Latvia’s Eleving Group Releases Financial Results for H1 2022

Eleving Group reports improved results in “all key business figures in its consolidated financial report for the period ended on 30 June 2022.”

The company has provided the following operational and financial information:

During the reporting period, Eleving Group has “increased its adjusted EBITDA by 16.6%, reaching €32.3m compared to €27.7m a year ago, while adjusted net profit before FX stands at €9.0m compared to €7.7m in the respective period of 2021.”

Adjusted revenue of six-month operations “has hit €90m, an increase of €22.3m compared to €67.7m in the respective period a year ago.”

Flexible lease and subscription-based products “contributed €23.5m to the revenues, up 142.3% compared to the first six months of 2021 and up 23.8% quarter on quarter.” Traditional lease and leaseback product revenues “stood at €31.5m, a 30.7% increase compared to the previous six-month reporting period and a 5.9% increase compared to the last quarter ended on 31 March.”

Furthermore, the consumer loan segment “generated €31.0m, which is 8.8% more compared to the first six months of 2021.” Also, the company’s net portfolio “shows stable growth, surpassing €275.8m, an increase of €63.5m compared to the respective reporting period a year ago.”

Modestas Sudnius, CEO of Eleving Group, comments:

“While there is a lot of uncertainty in the world and capital markets, Eleving Group continues to demonstrate stable and solid performance. Group’s portfolio and revenue continued to grow in the first half of this year while the company continued to execute its strategy. That has brought strong financial results with the best 6M profitability.”

Sudnius added:

“Keeping that in mind, we are cautious about various signals of an economic slowdown initiated by the geopolitical and economic situation in the world, such as inflation, rising costs of energy resources, and overall sentiment in the economy. In the upcoming six months, Eleving group will maintain its growth and development strategy but will take a more conservative approach in its underwriting policies, will seek for further improvements in operational efficiency, and focus on existing products and geographies mixed with cautious tests of new concepts.”

In June, Eleving Group “received a rating reaffirmation at B- with a stable outlook from Fitch Ratings.” This rating action is “viewed positively by the Group as it confirms that Eleving Group’s strategy and implemented actions are effective even in times of economic uncertainty.”

As covered, Eleving Group was “founded in 2012 in Latvia and joined the Mintos marketplace in 2015, originally offering loans for investment from Latvia.”

Since then, it has “placed loans on the marketplace from 15 countries in the Baltics and Central, Eastern, and South-Eastern Europe.” Operating regions also “include the Caucasus and Central Asia, as well as Eastern Africa.” To date, the company has “issued over €1.115 million in loans and has a net loan portfolio of over €260 million.”

Some of the equity investors of Eleving Group and Mintos overlap.

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