Multitude SE publishes its 9M 2022 results

Multitude SE publish 9M 2022 results

Helsinki, November 17, 2022 – Multitude SE (ISIN: FI4000106299, WKN: A1W9NS) (“Multitude” or the “Group”) announces unaudited results for the nine months ended September 30, 2022 (“9M 2022”).

Financial Highlights

  • Revenue increased by €3.7m compared to 9M 2021, despite a difficult market environment
  • Loan portfolio growth of 13.1% YoY vs. 9M 2021
  • Positive upward trend in EBIT
  • EBIT, PBT and profit after tax amounted to EUR 20.8 million, EUR 7.7 million and EUR 6.0 million
  • Earnings per share EUR 0.17 versus EUR 0.03 over 9 months 2021
Key figures, millions of euros 9M 2022 9M 2021*
Revenue 162.8 159.1
Earnings before interest and taxes (EBIT) 20.8 23.2
Profit before tax 7.7 8.5
Net income from continuing operations 6.0 6.6
NetProfit (loss) 6.0 2.7
Earnings per share, basiccontinuing operations (EUR) 0.17 0.22
Earnings per share, attributable to common equity (EUR) 0.17 0.03

* Restated to reflect the carve-out of discontinued operations

Growth in portfolio size and strong asset quality

The Group is pursuing its current strategy of concentrating on the most profitable credit markets, focusing its operations and its portfolio on more stable sources of income with a well-established clientele. The Group’s collective loan portfolio amounted to €484.7 million at the end of the third quarter of 2022, a notable increase compared to €443.9 million (+9.2%) at the end of the fourth quarter of 2021, respectively. The increase in the net portfolio of loans receivable at the end of Q3 2022 compared to the end of Q4 2021 amounts to €3.5 million (+1.2%) at Ferratum, €29.4 million euros (+33.8%) at SweepBank and 8.0 million euros (+10.7%) in the CapitalBox tribes.

Relatively stable operating expenses

The Group’s operating expenses, excluding impairment losses, remained relatively stable, with a net increase of €6.8 million (5.0%) compared to 9M 2022 and 9M 2021. Selling expenses and marketing decreased by €4.6 million (-22.5%), due to the compensation of brokerage fees from revenues, the improvement of the supply activities in the first half and the new measures of austerity measures implemented in the following months. The decrease in marketing and selling expenses adjusted for the reclassification carried out in 9M 2022 is 2.8 million euros (-13.6%). This decrease was compensated by the increases in depreciation charges, EUR 1.2 million (+10.5%), mainly stemming from the revaluation of assets linked to the rights of use. The increase in personnel costs of 2.2% (compared to 9M 2021) is justified by the increase in equity charges which amounted to 0.3 million euros when comparing 9M 2022 and 9M 2021.

Lower interest charges and controlled exchange rate impact

Net finance costs recorded a significant decrease year-on-year, amounting to €1.7 million (-11.4%) when comparing €13.1 million in 9M 2022 to EUR 14.8 million as of 9M 2021. Interest expense decreased by EUR 2.8 million (-23.0%) due to the conversion of outstanding 2018 and 2019 bonds into perpetual bonds 2021, the interest of which is charged directly to retained earnings instead of profit or loss. Despite major uncertainties in the capital and currency markets, Multitude managed to limit the increase in the net foreign exchange loss amounting to 0.7 million euros by comparing the results of 9M 2022 and 9M 2021.

Improved profitability in a context of deteriorating macroeconomic conditions

The Group’s activities during 9M 2022 generated strong earnings before interest and tax (“EBIT”), earnings before tax and earnings after tax from continuing operations amounting respectively to EUR 20.8 million, 7 .7 million euros and 6.0 million euros. Group operations for the comparative period 9M 2021 amounted to €23.4 million, €8.7 million and €6.8 million, respectively.

The Group’s profitable results were primarily attributed to a combination of the Group’s marginal revenue growth, increased risk provisioning and lower net finance charges during 9M 2022.

About Multitude SE:

Multitude is a fully regulated fintech growth platform. Its ambition is to become the most valued financial ecosystem. This vision is backed by over 17 years of solid experience building and scaling fintech. With its full European banking license, deep technology, regulatory, cross-selling and financing know-how, Multitude enables a range of sustainable banking and financial services to grow and grow. Currently, it has three independent business units on this growth platform: Ferratum as a consumer lender, CapitalBox as a business lender, and SweepBank as a business and financial app. Multitude and its independent units employ more than 700 people in 19 countries and together generated sales of €214 million in 2021. Multitude was founded in 2005 in Finland and is listed on the Prime Standard segment of the Stock Exchange of Frankfurt under the symbol “FRU”. ‘


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