Q4 - 1 October – 31 December 2021
Amounts in parentheses refer to the same period the previous year.
- Net revenue for the period was MSEK 30.3 (17.3), a 75.3% increase, of which 65.7 percentage points are organic growth and 9.6 percentage points relate to acquired growth.
- Adjusted EBITDA totaled MSEK -3.0 (-3.0). Items affecting comparability impacted profit/loss by MSEK 2.0.
- EBITDA was MSEK -5.0 (-3.0).
- EBIT was MSEK -9.1 (-4.8).
- Net result was MSEK -9.2 (-5.0).
- Earnings per share before dilution was SEK -0.19 (-1.44).
Period - 1 January – 31 December 2021
Amounts in parentheses refer to the same period the previous year.
- Net revenue for the period was MSEK 94.1 (56.2), a 67.4% increase, of which 64.4 percentage points are organic growth and 3.0 percentage points relate to acquired growth.
- Adjusted EBITDA totaled MSEK -6.0 (-7.1). Items affecting comparability impacted profit/loss by MSEK 11.9.
- EBITDA was MSEK -17.9 (-7.1).
- EBIT was MSEK -27.9 (-14.0).
- Net result was MSEK -28.7 (-14.6).
- Earnings per share before dilution was SEK -1.07 (-4.23).
Events during the quarter 1 October – 31 December
- SaveLend Group completes acquisition of Finnish P2P pioneer Fixura Ab Oy.
- SaveLend Group launches direct bank payments on the investment platform through Trustly.
- Redeye initiates coverage of SaveLend Group.
- SaveLend Group launches Treyd as an originator on the investment platform.
- SaveLend Group makes changes in Group Management.
Events after the period
- SaveLend Group strengthens the management team and recruits Olle Asplund as Chief Product Officer.
- SaveLend Group enters into an agreement to acquire Svensk Kreditförmedling.
- SaveLend Group AB carries out a directed share issue of 1,760,563 shares and will receive approximately MSEK 15.
- Notice of Extraordinary General Meeting in SaveLend Group AB (publ).
I look back on a year when many of our earlier investments began to bear fruit. Each quarter has shown new record figures for our key ratios with promise for further growth. This was enabled by our most vital assets – our technical platforms and our employees.
The year was intense – with our new branding profile, market listing, launch and acquisition in Finland, roll-out of several
important improvements for our savings customers, and getting going with our two largest customers for our billing platform. Many of these activities have involved planned, but non-recurring, expenses. Now we can look forward to a 2022 when all these investments can continue to bear fruit.
I can also note that the percentage of shareholders who also save on our platform remains greater than 50% - even as our shareholder base grows. A continuing high grade for both our product and business!
Revenue for the quarter was MSEK 30.3 for a whole 75.3 % increase over the previous year. Adjusted EBITDA was MSEK -3.0 and was adjusted by MSEK 2 attributable to the Fixura acquisition. The fourth quarter is a seasonally strong quarter for us and we expect a more normal growth rate during the first quarter of 2022.
Money shouldn’t sleep
We have succeeded in waking up a portion of the funds Swedes have kept in their savings accounts, so we close the year with over MSEK 629 on our savings platform - for an increase of 141% over the previous year. This growth is due to both existing savers increasing capital on deposit and new savers learning through our campaigns and choosing SaveLend as a supplemental form of savings. We now round off the year by delivering the three best months ever in terms of new savings capital on the platform.
In the quarter, we updated our bonus system to include levels based on individuals savings capital on the platform in addition to shareholding. We have also offered a deposit bonus of 1% on capital added to the platform during November and December. This brought clear results allowing us to identify a method to quickly increase capital inflows. Even with these significant inflows, we were able to maintain high investment levels by succeeding to balance the new capital against qualitative credits to invest in. Investment levels during the quarter held at an average of 94%, with which we are highly satisfied. The risk with such a high level involves the possibility we may be forced to decline new credits which may be good investment opportunities. Being able to identify methods to quickly raise new capital to enable controlling investment levels is therefore vital, which I see as a great opportunity and making this a priority going into the next year.
Second institutional actor on the platform
At the end of Q4, a second institutional party agreed to test the platform. This is a solid measure of quality for the platform, convincing me we will see higher gearing for this in coming years.
Our first institutional flow, which is dedicated to SäljFinans, has begun to accelerate whereby we increased the capital on the platform by MSEK 6.7. We see this flow, combined with new directed sales activities, will represent a growing share of our volumes in 2022. A benefit from using this flow is lower cost of customer acquisition since these customers can be brought in from existing flows.
