Ferratum Oyj - Interim report (Q1 and Q3)

FERRATUM OYJ: Interim Report January - March 2017 / Ferratum Group reports 50.6% year-on-year revenue growth in Q1 2017

Interim Report January - March 2017
Ferratum Group reports 50.6% year-on-year revenue growth in Q1 2017
Helsinki,   May  11, 2017 -  Ferratum  Oyj  (ISIN:  FI4000106299,  WKN:  A1W9NS)
("Ferratum"  or the "Group") announces preliminary  unaudited results for the 3
months ended 31 March 2017 ("Q1 2017").



Q1 2017 highlights

  * Revenue of EUR 50.0 million - up 50.6% year-on-year
  * Operating profit (EBIT) of EUR 6.8 million - up 31.9% year-on-year
  * EBIT margin of 13.7%
  * Positive operating cash flow of EUR 1.9 million
  * Profit before tax (EBT) of EUR 6.0 million - up 56.8% year-on-year
  * EPS (basic and diluted) increased 53.3% to EUR 0.23 per share
  * Maturing EUR 20 million Ferratum Bank p.l.c. bond (WKN: A1Z4JU) repaid with
    proceeds from the EUR 25 million senior unsecured bond (WKN: A189MG) issued
    in Q4 2016
  * Net financing costs decreased by 36% to EUR 0.9 million (Q1 2016: EUR 1.4
    million) due to currency gains
  * Net book value of loan portfolio grew by 11.9% to EUR 206 million (Q4 2016:
    EUR 184 million)
  * Deposits from customers further increased by 17.1% to EUR 118.8 million
  * Active/former customers increased by 335,967 (25.6%) to 1.65 million (Q1
    2016: 1.31 million)






Key Figures


+-----------------------------------------------------+------------------------+
|                                                     |3 months ended March 31,|
+-----------------------------------------------------+-------+----------------+
|EUR '000                                             | 2017  |      2016      |
+-----------------------------------------------------+-------+----------------+
|Revenue                                              | 50,009|          33,213|
+-----------------------------------------------------+-------+----------------+
|Operating profit (EBIT)                              |  6,849|           5,193|
+-----------------------------------------------------+-------+----------------+
|Profit before tax                                    |  5,946|           3,792|
+-----------------------------------------------------+-------+----------------+
|Profit before tax %                                  |  11.9%|           11.4%|
+-----------------------------------------------------+-------+----------------+
|Net cash flows from operating activities before      | 23,706|          13,171|
|movements in portfolio and deposits received         |       |                |
+-----------------------------------------------------+-------+----------------+
|Net cash flows from operating activities             |  1,940|        (11,401)|
+-----------------------------------------------------+-------+----------------+
|Net cash flows from investing activities             |(2,172)|         (2,041)|
+-----------------------------------------------------+-------+----------------+
|Net cash flows from financing activities             |(8,487)|           7,813|
+-----------------------------------------------------+-------+----------------+
|Net increase/decrease in cash and cash equivalents   |(8,719)|         (5,629)|
+-----------------------------------------------------+-------+----------------+
|Earnings per share, basic (EUR)                      |   0.23|            0.15|
+-----------------------------------------------------+-------+----------------+
|Earnings per share, diluted (EUR)                    |   0.23|            0.15|
+-----------------------------------------------------+-------+----------------+






+------------------------------------------+---------------+-----------------+
|EUR '000                                  |March 31,  2017|December 31, 2016|
+------------------------------------------+---------------+-----------------+
|Accounts receivable - consumer loans (net)|        206,290|          184,346|
+------------------------------------------+---------------+-----------------+
|Deposits from customers                   |        118,795|          101,436|
+------------------------------------------+---------------+-----------------+
|Cash and cash equivalents                 |         64,600|           73,059|
+------------------------------------------+---------------+-----------------+
|Total assets                              |        311,683|          295,683|
+------------------------------------------+---------------+-----------------+
|Non-current liabilities                   |         73,362|           72,246|
+------------------------------------------+---------------+-----------------+
|Current liabilities                       |        144,873|          135,563|
+------------------------------------------+---------------+-----------------+
|Equity                                    |         93,447|           87,875|
+------------------------------------------+---------------+-----------------+
|Equity ratio %                            |           30.0|             29.7|
+------------------------------------------+---------------+-----------------+
|Net debt to equity ratio                  |           1.64|             1.53|
+------------------------------------------+---------------+-----------------+


Key Developments And Progress

Ferratum  continued last  year's growth  trend during  the first three months of
2017: The  Group's  revenue  rose  to  EUR  50.0 million,  an increase of 50.6%
compared  to the respective period of the previous year (Q1 2016: 33.2 million).
Growth drivers were product diversification and optimization in consumer lending
as well as the further development of business lending. The number of active and
former  customers increased by 25.6% year-on-year to 1.65 million as of 31 March
2017.

The  operating profit (EBIT) increased by 31.9% year-on-year to EUR 6.8 million.
Optimization  of  marketing  efforts  have  improved significantly, pushing down
marketing  costs  from  20.2% of  revenues  in  Q4  2016 to  15.8% in  Q1 2017.
Impairments  on loans have, as expected,  increased from 28.7% of revenues in Q1
2016 to 34.4% in Q1 2017.

