Multitude SE publishes 9M 2021 results
Multitude SE publishes
9M 2021 results
Helsinki, 18 November 2021 – Multitude SE (ISIN:
FI4000106299, WKN: A1W9NS) (“Multitude” or the “Group”) announces
unaudited results for the first nine months ended 30 September 2021
("9M 2021").
Financial Highlights
- Q3 revenue
exceeds previous quarters
- Strong revenue
dynamic in SweepBank
- Profit before
income taxes increased significantly by 125%
Key Figures, EUR million |
9M 2021 |
9M 2020 |
Revenue |
158.6 |
176.7 |
Operating profit (EBIT) |
19.1 |
19.3 |
Profit before tax |
4.6 |
2.1 |
Earnings per share, basic (EUR) |
0.13 |
0.03 |
Earnings per share, diluted (EUR) |
0.13 |
0.03 |
Solid
Performance in the first 9-month with
strong
growth,
especially in
SweepBank
In Q1-Q3 2021, the Group’s financial performance
and results continued to be affected by the COVID-19 pandemic. In
response, Multitude continued to apply a cautious sale and scoring
approach while selectively increasing risk appetite and marketing
activities. As a result, all tribes have shown revenue growth, with
collective loan portfolio increase of EUR 68.1 million (+18.9%)
when comparing balances at the end of Q4 2020.
Lower impairment and finance costs resulted in
improved profit before taxes. Group revenue amounted to EUR 158.6
million in Q1-Q3 2021, a decrease of EUR 18.1 million (-10.2%), as
compared to EUR 176.7 million in Q1-Q3 2020, mainly due to the
impact of COVID-19 and the Group’s decision to discontinue lending
in selected markets. The Group, however, has steadily increased its
portfolio in its SweepBank tribe, resulting into an increase in
SweepBank’s revenue from EUR 2.5 million in Q1-Q3 2020 to EUR 6.1
million in Q1-Q3 2021 – an increase of EUR 3.6 million (+144%).
Impairment on loans positively impacted profit
with a decrease of EUR 22.8 million (31.2%), standing at EUR 50.5
million (31.8% of revenue) in Q1-Q3 2021, as compared to EUR 73.3
million (41.5% of revenue) in Q1- Q3 2020. Whereas personnel
expenses remained at the same level, amounting to EUR 25.7 million
in both periods, despite increase in Group headcount from 654 HC at
the end of Q3 2020 to 671 HC at the end of Q3 2021.
Due to the offset in the decreases in revenue
and impairment on loans, the operating profit before interests and
taxes (EBIT) remained relatively at the same level at EUR 19.1
million in Q1-Q3 2021, as compared to EUR 19.3 million in Q1-Q3
2020, with a slight decrease of EUR 0.2 million (-0.8%).
Net financial costs also decreased by EUR 2.7
million (-15.7%), amounting to EUR 14.5 million in Q1-Q3 2021
(Q1-Q3 2020 – EUR 17.2 million). The decrease was driven by lower
foreign exchange losses and interest expense, the latter of which
is a result of replacing existing bonds with a hybrid equity
instrument, with interests charged directly to retained earnings
instead of profit or loss, and of increase in utilization of
deposit funding.
Overall, profit before income taxes increased
significantly from EUR 2.1 million in Q1-Q3 2020 to EUR 4.6 million
in Q1-Q3 2021 – an increase of EUR 2.5 million (+125.0%).
Strong
asset quality and balance sheet
ratios at the end of 9M
2021
Shareholders’ equity increased from EUR 125.6
million at the end of Q4 2020 to EUR 176.2 million at the end of Q3
2021, resulting in a healthy equity ratio of 21.2% (Q4 2020 -
18.6%). This was coupled with a corresponding decrease in net
debt-to-equity ratio from 2.49 at the end of Q4 2020 to 1.94 at the
end of Q3 2021. These changes were primarily driven by the
replacement of older bonds with a hybrid equity instrument.
Current liabilities amounted to EUR 530.3
million, representing 81.1% of the Group’s total liabilities at the
end of Q3 2021, an increase of EUR 223.7 million (+73.0%), as
compared to EUR 306.6 million, representing 55.8% of total
liabilities at the end of Q4 2020. The increase in current
liabilities is primarily due to the increase in current customer
deposits, which stood at EUR 411.1 million at the end of Q3 2021 as
compared to EUR 275.8 million at the end of Q4 2020 to - an
increase of EUR 135.3 million (+49.0%), and the reclassification of
the Ferratum Capital Germany GmbH bonds issued in 2018 maturing in
May 2022.
