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EQS-News: IuteCredit Finance S.à.r.l.
/ Key word(s): Annual Results/Quarterly / Interim Statement
Iute Group reports unaudited results for 12M/2022 On its way to a profitable fintech bank
IUTECREDIT’S OPERATIONAL HIGHLIGHTS WITHOUT EFFECTS OF BANK ACQUISITION
“2022 was a truly memorable year for IuteGroup. The successful completion of many of the initiatives we launched in previous years to a great deal coincided with the external factors they were designed to address, such as new regulations, rising inflation, and highly selective customer demand. As such, we are pursuing targeted initiatives that should contribute to sustainable growth in the years to come. In 2022, we exceeded our target of achieving consolidated revenues of at least 75 million EUR, with an increase of almost 20% a total of 89 million EUR. Also, we managed to increase net profit by almost 20% to a total of 19 million EUR, compared with a target of at least 16 million EUR. The consolidated balance sheet grew to 322 million EUR by the end of 2022, the number of performing loan customers to 178 thousand, and the number of payment services customers, i.e., wallet services, to over 90 thousand. At that, we gained traction in our four main markets – Moldova, Albania, North Macedonia, and Bulgaria. The quantitative numbers reflect the qualitative dimensions of our business, which we took to a new level in 2022. IuteGroup has developed and rolled out a unified technology platform that drives the instant lending business in all Group countries and will enable cross-border payment business in the future. The fully digital journey within the MyIute app is already on the rise. The cumulative number of MyIute app downloads has increased to 468 thousand. Thanks to the capabilities of our business, organization, processes, and technology, Iute can integrate in a scalable and systematic manner into the online lives of our customers. In this respect, the seamless integration of Energbank into IuteGroup continues to make progress. Our objective of leveraging the bank’s untapped potential and contributing to the Group’s growth is within reach. In 2022, the bank’s business operations contributed almost 5 million EUR to Group’s net profit while at the same time, we were optimizing management principles and management team, as well as customer-, technology- and data-centric aspects. IuteGroup continues to invest a great deal of capital and team effort into the four pivots of the Group’s development:
Preparations for the refinancing of the outstanding Eurobond in the volume of 50 million EUR are on track. Depending on capital markets’ demand, we evaluate the most advantageous opportunities both for IuteGroup and our bondholders, be it refinancing or redemption. In this context, we are also considering the financing requirements for the Group’s planned growth. Our strategic objective is to reach 1 million performing, i.e., paying, customers within the next three years, which would correspond to a Group balance sheet of 1 billion EUR by the end of 2026. In view of the expected decline in APRs but improved repayment discipline of our customers and increasing use of wallet services, we have set ourselves the ambitious target of generating annual revenue that equals 20% of the balance sheet. Accordingly, our balance sheet must only contain necessary and highly utilized items in order to achieve 20% net profit margin. For all the above, raising additional debt and equity must be considered. A change in the capital structure in the context of the Group’s development is dependent on the financing conditions so that in the best interest of the Company and the investors, the question also arises as to whether the terms and conditions agreed upon at the time of issuing the Eurobond will not slow down our growth in the future. By the end of 2023, we expect to have more than 230,000 performing loan customers and 130,000 performing wallet customers. Consolidated balance sheet is estimated to moderately exceed 350 million EUR. We expect revenues from our services of at least 100 million EUR for interest, fees, and charges, and a consolidated net profit of more than 12 million EUR,” said Tarmo Sild, Group CEO of IuteCredit. The full unaudited report for 12M/2022 is available under iutecredit.com/reports/. CEO Tarmo Sild and CFO Kristel Kurvits will comment on the unaudited 12M/2022 results by means of a webcast presentation on 22 February 2023, 10.00 CET. The webcast/call will be held in English. Please register in time to participate in the webcast/call at: The corresponding presentation will also be available on the Company's website prior to the earnings webcast/call. European Investor Meetings: IuteCredit Europe mandated GOTTEX Brokers SA (Switzerland), Signet Bank AS (Latvia), Bankhaus Scheich Wertpapierspezialist AG (Germany), Redgate Capital AS (Estonia), and Adamant Capital Partners (Bulgaria) to arrange a series of European professional investor meetings in connection with the upcoming refinancing of its EUR 50 million Senior Secured Corporate Bonds maturing in August 2023. Aalto Capital (Germany) acts as financial advisor and global coordinator to the Group. Iute Group is a fintech company established in 2008 in Estonia. The Group specializes in consumer finance, payment services, banking, and insurance products. It serves customers in Albania, Bosnia and Herzegovina, Bulgaria, Moldova, and North Macedonia. Iute Group finances its loan portfolios with equity, deposits, and secured bonds on the Regulated Market of the Frankfurt Stock Exchange and the Nasdaq Baltic Main List.
21.02.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
| Language: | English |
| Company: | IuteCredit Finance S.à.r.l. |
| 14, rue Edward Steichen | |
| 2540 Luxembourg | |
| Luxemburg | |
| ISIN: | XS2033386603, XS2378483494 |
| WKN: | A2R5LG , A3KT6M |
| Listed: | Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1564139 |
| End of News | EQS News Service |
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1564139 21.02.2023 CET/CEST
