PRESS RELEASE

from Ferratum Oyj (isin : FI4000106299)

Multitude SE publishes restated interim results for 2022 due to prior period adjustments and change of presentation

EQS-News: Multitude SE / Key word(s): Interim Report
Multitude SE publishes restated interim results for 2022 due to prior period adjustments and change of presentation

09.05.2023 / 07:00 CET/CEST
The issuer is solely responsible for the content of this announcement.


Helsinki, 09 May 2023 - Multitude SE (ISIN: FI4000106299, WKN: A1W9NS) ("Multitude" or the "Group") announces restated unaudited results for the 3 months ended 31 March 2022, ("3 Month"), the 6 months ended 30 June 2022 ("6 Month"), and the 9 months ended 30 September 2022 ("9 Month"). These restatements are required following a review of the brokerage fee treatment according to IFRS 9, classification of cash flows on deposits from customers in consolidated statement of cash flows and classification of loans to customers as non-current or current in consolidated statement of financial position.

  1. Brokerage fees on loans and deposits

The Group reviewed the way sales and commission fees payable to third parties of specific lending products are recognised, and the pattern and method of recognition of the fees within the consolidated statement of profit or loss. Previously these costs were expensed as incurred and presented within selling and marketing expense. Subsequent to the correction, such fees which are transaction costs directly attributable to the acquisition of loans to customers and deposits from customers, are adjusted against the initial fair value of the instrument and are amortised to the statement of profit or loss over the estimated life of the related loans and deposits received applying the effective interest rate method. The impact of the correction is that the timing of the expense recognition changes, and both the interest income and fee expenses decrease within the statement of profit or loss.

Following the adjustments to the treatment of commission fee, Multitude considers its procedures on calculating interest revenue as fully compliant with definition of effective interest rate in IFRS 9.

  1. Classification of cash flows on deposits from customers to cash flows from financing activities

The Group corrected the presentation of cash flows from deposits from customers in the consolidated statement of cash flows to cash flows from financing and restated the comparative period. Previously the Group classified the deposit related cash flows as part of the cash flows from its net cash flows from operating activities.

Reclassification of cash flow on deposits is aimed to align with classification of interest cost on deposits in the consolidated statement of profit or loss where it is part of finance costs.

  1. Classification of loans to customers as non-current or current

The Group has corrected the classification of loans to customers as current and non-current in the statement of financial position and restated the comparative financial information accordingly. Previously, the Group incorrectly classified loans to customers which did not meet the current asset criteria in IAS 1 as current assets. The correction relates solely to the presentation in the statement of financial position, and it has no impact on the results.

The impact of adjustments on the financial statement line items can be found in the table below:

 

Consolidated statement of profit or loss (EUR ’000)1 Jan 2022 - 31 Mar 20221 Jan 2022 - 30 Jun 20221 Jan 2022 - 30 Sep 2022Type of adjustment
Interest revenue(1,720)(3,458)(5,256)1
Selling and marketing expense2,0004,0226,1121
Profit (loss) before interests and taxes (‘EBIT’)2805648571
Finance income (cost)(231)(464)(705)1
Income Tax Expense(7)(14)(22)1
Profit (loss) for the year43851301

 

Consolidated statement of financial position (EUR ’000)31 Mar 202230 Jun 202230 Sep 2022Type of adjustment
Assets:    
Non-current assets:    
Loans to customers88,428100,25996,9473
Current assets:    
Loans to customers(82,205)(93,140)(88,821)1, 3
Prepaid expenses and other current assets(1,362)(2,207)(3,163)1
Equity:    
Retained earnings4,6474,6894,7341
Liabilities:    
Non-current liabilities:    
Deferred tax liabilities2152222301

 

Consolidated statement of cash flows (EUR ’000)1 Jan 2022 - 31 Mar 20221 Jan 2022 - 30 Jun 20221 Jan 2022 - 30 Sep 2022Type of adjustment
Profit (loss) for the year43851301
Finance costs, net2314647051
Increase (+) / decrease (-) in trade payables and other liabilities(273)(550)(835)1
Deposits from customers66,26859,94732,3952
Net cash flows from (used in) operating activities66,26859,94732,395 
Deposits from customers(66,268)(59,947)(32,395)2
Net cash flows from (used in) financing activities(66,268)(59,947)(32,395) 

