Oportun Announces Definitive Agreement to Sell its Credit Card Portfolio
Oportun (Nasdaq: OPRT) has announced a definitive agreement to sell its credit card portfolio to Continental Finance. This move is part of Oportun's strategy to enhance profitability by focusing on its core products: unsecured personal loans, secured personal loans, and the Set & Save™ savings product. The transaction is now expected to close around November 10, 2024, later than initially planned.
Due to the revised closing date, the sale is projected to be accretive by approximately $2 million to Adjusted EBITDA in 2024, down from the previously indicated $4 million. However, Oportun still anticipates an Adjusted EBITDA favorability of about $11 million in 2025. The company views this transaction as a step towards simplifying its business and improving shareholder value.
Oportun (Nasdaq: OPRT) ha annunciato un accordo definitivo per vendere il suo portafoglio di carte di credito a Continental Finance. Questa mossa fa parte della strategia di Oportun per aumentare la redditività concentrandosi sui suoi prodotti principali: prestiti personali non garantiti, prestiti personali garantiti e il prodotto di risparmio Set & Save™. Si prevede che la transazione si chiuda attorno al 10 novembre 2024, più tardi rispetto a quanto inizialmente pianificato.
In seguito alla data di chiusura rivista, si stima che la vendita porterà un incremento di circa $2 milioni all'EBITDA rettificato nel 2024, rispetto ai precedenti $4 milioni. Tuttavia, Oportun prevede ancora un favore dell'EBITDA rettificato di circa $11 milioni nel 2025. L'azienda considera questa transazione come un passo verso la semplificazione della sua attività e il miglioramento del valore per gli azionisti.
Oportun (Nasdaq: OPRT) ha anunciado un acuerdo definitivo para vender su cartera de tarjetas de crédito a Continental Finance. Este movimiento es parte de la estrategia de Oportun para aumentar la rentabilidad centrándose en sus productos principales: préstamos personales no garantizados, préstamos personales garantizados y el producto de ahorro Set & Save™. Se espera que la transacción se cierre alrededor del 10 de noviembre de 2024, más tarde de lo planeado inicialmente.
Debido a la fecha de cierre revisada, se proyecta que la venta será positiva en aproximadamente $2 millones para el EBITDA ajustado en 2024, en comparación con los previamente indicados $4 millones. Sin embargo, Oportun aún anticipa una favorabilidad del EBITDA ajustado de alrededor de $11 millones en 2025. La empresa ve esta transacción como un paso hacia la simplificación de su negocio y la mejora del valor para los accionistas.
Oportun (Nasdaq: OPRT)는 Continental Finance에 신용카드 포트폴리오를 판매하는 최종 합의서를 발표했습니다. 이 움직임은 Oportun의 주요 제품인 무담보 개인 대출, 담보 개인 대출 및 Set & Save™ 저축 상품에 집중함으로써 수익성을 높이려는 전략의 일환입니다. 이번 거래는 계획보다 늦은 2024년 11월 10일에 마감될 것으로 예상됩니다.
재정비된 마감일로 인해 이번 매각은 2024년 조정 EBITDA에 약 $2 백만의 기여를 할 것으로 예상되며, 이전에 제시된 $4 백만에서 감소한 수치입니다. 하지만 Oportun은 여전히 2025년 $11 백만 정도의 조정 EBITDA의 호조를 예상하고 있습니다. 회사는 이 거래를 비즈니스를 단순화하고 주주 가치를 높이는 과정으로 보고 있습니다.
Oportun (Nasdaq: OPRT) a annoncé un accord définitif pour vendre son portefeuille de cartes de crédit à Continental Finance. Ce mouvement s'inscrit dans la stratégie d'Oportun visant à améliorer sa rentabilité en se concentrant sur ses produits phares : prêts personnels non garantis, prêts personnels garantis et le produit d'épargne Set & Save™. La transaction devrait désormais se conclure autour du 10 novembre 2024, plus tard que prévu initialement.
En raison de la date de clôture revue, la vente devrait avoir un impact positif d'environ 2 millions de dollars sur l'EBITDA ajusté en 2024, contre les 4 millions de dollars précédemment indiqués. Cependant, Oportun anticipe toujours une rentabilité de l'EBITDA ajusté d'environ 11 millions de dollars en 2025. L'entreprise considère cette transaction comme une étape vers la simplification de ses activités et l'amélioration de la valeur pour les actionnaires.
Oportun (Nasdaq: OPRT) hat eine endgültige Vereinbarung bekannt gegeben, sein Kreditkartenportfolio an Continental Finance zu verkaufen. Dieser Schritt ist Teil von Oportuns Strategie, die Rentabilität zu steigern, indem man sich auf die Kernprodukte konzentriert: unbesicherte persönliche Darlehen, besicherte persönliche Darlehen und das Set & Save™-Sparkonto. Es wird nun erwartet, dass die Transaktion rund um den 10. November 2024 abgeschlossen wird, später als ursprünglich geplant.
Aufgrund des geänderten Abschlussdatums wird der Verkauf voraussichtlich etwa 2 Millionen US-Dollar zum bereinigten EBITDA im Jahr 2024 beitragen, was von den zuvor angegebenen 4 Millionen US-Dollar zurückgeht. Dennoch erwartet Oportun weiterhin eine positive bereinigte EBITDA-Wirkung von etwa 11 Millionen US-Dollar im Jahr 2025. Das Unternehmen sieht diese Transaktion als Schritt zur Vereinfachung seines Geschäfts und zur Verbesserung des Wertes für die Aktionäre.
