Robocash Group has kept its strong financial state and is ready for growth

Within the first 4 months of 2020, Robocash Group issued 1.1 million loans for the amount of USD 95 million. Despite the fact that we have reduced disbursal volumes to ensure the stability of the group, we have kept the positive profit of USD 2.35 million and maintained the retained earnings at the level of USD 36.4 million.

To adapt to the challenging conditions, the group has taken a number of measures. Thus, within the two previous months, we have reduced fixed costs by 27%, and variable costs - by 40%. Until August, we expect to fully restore disbursal volumes bringing them to the level of February-March 2020, which became the highest in the group's history. We do not plan to apply further measures to reduce fixed costs this year. At the same time, variable costs such as marketing, scoring, payment services fees will grow as our issuance volumes  increase. 

As a result of tightened scoring procedures, we have decreased the approval rate in most countries of our footprint. Thus, in Spain it reduced from 46.1% in March to 38.1% in April. In Kazakhstan where we have focused on the most reliable regular clients in the online segment , it went down from 42.7% to 11.8%, and the average approved amount has decreased by 8%. In Russia, accurate scoring adjustments, including reduction of approved amounts by 16%, have allowed the company to maintain the approval rate at the pre-crisis level and keep growing its customer base.

Besides, we have observed an increased number of repeated customers. Across the group, their share grew from 75% to 80%. The most demonstrative example in this regard is Spain where the number of repeated clients has increased from 59% to 71%. 

Looking ahead, we have defined several scenarios of the group performance under different conditions. The forecasts have considered the cancellation of quarantine measures in June and further increase in the monthly disbursal from July to December 2020 at the rates indicated in the table below. As the figures show, even in the worst-case scenario, the group will reach USD 10.3 million in the net profit this year.

The strong financial position of Robocash Group, as well as timely adopted measures have enabled us to maintain stability of our business and protect our investors from market risks without resorting to emergency steps like cancelling the buyback guarantee, delaying payments or introducing any additional fees. Moreover, we have already noticed a positive trend concerning the number of new investors and growing funding volumes on the platform and are confident that the situation will keep getting better.

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