In connection to the aforementioned adjustments the Group has also restated all subsequently published interim results and balance sheets of the financial year 2022 as follows:

 

Consolidated Statement of Financial Position (EUR ’000)31 Mar 202230 Jun 202230 Sep 2022
ASSETS   
Non-current assets:   
Property, plant and equipment3,2403,0992,933
Right-of-use assets3,6833,4562,929
Intangible assets34,83234,59334,094
Deferred tax assets6,9116,5716,254
Loans to customers88,428100,25996,947
Other non-current financial assets6,62516,70616,652
Total non-current assets143,719164,684159,809
Current assets:   
Loans to customers383,205384,286395,915
Other current financial assets11,36915,08528,789
Derivative financial assets7002,0074,013
Current tax assets2,3472,0812,862
Prepaid expenses and other current assets7,0531612,614
Cash and cash equivalents213,123149,065152,220
Total current assets617,798552,686586,414
Total assets761,517717,370746,223
EQUITY AND LIABILITIES   
Equity:   
Share capital40,13440,13440,134
Treasury shares(142)(142)(142)
Retained earnings71,75271,66975,259
Perpetual bonds50,00050,00050,000
Unrestricted equity reserve14,70814,70814,708
Translation differences(3,944)(4,794)(5,132)
Other reserves2,6312,6312,630
Total equity175,139174,206177,457
Liabilities:   
Non-current liabilities:   
Long-term borrowings58,3042,7652,847
Deposits from customers91,23788,48677,634
Lease liabilities2,0261,5702,113
Deferred tax liabilities418417824
Total non-current liabilities151,98593,23883,418
Current liabilities:   
Short-term borrowings84,29197,64495,891
Deposits from customers326,886335,953374,358
Derivative financial liabilities2,623106337
Lease liabilities1,4617241,281
Current tax liabilities2,08121023
Trade payables3,5083,2542,205
Accruals and other current liabilities13,54312,03511,253
Total current liabilities434,393449,926485,348
Total liabilities586,378543,164568,766
Total equity and liabilities761,517717,370746,223

 

Consolidated Statement of Profit or Loss (EUR ’000)1 Jan 2022 - 31 Mar 20221 Jan 2022 - 30 Jun 20221 Jan 2022 - 30 Sep 2022
Interest revenue51,006  101,948  155,076  
Servicing fee revenue7631,620  2,497  
Total revenue51,769  103,569  157,573  
Operating expenses:   
Impairment loss on loans to customers(18,547)(37,754)(57,872)
Bank and lending costs(3,815)(6,854)(10,535)
Personnel expense(8,918)(17,942)(25,860)
Selling and marketing expense(3,528)(6,759)(9,755)
General and administrative expense(7,129)(13,549)(19,384)  
Depreciation and amortisation(4,073)(8,071)(12,640)
Operating profit5,75912,64021,528
Other income (expense)72  (47)151
Profit before interests and taxes ("EBIT")5,83112,59321,679
Finance income (costs)(3,364)(9,574)(13,784)
Profit before income taxes 2,4683,0197,894
Income tax expense(416)(888)(1,798)
Profit (loss) from continuing operations 2,0522,1306,097
Loss from discontinued operations---
Profit (loss) for the year 2,0522,1306,097
Earnings (loss) per share:   
Weighted average number of ordinary shares in issue21,578  21,57821,578
Earnings (loss) per share from continuing operations, EUR0.100.030.17
Earnings (loss) per share from discontinued operations, EUR---
Total earnings (loss) per share, EUR0.100.030.17

 

