DGAP-News: Mogo Finance S.A. / Key word(s): Forecast/Bond
Mogo Finance year-end update 2020 and outlook for FY 2021 - Continuing stronger performance and on track towards greater financial flexibility

06.01.2021 / 16:40
The issuer is solely responsible for the content of this announcement.


Mogo Finance year-end update 2020 and outlook for FY 2021

Continuing stronger performance and on track towards greater financial flexibility

Riga, Latvia, 6 January 2021. Mogo Finance and its group companies (the "Group"), specialized in used car financing, is set to continue its strong performance in financial year 2021 under the ongoing COVID conditions. Following a successful 2020 based on a smooth transition to the "new normal" the Company achieved a record EBITDA of EUR 26 million in the nine months of 2020 (9M 2019: EUR 23 million) by establishing a more effective, productive and streamlined organizational structure. Progress was also made concerning the capital structure and financing conditions.

Preliminary discussions with leading investment banks on strengthening the capital structure as well as with investors and advisors on refinancing the Latvian subsidiary's bonds due in March 2021 and the Eurobonds maturing in July 2022 underline the recognition of the achievements.

Furthermore, Mogo Finance impressed by proving its compliance with the terms and conditions at all times, even following the temporary waiver of the financial covenants to ensure security for investors and growth and profitability for the Group in the changed economic environment of the COVID crisis. As a result, almost 40% of investors signaled their support for, among other things, the inclusion of a gradual reversal of the covenants to the original values in the bond terms and conditions to facilitate greater financial flexibility at a bondholders' meeting announced in fall.

As a result of portfolio optimization with a consistent focus on the most profitable and highest ROI markets, Mogo Finance expects revenues of EUR 90 to 95 million (FY 2019: EUR 77 million) and EBITDA of EUR 37 to 40 (FY 2019: EUR 32 million) million for the ended financial year 2020. With the new strategic orientation, the multi-channel fintech approach, while successful and sustainable in the long term, it is expected to develop further and lead to revenues of EUR 160 to 170 million and EBITDA of EUR 60 to 65 million in 2021.

Mogo Finance will be reporting its unaudited financial year 2020 results Mid-February 2021. Details on the convening of the bondholders' meeting will be announced shortly.

Contact:
Mogo Finance
Maris Kreics, Chief Financial Officer (CFO)
Email: maris.kreics@mogofinance.com

Aalto Capital
Sven Pauly, Investor Relations (IR)
Email: sven.pauly@aaltocapital.com

About Mogo Finance:
Mogo Finance is one of the leading and fastest-growing used car secured financing companies on a global scale. In selective markets, the Company also utilizes consumer lending as a strategic capital allocation vehicle to leverage its performance and customer base. Recognizing the niche underserved by traditional lenders, Mogo Finance provides financial inclusion and disruptively changes the used car and consumer financing industry across 14 countries. Up to date the Company has issued over EUR 585 million secured loans and running a net loan and used car rent portfolio of over EUR 192 million. Mogo offers secured loans up to EUR 15,000 with a maximum tenor of 84 months making used car financing process convenient, both for its customers and partners. Wide geographical presence and diversified revenue streams grant Mogo with unique scale and pace unmatched by its rivals. Mogo Finance operates a multi-channel fintech approach through its own branch network, more than 2,000 partner locations and a strong online presence. Physical footprint enriched with excellent customer journey makes Mogo Finance top of mind brand in its industry. A state-of-the-art car portal supports cross-selling potential from re-possessed cars to leasing and vice versa. Established in 2012, with headquarters in Riga, Latvia, Mogo Finance operates in Baltics and Europe with a strong focus on GDP-dynamic countries in Central, Eastern and South-Eastern Europe. Operating regions also include the Near East, the Caucasus and Central Asia as well as Eastern Africa.

www.mogofinance.com


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.



06.01.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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Language: English
Company: Mogo Finance S.A.
8-10 avenue de la Gare
1610 Luxembourg
Luxemburg
Internet: www.mogofinance.com
ISIN: XS1831877755, LV0000801363
Listed: Regulated Market in Frankfurt (General Standard)
EQS News ID: 1158689

 
End of News DGAP News Service

1158689  06.01.2021 

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