DelfinGroup (DGR1R) Q4 2024 earnings summary

Executive summary

• Achieved record business performance in 2024, with loan issuance up 15%, pawn loans up 9%, and net loan portfolio growing 27% year-over-year to EUR 113.5 million.

• Revenue increased 25% year-over-year to EUR 63 million, with Q4 revenue at EUR 17.4 million.

• Net profit for 2024 reached EUR 7.4 million, up 12% year-over-year; Q4 net profit rose 56% due to lower CIT impact.

• Expanded operations into Lithuania, launching consumer loans in Q4 2024 after obtaining a license and now offering all business segments.

• Continued focus on digital innovation and branch network efficiency.

Financial highlights

• EBITDA for 2024 increased 22% to EUR 22.1 million; EBITDA margin stable at 35-36%.

• Profit before tax for 2024 grew 13% to EUR 9.4 million; Q4 profit before tax at EUR 2.6 million.

• Dividend yield for the year was 7.6-8%, with a payout ratio near 50%.

• Credit loss expenses rose 41% year-over-year, reflecting significant loan portfolio growth.

• Cost-to-income ratio stable at 46.6%, with interest coverage ratio at 2.0.

Outlook and guidance

• Management expects continued growth in all business segments, supported by product expansion in Lithuania and ongoing digitalization.

• Plans to continue portfolio growth in 2025, requiring additional financing through bonds and other channels.

• Dividend policy targets up to 50% quarterly payout; Q4 profit proposed for dividend distribution.

• Ongoing branch network upgrades and testing of new retail concepts.

• Anticipates positive impact on funding costs from potential EURIBOR rate decreases.