Fellow Finance - In line with expectations
Fellow Finance’s H2/2020 results were quite in line with expectations, with revenue of EUR 5.3m (Evli EUR 5.5m) and an adj. EBIT of EUR 0.7m (Evli EUR 0.7m). Fellow Finance expects growth in 2021 but for the result to remain slightly unprofitable due to growth investments. The BoD proposes that no dividend be paid for FY2020 (Evli EUR 0.00).
- Revenue in H2 amounted to EUR 5.3m (EUR 7.0m in H2/19), slightly below our estimates (Evli EUR 5.5m). Revenue declined 24.4% in H2. Compared with H2/19 commission fees declined by 44% and interest yields increased by 16%.
- Fellow Finance facilitated loans during H2 for a total of EUR 64m (EUR 92m in H2/19), a decrease of 30%. Loan volumes were affected by uncertainty caused by the coronavirus pandemic, which interrupted new investments, along with temporary regulations in Finland and Poland, which limited loan intermediation possibilities.
- Business financing volumes grew 48% compared to H2/19, with invoice funding products in particular faring well during the uncertain times.
- The adj. EBIT in H2 amounted to EUR 0.7m (EUR 1.0m in H2/19), in line with our estimates (Evli EUR 0.7m).
- The adj. EPS in H2 amounted to EUR -0.02 per share (EUR 0.01 in H2/19), in line with our estimate of EUR -0.01.
- Guidance for 2021: Fellow Finance expects revenue growth compared to 2020 but for the result to remain slightly unprofitable due to investments in new products and growth.
- Dividend proposal: The BoD proposes that no dividend be paid for the FY2020 (Evli EUR 0.00).