Results Centre

Review 2016

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Continued Profitable Growth

“2016 has been another year of strong, profitable growth for Ferratum, during which we took decisive steps to restore the momentum of revenue growth and profitability to deliver full year results in line with our guidance. Our actions in Q3 to reorganize our management structures, invest in more scalable IT architecture and systems and focus on core business growth delivered a record performance over the last quarter – both in terms of absolute revenue growth and profitability – and current trading gives us confidence that this momentum is continuing into 2017.” Jorma Jokela, CEO and founder of Ferratum Group.

Growth In The Core Business

Ferratum continued to expand its lending business, responding to ever increasing demand for alternative and innovative lending models. Credit Limit was launched in Poland, Spain and Norway, making it available in a total of nine markets. Revenues from Credit Limit grew by 69%. PlusLoan was launched in Finland, UK, Romania and the Netherlands while revenues grew by 139%. Revenues from Microloan decreased by 10%, mainly due to a migration of clients to higher volume lending products such as PlusLoan and Credit Limit, validating the success of our portfolio strategy. Ferratum Business, our lending product for SMEs, was launched in three additional markets (Lithuania, Denmark and the Netherlands), increasing its revenue to EUR 4.3 million.

Innovative New Products Launched

2016 was a landmark year for the evolution of Ferratum, as the strategically important Mobile Bank was launched in Sweden, Norway and Germany.  Demand in these markets has exceeded our initial expectations, attracting over EUR 100 million in total deposits by the end of 2016. Ferratum expects to build on this momentum by launching the Mobile Bank in several more countries during 2017.

In the Czech Republic, 2016 also marked the launch of Ferratum’s new peer-to-peer investing solution, Ferratum P2P, which enables retail investors to invest in credit portfolios administered by Ferratum.

Record Results & Targets Achieved

Ferratum Group delivered record results in 2016. Revenues of EUR 154.1 million were up 38.8% year-on-year (2015: EUR 111.0 million). Operating profit (EBIT) improved by 28.3% to EUR 21.1 million (2015: EUR 16.5 million), which corresponds to an EBIT margin of 13.7%. Earnings before tax (EBT) rose by 18.6% in the reporting period to EUR 14.7 million (2015: EUR 12.4 million), which corresponds to an EBT margin of 9.6%. As a result, net income of EUR 10.9 million last year increased to EUR 13.0 million in 2016, an 18.6% increase year-on-year.

Ferratum Group thus achieved its adjusted guidance for fiscal year 2016 and looks forward with confidence to delivering further growth in 2017.

Financial Highlights

Financial highlights, EUR ’000 Jan - Dec 2016 Jan - Dec 2015 Jan - Dec 2014
Revenue 154,128 111,008 70,508
Operating profit 21,142 16,478 10,611
Profit before tax 14,728 12,419 6,531
Net cash flows from operating activities before movements in loan portfolio and deposits received 50,857 46,355* 27,316
Net cash flow from operating activities 23,733 (32,690) (8,876)
Net cash flow from investing activities (8,266) (5,450) (1,918)
Net cash flow from financing activities 40,857 47,625 1,722
Net increase/decrease in cash and cash equivalents 56,324 9,485 (9,071)
Profit before tax % 9.6 11.2 9.3

*restated: the amount of Increase / decrease in interests accrued was taken out and included to net cash flows from operating activities (after movements in loan portfolio)


Financial highlights, EUR ’000 Dec. 31, 2016 Dec. 31, 2015 Dec. 31, 2014
Accounts receivable – consumer loans (net) 184,346 106,758 61,529
Deposits from customers 101,436 3,009 2,137
Cash and cash equivalents 73,059 17,452 8,026
Total assets 295,683 140,127 79,805
Non-current liabilities 72,246 48,927 28,885
Current liabilities 135,563 13,562 29,477
Equity 87,875 77,638 21,443
Equity ratio % 29.7 55.4 26.9
Net debt to equity ratio 1.53 0.58 2.35
Calculation of key financial ratios        
Equity ratio (%) = 100 X Total equity
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Total assets
Net debt to equity ratio =     Total liabilities – cash and cash equivalents
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Total equity
Profit before tax (%) = 100 X Profit before tax
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Revenue