Qliro (QLIRO) Q2 2024 earnings summary

Executive summary

• Intensified focus on payment solutions, divesting digital banking assets to streamline operations and accelerate growth, with over 100% growth in connected merchants year-over-year.

• Achieved break-even in payments segment in Q1 and Q2 2024, with robust merchant base growth and new product launches, including a composable payments strategy and expansion into Norway.

• Total operating income rose 4% year-over-year to SEK 117.1 million in Q2 2024, with Payment Solutions income up 8% to SEK 101.2 million.

• Announced divestment of the personal loan portfolio for SEK 714 million, to be completed in August 2024, enabling focus on Payment Solutions.

• Signed over 100 new merchant agreements in H1 2024, more than doubling the number of connected merchants to 139.

Financial highlights

• Achieved sixth consecutive quarter of profitability, with SEK 5 million profit in Q2 2024; operating profit rose to SEK 5.0 million from SEK 2.8 million in Q2 2023.

• H1 2024 total operating income increased 6% year-over-year to SEK 233.0 million; Payment Solutions income up 10% to SEK 200.5 million.

• Operating expenses remained flat at SEK 82.4 million in Q2 and SEK 161.9 million in H1.

• Net credit losses rose to SEK -29.7 million in Q2, reflecting a changed customer and product mix, but grew slower than income.

• Take rate remained stable at 3.3% year-over-year.

Outlook and guidance

• Accelerated growth expected in H2 2024, driven by onboarding new merchants, SME and enterprise sales, and expansion into Norway.

• Q3 expected to be transitional due to digital banking migration and business transformation.

• Higher growth rate anticipated for 2025, but no specific guidance provided.

• Winding down Digital Banking Services post-loan portfolio divestment; savings products will remain.