ESTO reports a 54% revenue increase in Q3 2023

ESTO Holdings (the Group), an Estonian payment processor and consumer credit provider, reported its unaudited financial results for Q3 2023. The company provided the following operational and financial information: ESTO has seen profits totaling €2.3 million for 3 consecutive quarters this year. The company secured close to €9 million in new funding during Q3 2023 and over €18.5 million since the beginning of the year.

Key highlights:

  • Revenue increased 54% from Q3 2022 to a record €17.5 million.
  • Over €118 million in transactional turnover (gross merchandise volume) was processed by ESTO during the first nine months of 2023, a 66% increase compared to the same period in 2022.
  • Over 300 new point-of-sales were added to the merchant network, with an estimated annual gross merchandise volume of about €100 million. 
  • The net profit increased by 27% year-over-year to €2.3 million in the first nine months of 2023, compared to €1.8 million in the same period of 2022.
  • The net loan portfolio expanded by 41% year-over-year in Q3 2023 compared to Q3 2022.

“ESTO’s focus on profitable and sustainable growth is evident in our business development strategy, which was proven by the recent enhancement of our product line by the launch of the ESTO Platform earlier this year. Our market positioning remains strong, especially in Estonia, where ESTO is proudly considered a household brand. We’ve achieved impressive financial results with significant revenue growth, EBITDA, and Net Profits exceeding our expectations, our momentum is strong, and we are poised for a promising trajectory in the coming quarters. We see a tremendous opportunity in expanding ESTO operations in Latvia, Lithuania, and beyond, and we initiated an equity raise project in October to accelerate our growth.”

Mikk Metsa, Founder and CEO of ESTO

ESTO announced the equity raise process is set for Q4 2023, followed by the unanimous decision of the company’s shareholders. This move aims to fuel ESTO’s growth in the Baltics, capture additional market share, and support the development of financial solutions.

“This quarter, ESTO’s focus on robust credit risk management has significantly strengthened the quality of our originations and credit portfolio, reflected in exceptionally low NPL to Net Portfolio rate below 1.2%”, stated Kevin Koik, ESTO’s Chief Financial Officer. “Furthermore, the Cost-to-Income ratio has improved remarkably, standing at the impressive level of 27%. Since the beginning of the year, ESTO has secured an additional €18.5 million of new funding and kept the effective cost-of-funds rate below 11%, even with the recent upward dynamics of the ECB rate. Those improvements are the best indicator of our strategic priority in sustainable growth and building resilience in the face of market volatility.”

Kevin Koik, CFO of ESTO

About ESTO

ESTO was established in 2017 and provides a fully automated and tech-driven point-of-sale purchase financing and payments solution for its network of merchant partnerships in the Baltics. ESTO’s business model is to facilitate payments between the client and merchant in an e-commerce setting by providing real-time payments for the merchant and payment schedules for the client. Among its partners are some of the largest retailers in the Estonian market – Kaup24, ONOFF, Valge Klaar, RDE, Bigbox, Photopoint, and many more.



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