Investments for further increases in profitability while improving performance quarter on quarter

OPERATIONAL AND STRATEGIC HIGHLIGHTS

• Significant growth in core business with Group loans issued increasing by 46.5% equalling EUR 121.5 million (FY 2017: EUR 82.9 million), of which EUR 88.4 million in mature markets (FY 2017: EUR 66.0 million)
• Consolidated number of active customers up significantly by approx. 47.7% to over 65,000 (31 December 2017: approx. 44,000)
• Armenia has transitioned from mid-tier country to a mature country being profitable on an annual basis
• Instalment loan product in Baltics used as a client retention and upsell tool
• Used car long-term rent business compliments existing leasing and leaseback product offerings contributing to future diversification
• Improved performance q-o-q 2018 underlining strategic investments in profitability
  • Strong increase in interest and similar income of 9.2% in Q4 to EUR 16.7 million (Q3: EUR 15.3 million, Q2: EUR 14.0 million, Q1: EUR 12.4 million)
  • Sustainable net interest income of EUR 12.2 million in Q4 up 14.0% (Q3: EUR 10.7 million, Q2: EUR 9.7 million, Q1: EUR 8.8 million)
  • Significant improvement of +18.7% in gross profit in Q4 of EUR 7.6 million (Q3: EUR 6.4 million, Q2: EUR 5.4 million, Q1: EUR 4.1 million)

FINANCIAL HIGHLIGHTS AND PROGRESS

• Interest and similar income significantly up 52.1% to EUR 58.4 million (FY 2017: EUR 38.4 million)
• Rapid growth in net interest income of 42.8% to EUR 41.4 million (FY 2017: EUR 29.0 million)
• Adjusted EBITDA improved notably by 12.1% to EUR 23.2 million (FY 2017: EUR 20.7 million) with significant contribution from mature countries with adjusted EBITDA of EUR 28.5 million (FY 2017: EUR 23.0 million)
• Clear optimization of financing costs to 11.4% in FY 2018 (FY 2017: 13.2%)
• Slight increase in cost to income ratio to 35.6% (FY 2017: 27.9%) due to country launches and internal regional set up, largely offset by improved profitability in mature countries with cost to income ratio decreasing to 18.2% (FY 2017: 24.6%)
• Strong capitalization ratio at stable level of 11.5% (31 December 2017: 11.8%)

Modestas Sudnius, CEO of Mogo Finance, commented:

“Our strong FY 2018 results with revenues up 52.1% and improved performance quarter on quarter underline our decisions to invest in future profitability. A strong capitalization ratio and clearly optimized financing costs build a strong foundation for Mogo Finance Group to take both our start-up as well as our mid-tier countries to the next level with a sustainable prospect of profitability on a yearly basis.

Diverse product portfolio, well-developed teams and effective knowledge sharing across different regions and country levels will maintain the sustainable growth in mature countries and boost operational excellence in start-up and mid-tier countries.”

The full unaudited report for the financial year ended 31 December 2018 is available here.

Conference Call:

A conference call in English with the Group’s management team to discuss these results is scheduled for 15 February 2019, at 15:00 CET.

Please register here: http://emea.directeventreg.com/registration/5997802

The presentation for the conference call will be available here as of 15 February 2019, at 9:00 CET.

Contact:

Mogo Finance (CFO), Email: maris.kreics@mogofinance.com
Maris Kreics +371 66 900 900

Aalto Capital, Email: sven.pauly@aaltocapital.com
Sven Pauly +49 89 8986777 0

About Mogo Finance:

Mogo Finance is one of the largest and fastest growing secured used car financing companies in Europe. Recognizing the niche in used car financing underserved by traditional lenders, Mogo Finance has expanded its operations to 13 countries issuing over EUR 358 million up to date and running a net loan portfolio over EUR 140 million. Mogo offers secured loans up to EUR 15,000 with maximum tenor of 84 months making used car financing process convenient, both for its customers and partners. Wide geographical presence makes Mogo unique over its rivals and diversifies revenue streams.

Mogo Finance operates through its own branch network, more than 1,500 partner locations and strong online presence. Physical footprint makes Mogo Finance top of mind brand in used car financing. Established in 2012, headquartered in Riga, Latvia Mogo Finance operates in: Latvia, Estonia, Lithuania, Georgia, Poland, Romania, Bulgaria, Moldova, Albania, Belarus, Armenia, Ukraine and Uzbekistan.

www.mogofinance.com

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