Mash Group Plc Reports Interim Unaudited H1 financials, ended 30th June 2019

Press15.08.2019 07:41


Mash on track for another record year as revenue continued to grow during H1/19, up 35% from H1/18. Equity increased by 46% for the same period with investors lining up to join. Demand remains high in all markets, according to Group CEO Van Wynsberghe, with 87% of new customers now coming in through payment channels.

The first half of 2019 showed further growth in loan book, revenue, and EBIT, compared to H1/2018, as Mash continues to execute its growth plan by investing in growing capabilities, systems and partnerships.

Strategic Highlights

  • During the first half of 2019, Mash continued to invest in improving its capabilities in pay-by-invoice and lending services through POS, ecommerce and online/mobile channels.
  • The Group delivered on its promise by going live with one of its partners, Nets, in June 2019.
  • Mash now offers structured partnerships to lenders, in response to the tightening regulation in key markets, leveraging its capability to refinance large volumes of consumer receivables. The Group sees an opportunity to acquire significant market share through its competitive advantage in a changing market. The new regulatory environment e.g. in Finland has affected the Group’s competitors, which has lead to an increased demand for Mash services in the market. Mash is in a strong position for the upcoming regulatory changes.
  • Mash Group secured EUR 25 million in institutional equity investment in June 2019. The significantly stronger balance sheet is expected to facilitate more and cheaper external funding to fuel growth, aiding the long-term growth and profitability of Mash business.
  • Mash secured additional funding capacity through an amendment of its existing funding structure, including a commitment to support further growth of Mash business in several markets.


Operational Highlights

  • The number of new customers grew by 41% during the first half of 2019 compared to H1/2018, and by 415% compared to H1/2017. Mash payment customers increased by 170% for the same period (an increase by 2503% compared to H1/2017), with 87% of new customers now coming through the payment channels (40% in H1/2018 and 15% in H1/2017). This validates the chosen strategy of cheap customer acquisition through payment channels.
  • The loan book of Mash Group increased to EUR 210 million, validating the Group’s strategic choice to focus on near-prime and prime customers.
  • The Group provided a credit score for more than 500.000 customers during H1/2019. This shows the capacity of the automated lending system.
  • In total, Mash has originated over EUR 0.5 billion in consumer receivables and generated over EUR 100 million portfolio revenue since the Group was established in 2007.


Financial Highlights

  • Revenue grew by 35% year-on-year for H1/19 compared to H1/18, while EBIT grew by 9% to EUR 6.0 million.
  • The Group’s solidity is excellent at an equity ratio at 28%, with equity increasing by 46% compared to H1/2018.
  • Total assets grew by 42% year-on-year to EUR 291 million.


Values based on pro-forma consolidated figures. For equivalent FAS values see below.

Group CEO Gaëtan Van Wynsberghe comments on the Group’s performance during the first half of 2019: “We had excellent news especially towards the end of the period, with EUR 25 million additional equity secured. The strong equity position combined with our amended funding facility now supports further growth in several markets as we move toward next year’s plans. We expect a strong growth of our customer base especially through our pay-by-invoice acquisition channels. We are working with existing partners and merchants to increase further acquisition of new customers by leveraging our innovative point of sale payment solution. New important potential partners also approached us being convinced of our innovative capabilities. This validates our leading position in terms of omnichannel payment and financing solutions. It means we will be able to originate consumer credit at low acquisition cost at an accelerated pace. The significantly stronger balance sheet of Mash Group helps to get us more and cheaper external funding to fuel the growth, and to grow our business faster”

“Our services were also launched during the second quarter on the Nets payment terminals, which greatly increases our customer base and origination capabilities. 87% of our new customer flow already comes from payment channels – this will increase that flow radically as we gradually ramp up the service”, Van Wynsberghe continues. “We have made and continue to make significant investments into the development of our services, particularly in the POS and e-commerce channels for the pay-by-invoice service that generate most of our new customer flow. In the short term, the investments for the future impact our profitability through higher personnel expenses and depreciation of investments, but they greatly improve our long-term prospects. Regulatory changes in key markets have already proven us right in moving toward near-prime and prime customers with a sustainable business model that is focused on generating high quality portfolios. As a result, we are today largely insulated from regulatory changes in Finland and are well positioned to capitalize on the market opportunity this creates. We are currently experiencing unprecedented demand for our services in all key markets, and are working hard to meet that demand. We can pick and choose between customers. In terms of strategic positioning, we are spot on. We are looking at record revenue for 2019 while building a strong base for 2020 following our investments”, the CEO assesses.

