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Sun Finance Group, one of the fastest growing online consumer lending companies, and one of the largest and most profitable loan originator groups listed on Mintos platform, has passed the €100m revenue mark for the first time, recording a total of €100.6m for the year 2019 – an increase of 175% in comparison to 2018. In addition, the group recorded a net profit1 of €5.9m.
Earnings before interest, taxes, depreciation & amortization (EBITDA) increased by 472% in 2019, reaching €25.9m, compared to €4.5m the previous year. This translates to an EBITDA margin of 25.8%.
During 2019, the group issued €302m in loans to its customers, a significant increase from €138m in 2018 (+118%), bringing the total volumes issued by the group to just under €500m. Such strong growth has helped to establish a well-diversified net portfolio of €58m, and in turn, a healthy capitalization ratio of 32.8%2.
Having only begun operations in Spring of 2017, 2019 was only Sun Finance Group’s second full financial year, highlighting the impressive scale-up and growth of the business. The group’s current core markets are in Europe, Asia and Latin America, with a strategic emphasis on future expansion in Southeast Asia.
Sun Finance Group portfolio consists of businesses based in Latvia, Poland, Denmark, Kazakhstan and Mexico, while operations in Sweden and Vietnam were set up in 2019 and will become part of the wider Sun Finance Group during Q1 2020.
“With 2019 being our first fully-profitable year after foundation and reaching an EBITDA level of €26m (almost five-fold increase in comparison with 2018) and strong capitalization of 32.8%, we find it reassuring to know that our chosen strategy is on the right track in terms of operations and geographic location. In 2020, we will continue focusing on growing our business across the globe, while not losing sight of efficiency and profitability.”, said Sun Finance Group founder and CEO, Toms Jurjevs.
Sun Finance’s Headquarters are based in Riga, Latvia, and the company moved to a new office development “Riga Skanstes City” in Q4 2019. There are currently more than 770 employees working in Sun Finance Group. In August 2019, the company successfully completed its inaugural bond issuance, went live on NASDAQ CSD, and raised €10m in additional financing to support growth expansion – all of which points to investor confidence in the business’s strategy and management. There are also some overlaps in the equity investors of Sun Finance and Mintos.
For 2020, Sun Finance Group is planning to continue its expansion strategy by entering new markets, and also developing new products.
Note 1: Sun Finance Group was formed under a unified umbrella in 2019. Pro forma results include Latvia, Poland, Kazakhstan, Denmark and Mexico. Sweden and Vietnam are expected to be included within the wider Group structure in Q1 2020.
Note 2: Capitalization ratio calculated as Adjusted Equity (Equity plus Subordinated Debt) to Net Loan portfolio