Pintec's Stock Rises on Steady Results During Quarter of IPO
Pintec Technology Holdings Ltd. (Nasdaq: PT) gained 15 cents in trading by midday after reporting a slight increase in revenue and narrowed losses for the fourth quarter.
The Beijing-based tech platform facilitating financial services said on Wednesday that its revenue in the three months through December was $32.9 million, 2 percent higher year-over-year. Its net loss was $1.2 million, a 10 percent decrease from the same period of 2017. Loss per share was 1 cent.
For the full year, Pintec reported revenue of $153.1 million, 85 percent higher from the preceding 12 months, and profit of $1.1 million in contrast to a loss in 2017.
The results sent the shares in the company up 1 percent, to $12.13 apiece, intraday.
Steven Sim, Pintec's chief financial officer, said in a statement, "As we transition our business focus towards providing technology services away from on-book installment loan services, our balance sheet has strengthened and our credit risks have reduced."
He continued, "Our total balances of financing receivables as well as funding debts declined substantially on a year-over-year basis, while our loan quality remained high and our need for provision for credit loss reduced. More importantly, our revenues from technical service fees increased, thus offsetting the revenue decline in our installment service fees in this quarter. "
The three-year-old company, spun off from a peer-to-peer lending firm, said it facilitated $458.8 million in loans during the final three months of 2018, a decline of 38 percent year-over-year. Overall, it facilitated $2.1 billion in loans last year. Its costs of revenue dropped 36 percent during the fourth quarter to $13.2 million, while its operating expenses tripled year-over-year to $31.8 million, according to the report.
The expenses were partially attributed to Pintec's initial public offering in New York, completed in October. The financial services provider raised $44 million in its IPO.
The chief executive officer of Pintec, Wei Wei, said, looking ahead, "Going forward, we plan to further enhance our technical services, provide installment solutions to more business partners, advance our robo-advisory and insurance product offerings, and invest in our international expansion."
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