Group Chairman Tommi Lindfors adds: “In Finland, for instance, the limitations of the new regulation have prompted several consumer lenders to cease their business. This has created a pent-up demand for refinancing the receivables. We have the capacity to refinance a major part of the outstanding receivables and very competitive pricing, which means that we can offer a solution that benefits both the lenders, through repayment in full, and customers, through a lower price. As a Fintech company, we have the capability to quickly offer working solutions to our partners. Other markets are heading toward similar changes, which also means we can expand this service there, too. We can therefore capitalize on the regulatory changes.”

“We have reached some impressive milestones during the first half of 2019”, Lindfors continues. “Cumulative loan origination exceeded EUR 0.5 billion since the Group was established in 2007, and at the same time we have generated over EUR 100 million in revenue over the years, which shows our long-term value generation capability. We scored over 500.000 customers during the first half of 2019 alone, showing the capabilities of our automated multi-channel customer assessment and origination. Our loan book exceeded EUR 200 million for the first time, showing that we have come a long way from our humble beginnings twelve years ago. Best of all, investors are coming in at an unprecedented pace, enabling us to continue to grow and capture market share in a very auspicious market situation. We continue to work hard every day to earn the trust that our investors have put into us.“


Mash Q2 2019 Financial Figures

* The interim pro-forma consolidated figures and comparison figures have been prepared by consolidating Mash Group figures prepared in compliance with Finnish Accounting Standards ("FAS") and Pausa Capital S.à.r.l. prepared in conformity with Luxembourg legal and regulatory requirements and according to generally accepted accounting principles applicable in Luxembourg ("Lux GAAP"). The following transactions between Mash Group and Pausa Capital S.à.r.l. have been eliminated in the pro-forma consolidated figures:

  • Subordinated Notes issued by Pausa Capital S.à.r.l. and held by Mash Group
  • Variable interest recognised by Mash Group related to the Subordinated Notes
  • Servicing fees from Mash Group to Pausa Capital S.à.r.l., Mash Finance Oyj being the servicer of the funding facility.
  • Debt Collection fees charged by Mash Group to Pausa Capital S.à.r.l., Credito Cobro Oy being one of the collection agencies of the funding facility.

Pausa Capital S.à.r.l is a special purpose vehicle supporting the funding facility provided to Mash Group. According to Group Management, the pro-forma consolidated figures that include Pausa Capital S.à.r.l. provide a more comprehensive view of the financial position and performance of Mash Group, compared to FAS consolidated figures, which can be found below. These figures are unaudited. The reader is advised to refer to the 2018 annual review and financial statements for the latest audited figures and more information about the Group.


Financial Highlights (FAS)

  • Revenue grew by 34% year-on-year for H1/19 compared to H1/18, while EBIT remained at EUR 3.4 million.
  • The Group’s solidity is excellent at an equity ratio at 36%, with equity increasing by 46% compared to H1/2018.
  • Total assets grew by 55% year-on-year to EUR 223 million.


Mash H1 2019 FAS Consolidated Financial Figures


About Mash

Mash has been at the forefront of fintech innovation since 2007. We leverage our advanced proprietary algorithms, machine learning capabilities, and automated platform to deliver superior finance and payments solutions to thousands of customers every day. We work hard for a future powered by technology, making every transaction seamless, flexible and worry-free. Today, Mash is one of Europe’s leading fintech companies. | | | @MashComOfficial

For more information please contact:
Jonas Lindholm
Mash Group Plc
Tel +358 10 217 1003