SaveLend Group (YIELD) Q2 2024 earnings summary

Executive summary

• Strategic shift toward larger corporate and B2B loans, with improved credit quality and efficiency measures, including staff reductions while maintaining business flows.

• Net revenue for Q2 2024 increased 3% year-over-year to MSEK 41.6; EBITDA rose 49% to MSEK 2.1.

• Launch of Savelend Fast in April and SaveLend Fixed product attracted new customers and capital.

• Strategic review of Billecta underway, with potential divestment considered and interest from multiple parties.

• Directed share issue raised SEK 8.8 million to support transition and B2B lending expansion.

Outlook and guidance

• Efficiency initiatives and stable revenue expected in Q3 and Q4, with further improvements anticipated in H2 2024.

• No specific guidance on timing for positive EBIT or net result; further clarity expected after budget work.

• 2027 financial targets may be revised depending on market changes and Billecta review outcome.

• Management remains committed to achieving positive cash flow and sustainable profitability.

• Focus shifting to B2B lending to offset potential regulatory impacts on consumer credit.

Segment performance

• Lendify loan book declining monthly; 70% of Lendify capital reactivated in Savelend products.

• Savelend Fast launch brought in new customer groups and capital; marketing to increase in autumn.

• Savings platform Q2 net revenue: MSEK 29.4; gross margin improved to 95%.

• Billing platform Q2 net revenue: MSEK 12.2, up 21% year-over-year; gross margin stable at 82%.

• Net revenue retention for Billecta: 109%; churn remains below 1%.