Monet SE publishes 9 million Results for 2021
Helsinki, 18.11.2021 – Multitude SE (ISIN: FI4000106299, WKN: A1W9NS) (“Multitude” or “Group”) announces unaudited results for the nine months ended 30 September 2021 (“9M 2021”).
- Net sales for the third quarter exceed the previous quarter
- Strong income dynamics at SweepBank
- Profit before taxes increased significantly by 125%
|Key figures, mill. euros||9 million 2021||9 million 2020|
|Operating profit (EBIT)||19.1||19.3|
|Profit before taxes||4.6||2.1|
|Earnings per share, basic (EUR)||0.13||0.03|
|Diluted earnings per share (EUR)||0.13||0.03|
Fixed Pstrong during the first 9 months gline, specially in SweepBank
The COVID-19 pandemic in Q1-Q3 2021 continued to affect the Group’s financial results and results. In response, Multitude continued to apply a prudent sales and scoring method while selectively increasing its risk appetite and marketing efforts. As a result, all tribes have shown an increase in turnover, and the collective loan portfolio increased by EUR 68.1 million (+ 18.9%) compared to the balances at the end of the fourth quarter of 2020.
Lower impairment and financial expenses improved earnings before taxes. The Group’s net sales in Q1-Q3 2021 were EUR 158.6 million, a decrease of EUR 18.1 million (-10.2%) compared to EUR 176.7 million in Q1-Q3 2020, mainly due to the effect of COVID-19 and the Group’s decision. to cease lending in selected markets. However, the Group has steadily increased its portfolio in the SweepBank family, which has led to an increase in SweepBank’s net sales from EUR 2.5 million in Q1-Q3 2020 to EUR 6.1 million in Q1-Q3 2021 – an increase of EUR 3.6 million (+144). %).
Impairment losses on loans had a positive effect on the result of EUR 22.8 million (31.2%), amounting to EUR 50.5 million (31.8% of net sales) in Q1-Q3 2021, compared to EUR 73.3 million (41.5% of net sales) in Q1-Q3 2020. Personnel expenses remained at the same level and amounted to EUR 25.7 million in both periods, despite an increase in the Group’s headcount from 654 HC at the end of Q3 2020 to 671 HC at the end of the third quarter of 2021.
Due to the compensation for the decrease in net sales and loan impairment, operating profit before interest and taxes (EBIT) remained relatively stable at EUR 19.1 million in Q1-Q3 2021, compared to EUR 19.3 million in Q1-Q3. 2020, with a small decrease of EUR 0.2 million (-0.8%).
Net financial expenses also decreased by EUR 2.7 million (-15.7%) to EUR 14.5 million in Q1-Q3 2021 (Q1-Q3 2020 – EUR 17.2 million). The decrease was due to lower foreign exchange losses and interest expenses, the latter of which is due to the replacement of existing bonds with a hybrid equity instrument, the recognition of interest directly in retained earnings instead of profit or loss, and an increase in the use of the deposit. funding.
Overall, profit before taxes increased significantly from EUR 2.1 million in the first quarter of 2020 to EUR 4.6 million in Q1-Q3 2021 – EUR 2.5 million (+ 125.0%).
Strong aquality and balance sheet ratios at the end 9 million 2021
Equity increased from EUR 125.6 million at the end of the fourth quarter of 2020 to EUR 176.2 million at the end of the third quarter of 2021, when the equity ratio was 21.2% (Q4 2020 – 18.6%). This was accompanied by a corresponding decline in the ratio of net debt to equity from 2.49 at the end of the fourth quarter of 2020 to 1.94 at the end of the third quarter of 2021. The changes were primarily due to the replacement of the parent bonds with a hybrid equity instrument.
Current liabilities amounted to EUR 530.3 million, or 81.1% of the Group’s total debt at the end of the third quarter of 2021, an increase of EUR 223.7 million (+ 73.0%) compared to EUR 306.6 million, which is 55.8% of total debt for the financial year. at the end of the fourth quarter of 2020. The increase in current liabilities is primarily due to an increase in short-term customer deposits of EUR 411.1 million at the end of the third quarter of 2021, compared to EUR 275.8 million at the end of the fourth quarter of 2020. EUR 135.3 million (+ 49.0%) and the reclassification of Ferratum Capital Germany GmbH ‘s bonds issued in 2018 will mature in May 2022.
