AS “mogo” (herein and after “The Latvia Group”) income from car rent in 2020 almost doubled comparing to 2019, reaching EUR 6,2 million. Net profit of the Latvia Group amounted to EUR 5,6 million compared to EUR 4,9 million in 2019, demonstrating strong growth of 14%. Latvia Group`s car fleet increased to EUR 14,5 million from EUR 13,5 million in 2019.

“2020 was a successful year for the Latvia Group during which it achieved the highest annual net profit since its inception, that was supported by stable operations as well as performing portfolio sale. In June 2020, the Latvia Group concluded leasing portfolio sale with a nominal amount of EUR 3,8 million to a licensed local bank’s subsidiary, that provided sufficient liquidity to decrease the debt and thus further enhanced the capitalization of the Latvia Group reaching the total equity of EUR 14,3 million. On average the Latvia Group entered into 195 new long-term car rent agreements each month, exceeding 4000 active car rent customers at the end of 2020 (18% increase comparing to 2019). During 2020 Latvia Group's gross nonperforming loan portfolio in the amount of EUR 1,6 million was sold to third parties.

Covid-19 had an impact on car sales market – 26% drop in new car sales and 14% in used car sales was observed. Customers' requests for solutions to overcome short term financial difficulties have increased. Solutions as payment holidays, agreement extensions and rental payment discounts for customers were being offered. The Latvia Group has cancelled penalties for delayed payments to further support its customers.

The Latvia Group has successfully performed through first, second, and current Covid-19 waves, and it comfortably enters 2021 from both operational perspective as well as future funding availability perspective.

At the beginning of 2021, AS “mogo” issued bonds in the amount of EUR 30 million, thus, successfully completing the largest bond issue in recent years by a private company on Nasdaq Riga Stock Exchange,” says Krišjānis Znotiņš, Member of the Board of AS “mogo”.

Attachments: 

AS “mogo” Consolidated Annual Report for 2020 together with Independent Auditors’ Report

AS “mogo” Standalone Annual Report for 2020 together with Independent Auditors’ Report

Corporate Governance Report for 2020

About AS “mogo”

AS “mogo” is a part of the international Financial Technology group Mogo Finance. Mogo in Latvia offers leasing, leaseback, and car rental services in the most convenient way for customers - online, by phone and with more than 220 partners.

Mogo Finance Group operates in the global FinTech industry, where recognizing the niche underserved by traditional lenders, provides financial inclusion, and disruptively changes the used car and consumer financing industry across 14 countries. Founded in 2012 with its headquarters in Latvia, Mogo Finance Group operates in the Baltics and Europe, the Caucasus and Central Asia, and East Africa.

Read more: www.mogofinance.com

Neringa Plauskiene

Regional CFO

Phone: +371 66900904

Email: neringa.plauskiene@mogo-easterneurope.com