Annual Report and Accounts 2007 - Chairman's Statement
Mobile Credit Baltic Plc
2
CHAIRMAN'S STATEMENT
Results for the year ended 31 December 2007
Introduction
Mobile Credit Baltic Plc (AIM: MCRB.L) (the "Company" or "MCB"), the consumer finance provider
serving the growing markets of Estonia, Latvia, Lithuania and Finland, presents its financial
results for the financial year ended 31 December 2007, its first full year of operations.
Operating and financial highlights
• Revenue increased to €3.95m, in line with expectations
• Pro-forma net loss of €2.62m, in line with expectations
• €24m of loans made with a high percentage of returning customers
• Continued expansion in Estonia and Finland
• Successful launch of Lithuanian and Latvian operations
• Distribution agreement with Latvian Post to further expand Credit24 reach in Latvia
• Significant improvements in repayment and collection performance, underpinned by a
growing proprietary customer database
• Expansion of both short-term product range and launch of larger longer-term loans
• Significant further growth expected, and on target for profitability during 2008
Business overview
MCB is a consumer finance company providing fast, convenient, easily understood and flexible
credit solutions under the Credit24 brand name to retail customers in Finland and the rapidly
growing Baltic countries of Estonia, Latvia and Lithuania (the Fenno-Baltic Region). The
Company currently provides unsecured loans of between €100 and €2,000 to qualifying
customers, with maturities ranging from one month to three years. Loan products are designed to
suit customers' needs with simple and transparent terms and flexible repayment schedules.
Loans are offered online through the Company's Credit24-branded websites in Estonia, Finland,
Lithuania and Latvia, as well as through certain distribution partners.
The markets for unsecured consumer credit in the countries where the Company operates are
relatively under-developed and experiencing rapid growth. Since launching the business in late
2006, the Company has become one of the leading participants in the non-standard lending
market. This segment is typically under-served by larger financial institutions, and attracts
customers who value the flexibility and simplicity of the products offered.
Operational update
2007 was the Company's first full year of operations following the launch of the business in
Estonia and Finland in late 2006. During 2007 the Company grew its lending operations in
Estonia and Finland significantly, launched its businesses in Lithuania and Latvia in January and
September, respectively, expanded its product range in all markets and strengthened the
organisation to support current and expected growth.
