yacop
Posts: 68 
Likes: 42
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Post by yacop on Aug 5, 2016 15:18:38 GMT
www.bondora.com/blog/bondora-annual-report-2015/Loss 2015 : - 1 852 783 Euro Cashflow from operations 2015: -1 650 756 Euro Cash and equivalents at the end of the period: 2 251 869 Euro No wonder that they offloaded expenses on investors. One more year similar to 2015 and they need another capital injection.
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JamesFrance
Member of DD Central
Port Grimaud 1974
Posts: 1,317
Likes: 893
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Post by JamesFrance on Aug 7, 2016 12:43:43 GMT
What can we say?
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Post by rahafoorum on Aug 9, 2016 8:22:55 GMT
From income side:- origination and maintenance fee should be up from higher originations volume (total compared to previous year, if it continues at €2 per month) - origination fee should be higher in 2016 for it was increased in the middle of 2015 at some point - maintenance fee could also be higher in 2016 for it was increased in the middle of 2016 at some point (although it was previously reduced in 2015 at some point) Origination fee: 2015 March - 3.9% - 4.9% 2016 April until now - 5.95% Maintenance fee: 2015 March - 3.5% - 5.5% 2016 April - 2.6% 2016 August - 4% (Meanwhile interest rates for investors have been reduced for lowest risk segments by roughly 1/3 and less for others since December 2015, with the possible exception of non-EST riskier loans having a bit higher rates now.) From expenses side:- labour costs are up, considering a mention of 55 employees in some recent article and that many employees weren't there for the full 2015 year - marketing costs are unknown, but probably not much lower (if not higher), considering that they've been marketing more to investors this year and there was roughly doubling of demand in February - April this year (with relatively small increase in funding) when they probably experimented on some marketing channels or something Cash flow:- Since March this year, Bondora is also keeping a portion of each loan. The exact amount or proportion kept of each loan is kept in secrecy, but considering the average 4 year loan period on the platform, it will quite certainly put some restraints on free cash available for other expenses. Of course, if they only keep €5 of each loan, then that'd be roughly €4-5k per month (only €60k per year) with some of it coming back with repayments. Although it's difficult to make any accurate forecasts on such vague data, my bet would be that unless they manage to increase funding considerably, we won't see a profitable year. It will probably still be a smaller loss than 2015 (unless they've wasted a lot on marketing and labour of course, which is not an unlikely scenario). In short, there's definitely room left to have at least similar 2016 in there 
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Post by kissmyjazz on Aug 10, 2016 2:11:07 GMT
6% origination fee is very high for quality borrowers. If Bondora wants to attract more quality borrowers it has to use lower origination fees for prime market segment.
I also think that marketing expenses are disproportionately high in comparison to the achieved growth of the company, which is quite meager. When I receive another marketing email from Bondora, in many cases I think "darn, they have wasted the money again". There is no need, for example, to task your marketing team with writing the weekly "industry updates". I think it adds nothing to Bondora's bottom line.
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Post by buttchopf23 on Aug 10, 2016 6:14:44 GMT
Shouldn't any Company (let tesla aside) be profitable after some years of existence? Other companies would go out of Business with such figures
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Post by rahafoorum on Aug 10, 2016 7:59:52 GMT
6% origination fee is very high for quality borrowers. If Bondora wants to attract more quality borrowers it has to use lower origination fees for prime market segment. I also think that marketing expenses are disproportionately high in comparison to the achieved growth of the company, which is quite meager. When I receive another marketing email from Bondora, in many cases I think "darn, they have wasted the money again". There is no need, for example, to task your marketing team with writing the weekly "industry updates". I think it adds nothing to Bondora's bottom line. 4% annual management fee is also quite crispy. Without running any specific calculations, I'd assume that the APR for those 8% AA loans is above 20% easily, making it not very competitive with banks. The application process might be easier perhaps, although applying for a credit card was pretty fast and easy, interest rate was lower than that 20% APR, it's revolving credit, card is valid for several years and it has 30 days interest free period. The amount is lower of course than the €10k, but not significantly from the average loan of €2400.
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