Short-term and long-term customer deposits totaled EUR 475.1 million at the end of the third quarter of 2021 (Q4 2020 – EUR 339.5 million), which had a positive impact on the Group’s liquidity, enabling the implementation of strategic growth projects such as SweepBank and CapitalBox. tribes.
The balance sheet total at the end of the third quarter of 2021 was EUR 830.1 million, an increase of EUR 155.0 million (+ 23.0%) compared to EUR 675.1 million at the end of the fourth quarter of 2020. This is mainly due to the increase in loans. customers and cash.
Cash and cash equivalents increased by EUR 75 million. EUR (31.7%) and amounted to EUR 311.5 million. At the end of the third quarter of 2021 (Q4 2020 – EUR 236.6 million), loans and receivables from customers increased by EUR 68.1 million. EUR (+ 18.9%). ), which was EUR 429.1 million at the end of the third quarter of 2021 (Q4 2021 – EUR 361.0 million), due to the Group’s successful “increased loan payment” strategy for SweepBank’s Primeloan product.
On 5 July, Multitude SE reduced its EUR 50 million subordinated loans to investors to EUR 100 million in accordance with IFRS. The floating rate coupon for the subordinated loans (ISIN NO0011037327) is 3-month Euribor + 8.90% and was issued at a price of 99.50% of the nominal value. On 20 October 2021, the FSA approved the prospectus for the listing of the subordinated loans and on 21 October 2021, at the request of Multitude SE, the FSA notified the competent authority of the Finansinspektionen Sweden, which has a certificate stating that the subordinated loans have been prepared in accordance with the Prospectus Regulation.
The proceeds of the transaction will be used to repurchase or repay debt instruments and for general corporate purposes. In this context, Ferratum Capital Germany GmbH offered the Company to holders of unsecured floating rate bonds maturing in May 2022 and April 2023 who subscribed for the Perpetual Bonds to make a tender offer for their 2022 or 2023 bonds. In connection with the issuance of the Perpetual Bonds, Ferratum Capital Germany purchased EUR 15.6 million of the 2022 bonds at a nominal value of EUR 10.50% and EUR 20 million of the 2023 bonds at a price of 102.00% of the nominal value. 2023 bonds.
Appointment of new members of the Management Team
Oscar Barkman was appointed CEO of Capital Box Tribe, succeeding Peter Triing, interim CEO of Tribe, who will continue as coach of Agile and Transformation. Oscar joined Multitude on September 9, 2021 and was appointed a member of Multitude’s Executive Board as of the same date. Oscar joined Multitude as an experienced executive with over 15 years of experience in the financial services industry.
In the third quarter of 2021, the Group began formalizing its ESG approach with the goal of supporting long-term value creation for stakeholders and a comprehensive understanding of risks and opportunities.
We focus on three areas that define Multitude’s goals for 2025:
- Embed ESG-conscious practices in our tribes and wards
- Monitor, report and improve stakeholder well-being
- Understand and reduce our environmental footprint
Many are further developing the ESG approach, including outlining dimensions and objectives for groups and tribes that take into account the existing framework and relevance to stakeholders.
About Multiitude SE:
Multitude is an international provider of mobile banking, digital consumer and small business loans shared and managed on mobile devices. Founded in 2005, Multitude, headquartered in Helsinki, has expanded its operations in Europe, South and North America, Australia and Asia.
As a pioneer in digital and mobile financial services technology, Multitude is at the forefront of the digital banking revolution. The Group has 465,512 active customers who have an open mobile bank or wallet account or an active loan balance in the last 12 months (September 30, 2021).
Multitude SE is listed on the Frankfurt Stock Exchange’s Prime Standard under the symbol “FRU”. For more information, visit www.multitude.com.