Sweden’s Klarna posts profit after years of losses
The payments group expects the momentum to continue in the holiday period
06 November 2023 - 17:52
by Supantha Mukherjee
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Swedish payments group Klarna said on Monday it has posted an operating profit in the third quarter after years of losses. Picture: BLOOMBERG
Stockholm — Swedish payments group Klarna said on Monday it has posted an operating profit in the third quarter after years of losses and expects the momentum to continue in the holiday period.
The July-September operating profit at the privately held ‘buy now, pay later’ (BNPL) fintech, which last recorded a full-year surplus in 2018, was 130-million Swedish crowns ($11.97m) against a year-earlier loss of 2-billion crowns.
Quarterly revenue rose 30% to 6-billion crowns.
“Our growth has accelerated in Q3 and we will build on this momentum in Q4 with further investments to drive value to our consumers and merchants alike,” CEO Sebastian Siemiatkowski said in a statement.
Credit losses as a percentage of gross merchandise volume was reduced by 56%, helped by improvements in underwriting.
The company, which signed a collective agreement with its workers just ahead of a potential strike this week, had said in May that it was on track to reach profitability on a monthly basis in the second half of the year.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Sweden’s Klarna posts profit after years of losses
The payments group expects the momentum to continue in the holiday period
Stockholm — Swedish payments group Klarna said on Monday it has posted an operating profit in the third quarter after years of losses and expects the momentum to continue in the holiday period.
The July-September operating profit at the privately held ‘buy now, pay later’ (BNPL) fintech, which last recorded a full-year surplus in 2018, was 130-million Swedish crowns ($11.97m) against a year-earlier loss of 2-billion crowns.
Quarterly revenue rose 30% to 6-billion crowns.
“Our growth has accelerated in Q3 and we will build on this momentum in Q4 with further investments to drive value to our consumers and merchants alike,” CEO Sebastian Siemiatkowski said in a statement.
Credit losses as a percentage of gross merchandise volume was reduced by 56%, helped by improvements in underwriting.
The company, which signed a collective agreement with its workers just ahead of a potential strike this week, had said in May that it was on track to reach profitability on a monthly basis in the second half of the year.
Reuters
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