- Definitive agreement signed to sell credit card portfolio, aligning with strategy to focus on core products
- Expected Adjusted EBITDA favorability of approximately $11 million in 2025
- Transaction supports Oportun's initiative to enhance profitability in 2024 and beyond
- Delayed closing date from end of Q3 to November 10, 2024
- Reduced Adjusted EBITDA accretion in 2024 from $4 million to $2 million due to revised closing date
Insights
Oportun's decision to sell its credit card portfolio to Continental Finance is a strategic move aimed at streamlining operations and improving profitability. This divestment aligns with the company's focus on core products: unsecured and secured personal loans and the Set & Save™ savings product.
Key financial implications:
- Expected
$2 million accretion to Adjusted EBITDA in 2024, down from the previously anticipated$4 million due to a delayed closing date - Projected
$11 million Adjusted EBITDA favorability in 2025 - Potential for improved operational efficiency and resource allocation
While the reduced 2024 impact may disappoint some investors, the long-term strategy appears sound. The transaction should allow Oportun to concentrate on its strengths and potentially improve its market position in core areas. Investors should monitor how effectively the company redeploys resources and capitalizes on this streamlined approach in the coming quarters.
This portfolio sale signifies a shift in Oportun's market strategy, potentially impacting its competitive positioning:
- Narrowing focus to three core products could lead to enhanced market penetration and product development in these areas
- Exiting the credit card market may reduce diversification but could strengthen Oportun's brand identity in personal loans and savings
- The partnership with Continental Finance for a smooth customer transition indicates a customer-centric approach, which could positively impact brand perception
For investors, this move suggests Oportun is prioritizing profitability and operational efficiency over market breadth. The success of this strategy will largely depend on the company's ability to grow market share in its core products and effectively differentiate itself from competitors in the personal loan and savings space.
SAN CARLOS, Calif., Sept. 25, 2024 (GLOBE NEWSWIRE) -- Oportun (Nasdaq: OPRT), a mission-driven financial services company, today announced that it has signed a definitive agreement to sell its credit card portfolio to Continental Finance. This transaction reflects a key milestone towards Oportun’s initiative to enhance profitability in 2024 and beyond by simplifying the business and driving performance in its three core products: unsecured personal loans, secured personal loans, and its award-winning Set & Save™ savings product.
The closing date is now anticipated to be on or around November 10, 2024, rather than by the end of the third quarter as indicated on the August 8th second quarter earnings call. Due to the revised closing date, the sale is expected to be accretive by approximately
"We’re pleased to have signed a definitive agreement to sell our credit card portfolio to Continental Finance, a leading U.S. credit card marketer and servicer," said Jonathan Coblentz, Chief Financial Officer & Chief Administrative Officer of Oportun. "This transaction underscores our commitment to focus on winning in the marketplace with our core product lines, thereby enhancing the value we can deliver to our shareholders."
Tamer El-Rayess, Continental Finance’s Chairman of the Board, said "Continental Finance is excited to enter into an agreement to acquire Oportun’s Visa credit card portfolio with its partner bank, The Bank of Missouri. The Continental Finance team will be collaborating with the Oportun team to ensure a seamless transition of their customers onto our platform. Our goal is to continue to provide exceptional, personalized service to these valued customers for many years to come."
About Oportun
Oportun (Nasdaq: OPRT) is a mission-driven financial services company that puts its members' financial goals within reach. With intelligent borrowing, savings, and budgeting capabilities, Oportun empowers members with the confidence to build a better financial future. Since inception, Oportun has provided more than
About Continental Finance
With over 5.3 million credit cards managed since its founding, Continental Finance prides itself on excellent customer service and access to bank-issued credit products with innovative features that provide affordable and safe options to consumers with poor or limited credit. Utilizing responsible innovation, Continental Finance works to provide each customer with the necessary educational tools for them to be successful in managing their personal credit.
Forward-Looking Statements
This press release contains forward-looking statements. These forward-looking statements are subject to the safe harbor provisions under the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release, including statements as to future performance and financial position; expectations regarding the impact of the sale of the Company’s credit card portfolio, including expected timelines; our planned products and services; achievement of the Company's strategic priorities and goals and the plans and objectives of management for our future operations, are forward-looking statements are forward-looking statements. These statements can be generally identified by terms such as "expect," "plan," "goal," "target," "anticipate," "assume," "predict," "project," "outlook," "continue," "due," "may," "believe," "seek," or "estimate" and similar expressions or the negative versions of these words or comparable words, as well as future or conditional verbs such as "will," "should," "would," "likely" and "could." These statements involve known and unknown risks, uncertainties, assumptions and other factors that may cause Oportun’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Oportun has based these forward-looking statements on its current expectations and projections about future events, financial trends and risks and uncertainties that it believes may affect its business, financial condition and results of operations. These risks and uncertainties include those risks described in Oportun's filings with the Securities and Exchange Commission, including Oportun's most recent annual report on Form 10-K and most recent quarterly report on Form 10-Q. These forward-looking statements speak only as of the date on which they are made and, except to the extent required by federal securities laws, Oportun disclaims any obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made or to reflect the occurrence of unanticipated events. In light of these risks and uncertainties, there is no assurance that the events or results suggested by the forward-looking statements will in fact occur, and you should not place undue reliance on these forward-looking statements.
Investor Contact
Dorian Hare
(650) 590-4323
ir@oportun.com
Media Contact
Michael Azzano
Cosmo PR for Oportun
(415) 596-1978
michael@cosmo-pr.com
FAQ
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