Unaudited interim financial statements for Q3, 2023
On operating results
At the end of the third quarter of 2023, Capitalia reported a turnover of EUR 1.03 million and losses of EUR 134 thousand. Revenue continued growing at a solid 10% pace, however, losses increased in this quarter due to investments in the transition to the licensed platform operations, an increase in loan impairment provisions, and annual employee bonus payouts. However, we see a strong resumption of the loan demand, as well as various individual positive developments as a result of which we expect and are on track to obtain profitability for the full year financials.
On key events
In the third quarter of 2023, we managed to issue a funding amount of EUR 5.3 million (EUR 3.5 million in the third quarter of 2022). Among the financed businesses during this period were, for example, such companies as EnerGrid (solar energy), Storent (construction equipment rental), and Lāčplēša Grauds (agriculture).
In alternative fund management, we have made 2 new investments from our cost-efficient Baltic bond fund
and acquired bonds of Atsinaujinancios Energetikos Investicijos (a Lithuanian renewable energy investments company) and International Personal Finance - a UK-based finance company. Our venture capital fund has completed a new investment in an Estonian freelancer support platform Xolo.
On plans for the next quarter
The last quarter of this year started with strong business financing activity and we expect it to continue this way. We are implementing various changes on our platform this quarter and we expect to receive the European Crowdfunding Service Provider license from the Bank of Latvia. In addition, our Baltic bond fund is gaining traction with investors and we expect to make a number of new investments in the last quarter. We also expect to complete internal reorganization as a result of which the Capitalia SE and Capitalia Fund Management SIA will become daughter companies of the Capitalia Investment Holding AS. The reorganization has been initiated due to the licensing requirements of the crowdfunding platform operations.
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