Consolidated Statement of Cash Flows (EUR ’000)1 Jan 2022 - 31 Mar 20221 Jan 2022 - 30 Jun 20221 Jan 2022 - 30 Sep 2022
CASH FLOWS FROM OPERATING ACTIVITIES   
Profit (loss) for the year2,0522,1306,096
Adjustments for:   
Depreciation and amortisation4,0628,06012,617
Finance costs, net3,3648,96813,074
Tax on income from operations4098741,776
Other adjustments(166)280223
Impairments on loans18,54738,10757,872
Working capital changes:   
Increase (-) / decrease (+) in current receivables(8)(2,865)(30,568)
Increase (+) / decrease (-) in trade payables and other liabilities(62)(624)(6,658)
Interest paid(2,953)(6,751)(9,337)
Interest received61188662
Income taxes paid(1,541)(2,966)(4,471)
Net cash flows from operating activities before movements in loan portfolio23,76445,40241,286
Movements in gross portfolio(41,609)(72,310)(83,413)
Net cash flows used in operating activities(17,845)(26,908)(42,127)
CASH FLOWS FROM INVESTING ACTIVITIES   
Purchase of tangible and intangible assets(2,380)(5,753)(9,057)
Purchase of investments and other assets900784784
Purchase of non-current financial assets-(10,000)(10,000)
Disposal of subsidiaries-(3,781)(5,584)
Net cash flows used in investing activities(1,480)(18,750)(23,857)
CASH FLOWS FROM FINANCING ACTIVITIES   
Repayment of short-term borrowings-(83,521)(85,221)
Perpetual bonds interests and issuance costs(729)(1,854)(2,403)
Repayment of finance lease liabilities(763)(1,120)(1,881)
Proceeds from long-term borrowings-39,40039,400
Proceeds from short-term borrowings-2,7652,770
Deposits from customers(66,268)(59,947)(32,395)
Net cash flows from (used in) financing activities(67,760)(104,277)(79,730)
Cash and cash equivalents, as at 1 January301,592301,592301,592
Exchange gains (losses) on cash and cash equivalents(1,383)(2,592)(3,658)
Net increase in cash and cash equivalents(87,085)(149,935)(145,714)
Cash and cash equivalents, as at end of reporting period213,124149,065152,220

 

The restatement of operating segments for each interim result of year 2022 are shown as follows:

Operating and reportable segments for 1 Jan 2022 - 31 Mar 2022

EUR ’000FerratumSweep-BankCapital-BoxCentralTotal
Gross interest revenue44,2043,4065,448-53,058
Transaction costs(1,720)(280)(53)-(2,052)
Interest revenue42,4853,1265,395-51,006
Servicing fee revenue75113--763
Total revenue43,2353,1395,395-51,769
Share in revenue, in %83.5%6.1%10.4%-100.0%
Operating expenses:     
Impairment loss on loans to customers(14,091)(2,077)(2,379)-(18,547)
% of revenue32.6%66.2%44.1%-35.8%
Bank and lending costs(3,288)(339)(188)-(3,815)
Personnel expense(4,904)(2,549)(1,465)-(8,918)
Selling and marketing expense(1,518)(750)(1,260)-(3,528)
General and administrative expense(3,941)(2,214)(975)-(7,129)
Depreciation and amortisation(3,452)(485)(136)-(4,073)
Operating profit (loss)12,041(5,275)(1,008)-5,759
Other income (expense), net14157-72
Profit (loss) before interests and taxes ("EBIT")12,055(5,274)(951)-5,831
EBIT margin, in %27.9%-168.0%-17.6%-11.3%
Allocated finance costs, net(2,463)(744)(640) (3,847)
Unallocated foreign exchange losses, net   483483
Profit before income taxes9,593(6,018)(1,591)4832,468
Profit before tax margin, in %22.2%-191.7%-29.5%-4.8%
Loans to customers290,90598,38682,342-471,633
Unallocated assets----291,245
Unallocated liabilities----586,163

