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Mash Group Oyj

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Mash Group Plc Reports Interim Unaudited Q3 Financials, ended 30th September 2018

Record revenue for the first nine months of 2018, up 167% from Q1-Q3/17. EBIT grew by 186% to EUR 9.5 million and lending volume grew by 161% for the same period. Revenue growing faster than lending volumes in the third quarter and strong growth expected to continue in Q4 2018, according to CEO Hickson.

The first nine months of 2018 showed record growth in revenue, EBIT, lending volume and loan book as Mash continues to execute its growth plan.

Strategic Highlights

  • Mash announces launch of EUR 50 million equity issue as well as Europe’s first regulated digital share issue .
  • Mash pay later services were launched in Sweden with partner Verifone.
  • Mash develops partnership with Nets for ecommerce and point of sale, a leading payment services operator in the Nordic market.

Operational Highlights

  • The number of new customers grew by 229% Q1-Q3/18 compared to Q1-Q3/17.
  • Registered merchants for Mash’s pay later point of sale solution grew 1054% year to date.
  • The Mash Net Promoter Score reached 82, underscoring the groups commitment to wow customers one transaction at a time.

Financial Highlights

  • Revenue grew by 167% year-on-year for Q1-Q3/18 compared to Q1-Q3/17, and 131% for Q3/18 compared to Q3/17,  EBIT grew by 186% and 309%, correspondingly, to EUR 9.5 million (Q1-Q3/18) and EUR 4.0 million (Q3/18).
  • Lending volumes for the first nine months of 2018 were 161% higher than for the corresponding period in 2017, growing 145% in Q3/18 compared to Q3/17.
  • The Group’s solidity remains strong, with equity increasing by 59% in 2018,  maintaining a strong equity ratio at 26%, while the total loan portfolio increased by 88%.
  • Total assets grew by 76% in 2018 and 93% year-on-year to EUR 232 million.

Values based on pro-forma consolidated figures. For equivalent FAS values see below.

James Hickson, CEO of Mash Group is pleased with the Group’s performance so far in 2018: “Our strong momentum has continued thanks to the commitment of our team and partners. We saw our revenue continue to grow as planned despite seasonality, growing 131% compared to the same period in 2017. We continue to see the positive impact of our decision to move to interest-based pricing, with our revenue growing faster than our lending volumes in the third quarter”, said Group CEO James Hickson. “This demonstrates the strong competitive position of our lending business model. We anticipate this strong growth to continue in Q4 2018, supported by our new customer acquisition channels and launch of our TV campaign marketing our Mash Pay Later solution.”

“We are also very pleased with our continued focus and investment on in-store pay-later solutions, having grown our merchant base significantly this year by over 1000%.  In Finland, payment channels generated 71% of our new customer base year to date with more customers choosing to convert to credit that anticipated in our business plan, underscoring the validity of our strategic decision. We continue to make investments for the long term in this acquisition channel and explore new opportunities to enhance our capability, including partnerships with major players like our recently announced deal with Nets . We will continue to make investments for long term growth.”

Tommi Lindfors, Chairman of Mash Group added, “The rapid growth trajectory and financial performance year to date shows the scalability of our business model. The Group set new records not only in terms of business growth and new funding capabilities to support the high growth of our loan portfolio.  The launch of our equity issue will directly support our continued growth with all proceeds going directly to the company.”

The Group confirmed that they will communicate audited fully year 2019 figures in April 2019.

PRO FORMA CONSOLIDATED FIGURES*

BALANCE SHEET (EUR '000) 30.9.2018 31.12.2017   30.9.2017  
  Intangible assets 43 530 28 291   25 219  
  Tangible assets 611 17   14  
  Investments 5 346 0   0  
TOTAL NON-CURRENT ASSETS 49 487 28 308   25 233  
  Current receivables 170 351 90 495   75 772  
  Cash and Bank Receivables 12 650 13 179   19 312  
TOTAL CURRENT ASSETS 183 001 103 674   95 084  
TOTAL ASSETS 232 488 131 982 +76% 120 317 +93%
  Share capital and issue 93 93   93  
  Translation difference -359 96   -219  
  Reserve for invested non-restricted equity 55 366 33 179   26 458  
  Retained earnings 4 309 6 730   6 878  
  Profit for the Financial period 949 -2 092   -1 274  
TOTAL EQUITY 60 358 38 006 +59% 31 936 +89%
  Non-current Liabilities 89 710 58 514   38 286  
  Current liabilities 82 420 35 462   50 095  
TOTAL LIABILITIES 172 130 93 976   88 381  
TOTAL EQUITY & LIABILITIES 232 488 131 982   120 317  


INCOME STATEMENT   (EUR '000) 9M/2018 9M/2017  
TURNOVER 24 097 11 452 +167%
Other operating income 9 11  
Materials and services -530 -204  
Personnel costs -2 495 -1 476  
Depreciation -3 161 -1 647  
Other business-related costs -8 399 -4 803  
EBIT 9 521 3 333 +186%
Financial income and expenses -8 560 -4 594  
EBT 961 -1 261  
Tax -12 -13  
Net Profit 949 -1 274  



