SaveLend Group AB publishes the year-end report for 2024.
In this report, the billing platform has been separated from the group for accounting purposes. The results of the billing platform are presented under 'Results of assets held for sale' in 'The Group's report on results and other comprehensive income for the period' as well as in 'Note 2 Specification of assets & liabilities held for sale'. All figures, except for net result and earnings per share, therefore relate solely to the savings platform. Amounts in parentheses refer to the savings platform for the same period in the previous year.
Q4 - 1 October- 31 December 2024
- Net revenue for the period was MSEK 26.5 (MSEK 31.7).
- EBITDA was MSEK -4.8 (MSEK -8.6).
- EBIT was MSEK -7.8 (MSEK -14.2).
- Net results was MSEK -2.3 (MSEK -4.8).
- Earnings per share before dilution were SEK -0.14 (SEK -0.11).
Period 1 January - 31 December 2024
- Net revenue for the period was MSEK 111.8 (MSEK 129.2).
- EBITDA was MSEK -7.4 (MSEK -10.9).
- EBIT was MSEK -21.4 (MSEK -27.2).
- Net results was MSEK -18,9 (MSEK -14.2).
- Earnings per share before dilution were SEK -0.40 (SEK -0.22).
Events during Q4
- In October 2024, SaveLend Group AB's subsidiary Billecta AB signed an agreement with the Swedish Medical Association regarding continued membership billing. The contract term is 36 months.
- In November, SaveLend Group signed a non-binding letter of intent regarding the sale of all shares in its wholly owned subsidiary Billecta and entered a due diligence process with a potential buyer. However, this did not result in a transaction.
- In December 2024, SaveLend Group announced the recruitment of Karl Tigerhielm as Head of Real Estate, with employment starting in January 2025.
Events after the quarter
- In January 2025, the Nomination Committee of SaveLend Group AB proposed Håkan Nyberg as the new Chairman of the Board, as the current Chairman, Bo Engström, and Board member Johan Roos declined re-election.
- In January 2025, SaveLend Group AB's subsidiary Billecta AB entered into a strategic partnership with Lime Technologies Sweden AB, a leading provider of modern customer relationship management tools with a particular focus on the real estate industry.
- In January 2025, SaveLend Group AB sold approximately 22% of the shares in Billecta. The purchase price amounts to approximately SEK 22 million and contributes to a positive earnings effect of approximately SEK 11 million for SaveLend Group. As a result of the transaction, Johan Roos resigned from SaveLend Group's Board of Directors to focus on his role as Chairman of the Board of Billecta AB.
- In February 2025, SaveLend Group AB and NordIX AG ("NordIX") agreed to further expand their collaboration. During 2025, NordIX will invest at least SEK 115 million in Swedish consumer credit.
CEO comments
2024 has been a year of transformation and strategic changes for SaveLend Group. With a clear focus on profitability and efficiency, we have continued to strengthen our business while adapting to changing market conditions. We have implemented important structural changes and increased the share of corporate-related credits on the platform. At the same time, we have continued our efforts to create a more resource-efficient organization and positioned ourselves for the future.
The macroeconomic situation and its impact
The economic climate continues to evolve, and we view the central bank's decision to continue lowering policy interest rates positively. This, in turn, affects saving behaviors and capital flows. With a lower interest rate environment, we see opportunities for increased capital growth on our platform, strengthening our competitiveness as SaveLend Fixed becomes an increasingly attractive alternative when banks lower their savings rates.
Towards a Streamlined SaveLend Group
The strategic review of the billing platform was initiated after we concluded that the revenue and cost synergies that once existed between the savings platform and the billing platform are no longer significant. This review was preceded by a long-term effort to make the billing platform autonomous in relation to SaveLend Group's other operations. By streamlining the businesses within SaveLend Group, it becomes clearer for everyone what SaveLend Group is and what our primary objectives are. A divestment will also allow us to capitalize on the opportunities that are likely to arise as a result of changing regulatory conditions. It is therefore gratifying that we have now taken the first step in this streamlining of SaveLend Group through an initial divestment of 22% of the shares in Billecta. The sale generates a positive earnings effect of approximately SEK 11 million and a positive cash flow of approximately SEK 22 million in Q1 2025. Through this transaction, external individuals with relevant industry experience, as well as employees and key personnel in Billecta, have been tied to the business. This strengthens confidence in Billecta and thereby increases the likelihood of securing the best possible price for the remaining shares.
The objective remains to fully divest Billecta during 2025. Despite the completed partial transaction, SaveLend Group still retains the right to sell 100% of the shares should an interested party wish to acquire them. At the same time, the buyer of the 22% stake in Billecta also has the option to purchase the remaining 78% at a valuation of MSEK 140 for 100% of the shares until mid-2025. After that, the valuation increases by 1% per month, and this right expires at the end of 2025.
Changes in Financial Reporting Due to the Planned Divestment of Billecta
Our business segments, consisting of the savings platform and the billing platform, have previously been our way of clarifying the different business areas and internally allocating costs within the Group. With the divestment of Billecta and our objective to sell the remaining shares, we have, from an accounting perspective, separated Billecta from the Group in accordance with the requirements of IFRS 5. As a result, the figures in this report are not directly comparable to previous reports. However, all periods presented in the report are accounted for based on these principles.
