NEO Finance (NEOF1) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached €1.54M, up 40% year-over-year, with H1 2024 revenue at €3.02M, up 43% from H1 2023.

• Income from P2P lending rose 33% to €950K in Q2; e-money operations up 28% to €415K; investment segment up 216% to €170K.

• EBITDA for Q2 2024 was €168K, down 16% year-over-year due to a 40% rise in operating and administrative expenses.

• Profit before tax in Q2 2024 was €41K, a 59% decrease from Q2 2023; H1 2024 profit before tax was €169K, down 1% year-over-year.

• New dividend policy approved, allocating at least 10% of prior year net profit to dividends, with first payment expected no earlier than 2025.

Financial highlights

• Q2 2024 cost of sales increased 59% to €849K; operating costs rose 40% to €645K.

• Gross profit in Q2 2024 was €687K, up 22% year-over-year.

• H1 2024 EBITDA grew 13% to €415K; EBITDA margin for Q2 2024 was 11% versus 18% in Q2 2023.

• Consumer loan portfolio at end of Q2 2024 was €75.4M, up 21% year-over-year; average interest rate increased to 14.62%.

• Intermediation fee receivable for future periods reached €11.61M at H1 2024, up 19.6% year-over-year.

Outlook and guidance

• Management expects business activities and efficiency to recover in the next quarter as the new loan management team acclimates.

• The new dividend policy is expected to boost investor confidence and strengthen market position.