P2P lending company TrustBuddy just announced its Q4 2013 results and issued an impressive guidance for 2014. For the fifth consecutive year, the TrustBuddy P2P Lending platform grew by more than 100 % on a YoY basis, and the company says it sees no indication of the future expansion slowing down.
2013 revenues were SEK 80.9m up 111 % YoY driven by a 103 % increase in lending volumes to reach SEK 528m. EBITDA declined slightly to SEK -2.5m (2012: SEK -1.2m) due to increased system investment and expansion of our European presence.
Operationally 2013 was a year of great success and significant progress: with strong revenue growth, Pan European expansion, investment in a new and highly effective online P2P-platform and systems, and the arrival of institutional capital. Adding to this, also the success of introducing SEK 110m in institutional loan capital on the platform in December 2013 that will become a key driver of loan volume increase in 2014 and beyond.
The fourth quarter of 2013 was challenged by the high demand from borrowers not being matched by adequate access to capital for lending. This yielded a negative impact on the performance during the period. This is now addressed by the institutional capital injection mentioned above which arrived on the 27th December 2013. The benefit from this capital will be apparent in Q1 2014.
The main positive, in our opinion, was the guidance for 2014: TrustBuddy expect 2014 to be the sixth consecutive year of strong growth for the Company. This is already evident from the recently reported growth in loan volumes in January 2014; which came in 25% ahead of the previous month.
TrustBuddy expect our growth to benefit from the investments made into the new and highly efficient P2P-platform and systems in 2013, which will enable roll-outs of improvements in convenience for our users, further European penetration and facilitate ongoing and future product development.
TrustBuddy anticipate that significant institutional capital will be deployed on the platform in the 2nd Quarter of 2014, which will drive material volume growth.
Guidance: TrustBuddy expect full year 2014 lending volume to reach the amount of SEK 1,5 Billion. The lending volume is expected to increase exponentially through the year with the largest part during 2H 2014.