NEO Finance, AB Interim financial information for 2023 Q1-Q3

Please find attached interim information for the Q1-Q3 2023 of NEO Finance AB (hereafter – the Company) – sales results and unaudited financial data.

In the Q1-Q3 of 2023, NEO Finance, AB demonstrated positive growth in all business segments:

• Loans granted amounted to 31 357 thousand EUR. Compared to the same period in 2022, the volume of issued loans increased by 18.19%.

• Cost of sales increased by 23%, from 1 205 thousand EUR to 1 567 thousand EUR.

• Operating costs increased by 20.85%, from 1 190 thousand EUR to 1 438 thousand EUR.

• EBITDA grew by 95.35%, from 299 785 EUR to 585 632 EUR.

• Pre-tax profit amounted to 283 994 EUR, while in Q1-Q3 of 2022, a profit of 82 657 EUR was recorded.

 

    2023 Q1-Q3        2022 Q1-Q3      ∆
Loans granted, EUR 31 357 223 26 547 250         18.19%
Income, EUR 3 289 455 2 478 364         32.73%
Income related to peer-to-peer lending activities, EUR 2 157 872 1 636 316         31.87%
Income related to issuing and handling e-money, EUR         955 316 736 715         29.67%
Income from investment activities, EUR 176 267 105 333         67.34%
Cost of sales, EUR (1 567 088) (1 205 491)         23%
Total revenue, EUR 1 722 366 1 272 873         35.31%
Operating costs, EUR (1 438 372) (1 190 216)         20.85%
EBITDA, EUR 585 632 299 785         95.35%
Profit / loss before tax, EUR 283 994 82 657               243.58%
EBITDA margin, % 18% 12%
Return on equity ratio (ROE), % 10% 3%

Results of business segments

„Paskolų Klubas“

The results of Q3 of the year 2023 demonstrate excellent growth and successful operations, The amount of loans financed on the “Paskolų Klubas” platform during this period 17.43% more compared to the same period last year. The “Paskolų Klubas” team continues to actively and innovatively work on attracting loan recipients, and with favorable market conditions, they successfully increase their market share in the consumer lending segment and compete effectively with established players in the market.
In August, “Paskolų klubas” introduced a unique financing option for its clients – “Buy Now, Pay Later” (BNPL) loans. The solution was implemented together with the payment initiation platform “Neopay”. From September 2023, the company applies a new way of protecting customer funds: customer funds are not only kept in a segregated account but also invested in safe, liquid and low-risk assets such as government securities.

„Neopay“

Neopays’s Q3 of this year proved to be quite successful, as the transaction volume increased by 29.3% compared to the same quarter in 2022. The amount of payment service transactions in comparison grew by 107% compared to the Q3 of last year. Income related to issuing and handling e-money grew by as much as 33.97% to 344 thousand, EUR, when for comparison in 2022 in Q3 the income reached 256 thousand, EUR. We are pleased to announce that in order to increase the availability of Neopay throughout Europe, we have also integrated our payment initiation services with the largest Czech banks, which will further increase the reach of our services.

„Finomark“

The crowdfunding platform “FinoMark” acted as an intermediary for issuing business loans amounting to EUR 1 089 thousand in Q3 of 2023, compared to EUR 806 thousand of business loans financed in the same quarter of 2022, The company’s revenues Q3 2023 reached EUR 76.37 thousand, whereas they amounted to EUR 43.59 thousand in Q3 of 2022. In Q3 2023, the company’s profit before tax amounted to EUR 66,73 thousand compared to a loss of EUR 68,94 thousand in Q3 2022.

 

Tomas Savickas

Chief Financial Officer

Email: tomas.savickas@neofinance.com

The full interim report of NEO Finance AB (legal entity code: 303225546; registered address: Vivulskio g. 7, Vilnius, Lithuania) for the Q1-Q3 of 2023, with confirmation by the responsible persons, are available for review in the attached document.
NEO FINANCE Q3 REPORT (1)