Latvian fintech company DelfinGroup has updated its financial targets for 2024 and 2025 based on current business performance and trends.
Due to efficient growth strategy, successful integration of digital solutions and growing market demand for its services, DelfinGroup exceeded its 2024 loan portfolio target in the first quarter of this year and also achieved its 2025 target in the first half of this year. As a result, the loan portfolio forecast for 2024 has been raised from 90 million euros to 105 million euros, an increase of 17%. The loan portfolio forecast for 2025 is set at 125 million euros instead of the original 100 million euros.
"We have updated our EBITDA financial target for 2024 to 21.8 million euros, and we have also updated our profit before tax forecast to 9.4 million euros. Faster growth of the loan portfolio will reduce the earnings figures in the short term but will provide higher returns in the long term and will have a positive impact on profit before tax in the longer term. The profit before tax forecast has been revised due to the increase in the cost of capital since the previous forecast and the company's expansion into new markets, which requires investment in building up the team and opening seven branches in Lithuania. This strategic investment will ensure even more stable growth and stronger competitiveness in the region in the future. In the first half of 2024, profit before tax amounted to 4.3 million euros, while the forecast for the second half is 5.1 million euros. In 2025, we plan to increase profit before tax by 30% to 12.2 million euros," explains Didzis Admidinš, Chairman of the Management Board of DelfinGroup.
In order to align the performance of the company with the financial covenants and compliance with the dividend policy, DelfinGroup will present the adjusted equity ratio, which includes subordinated liabilities, instead of the equity ratio. DelfinGroup intends to maintain the adjusted equity ratio above 20%. Didzis Admidinš adds that the company will continue to adhere to its dividend policy and will ensure a high dividend yield, which, based on the share price on October 1, amounts to 8% over the last 12 months.
| Indicator | 2024 target | 2025 target |
| Net loan portfolio | 105?000 000 | 125?000 000 |
| EBITDA | 21?800 000 | 26?000 000 |
| Profit before tax | 9?400 000 | 12?200 000 |
| Return on equity | >30% | >30% |
| Cost-to-income ratio | <45% | <45% |
| Adjusted equity ratio | >20% | >20% |
| Dividend payout ratio | >50% | >50% |
About DelfinGroup
AS DelfinGroup is a licenced fintech company established in 2009 and operates under the brand names Banknote and VIZIA. The company has been profitable every year since 2010. DelfinGroup continuously develops and offers consumer and pawn loans, loans developed for senior citizens, Buy now pay later loans (BNPL loans), and the sale of pre-owned goods online and at more than 90 branches across Latvia and Lithuania. Since 2014, DelfinGroup has been known on the Nasdaq Riga Stock Exchange as a bond issuer and, since 2021, as a listed company on the Baltic Main List. The company regularly pays dividends to its shareholders. The sustainability of DelfinGroup is based on focused corporate governance, fintech innovation, responsible lending, financial inclusion, and facilitating the circular economy.
For further information, please contact:
Arturs Dreimanis
DelfinGroup Head of Treasury and Investor Relations
Phone: +371 26189988
E-mail: IR@delfingroup.lv