The  profit  before  tax  (EBT)  grew  significantly  by 56.8% y-o-y to EUR 5.9
million,  benefiting from a foreign exchange gain of EUR 842 thousand as part of
net  finance costs.  In the  first quarter  of 2016 a  currency loss of EUR 338
thousand was realized.

Equity  increased to  EUR 93.4 million  from EUR  87.9 million as of 31 December
2016, while  the  equity  ratio  remained  strong at 30.0%. Net receivables from
customers  grew by 11.9 % to EUR 206.3 from EUR 184.3 million. The loan coverage
ratio  remained stable, decreasing slightly from 25.4% in Q4 2016 to 24.2% in Q1
2017. Deposits  from customers further increased by 17.1% from EUR 101.4 million
to  EUR 118.8 million. The interest offered for  deposits has been reduced in Q1
2017 in order to slow down the inflow of deposits. The Mobile Bank is planned to
be launched in further countries during 2017.

On  January 21, 2017, Ferratum Bank p.l.c. repaid its EUR 20 million bond (ISIN:
MT0000911207)  with the proceeds  from the EUR  25 million senior unsecured bond
issued in the final quarter of 2016.

As  of March 1, 2017, the  two bonds issued  by Ferratum Capital  Germany GmbH -
Ferratum Capital Germany GmbH 8% 2018 (WKN: A1X3VZ) and Ferratum Capital Germany
4.875% 2019 (WKN:  A2AAR2) - have  commenced trading on  Scale, Deutsche Börse's
new market segment for small and medium-sized enterprises.

Ferratum's  group rating of BBB+ from Creditreform AG was confirmed during Q1 in
its regular annual review.



Subsequent Events

During  the first quarter,  Ferratum focused preparations  for market entry into
Brazil and the launch of a new consumer lending product in Finland.

Ferratum  is pleased to  report that in  May, Ferratum Brasil commenced consumer
lending operations in Brazil with credits of up to BRL 3,000 (EUR 850).

Ferratum  is also pleased  to announce that  a new loan  product "Primeloan" was
launched in May in Finland. Primeloan is an unsecured personal loan with amounts
of  EUR 3,000 to EUR 20,000 and lending terms of 1 to 10 years. The product uses
a new risk model which links pricing to the risk profile of the customer.

During  the Annual General Meeting held  in Helsinki on May 4, 2017, Christopher
Wang  was appointed as a new board member.  Mr Wang is a Managing Partner at J&W
Partners Co. Ltd., a private equity firm based in Seoul, South Korea that he co-
founded in 2014. He has more than 15 years' experience as a transactional lawyer
and investor operating in the Asian market.

During  the Annual General  Meeting shareholders also  approved the payment of a
final dividend of EUR 0.12 per share for the financial year 2016.




CEO and Founder Jorma Jokela commented:

"We  have made a positive start to 2017 with robust revenue and profit growth in
the  first quarter that  maintains the momentum  we saw in  the final quarter of
2016. The strong performance of our Credit Limit and PlusLoan products continues
to  validate the  strategy of  offering a  range of innovative lending solutions
across multiple markets. Growth for these products is partly driven by Microloan
customers  who now take advantage  of our larger, longer  term products, but our
addressable  market also continues to grow with  the launch in May of Primeloan,
and entry into the strategically important Brazilian market.

Following the successful launch of our mobile bank in three countries last year,
customer  deposits have continued  to grow, reaching  118.8 million euros at the
end  of the  first quarter.  With further  market entries  planned for 2017, and
exciting  plans in  the pipeline  to enhance  the range  of Mobile Bank services
through  third-party  partnerships,  2017 promises  to be another transformative
year  for Ferratum and we remain fully confident in achieving our 2017 full year
revenue and EBIT margin guidance."





About Ferratum Group:
Ferratum is an international provider of consumer and small business loans,
distributed and managed by mobile devices.  Founded in 2005 and headquartered in
Helsinki, Finland, Ferratum is a pioneer in the fields of financial technology
and mobile lending and has expanded rapidly to operate in 24 countries (as at
May 11, 2017). Ferratum's customers utilize digital media to apply for consumer
credit in amounts varying between EUR 25 and EUR 20,000 and small businesses
instalment loans up to EUR 100,000 with a term of six to twelve months.  Led by
its founder, Jorma Jokela, Ferratum has more than 1.6 million active and former
customers who have been granted one or more loans in the past (as at March
31, 2017).

Ferratum Group is listed on the Prime Standard of Frankfurt Stock Exchange under
symbol 'FRU.' For more information, visit www.ferratumgroup.com.



Contacts:

 Ferratum Group                   European media enquiries:
 Dr. Clemens Krause, CFO          Edelman.ergo, A Daniel J Edelman Company
 T: +49 30 88715308               Alexander Schmidt | Andreas Martin
 F: +49 30 88715309               T: +49 69 27 13 89 26
 E: clemens.krause@ferratum.com   E: Alexander.Schmidt@edelmanergo.com
                                  E: Andreas.Martin@edelmanergo.com


 Ferratum Group                   UK media enquiries:
 Paul Wasastjerna                 Smithfield, A Daniel J Edelman Company
 Head of Investor Relations       Alex Simmons | Brett Jacobs
 T: +358 40 7248247               T: +44 20 7903 0669 | +44 20 7903 0675
 F: +358 20 741 1614              E: asimmons@smithfieldgroup.com
 E: paul.wasastjerna@ferratum.com E: bjacobs@smithfieldgroup.com



[]