Results
The net revenue for the quarter is in line with the previous quarter, while on a full-year basis, net revenue is 14% lower than the previous year. The decline in revenue observed in 2024 is a direct result of a lower lending volume, which is due to our ongoing efforts to improve the quality of the credits provided on the platform, as well as our strategic focus on increasing the share of corporate loans. There is a natural lag between the implementation of credit policies and models and their impact on results. However, since the summer, we have observed very positive trends in early indicators, which now enable us to begin scaling up volumes in a controlled manner.
Looking at the cost side, I am very pleased with the work we have accomplished throughout the year. We have improved EBITDA by MSEK 3.8 compared to the fourth quarter of the previous year and by MSEK 3.5 on a full-year basis. Marketing expenses and direct costs, including acquisition costs for loan intermediation, have decreased by nearly MSEK 13 in 2024 compared to the previous year. Other external costs are down by approximately 6 MSEK and have now stabilized at a more normalized level, while staff costs have been reduced by MSEK 4 year-over-year. As a result, we have reduced costs more than we have lost in revenue, which is a strong testament to our efficiency efforts. Due to lower staff costs, we also have a reduced amount of capitalized work for own use this year compared to last year, leading to an improvement in EBITDAC (EBITDA excluding capitalized work) by MSEK 5 compared to the previous year.
As a result of our ongoing efficiency efforts, we have a number of one-off effects in the fourth quarter that largely explain the negative EBITDA. Among other things, we have reviewed cost accruals, leading to accrual effects of MSEK 1.3 in additional marketing expenses during the quarter. We also have some severance payments impacting the quarter. Despite these factors, compared to the same quarter last year, we have reduced the total cost base for Q4 by nearly MSEK 9. Adjusted for these one-off effects and with the full impact of personnel adjustments, which will take effect in Q1 2025, we now have a cost structure that is better aligned with the business going forward.
The Government Bill and Our Strategic Direction
In January, the government presented the legislative proposal on strengthened consumer protection in the credit market. The proposal means that only banks and credit market companies will be allowed to conduct and mediate consumer credit after July 2026. This will affect the approximately 70 entities that currently hold licenses as consumer credit institutions, including one of our subsidiaries.
Since the bill was first introduced in May 2024, SaveLend Group has taken measures to future-proof its operations. One of our key strategies has been to increase the share of business-related loans on the platform, which has already yielded results in the form of a significant increase in new business loans over the past year. This initiative, together with our existing revenue model, ensures that we are well-positioned to continue offering a strong savings product even if the consumer credit business ceases after mid-2026.
At the same time, we are also evaluating the possibility of the group applying for and obtaining a license as a credit market company, enabling us to continue providing consumer credits beyond July 2026. SaveLend Group believes that a credit market company operation could successfully be combined with the existing savings platform. This would allow savers to access an exceptional range of investment opportunities - from savings accounts with government deposit guarantees to high-yield real estate investments - while ensuring that the credit market company operates efficiently and resourcefully. SaveLend Group therefore sees this legislative proposal as an opportunity to position itself as a unique and competitive player in the Swedish savings market.
Focus in Project Financing
As part of our strategy to expand and strengthen our credit portfolio with a focus on business loans, we are making a major investment in our Project Financing product during 2025. To lead this business segment, we have recruited Karl Tigerhielm as Head of Real Estate. Karl brings extensive experience in real estate lending and capital raising and will play a key role in scaling up our real estate financing operations.
Interest in Project Financing on our platform has been steadily increasing, and we see strong demand from our investors. Our goal is to create an attractive and competitive financing solution that benefits both investors and borrowers. Strengthening our position in this sector is a natural step in our development and a crucial part of our strategy to expand business lending on our savings platform.
Half-Year Reporting & Trading Updates
To optimize resource utilization, we are transitioning from quarterly reporting to half-year reporting starting in 2025. However, we will supplement this with trading updates for the quarters that are not reported in the current format. This approach allows us to focus more on the company's long-term strategic development while maintaining high transparency. By reducing administrative workload, we can allocate more resources toward strengthening our business and creating value for our shareholders.
Looking ahead
Many of us had hoped that 2024 would be the year of economic recovery, but the downturn proved to be more persistent than expected. In hindsight, I am glad that we made an early decision in 2024 to focus on building a more efficient organization, with greater cost awareness and an increased emphasis on long-term customer value. As a result, we now have a business model and a cost structure that are much better suited for the future. With a strong focus on profitability and efficiency, we have laid a solid foundation to achieve profitable growth in 2025.
For further information:
Peter Balod, CEO of SaveLend Group AB
Phone: +4670 412 49 93
Email: investor@savelend.se
www.savelendgroup.se
Certified Adviser
Corpura Fondkommission AB
Phone: +4673 501 58 58
Email: ca@corpura.se
www.corpura.se
About SaveLend Group:
SaveLend Group AB, 559093-5176, is a fintech company with approximately 70 employees and offices in Sweden and Finland. The business is based on the savings platform SaveLend and the billing platform Billecta.
The savings platform makes it possible for savers to get yield through saving in credits, such as SME, real estate, consumer credit and factoring in both SEK and EUR. The billing platform consists of a complete billing system containing, among other things, accounts receivable, notification and financing solutions.
This information is information that SaveLend Group AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 2025-02-24 19:04 CET.
