Fellow Finance reinstates guidance for 2020 - profitability improved on the second half of 2020
FELLOW FINANCE PLC COMPANY ANNOUNCEMENT, INSIDE INFORMATION 4.12.2020 AT 3:00 PM
On March 25, 2020 Fellow Finance withdrew its guidance for 2020 due to the impact of the COVID-19 pandemic. Fellow Finance now reinstates its guidance for 2020.
The Group's revenue and profitability will decrease compared to the year 2019.
The company's monthly revenues have grown steadily since August 2020 after the impact of the COVID-19 pandemic begun to subside and loan volumes to recover. Company revenue on the second half of the year will be slightly lower than that of H1/2020 (5.8M€). The revenue for 2020 is expected to be approximately 11M€.
The company's profitability has improved significantly on the second half of 2020. Main factors behind the improved profitability are reduction of credit losses of Lainaamo Oy (subsidiary of Fellow Finance), decreased marketing costs and cost-cutting actions. The profit / loss for H2/2020 is estimated to be clearly better than for H1/2020 and close to zero. The whole year of 2020 will remain unprofitable.
“We are particularly pleased with the growth of business lending seen after the summer. The monthly average growth in business lending has been 20% and we expect this positive development to continue. Repayment levels on both business and consumer lending markets have remained at the same level as before the corona virus outbreak due to the targeted tightening of the credit policy and active debt management. Therefore, the returns on loans have remained at a good level during the COVID-19 pandemic. After the summer, our loan investors have relaunched their investment activities and platform’s net investments have turned positive when going towards the end of the year. We see that this has proven that our stable and well-diversified fixed income investment alternative is working even in an economic downturn”, says Teemu Nyholm, CEO of Fellow Finance.
Further enquiries
Teemu Nyholm, CEO, Fellow Finance Plc, teemu.nyholm@fellowfinance.fi, +358 50 577 1028
Certified advisor, Evli Bank Plc, tel. +358 40 579 6210
Fellow Finance Plc is a loan-based crowdfunding and peer-to-peer lending platform. The company’s mission is to transform the traditional bank financing into direct lending between people and businesses. Fellow Finance has intermediated consumer and business financing of more than 680 million euros in Finland, Sweden, Denmark, Germany, Poland and Czech Republic and served more than 900 000 customers. The company is regulated by the Financial Supervisory Authority of Finland as an Authorized Payment Institution and listed on the Nasdaq First North Growth Market Finland. www.fellowfinance.com
Tags: