NEO Finance, AB sales and interim financial report for 2024 Q1

This report presents the Q1 2024 operational data of NEO Finance, AB (hereinafter – the Company) – sales results and unaudited financial indicators. Key results include: 

  • The Company’s revenue in the first quarter of 2024, compared to the first quarter of 2023, increased by 46% and reached EUR 1,481 thousand. 
  • Cost of sales rose by 67% from EUR 481 thousand to EUR 803 thousand. 
  • Operating expenses increased by 19% from EUR 460 thousand to EUR 549 thousand. 
  • EBITDA grew by 48% from EUR 166 thousand to EUR 246 thousand. 
  • Profit before taxes was EUR 127 thousand, compared to a pre-tax profit of EUR 71 thousand in Q1 2023. 

 

   2024 Q1   2023 Q1   2024 Q1 / 2023 Q1 Δ, %   2022 Q1   2024 Q1 / 2022 Q1 Δ, %  

  
Revenue, EUR   1 481 315   1 013 626   46%   793 048   87%  
Income P2P lending, EUR   922 461   689 280   34%   515 542   79%  
Income from e-money issuance and management, EUR   409 251   287 643   42%   238 452   72%  
Income from investment activity, EUR   149 603   36 703   308%   39 054   283%  
Cost of sales, EUR  

  

 (803 307)   (481 273)   67%   (383 183)   110%  
Gross profit, EUR  

  

 678 008   532 353   27%   409 865   65%  
General and administrative, other operating and interest expenses (depreciation excluded), EUR   (549 833)   (460 451)   19%   (337 353)   63%  
EBITDA, EUR  

  

 246 292   166 559   48%   72 512   239%  
EBITDA Margin, %  

  

 17%   16%      9%     
Pre-tax profit (loss), EUR  

  

 127 828   71 902   78%   7 110   1698%  

Results of Businesses for Q1 2024. 

   „Paskolų Klubas“  

Income from peer-to-peer lending activities in 2024 started with 34% more revenue than in the first quarter of last year. Revenues for the first quarter of this year amounted to EUR 922 thousand, compared to EUR 689 thousand in the corresponding period of 2023. 

At the beginning of the year, we saw a relatively slight increase in loan originations, with EUR 10.41 million of loans granted through the “Paskolų klubas” platform in the first quarter of 2024, a 4.6% increase compared to the first quarter of 2023, when loans amounted to EUR 9.95 million. This slight increase in loan issuance is due to internal changes in the staff team, which resulted in a lower than usual loan issuance in the first two months of the year. However, the results for March already showed that the turnaround of the “Paskolų klubas” team has been successfully completed, which accordingly provides a basis for planning a return to double-digit growth in loan issuance volumes in the coming quarters. 

We are especially positive about the growth of the active portfolio, which grew by 26.68% to reach EUR 73.121 million. In the last six months, we have made considerable efforts to review our debt collection procedures and to find an ideal solution with a debt collection service provider with the aim of increasing the amount of recovered loans. It is pleasing to see that these efforts have not been in vain, and the amount recovered in the first quarter of 2024 is 21% higher than in the first quarter of 2023, with EUR 821 thousand collected. 

 

Greta Morkūnaitė 

Deputy Head of Administration 

 

 „Neopay“ 

Revenues related to the issuance and management of electronic money grew by 42% to EUR 409 thousand in Q1 this year, compared to EUR 287 thousand in Q1 2023. Neopay had a successful Q1 of this year, with a 29% increase in the number of transactions compared to the same quarter of 2023. Neopay’s participation in key financial industry events in the first quarter of 2024 significantly strengthened its position in the financial technology sector. The Prague Gaming & TECH Summit proved particularly beneficial as we were awarded the Best Payment Service Provider award, which also underlines Neopay’s continued commitment to quality service delivery and innovation in the services it provides. In the first quarter of 2024, Neopay Open Banking Department achieved significant results in improving payment solutions. In particular, the launch of 12Play, a product for online casino platforms, simplified player registration processes and improved compliance and security. In addition, the introduction of new features such as bank conversion rate tracking confirms the continued commitment to ensuring the highest level of transaction security and user experience. 

 

Evaldas Remeikis 

Head of Administration 

 

 

„Finomark“ 

The crowdfunding platform FinoMark intermediated business loans worth EUR 1 183 thousand in Q1 2024, compared to EUR 1 539 thousand in Q1 2023. The company’s revenue reached EUR 83 782 in Q1 2024 compared to Q1 2023 revenues amounted to EUR 82 950. As the platform operated by FinoMark, UAB is still in its nascent stage, the company still incurred a loss of EUR 10 110 in Q1 2024. 

We have updated and improved the project visualization for investors, making the investment experience smoother and allowing investors to explore investment projects more broadly and in-depth. Additionally, we implemented automated investment withdrawal functionality, enabling quick responses to client needs. In February, we successfully updated the project owners’ self-service portal and simplified the loan management process. 

One of the key changes was the increase in the BuyBack protection amount to EUR 1,500, thereby ensuring greater investment protection on the FinoMark” platform. 

 

 

Evaldas Remeikis 

Head of Administration 

 

NEO Finance AB sales and interim financial report for 2024 Q1.pdf