Altogether, this resulted in the institutional capital on the platform growing to MSEK 11.7 at the close of 2021.
Maintaining high speed during upgrade
Billecta processed over 970,000 transactions on the billing platform during the quarter. The upgrade to using a newer coding language is coming to completion, while our first launch and the migration of certain services are already in place. I am highly impressed with our team as it continues to deliver record numbers of transactions and functions even though half of them are working on the upgrade. Completing this transformation will free-up significant resources going into Q1. These can then be assigned to customer implementations and further innovation of new functions.
The Fixura acquisition closed on the first day of Q4, whereby we took control of Finland’s oldest savings platform for credits. Somewhat simplified, it is the Finnish equivalent of SaveLend. My assessment is that the acquisition saves us two years in establishing in the Finnish market, bringing access to a high-performance team with a well-established brand. Moreover, we gained access to unique and valuable data for the market and secured investment opportunities in euros on the savings platform, which opens up SaveLend as a savings alternative for the European market. The work we are doing to integrate euro as a currency also contributes technically to our continued expansion into Europe. With these considerations, I’m confident we will be able to restart operations now that the Finnish interest ceiling and other covid-related restrictions are lifted. We plan to migrate the Fixura investor database to our SaveLend platform in the first six months of this new year, as we roll out the Fixura brand for credit brokerage to companies in other countries. Our branding strategy is to continue using separate brands to enable driving down customer acquisition costs without needing to mix messaging between various target groups.
In its first quarter as part of the SaveLend Group, Fixura contributed net revenues approaching MSEK 1.7, representing 9.6% of group growth. Our Finland manager, Miika Engström, provides a more detailed status update and planning review later in this report.
Treyd - New originator
A central component in our strategy is to offer savers the opportunity to diversify their investments through different types of credits having specific characteristics. In Q4 we welcomed Treyd as an external originator to our savings platform. Treyd
offers investment opportunities in credits characteristic for trade financing, where the invested capital is used to free operating capital for import businesses. Treyd is run by a highly qualified team, they are well-financed, and serve an enormous market.
Looking forward into 2022 - Buy and sell!
My mantra that I spread throughout the organization is that we can permit ourselves to celebrate our successes and enjoy. We did so during the Christmas holidays, after which it was time to roll up our shirt sleeves to increase our tempo for 2022. We started the year by determining to acquire Svensk Kreditförmedling – a strong, profitable capital and credit intermediary in the real estate industry. This acquisition ensures greater inflows of investment opportunities in real estate
projects for our savers, and reinforces profitability. Svensk Kreditförmedling already uses our savings platform for their
brokering activities with a limited log-on mode. On closing, these investors will gain access to all of our diversified savings offer. This acquisition will contribute to our ability to continue accelerating the pace of our growth journey. Having completed the new issues to finance our acquisitions and completed the refinancing of repaid convertibles, we are financially strong in the face of the continued growth journey.
Growing our sales organization
We stepped out of 2021 with 62 SaveLendians in the group. I wrote in my last report that we would continue to expand our organizational strength, especially in sales. And we have succeeded in doing this. We are currently slightly ahead of ourselves in terms of recruitment as we have completed hiring for most of the roles in the organization. I see this positively though, since this means we can more easily handle the significant inflows of new savers and billing customers the way we want. I look forward expectantly to seeing the company gear up from the foundation we have set.
Ongoing brand building for SaveLend
During the stock exchange listing process for the company, we received a fantastic response to our Money shouldn’t sleep
campaign. We managed to activate a portion of the funds Swedes have kept in their savings accounts (earning no interest).
2022 will see our continuing resistance to zero-interest – which will gain in importance for savers when inflation rises to hollow the value of their savings. Money shouldn’t sleep! Going forward, we will continue investing heavily in our branding
activities to increase confidence in our brands and improve the effectiveness of the conversion campaigns we run by increasing the frequency of our presence. This will lay the groundwork for attracting additional shareholders this coming year.
Financial targets 2025
We are on track to meet our financial targets – net revenues over MSEK 300 with adjusted EBITDA margin of 25% or more by 2025 – at our current pace. With our technical capabilities, we stand ready to meet significantly larger volumes, and we are building our sales organization to raise the tempo even more. We will continue to invest in staff and marketing, especially now in the first half of 2022. Heading into the new year at full speed spurs me with a sense that we have much more to accomplish!