Sun Finance Group revenue in Q3 reached €35.6m (€92.5m year to date), a record level for the company. Profit for the quarter reached €4.4m (€12.1m YTD).
While the second quarter of 2020 was fairly challenging for many businesses, Sun Finance reports Q3 financials above pre-COVID-19 levels. The Group issued €88m in the quarter, a 13% increase from €78m in Q3’19 and, as a consequence, net portfolio reached €70.1m, a €10.4m (+17%) increase vs Q3’19.
The strong revenue growth, in combination with maintained cost discipline, delivered a record EBITDA margin of 37.0% for the period, as well as record EBITDA of €13.2m. Similarly, cost/income ratio reached record lows at 22.1%, following the in-depth cost review across the business.
“As expected, some costs returned to pre-COVID-19 level, however, it is clear that we have come out of this period leaner and more cost-efficient, allowing us to deliver continuously record-breaking results quarter on quarter. We feel that the most difficult period is behind us as there is much more business and economic clarity, thus we are looking forward to delivering another strong quarter to investors on Mintos and other stakeholders to end 2020 on a high note,” Comments Toms Jurjevs, Founder & CEO of Sun Finance Group.
Additionally, according to the audited financial results, Sun Finance recorded a turnover of €101.5 million in 2019, an almost three-fold increase over 2018 results, when the Group’s turnover was €36.5 million. The Group’s net profit was €7.1 million.
“Last year we worked hard to strengthen our position in the existing markets, as well as to further diversify the geographical profile of the Group. Driven by this strategy, we grew the amount of issued loans in the more mature businesses—Poland, Latvia, Denmark, Kazakhstan and Mexico. At the same time, our business development team focused on launching our new countries, which allowed us to successfully start operating in Sweden and Vietnam in the middle of last year,” adds Toms Jurjevs.
The Group is currently working on new lending products, which will be available later this year. Assessing the performance in 2020 thus far, Toms emphasizes: “Despite the worldwide spread of COVID-19, we have continued to work on development of the Group, both in terms of product and further geographical expansion. We also expect this to be the strongest year so far for Sun Finance Group in terms of financial results which can already be seen in our Q3 results.”
To finance the rapid growth, Sun Finance Group successfully completed its first bond issuance last year, attracting additional investments in the amount of €10 million, while this October the Group registered a second bond issue of up to €15 million in NASDAQ CSD to further diversify the funding profile.
Sun Finance on Mintos
Sun Finance joined Mintos in 2017. The current amount of Sun Finance outstanding investments on Mintos is €34 991 763. There are 78 300 investors with active investments in Sun Finance loans, with the average investment per investor being €446.89 (as of 26 October 2020).
About Sun Finance Group
Sun Finance Group is a financial technology company established in 2017. The Group operates in seven countries, three continents, with headquarters located in Riga, Latvia. Sun Finance Group has more than 4.1 million registered customers and more than EUR 750 million issued loans, making Sun Finance one of the fastest growing consumer lending platforms in Europe. Sun Finance employs more than 730 people, 148 of whom work at the headquarters in Riga.