NEO Finance (NEOF1) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 26% year-over-year to EUR 1.48 million, with stable growth across all business sectors despite dynamic market conditions.

• EBITDA increased 59% to EUR 347 thousand, and profit before tax surged 90% to EUR 213 thousand compared to Q3 2023.

• Two new subsidiaries were established to facilitate larger-scale investment in consumer loans, supporting growth and investor demand.

• NEO Finance gained traction in international markets, especially the Netherlands, attracting EUR 1.48 million of targeted EUR 2 million in investments.

• Operational improvements included new wage garnishment procedures and enhanced recovery processes in response to regulatory changes.

Financial highlights

• Q3 2024 revenue: EUR 1,483 thousand (+26% YoY); cost of sales: EUR 664 thousand (+20% YoY); operating costs: EUR 605 thousand (+17% YoY).

• EBITDA margin improved to 23.4% from 18.54% in Q3 2023.

• Q1–Q3 2024 revenue: EUR 4.5 million (+37% YoY); EBITDA: EUR 762 thousand (+30% YoY); profit before tax: EUR 382 thousand (+35% YoY).

• Consumer loan portfolio at end-Q3 2024: EUR 78.8 million (+18.89% YoY); average interest rate: 14.68%.

• Intermediation fee receivable for future periods grew 15.28% YoY to EUR 12.15 million.

Outlook and guidance

• Management remains optimistic about continued growth, with expectations for more stable funding and improved loan issuance in the coming quarter.

• Focus remains on scaling operations, expanding internationally, and optimizing recovery processes amid regulatory changes.