Tallinn, Estonia, 21 July 2021. IuteCredit Europe (“ICE”), a leading European personal finance group, reported today unaudited results for 6M/2020.
“Q2/2021 is the first quarter of real growth we have eagerly expected since last autumn. Exceeding 29 mEUR for all financial services of the Group in H1/2021, we even achieved a new record in total revenue. The trend of irreversible and constantly accelerating digitalization is also reflected in the flourishing business of IuteCredit. In the first six months of 2021, we generated more than 6% of total revenue from various services related to payments, cards, and cash transactions via IuteCredit’s proprietary ATMs that can be accessed easily and fast with a smartphone. All without the need for a debit or credit card. And even more, over 20% of all customers signings in the Q2/2021 were smartphone-based, using either one-time-passwords or biometrics. And last but not least, MyIute app has already been downloaded by more than 50,000 people, even though it was not launched until Q1/2021. Having said that, our customers continued to take out and repay more loans.
The ongoing breakthrough of digitalization is directly reflected in improving IuteCredit’s profitability. We make more money with economies of scale that result in an improved revenue/OPEX ratio. Consolidated assets climbed from 116 million EUR to 123 million EUR as the net loan portfolio grew from 81 million EUR to 88 million EUR. Similar growth applied to the gross loan portfolio. In contrast, liabilities to investors only increased from 94 million EUR to 98 million EUR.
At the same time, the interest rate structures, and maturities of our products are changing. Currently, newly issued loans’ average APR stands just above 50% while maturity is longer than 20 months. In the same period of the previous year, we were still at about 60% and about 16 months. Loan repayment discipline, measurable as a ratio of actual incoming repayments cashflow versus expected repayments cashflow, with maximum delay tolerance of 30 days, remains close to 90%. We recover more than 40% of defaulted principal within the first 180 days from the date of default.
Free cash position at 15 million EUR remains high as we continue to actively seek growth opportunities. Investment priority for IuteCredit is our mission to offer extraordinary experience in the field of personal finance.
The markets are returning to cautious optimism, which is visible in loan applications increase. We look impatiently forward to Q3/2021 and expect it to offer new opportunities for the Company and its investors. Given the past performance and prudent future projections, we are even more optimistic that 2021 total revenue will exceed 55 million EUR while the net profit should surpass 6 million EUR. An increase in total assets to 170 million EUR by the end of 2021 also remains a realistic target,” said Tarmo Sild, Group CEO of IuteCredit.
The full unaudited report for 6M/2021 is available under iutecredit.com/reports/.
CEO Tarmo Sild and CFO Kristel Kurvits will comment on the unaudited 6M/2021 results by means of a webcast presentation on 22 July 2021, 10.00 CEST. The webcast/call will be held in English.
Please register in time to participate in the webcast/call at:
IuteCredit Europe – Earnings Call 6M 2021.
The corresponding presentation will also be available on the Company’s website prior to the earnings webcast/call.