Multitude SE, a leading European FinTech company specializing in digital lending and online banking services, has unveiled its financial performance for the first half of 2024. The company reported significant growth in both revenue and earnings before interest and taxes (EBIT), though a slight dip in net profit was noted due to bond-related expenses. This announcement sheds light on the company’s strategic direction and highlights its resilience and adaptability in a competitive market.
In the first half of 2024, Multitude SE achieved substantial growth in its financial metrics, outpacing many of its industry peers. The EBIT rose by an impressive 34.5%, reaching EUR 28.3 million, a notable increase from EUR 21.0 million recorded during the same period in 2023. Group revenue also saw a robust increase of 17.0%, amounting to EUR 128.8 million. However, net profit for the period experienced a slight decline, dropping to EUR 7.3 million from EUR 7.6 million the previous year. This decline was attributed to bond-related expenses totaling EUR 1.4 million, which somewhat offset the gains made in revenue and EBIT.
Strong Financial Performance in 2024
Multitude SE’s financial results for the first half of 2024 reflect the company’s solid performance and strategic effectiveness. Earnings before interest and taxes (EBIT) surged by 34.5% to EUR 28.3 million. This rise marks a significant improvement from the EUR 21.0 million achieved in the first half of 2023. Such impressive growth underscores the company’s ability to enhance operational efficiency and tap into new market opportunities effectively.
Group revenue also demonstrated robust growth, climbing by 17.0% to EUR 128.8 million in the first half of 2024, compared to the same period in the previous year. Despite these positive financial strides, Multitude SE reported a slight decline in net profit, which fell to EUR 7.3 million from EUR 7.6 million in 2023. The reduction was primarily due to one-off bond-related expenses that totaled EUR 1.4 million. These costs impacted the overall profit but were seen as necessary for long-term strategic positioning and refinancing activities.
Revenue and Earnings Growth Across Business Units
Multitude SE’s diverse range of business units has shown remarkable contributions to revenue and earnings growth, with each unit recording at least a double-digit revenue increase. This diversity aligns perfectly with the company’s strategic goals for 2024, positioning it to leverage multiple markets and customer segments effectively. The consumer banking unit, branded as Ferratum, witnessed an 8.3% growth in lending volume, reaching EUR 462.8 million. This unit’s EBIT surged by 44.2% to EUR 28.4 million, showcasing its strong market presence and growing efficiency.
Equally impressive was the performance of the SME Banking unit, represented by CapitalBox. This unit saw robust growth in Net Accounts Receivable (Net AR), increasing by 43.1% to EUR 130.2 million despite facing minor headwinds from loan loss provisions. The provisions slightly impacted earnings but were a testament to the unit’s overall solid performance. Meanwhile, the Wholesale Banking unit, operating through Multitude Bank, demonstrated exceptional growth in Net AR, which rose by an astounding 170.1% to EUR 104 million. This growth translated into a significant EBIT increase from EUR 0.3 million in 2023 to EUR 2.4 million in the first half of 2024.
Improvement in Risk Management and Asset Quality
Multitude SE has also made significant strides in risk management and improving asset quality, which are critical factors in sustaining long-term growth and operational stability. The company successfully lowered its loan impairment ratio to 3.8%, slightly below the long-term average. This reduction is indicative of Multitude SE’s effective risk management strategies and its focus on maintaining a healthy loan portfolio.
Moreover, the group recorded a substantial increase in net interest income, rising by 8.8% to EUR 110.1 million. This increase highlights Multitude SE’s capability to manage its interest-generating assets efficiently while keeping a low-risk profile. The company’s improved asset quality and robust risk management practices provide a strong foundation for future growth, enabling it to navigate potential economic uncertainties more effectively.
Solid Financial Position and Successful Bond Issuance
Multitude SE’s financial stability is further underscored by its stable asset base, which stands at EUR 986.8 million. This solid financial position offers a robust foundation to support the company’s various growth initiatives and strategic objectives. Additionally, the company successfully issued a four-year unsecured bond amounting to EUR 80 million. This bond issuance was a strategic move aimed at refinancing an existing bond maturing in 2025, reflecting the company’s proactive approach to managing its financial obligations.
The successful bond issuance not only demonstrates investor confidence in Multitude SE but also provides the company with the financial flexibility needed to scale its operations and pursue new growth opportunities. By effectively managing its debt and maintaining a strong balance sheet, Multitude SE reinforces its commitment to financial stability and long-term value creation for its stakeholders.
Forward-Looking Strategic Focus
CEO Jorma Jokela has reiterated the company’s optimistic outlook for the future, emphasizing its strategic focus on leveraging growth opportunities across all business units. The management has maintained its guidance for a 50% EBIT growth in 2024, aiming to reach EUR 67.5 million. This ambitious target is aligned with Multitude SE’s medium-term goal of achieving group earnings of EUR 30 million by 2026.
Multitude SE’s forward-looking strategy includes continuous investment in growth initiatives, enhanced financial stability, risk reduction, and operational efficiency. The company’s comprehensive approach is expected to drive further revenue and earnings growth in the coming years, solidifying its position as a leading player in the FinTech industry. By focusing on these key areas, Multitude SE aims to create sustainable value for its shareholders and maintain its competitive edge in the market.
Positive Developments in Business Units
The positive developments within Multitude SE’s three primary business units further reinforce the company’s strong market position and growth prospects. The Consumer Banking unit, operating under the Ferratum brand, has recorded significant growth in lending volumes and EBIT. This unit’s performance underscores the strong market demand for its services and its operational efficiency.
Similarly, the SME Banking unit, represented by CapitalBox, has demonstrated impressive growth in Net Accounts Receivable, indicating increasing demand for its services among small and medium-sized enterprises. Despite the minor challenges posed by loan loss provisions, the unit’s overall performance remains robust, highlighting its ability to cater to the evolving needs of its target market effectively.
The Wholesale Banking unit, operating through Multitude Bank, has also achieved remarkable growth in Net Accounts Receivable and EBIT. This unit’s performance underscores its capability to effectively serve the needs of other FinTech companies, contributing to the company’s overall growth and diversification strategy.
Building a Resilient and Diversified Business Model
Multitude SE, a prominent European FinTech company known for its digital lending and online banking services, has revealed its financial results for the first half of 2024. The company reported substantial growth in both revenue and earnings before interest and taxes (EBIT), although it experienced a slight drop in net profit due to bond-related expenses. This announcement underscores the company’s strategic planning and its adaptability in a highly competitive market.
In the first six months of 2024, Multitude SE recorded significant improvements in its financial performance, surpassing many of its industry peers. The EBIT surged by an impressive 34.5%, reaching EUR 28.3 million, a notable jump from EUR 21.0 million during the same period in 2023. Group revenue also saw a healthy uptick of 17.0%, totaling EUR 128.8 million. However, the net profit for the period saw a slight decrease, falling to EUR 7.3 million from EUR 7.6 million the previous year. This decline was attributed to bond-related expenses amounting to EUR 1.4 million, which partially offset the gains in revenue and EBIT.
