DelfinGroup increases revenue to €11.9 million in H1 2021

According to the unaudited results, during the first six months of 2021 the Latvian financial group AS DelfinGroup has increased its revenue to €11.9 million (+6.4% YOY). EBITDA increased by 8.7% and reached €4.6 million, while profit before taxes on dividends increased by 9% and reached €2.3 million. The increased revenue was mainly facilitated by the growth of activity in online segments of consumer lending, retail of pre-owned goods, and pawn shop loans. Dynamic growth in offline retail was limited by restrictions imposed due to the COVID-19 pandemic.

Irrespective of the pandemic-related restrictions in the country, during the second quarter AS DelfinGroup managed to significantly improve the loan issuance indicators: the total credit portfolio increased from €32.2 million in the first quarter to €33.3 million in the second quarter. By the end of the first half-year, the value of the consumer loan portfolio reached €30.4 million (+50.3% YOY).

During the second quarter, consumer loan issuance increased by 21.3% compared to the first quarter. During the first six months of 2021, consumer loan issuance grew 30.6% compared to 2020. However, due to the restrictions placed on offline servicing, during the first half of this year, pawn loan issuance decreased (-18.7% YOY). This did not have a lasting effect on overall growth, however, as the pawn loan segment is gradually recovering and in Q2 pawn loan issuance increased by 11.9% compared to Q1.

Didzis Ādmīdiņš, Chairman of the Board, AS DelfinGroup: “For DelfinGroup, this quarter was marked by resilient growth. We had very good results in the consumer loan segment, as well as in the online trade of pre-owned goods. Moreover, during the second quarter we also experienced growth in the pawn loan segment. Generally, we see quite a high level of economic activity in the entire country, which is also reflected by increased interest in financial and pawnshop services offered by DelfinGroup. In many areas outside Riga, we are almost the only provider of accessible financial services. This year, we have also opened four new Banknote branches, increasing our branch network to 93 branches in Latvia. Industry organisations and local governments also appreciate the DelfinGroup services network. Including three Banknote branches, which were awarded with the prizes in the competition named “Best Latvian Trader 2020” organised by the Latvian Traders Association and the Latvian Association of Local and Regional Governments.

At the moment, there are drawbacks for offline consumer loan issuance and in store sales of pre-owned goods, as due to the current restrictions, no more than one customer can be present in the premises of most branches. As a result, we continue developing digital platforms and introducing new automated lending solutions that allow us to improve customer service and serve our customers in less time. This year, the automation of the customer income review process was completed, and the entire review process is now fully automated. Furthermore, in all digital channels of DelfinGroup, we have experienced a rapid increase in customer flows that more than compensates for offline service restrictions.”

DelfinGroup maintains that the results confirm their corporate strategy has allowed the company to form a more sustainable foundation for future development, ensuring it is also able to deliver good results during crises and periods with high uncertainties. The company considers a recent silver category nomination by the Institute of Corporate Responsibility and Sustainability in Latvia confirmation of their efforts in building a sustainable business.

About DelfinGroup

DelfinGroup, formerly known as SIA ExpressCredit, was founded in 2009 and is the owner company of the loan originators Banknote and VIZIA. DelfinGroup is the second-largest non-bank consumer lender in Latvia. Since its inception, the company has issued €303 million of pawn loans and consumer loans and the client base has reached almost 400 000 customers. In 2020, the company’s revenue was €23.7 million, the loan portfolio reached €34.7 million, EBITDA increased to €9.3 million and profit before taxes reached €4.6 million. Starting from 06.05.2021 there have been changes in the ownership structure and some equity investors overlap with Mintos.


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