EQS-News: IuteCredit Finance S.à r.l.
/ Key word(s): Annual Results/Interim Report
Iute Group reports unaudited results for 12M/2023 Efforts to improve quality lead the quantity considerations in 2023
FINANCIAL HIGHLIGHTS
"Operating in a relatively stable regulatory environment, free from political interference, unaffected by macroeconomic fluctuations and geopolitical tensions, and benefiting only from technological progress seems to remain a dream for the coming years. The key to actual success is adaptation: recognizing reality as it is, and constantly seeking opportunities while remaining true to the Company's DNA and strategic objectives. Iute Group's DNA is ever entrepreneurial and customer-oriented intertwined with a systematic approach and the ability to not only cope with setbacks but learn from mistakes. On the strategical level, we continued to build loan, payment, and insurance intermediation value streams which combined constitute a fintech bank and money ecosystem for our customers. Our strategic endeavors were successful: Iute Group achieved growth and profit, while the focus remained heavily on modus operandi with quality being more important than quantity in 2023. In its endeavor for operational excellence, Iute Group pushed forward the deeper integration of data science into its business processes. Various predictive models at the service of customer experience and loan portfolio have started to reduce sales costs and lower credit risk costs. In contrast, the digitalization and turnaround of Energbank did not meet our expectations, even though the bank is profitable and the organizational challenges of the restructuring have been resolved to a great extent. We expect the bank to solve the remaining challenges under the management in place since January 2024 following its multi-stage Strategy 2026. Clearly more successful is the integration of Iute's credit and payment solutions into e-commerce. IutePay continues on its path of attracting more customers in the Balkans, while the scope of services and geographical markets coverage are to be expanded in 2024. On the financing side, Iute Group has achieved refinancing of its maturing EUR bond even in an environment with continuously increasing base interest rates and bond yields. In view of a very solidly financed capital base until October 2026, we aim to grow our revenue and net profit on average by at least 20% per year until then. Looking at the pure figures, Iute Group exceeded its growth targets for 2023. At 376 million EUR, the balance sheet exceeded the forecast of 355 million EUR, as did revenue, which at 106 million EUR exceeded the target threshold of 100 million EUR. It is unfortunate that we fell short of the net profit target of 12 million EUR with 10 million EUR because of the above-mentioned interference beyond our control, in addition to exchange rate fluctuations. In this context, Macedonia unexpectedly imposed a one-off solidarity tax on national TOP100 companies, which burdened Iute Group with 1.4 million EUR in Q4 2023. Speaking of the aforementioned, considering our DNA, attracting high-performing customers is crucial to the success of the Iute Group. The modest growth achieved in this respect, with 227,000 performing individual customers at the end of 2023, does not live up to our ambitions. Taking customer orientation to heart, we all at Group need to work harder and use the most advanced technologies to understand customer needs and build long-term relationships. Accordingly, we have set ourselves the following targets for 2024:
Iute's transformation goes hand in hand with the changing environments in which we operate. As progress stems from change, we are convinced that the best of Iute Group lies ahead of us as we transform," said Tarmo Sild, CEO of Iute Group. The full unaudited report for 12M/2023 is available under iutecredit.com/reports/. CEO Tarmo Sild and CFO Kristel Kurvits will comment on the unaudited 12M/2023 results by means of a webcast presentation on 22 February 2024, 10.00 CET. The webcast/call will be held in English. Please register in time to participate in the webcast/call at: The corresponding presentation will also be available on the Company's website prior to the earnings webcast/call. Kristel Kurvits, Group Chief Financial Officer (CFO) Iute Group is a fintech company established in 2008 in Estonia. The Group specializes in consumer finance, payment services, banking, and insurance products. It serves customers in Albania, Bulgaria, Moldova, and North Macedonia. Iute Group finances its loan portfolios with equity, deposits, and secured bonds on the Regulated Market of the Frankfurt Stock Exchange and the Nasdaq Baltic Main List. www.iute.com 21.02.2024 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG. |
| Language: | English |
| Company: | IuteCredit Finance S.à r.l. |
| 14, rue Edward Steichen | |
| 2540 Luxembourg | |
| Luxemburg | |
| ISIN: | XS2378483494 |
| WKN: | A3KT6M |
| Listed: | Regulated Market in Frankfurt (General Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| EQS News ID: | 1841325 |
| End of News | EQS News Service |
1841325 21.02.2024 CET/CEST
