Robocash Group profits hit by Ukraine invasion
Investment platform Robocash Group’s profits took a hit in the first quarter of the year, impacted by Russia’s invasion of Ukraine, despite registering higher revenue.
Net profit for the Singapore-headquartered company was down 80.3 per cent from the first quarter of 2021 to $1.5m, due to tighter scoring policies in Russia, which made reserves increase, it said in a statement.
Meanwhile, revenue for the period was up 61.7 per cent to $94.6m and positive cashflow was 20 per cent above an initial plan. Over the period, the group issued $266m worth of loans, up 81.4 per cent year-on-year.
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The group said it was very cautious in its forecast for the first quarter due to possible tightening of regulations in one of its main markets, Kazakhstan and Russia. Robocash entered the Russian loans market in 2018 after acquiring MFC Zaymer.
Previously, founder Sergey Sedov assured investors that the Ukraine conflict posed a low risk as the platform and its loan originators did not have any relationships with any Russian banks.
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Russian business units comprise 60 per cent of net income for Robocash.
In an online chat held in February, Sedov said the group was on track to reach its goal of $45m net profit in 2022. However, he also mentioned that the company would suspend its expansion and focus on existing businesses.
Robocash Group offers alternative lending and marketplace funding through a number of subsidiaries, including Croatia-based automated investment platform Robo.cash, which launched in February 2017.
The group employs more than 2,000 people and has issued $1.7bn worth of loans to 18.7 million clients.
According to its first quarter results, the group had 60,000 repeated loans and 20,000 in new borrowers in the Philippines. In Kazakhstan, the group said the sales and collection plans were both overfulfilled over the period, by 119 per cent and 112 per cent, respectively.
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