Mogo Announces Fourth Quarter & Full-Year 2019 Financial Results & Provides Update Related to COVID-19

Mogo surpasses 1 million members
Full-year Core Revenue increases 33% to $47.2 million
Full-Year Adjusted EBITDA up 73% to $7.2 million
Company taking immediate cost reduction initiatives to accelerate path
to positive cash flow

Mogo reports in Canadian dollars and in accordance with IFRS

VANCOUVER, March 27, 2020 /CNW/ – Mogo Inc.[1] (TSX:MOGO[2]) (NASDAQ:MOGO) (“Mogo” or the “Company”), one of Canada’s leading financial technology companies, today announced its financial and operational results for the fourth quarter and full-year ended December 31, 2019. The Company also commented on the impact of the COVID-19 pandemic on its business and operations and management’s plans to address the current economic uncertainty.  

“Now more than ever, financial stress is a huge issue for Canadians, and in 2019 we made progress improving our technology platform, products and user experience to help our members improve their financial health,” said David Feller, Mogo’s Founder and CEO. “Our focus during these challenging times will be on leveraging our digital products and solutions to help minimize the impact to our members’ financial lives, especially those who have been most affected. We believe that our products, including our new MogoSpend, will be instrumental in helping members manage their financial health during this time.”

Greg Feller, President and CFO, added: “In 2019, we continued to fundamentally transition our business toward a capital-light model versus on balance sheet lending. We move forward with a stronger balance sheet following the recent $31.5 million sale of our MogoLiquid portfolio, which provided additional cash while significantly reducing our leverage and credit risk exposure. These steps, along with several immediate cost reduction initiatives we are implementing, will better position the company to manage through the current challenging environment.” 

Commentary on COVID-19 & 2020 Outlook

With its 2019 financial results, management also provided an update on the impact of the COVID-19 situation on its business and operations. Mogo operates a fully digital platform; its services and products are all accessed through its app or online, with no physical branches or consumer-facing offices. As a result, the Company has not experienced any material business interruption to date. While the degree of severity and length of an economic downturn is difficult to predict, Mogo believes that it is well positioned to navigate through this period. 

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