Operating and reportable segments for 1 Jan 2022 - 30 Jun 2022

EUR ’000FerratumSweep-BankCapital-BoxCentralTotal
Gross interest revenue88,8926,75710,876-106,525
Transaction costs(3,458)(656)(462)-(4,577)
Interest revenue85,4346,10010,414-101,948
Servicing fee revenue1,59031--1,620
Total revenue87,0246,13110,414-103,569
Share in revenue, in %84.0%5.9%10.1%-100.0%
Operating expenses:     
Impairment loss on loans to customers(29,032)(4,216)(4,506)-(37,754)
% of revenue33.4%68.8%43.3%-36.5%
Bank and lending costs(5,710)(688)(456)-(6,854)
Personnel expense(9,969)(5,218)(2,754)-(17,942)
Selling and marketing expense(4,000)(1,115)(1,644)-(6,759)
General and administrative expense(7,629)(4,117)(1,803)-(13,549)
Depreciation and amortisation(6,333)(1,450)(289)-(8,071)
Operating profit (loss)24,351(10,673)(1,038)-12,640
Other income (expense), net(40)(3)(5)-(47)
Profit (loss) before interests and taxes ("EBIT")24,311(10,676)(1,043)-12,593
EBIT margin, in %27.9%-174.1%-10.0% 12.2%
Allocated finance costs, net(5,166)(1,767)(1,343)-(8,276)
Unallocated foreign exchange losses, net---(1,298)(1,298)
Profit before income taxes19,145(12,443)(2,386)(1,298)3,019
Profit before tax margin, in %22.0%-203.0%-22.9%-2.9%
Loans to customers291,334111,15482,058-484,546
Unallocated assets----23,507
Unallocated liabilities----543,312

Operating and reportable segments for 1 Jan 2022 - 30 Sep 2022

EUR ’000FerratumSweep-BankCapital-BoxCentralTotal
Gross interest revenue135,08711,25315,883-162,222
Transaction costs(5,256)(1,116)(775)-(7,147)
Interest revenue129,83110,13715,108-155,075
Servicing fee revenue2,44354- 2,498
Total revenue132,27410,19115,108-157,573
Share in revenue, in %83.9%6.5%9.6%-100.0%
Operating expenses:     
Impairment loss on loans to customers(44,030)(7,980)(5,862)-(57,872)
% of revenue33.3%78.3%38.8% 36.7%
Bank and lending costs(8,236)(1,062)(1,237)-(10,535)
Personnel expense(14,476)(7,183)(4,201)-(25,860)
Selling and marketing expense(5,963)(1,674)(2,118)-(9,755)
General and administrative expense(10,942)(5,541)(2,900)-(19,384)
Depreciation and amortisation(9,060)(3,105)(475)-(12,640)
Operating profit (loss)39,568(16,354)(1,685)-21,528
Other income (expense), net128914-151
Profit (loss) before interests and taxes ("EBIT")39,696(16,345)(1,671)-21,679
EBIT margin, in %30.0%-160.4%-11.1%-13.8%
Allocated finance costs, net(7,100)(2,601)(1,846)-(11,547)
Unallocated foreign exchange losses, net---(2,237)(2,237)
Profit before income taxes32,595(18,946)(3,517)(2,237)7,894
Profit before tax margin, in %24.6%-185.9%-23.3%-5.0%
Loans to customers290,395120,03482,434-492,863
Unallocated assets----256,609
Unallocated liabilities----568,536

 

About Multitude Group:

Multitude aims to become the most valued financial ecosystem by acting as a growth platform that creates success stories in FinTech. With profound know-how in technology, regulation, funding and cross-selling, Multitude offers a range of sustainable banking and financial services for FinTechs to grow and scale rapidly. Multitude and its three independent business units, SweepBank, Ferratum and CapitalBox, employ around 700 people in 19 countries, and they together generated EUR 212 million revenue in 2022. Multitude was founded in 2005 in Finland and is listed in the Prime Standard segment of the Frankfurt Stock Exchange under the symbol ‘FRU’. www.multitude.com



09.05.2023 CET/CEST Dissemination of a Corporate News, transmitted by EQS News - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Language:English
Company:Multitude SE
Ratamestarinkatu 11 A
00520 Helsinki
Finland
E-mail:ir@multitude.com
Internet:https://www.multitude.com/
ISIN:FI4000106299
WKN:A1W9NS
Listed:Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; Stockholm
EQS News ID:1626721

 
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1626721  09.05.2023 CET/CEST

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