Analyst Comment
Multitude provides 8 MEUR in debt capital to an Estonian fintech company Hoovi
Multitude's Wholesale Banking unit has entered into a strategic partnership with the Estonian fintech company Hoovi. The company will provide Hoovi with 8 MEUR in debt capital through a structured bond issue. Our estimates expect significant growth in Wholesale Banking’s debt investments in the coming years and thus, the news doesn’t cause a need for immediate estimate revisions.
Hoovi is an Estonian fintech company specializing in embedded credit and hire purchase solutions for merchants and SMEs. Hoovi enables merchants to increase their sales and improve financing to customers by directly integrating financing options into business transactions.
Financing other fintech is deeply embedded in the strategy of Multitude’s Wholesale Banking business unit. Thus, a transaction like this didn’t come as a surprise. Multitude’s Wholesale Banking was established as a separate independent business unit at the beginning of 2024. Since then, the business unit has experienced significant growth while also being profitable (measured by earnings before taxes).
Multitude is a digital bank that offers lending and online banking services to consumers, small and medium-sized businesses, and other fintechs overlooked by traditional banks. The company was founded in 2005 in Finland and currently operates in 17 countries. The company operates with three business units: Consumer Banking (Ferratum), SME Banking (CapitalBox) and Wholesale Banking (Multitude Bank).
Read more on company pageKey Estimate Figures20.12.2024
| 2023 | 24e | 25e | |
|---|---|---|---|
| Operating income | 204.0 | 215.3 | 229.0 |
| growth-% | 4.6 % | 5.5 % | 6.4 % |
| EBIT (adj.) | 19.0 | 20.1 | 26.6 |
| EBIT-% (adj.) | 9.3 % | 9.3 % | 11.6 % |
| EPS (adj.) | 0.51 | 0.53 | 0.83 |
| Dividend | 0.19 | 0.20 | 0.27 |
| Dividend % | 4.3 % | 3.7 % | 4.8 % |
| P/E (adj.) | 8.7 | 10.3 | 6.6 |
| EV/EBITDA | neg. | neg. | 1.2 |
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