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

This announcement does not constitute a prospectus for the purposes of Directive 2003/71/EC, as amended (the “Prospectus Directive”) and does not constitute a public offer of securities in any member state of the European Economic Area (the “EEA”).

This announcement does not constitute an offer of bonds to the public in the United Kingdom. No prospectus has been or will be approved in the United Kingdom in respect of the bonds. Accordingly, this announcement is not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of this announcement as a financial promotion may only be distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (iii) high net worth companies, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i), (ii) and (iii) above together being referred to as “Relevant Persons”). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire such securities will be engaged in only with, Relevant Persons. Any person who is not a Relevant Person should not act or rely on this announcement or any of its contents.

PROFESSIONAL INVESTORS ONLY – Manufacturer target market (MIFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as the bonds do not constitute packaged products and will be offered to eligible counterparties and professional clients only.