Mogo Finance Technology Inc. has recently released its financial and operational results for the quarter ending March 31, 2017.
“The first quarter was a pivotal period for the company as we launched two new fee-based products – our MogoMortgage and Mogo Spending Account,” Mogo founder and CEO David Feller said.
“The initial response to our mortgage product launch has been very encouraging. We generated a substantial volume of new applications and funded 13 mortgages in the period,” Feller added. “Importantly, we believe this showcases the power of our platform and our ability to launch additional financial products that not only help our members gain greater control of their financial health, but give us new ways to drive revenue from our significant member base.”
“As we have seen happen in the U.S. market, the ongoing consumer shift to a more convenient digital mortgage experience will change the traditional broker model. We believe that our unique digital platform and value proposition positions us as a leader as this shift happens in Canada,” the executive explained.
In the first quarter of 2017, Mogo’s member base expanded by a full 94 per cent year-over-year. And while revenue fell by 11 per cent in the same time frame (down to $11.3 million) due to a deliberate movement away from short-term loans, Mogo saw its loan interest and other revenue grow by 19 per cent (up to $6.5 million).
“With multiple new products on the market and significant technology development activity behind us, we are now in a position to generate meaningful additional savings this year, which we expect will contribute to improved adjusted EBITDA performance. At the same time, we are focused on renewed revenue growth through the combination of our new products and a return to growth in our loan portfolio,” Mogo president and CFO Greg Feller said.
The full report can be viewed here
Tech company turns mortgages into a game