TALLINN,
Estonia, June 4, 2024 /PRNewswire/ -- ESTO
Holdings OU, a leading Estonian payment processor and
consumer credit provider, today reported the financial statements
for the first quarter of 2024 with record-breaking net profit and
revenues, significantly boosting profitability and scale. Net
profit increased by 53% YoY, Revenue increased by 33% YoY with
outstanding annualized ROE on a level of 52%
Key Highlights
- Net Profit boosted to a record-high EUR 1.14mln,
increasing by 53% YoY in the first quarter of 2024 compared to
EUR 0.74mln in the same period of
2023.
- The Cost-to-Income ratio improved by over 20% compared to the
fourth quarter of 2023, reflecting the efficiency of the chosen
focus on enhancing ESTO's profitability.
- Impressive increase in quarterly revenue with a new record
of EUR 7.1mln in the first quarter of 2024, a 33% improvement
compared to the same period of the previous year.
- More than 250 new merchants have been onboarded during the
first quarter of 2024, including prominent brands such as Bauhof,
Ballzy, Coral Travel, Gitana, and Lonas, further strengthening
our market presence and partnership network.
- Strong financial position with constantly improving equity
ratio reached 22% and over EUR 19mln in new capital attracted
in 2024.
The full third-quarter financial statements release has been
made available on the company's Investor Relations webpage.
Mikk Metsa, Founder and CEO of
ESTO, commented:
"I am very happy that the strategy we
chose at the end of last year to increase effectiveness and
profitability within the group is working exceptionally well and
has already yielded impressive results. We broke all our previous
revenue and profitability records, and we foresee this positive
trend continuing into the next quarters. In the last month of the
quarter, we were also able to generate a new monthly net profit
record of EUR 0.55 million.
Additionally, we were successful in the capital markets, raising
new capital to fuel our growth. It is also very encouraging to see
that despite our focus on increasing profitability and
effectiveness, we continued to grow at a fast pace, adding hundreds
of new merchant partners and tens of thousands of new users during
the quarter. Our investors and shareholders shall be impressed by
outstanding achievement in the company's profitability with
Return-on-Equity (ROE) on the remarkably high level of 52%
annualized, well above benchmarks in the industry."
During the first quarter of 2024, the company has made several
advancements toward solidifying market positioning and its
financial strength. Gross Merchandise Volume (GMV) in Latvia and Lithuania, prominent markets for ESTO, boosted
by 46% to EUR 10 million, compared
with EUR 6.8 million in 1Q'23. The
quality of credit portfolio and originations has improved,
resulting in the highest-ever portfolio yield (portfolio revenue
divided on average loan portfolio) at a level of 3.26% per month,
compared with 3.10% at the end of 2023.
"This quarter, ESTO Risk Management function focused primarily
on strengthening the quality of our originations and credit
portfolio – our goal was to ensure stable, profitable growth while
maintaining the same high quality of customers. Our main key
performance indicators do not correlate with some negative
macroeconomic indicators in the market, demonstrating the stability
of our clientele and ESTO's ability to maintain the desired risk
appetite," said Dmitrij Mochov, Head of Risk at ESTO.
Recently, the company introduced "ESTO Deals", a new product
designed to boost businesses in our community of more than 550,000
customers. Featuring brands on the "ESTO Deals" platform, ESTO aims
to increase sales volumes, revenue, average basket size, and
conversion rates – transforming marketing strategies, driving
significant growth for our partners, and increasing monetization
for ESTO.
About ESTO:
ESTO is a dynamic, forward-thinking company that aims to
revolutionize the shopping experience by simplifying the complex
shopping ecosystem. Leveraging its multi-year expertise and
position as Estonia's leading
non-bank consumer credit institute, ESTO is positioned to reshape
the e-commerce landscape in the Baltics and beyond. With a strong
emphasis on technology and customer loyalty, ESTO aims to provide a
seamless, tailored, and omnichannel shopping experience for both
consumers and retailers.
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