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

  • Total revenue1 grew by 6% to $59.8 million for 2019.
  • Core revenue2 increased by 33% over 2018 to $47.2 million.
  • Adjusted EBITDA increased by 73% to $7.2 million, from $4.2 million in 2018.
  • Net loss for 2019 was $10.8 million, a decrease of 51% compared to 2018, while net loss per share was $0.42 a decrease of 57% from a net loss per share of $0.97 in 2018.

Fourth-Quarter and Full-Year Business Highlights

  • Active members increased 29% year over year to 976,000 at year end. In February 2020, the Company surpassed one million members.
  • Launched new partner lending platform to leverage Mogo’s digital platform and technology driven adjudication process to continue providing Canadians with quick and convenient access to personal loans, while de-risking its balance sheet.
  • Introduced a complete redesign of the Mogo app customer interface which included the introduction of four habits of financial health that tie our portfolio of 6 products together. These habits help our members: 1) monitor and protect their credit score; 2) control their spending; 3) learn how to save and invest wisely; and 4) borrow responsibly.
  • Completed development work for the launch of MogoSpend, the Company’s new digital spending account with Mogo Visa* Platinum Prepaid Card. This is the first product of its kind designed to help Canadians get better control over their spending, while earning best-in-class cashback and having a positive impact on the environment through the carbon-offset program.
  • In February 2020, sold the majority of our MogoLiquid loan portfolio to goeasy for gross consideration of $31.5 million. Mogo is also eligible for an additional performance-based payment of up to $1.5 million payable upon achieving certain agreed-upon annual origination amounts under the lending partnership with goeasy described below.
  • In conjunction with the sale of the MogoLiquid loan portfolio, we repaid and extinguished the Credit Facility – Liquid, which held an outstanding balance of $29.3 million at year end.
  • In February 2020, signed a three-year lending partnership with goeasy Ltd. following a successful pilot program that started in October 2019. The partnership enables Mogo to fully monetize our lending platform and drive new recurring fee-based revenue with no capital investment or risk of these loans. 
  • In February 2020, amended and extended the marketing collaboration agreement with Postmedia Network Inc. which will provide over $15.0 million of annual media value until January 2023.

1 During 2019, the Company changed its presentation of loan protection revenue and associated costs. Historically, the Company presented costs associated with loan protection as part of transaction costs. Under the new presentation, the Company is presenting revenue net of expenses. This results in a decrease in revenue and a corresponding decrease in transaction costs by $4,628 in 2019, $4,727 in 2018, and $3,133 in 2017. The changes to the presentation of loan protection revenue and associated costs did not have an impact on the Company’s gross profit. There is no impact on net loss and comprehensive loss and the consolidated statement of financial position, consolidated statement of changes in equity and the consolidated statement of cash flows remain unchanged as a result of this recast.  A reconciliation of revenue under the new presentation to our previously reported amounts is included in Note 4 of our annual financial statements.

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