georgi
New Member
Posts: 3
Likes: 1
|
Post by georgi on Jul 18, 2020 7:47:59 GMT
Hey all! Mintos just released their consolidated annual report for the year 2019 a few days ago (on 14.07.2020). It looks like they made a loss of almost €1M in 2019 and lost €274K in 2018 (even though 2018 was reported as marginally profitable before). I was wondering what's everyone's thoughts on this. Personally, I don't see it as a huge risk, because (if I interpret the report correctly) the loss is offset by the investments made in the company. Even so I would feel more comfortable if I know the platform is making money. Needless to say I don't like the prospect of collecting all those loans myself if Mintos goes belly up. Here are all financial reports for reference: www.mintos.com/en/about-us/investor-relations/ |
|
cwah
Member of DD Central
Posts: 949 
Likes: 468
|
Post by cwah on Jul 19, 2020 2:33:52 GMT
The loss seems to be due to aggressive expansion. They increased salary cost from €2M to €5.3M. Operating cost doubled the same way.
At the time it made sense because their loan book was increasing exponentionally (so was the profit)
But since march it looks like the book is shrinking and load of LO are having trouble to pay.
So I dunno how bad it is because they expanded so much. Hopefully they can just scale back and reduce cost?
The risk is once LO goes belly up, a lot of admin/recovery cost will be involved which does not generate profit and takes years to solve.
That's what sinked a lot of our P2P companies such as Lendy or Fundingsecure....
|
|
fric
Member of DD Central
Posts: 200
Likes: 80
|
Post by fric on Jul 21, 2020 9:25:09 GMT
Losses are fine during expansion, and 2019 was good in that regard, so that -1m is not terrible per se. What people should be worried about is 2020. The loans funded since February has been abysmal compared to previous months and it doesn't seem its going to get better anytime soon... Mintos up until February were adding 200-300m of cumulative loans each month (I know, I know its skewed by buybacks and relisting), now its barely 100m and even worse is the total outstanding loan amount which has decreased by ~25% since February. It means that 2020 will not a be year of growth but could very well end up a year of shrinking business. There will be layoffs and or the 2020 losses for Mintos will be massive.
|
|
|
|
Post by geldregiertdiewelt on Jul 31, 2020 12:45:08 GMT
|
|
|
|
Post by geldregiertdiewelt on Aug 2, 2020 13:38:15 GMT
Losses are fine during expansion, and 2019 was good in that regard, so that -1m is not terrible per se. What people should be worried about is 2020. The loans funded since February has been abysmal compared to previous months and it doesn't seem its going to get better anytime soon... Mintos up until February were adding 200-300m of cumulative loans each month (I know, I know its skewed by buybacks and relisting), now its barely 100m and even worse is the total outstanding loan amount which has decreased by ~25% since February. It means that 2020 will not a be year of growth but could very well end up a year of shrinking business. There will be layoffs and or the 2020 losses for Mintos will be massive. see also here: www.p2pfinancenews.co.uk/2020/07/31/mintos-hails-record-breaking-year-after-funding-e3bn-of-loans-in-2019/
|
|
