DelfinGroup (DGR1R) Q3 2024 earnings summary

Executive summary

• Revenue for 9M 2024 reached €45.6m, up 25% year-over-year, with EBITDA up 24% to €16.2m and net profit at €5.4m, impacted by a new 20% CIT regime.

• Net loan portfolio grew 21% since start of 2024, reaching €107.7m.

• Loan disbursements hit a record €77.6m for 9M 2024 (+12% YoY); Q3 2024 loan issuance was €26.5m.

• Expansion into Lithuania with two new branches and consumer lending launch expected in Q4 2024.

• Sales of pre-owned and new goods reached €12.3m for 9M 2024 (+14% YoY).

Financial highlights

• Q3 2024 revenue reached €16.5m, up 25% year-over-year; 9M EBITDA up 24% to €16.2m.

• Net profit for 9M 2024 was €5.4m, a 1% increase year-over-year, with net profit margin for Q3 at 12%.

• Credit loss expenses increased 37% year-over-year due to portfolio growth and delayed cession deal.

• Equity ratio at 19.3% as of Q3 2024; capitalization ratio at 29%.

• Interest coverage ratio at 2.0x; current ratio improved to 1.3 in Q3 2024.

Outlook and guidance

• Consumer lending launch in Lithuania expected in Q4 2024, with plans to expand branch network in 2025.

• Board recommends Q3 2024 profit distribution as dividends, targeting up to 50% payout.

• Potential decrease in EURIBOR rates anticipated to lower funding costs.