Qliro AB: Interim report January-June 2021

2021-07-20 07:30:00

Positive volume development

Important events during the second quarter
• 17 percent increase in pay-after-delivery volumes, 32 percent growth excluding former Qliro Group merchants
• Collaboration with Biltema on its Pay & Collect service in the Nordic region started in late May
• Partnership established with the cosmetics company Blush regarding e-commerce in Norway and the Nordic offering was strengthened through the integration of the payment methods Vipps in Norway and Mobile Pay in Denmark
• Agreements signed with among others Twistshake on Nordic e-commerce payment solutions

April-June 2021 (April–June 2020)
•Total operating income increased by 15 percent to SEK 99.1 million (86.4). Total operating income adjusted for items affecting comparability increased by 5 percent to SEK 99.1 million (94.8)
• Total operating expenses decreased by 8 percent to SEK 91.3 million (98.8). Adjusted for items affecting comparability, expenses increased by 10 percent to SEK 91.3 million (83.2)
• Credit losses decreased to a net of SEK 22.7 million (23.4)
• Operating profit improved to SEK -14.9 million (-35.8). Operating profit adjusted for items affecting comparability decreased to SEK -14.9 million (-11.8)
• Net profit for the period was SEK -12.2 million (-28.2) and earnings per share amounted to SEK -0.68 (-1.57). Net profit adjusted for items affecting comparability was SEK -12.2 million (-9.3).

January-June 2021 (January–June 2020)
• Total operating income increased by 8 percent to SEK 196.9 million (182.8). Total operating income adjusted for items affecting comparability increased by 3 percent to SEK 196.9 million (191.2)
• Total operating expenses decreased by 4 percent to SEK 177.6 million (184.3). Adjusted for items affecting comparability, expenses increased by 5 percent to SEK 177.6 million (168.7)
• Credit losses decreased to a net of SEK 39.4 million (53.0)
• Operating profit improved to SEK -20.1 million (-54.4). Operating profit adjusted for items affecting comparability improved to SEK -20.1 million (-30.4)
• Net profit for the period was SEK -16.7 million (-42.8) and earnings per share amounted to SEK -0.93 (-2.38). Net profit for the period adjusted for items affecting comparability was SEK -16.7 million (-24.0).

Comment from Carolina Brandtman, CEO Qliro
Volumes with Qliro’s payment methods continued to grow: in the second quarter by 17 percent, and excluding the
former Qliro Group merchants, growth was 32 percent. The growth is driven by underlying growth by existing
merchants as well as by new merchants that have chosen to use our services. Of the nominal growth, volumes from
new merchants account for about 2/3 and 1/3 comes from earlier partners.

During the quarter we went live with Biltema’s Nordic Pay & Collect service and with the Norwegian cosmetics company Blush. Biltema signed an agreement in late May and already in June it was one of our five largest merchant partnerships. We also continued to sign agreements with new merchants such as Twistshake and Teknikproffset in the quarter.
We continue to see good demand from large e-merchants. Recently, more small and medium-sized e-merchants have also shown interest in partnering with us. The merchants want a partner with sophisticated digital services that can also offer a close partnership. We have therefore begun to develop an offering specifically for this category of merchants and begun discussions with several parties on potential collaborations to meet the demand.

Net profit for the period improved to SEK -12.2 million (-28.2), but adjusted for items affecting comparability
income decreased slightly. Income excluding items affecting comparability increased by 5 percent, which is an improvement compared with the previous quarter (+1 percent), but lower than our long-term ambition. Income in the Payment Solutions
segment increased by 2 percent (-2 percent previous quarter), while lending grew by 12 percent and the volume
with our payment methods by 17 percent. The margin is lower than the previous year, mainly due to lower reminder
rates resulting from the improved customer applications and services we offer. In the short term, this adversely affects
our income, but we are convinced that the increased customer benefit over time will create opportunities for new merchant alliances, higher customer satisfaction and more returning customers.

In our other segment, Digital Banking Services, the positive trend in income is continuing (+17 percent), whichi s largely in line with lending growth of 20 percent. We are pleased that in June new lending was the highest since the outbreak of the pandemic in March 2020. The risk-adjusted margin has gradually improved in recent years, and did so again in the last quarter. Our credit quality is developing positively. The continuous efforts to develop our credit engines and our credit check models based on more data and advanced modeling are producing results. With more and more customers using our payment services on a regular basis, and more using the services in the mobile app, we have made it easier for
consumers to pay on time, which also has a positive effect.

Our checkout and digital post-purchase experience are market-leading and we will continue to grow our network of e-merchants in the Nordic countries. In the second half of the year we look forward to signing up more successful Nordic e-merchants such as Stronger, Teknikproffset, Twistshake, and Parfymonline.”

Presentation
Analysts, investors and media are invited to a webcasted conference call/audiocast at 10 am when CEO Carolina Brandtman and CFO Robert Stambro will present the result. After the presentation there will be a Q&A session.
Phone numbers:
Sweden +46 8 566 426 92
UK +44 333 300 92 63
USA +1 646 722 49 02
Link to the webcast: https://tv.streamfabriken.com/qliro-q2-2021

The presentation material and the webcast will also be available at https://www.qliro.com/en/investor-relations/presentations

MFN