INCOME STATEMENT   (EUR '000) Q3/2018 Q2/2018   Q3/2017  
TURNOVER 9 379 8 485 +11% 4 069 +131%
Other operating income 1 4   0  
Materials and services -203 -173   -103  
Personnel costs -838 -802   -638  
Depreciation -1 242 -1 018   -610  
Other business-related costs -3 085 -3 180   -1 738  
EBIT 4 012 3 316 +21% 980 +309%
Financial income and expenses -3 725 -2 746   -1 685  
EBT 287 570   -705  
Tax 3 0   0  
Net Profit 290 570   -705  

* The interim pro-forma consolidated figures and comparison figures have been prepared by consolidating Mash Group figures prepared in compliance with Finnish Accounting Standards ("FAS") and Pausa Capital S.à.r.l. prepared in conformity with Luxembourg legal and regulatory requirements and according to generally accepted accounting principles applicable in Luxembourg ("Lux GAAP"). The following transactions between Mash Group and Pausa Capital S.à.r.l. have been eliminated in the pro-forma consolidated figures:

  • Subordinated Notes issued by Pausa Capital S.à.r.l. and held by Mash Group
  • Variable interest recognised by Mash Group related to the Subordinated Notes
  • Servicing fees from Mash Group to Pausa Capital S.à.r.l., Mash Finance Oyj being the servicer of the funding facility.
  • Debt Collection fees charged by Mash Group to Pausa Capital S.à.r.l., Credito Cobro Oy being one of the collection agencies of the funding facility.

Pausa Capital S.à.r.l is a special purpose vehicle supporting the funding facility provided to Mash Group. According to Group Management, the pro-forma consolidated figures that include Pausa Capital S.à.r.l. provide a more comprehensive view of the financial position and performance of Mash Group, compared to FAS consolidated figures, which can be found below. These figures are unaudited. The reader is advised to refer to the 2017 annual review  and financial statements for the latest audited figures and more information about the Group.


Financial Highlights (FAS)

  • Revenue grew by 120% year-on-year for Q1-Q3/18 compared to Q1-Q3/17, and 133% for Q3/18 compared to Q3/17, EBIT grew by 306% and 522%, correspondingly, to EUR 6.0 million (Q1-Q3/18) and EUR 2.6 million (Q3/18).
  • Lending volumes for the first nine months of 2018 were 161% higher than for the corresponding period in 2017, growing 145% in Q3/18 compared to Q3/17.
  • The Group’s solidity remains excellent, with equity increasing by 59% in 2018,  maintaining a strong equity ratio at 36%, while the total loan portfolio increased by 81%.
  • Total assets grew by 69% in 2018 and 77% year-on-year to EUR 166 million.


BALANCE SHEET (EUR '000) 30.9.2018 31.12.2017   30.9.2017  
  Intangible assets 43 530 28 291   25 219  
  Tangible assets 611 17   14  
  Investments 5 346 0   0  
TOTAL NON-CURRENT ASSETS 49 487 28 308   25 233  
  Current receivables 110 261 61 015   53 017  
  Cash and Bank Receivables 5 981 8 556   15 176  
TOTAL CURRENT ASSETS 116 242 69 571   68 193  
TOTAL ASSETS 165 729 97 879 +69% 93 426 +77%
  Share capital and issue 80 80   80  
  Translation difference -359 96   -219  
  Reserve for invested non-restricted equity 55 366 33 179   26 458  
  Retained earnings 4 309 6 730   6 878  
  Profit for the Financial period 949 -2 092   -1 274  
TOTAL EQUITY 60 345 37 993 +59% 31 923 +89%
  Non-current Liabilities 26 895 26 550   13 655  
  Current liabilities 78 489 33 336   47 848  
TOTAL LIABILITIES 105 384 59 886   61 503  
TOTAL EQUITY & LIABILITIES 165 729 97 879   93 426  


INCOME STATEMENT   (EUR '000) 9M/2018 9M/2017  
TURNOVER 19 977 9 086 +120%
Other operating income 9 11  
Materials and services -530 -204  
Personnel costs -2 495 -1 476  
Depreciation -3 161 -1 647  
Other business-related costs -7 788 -4 290  
EBIT 6 012 1 480 +306%
Financial income and expenses -5 054 -2 744  
EBT 958 -1 264  
Tax -9 -10  
Net Profit 949 -1 274  


INCOME STATEMENT   (EUR '000) Q3/2018 Q2/2018   Q3/2017  
TURNOVER 7 730 7 213 +7% 3 323 +133%
Other operating income 1 4   0  
Materials and services -203 -173   -103  
Personnel costs -838 -801   -638  
Depreciation -1 242 -1 018   -610  
Other business-related costs -2 880 -2 936   -1 559  
EBIT 2 568 2 289 +12% 413 +522%
Financial income and expenses -2 280 -1 719   -1 117  
EBT 288 570   -704  
Tax 2 0   -1  
Net Profit 290 570   -705  


About Mash

Mash has been at the forefront of fintech innovation since 2007. We leverage our advanced proprietary algorithms, machine learning capabilities, and automated platform to deliver superior finance and payments solutions to thousands of customers every day. We work hard for a future powered by technology, making every transaction seamless, flexible and worry-free. Today, Mash is one of Europe’s leading fintech companies.

Mash.com | press@mash.com | investor@mash.com | @MashComOfficial


For more information please contact:
Jonas Lindholm
Mash Group Plc
Tel +358 10 217 1003
investor@mash.com
press@mash.com


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