Total current and non-current customer deposits
amounted to EUR 475.1 million at the end of Q3 2021 (Q4 2020 - EUR
339.5 million), which contributed positively to the Group’s
liquidity, enabling the pursuit of strategic growth initiatives
such as those in SweepBank and CapitalBox tribes.
Total assets at the end of Q3 2021 amounted to
EUR 830.1 million, an increase of EUR 155.0 million (+23.0%), as
compared to EUR 675.1 million at the end of Q4 2020. This is mainly
due to the increase in loans and advances to customers and cash and
cash equivalents.
Cash and cash equivalents increased by EUR 75
million (+31.7%), amounting to EUR 311.5 million at the end of Q3
2021 (Q4 2020 - EUR 236.6 million), whereas loans and advances to
customers increased by EUR 68.1 million (+18.9%), amounting to EUR
429.1 million at the end of Q3 2021 (Q4 2021- EUR 361.0 million),
resulting from the Group’s successful “increased loan disbursement”
strategy for its Primeloan product under SweepBank.
Perpetual bond issue
Multitude SE placed on 5 July EUR 50 million in
subordinated perpetual capital notes, qualifying in IFRS as equity,
under a framework of EUR 100 million to investors. The Capital
Notes (ISIN NO0011037327) carry a floating rate coupon of 3 month
Euribor + 8.90% and were issued at a price of 99.50% of the nominal
amount. The Finnish Financial Supervisory Authority (the “FIN-FSA”)
has on 20 October 2021 approved the listing prospectus of the
capital notes and the FIN-FSA has on 21 October 2021, at the
request Multitude SE, notified Finansinspektionen, the competent
authority of Sweden, with a certificate of approval attesting that
the capital notes were drawn up in accordance with the prospectus
regulation.
Proceeds from the transaction are used to buy
back or repay outstanding debt instruments and for general
corporate purposes. In this context, Ferratum Capital Germany GmbH
offered the holders of the company’s outstanding senior unsecured
floating rate bonds maturing in May 2022 and in April 2023, who
were subscribing for Perpetual Bonds to tender any of their 2022
Bonds or 2023 Bonds. In connection with the issuance of Perpetual
Bonds, Ferratum Capital Germany purchased EUR 15.6 million of the
2022 Bonds at a price of 101.50% of the nominal amount and EUR 20
million of the 2023 Bonds at a price of 102.00% of the nominal
amount for the 2023 Bonds.
Appointment of new leadership team
members
Oscar Barkman was appointed as Tribe CEO for
Capital Box, succeeding interim Tribe CEO Peter Koning, who will
continue to serve as Agile and Transformation coach. Oscar joined
Multitude on 9th September 2021 and was appointed as a member of
Multitude’s Leadership Team with effect on the same date. Oscar
joined Multitude as a seasoned executive with more than 15 years’
experience working in the financial services industry.
ESG initiative
In Q3 2021 the Group started to formalise its
ESG approach and set ambitions to support long-term value creation
for stakeholders and a holistic understanding of risks and
opportunities.
Our focus is on 3 areas which define
Multitude’s goals for 2025:
- Imbed ESG
conscious practices within our tribes and chapters
- Monitor,
report on and improve stakeholder well-being
- Understand
and reduce our environmental footprint
Multitude will be further developing ESG
approach, including outlining metrics and targets for the Group and
tribes that take into consideration existing frameworks and
relevance to stakeholders.
About Multitude SE:
Multitude is an international provider of mobile
banking and digital consumer and small business loans, distributed
and managed by mobile devices. Founded in 2005 and headquartered in
Helsinki, Finland, Multitude has expanded to operate across Europe,
South and North America, Australia and Asia.
As a pioneer in digital and mobile financial
services technology, Multitude is at the forefront of the digital
banking revolution. The Group has 465,512 active customers that
have an open Mobile Bank or Wallet account or an active loan
balance in the last 12 months (as of 30 September 2021).
Multitude SE is listed on the Prime Standard of
Frankfurt Stock Exchange under symbol 'FRU.' For more information,
visit www.multitude.com.
Contacts:
IR@ferratum.com
https://www.multitude.com/investors/ir-contact
- Multitude_9M_2021_Report_filing
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