4finance reports preliminary results for the twelve month period ending 31 December 2015

Riga, Latvia, 29 February 2016. 4finance Holding S.A. (the ‘Group’), one of Europe’s largest online and mobile consumer lending groups, today announces unaudited consolidated results for the twelve months ended 31 December 2015 (the ‘Period’).

Revenue up 44%, Net Profit up 38% reflecting strong volume growth across the business.

Financial Highlights

  • Revenue up 44% to EUR 318.3 million in the Period compared with EUR 220.8 million in the year ended 31 December 2014.
  • The Group’s profit for the twelve months to 31 December 2015 was EUR 64.0 million, an increase of 38% from EUR 46.3 million in 2014.
  • Net loan portfolio as of 31 December 2015 was EUR 309.2 million, up 28.1% from a year ago.
  • Cost to revenue ratio for the Period was 42%, vs. 37% for the twelve months ended 31 December 2014.
  • Financial strength enhanced with a capital-to-assets ratio of 38% as of 31 December 2015 (35% as of 31 December 2014).
  • Credit discipline maintained with non-performing loans to loan issuance ratio of 9.0% as of 31 December 2015 (8.8% as of 31 December 2014).
  • EBITDA was EUR 109.9 million for the Period, leading to an adjusted interest coverage ratio of 4.2x.

Operational Highlights

  • Total number of registered customers reached 4.63 million as of 31 December 2015, up 39% from a year ago.
  • A total of EUR 1,062 million in loans were issued during the Period, up 32% compared with EUR 805 million in 2014.
  • Opened in four new countries in 2015: Argentina, Armenia, Mexico and Romania.
  • Continued growth of Instalment loans, now 34% of performing loan portfolio, set to continue in 2016.
  • Successful pilot of Line of Credit product in Finland, being rolled out to further markets.
  • Enhanced management team, with new Chief Marketing and Chief Risk Officers joining in 2015.
  • Seeing benefits of new technology deployments with improved conversion rates on redesigned product websites, efficiencies delivered by marketing technology and more predictive and flexible risk scoring models.

Kieran Donnelly, CEO of 4finance, commented:

“This strong performance in 2015, with revenue up 44% and profit up 38% to EUR 64.0 million, reinforces our track record of profitable growth that has seen a 35% compound annual increase in profit over the past three years. We provided over one billion Euros of credit to our customers in 2015 and just last month issued our 10 millionth loan – both milestones underline the scale of the 4finance business and the volume of our proprietary data.

“Our existing European businesses performed well in 2015, with countries like Spain, Georgia and the Czech Republic showing the returns from our initial investments there 2-3 years ago. Similarly, our new operations in Latin America are expected to contribute meaningfully to volumes this year, and then be drivers of profitability from 2017 onwards.

“As a responsible lender, we are supportive of the regulatory consultations and developments in several of our markets and have worked hard to adapt our products where necessary. We were pleased to re-start lending in Lithuania in January and view full compliance with regulation as a critical part of a sustainable business.

“We invested heavily in our technology platform and our people in 2015 and continue to do so given the scale of opportunity we see for growth – both organic and via acquisitions – in building a global leader in digital consumer finance.”


Key Financial Ratios

As of / 12 months to 31 December
2015 2014 2013
Net loan portfolio (in millions of EUR) (1) 309.2 241.4 177.9
Capital/assets ratio (2) 38% 35% 29%
Capital/net loan portfolio (3) 56% 47% 37%
Adjusted interest coverage (4) 4.2x 3.7x 4.6x
Profit before tax mаrgin (5) 23% 27% 35%
Return on average equity (6) 41% 54% 82%
Cost/revenue ratio (7) 42% 37% 38%
Net impairment to revenue ratio (8) 25% 25% 18%
Non-performing loans to loan issuance ratio(9) 9.0% 8.8% 9.2%


  1. Gross loan portfolio less provisions for bad debts.
  2. Total equity/total assets (excluding the effect from the 2015 Notes’ defeasance for 2014)
  3. Total equity/net loan portfolio.
  4. Adjusted EBITDA/interest expense.
  5. Profit before tax/interest income.
  6. Profit from continuing operations/average equity (total equity as of the start and end of each period divided by two).
  7. General administrative expenses/interest income.
  8. Net impairment losses on loans and receivables/interest income.
  9. Non-performing loans with a delay of over 90 days/value of loans issued. The value of loans issued represents loans issued for the two-year period before commencement of the 90 day past-due period, eg for 31 December 2015: 1 October 2013 to 30 September 2015.



Email:               investorrelations@4finance.com
HQ Address:       Lielirbes iela 17a-8, Riga, LV-1046, Latvia
Website:            www.4finance.com


Conference call
A conference call with management to discuss these results is scheduled for Tuesday, March 1 at 16:00 UK time. To register, please visit www.4finance.com/investors.

About 4finance
Established in 2008, 4finance is one of the largest and fastest growing online and mobile consumer lending groups in Europe with operations in 14 countries. Putting innovative data-driven analysis into all aspects of the business, 4finance has grown rapidly, issuing over EUR 3 billion in single payment and instalment loans to date.

4finance operates through a portfolio of market leading brands with strong regional presence including Vivus, SMSCredit and Zaplo. A responsible lender, offering simple, convenient and transparent products and service, 4finance is meeting growing customer demand from those increasingly under-served by conventional lending.

4finance is headquartered in Riga, Latvia and currently operates in Argentina, Armenia, Bulgaria, the Czech Republic, Denmark, Finland, Georgia, Latvia, Lithuania, Poland, Romania, Spain and Sweden. To support its international expansion, 4finance continues to pursue a twin-track strategy of strong organic growth bolstered by targeted acquisition.
Forward looking statements

Certain statements in this document are “forward-looking statements”. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements.

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