Fatfish shares surge on record profit for Swedish subsidiary
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While Fatfish Group (ASX:FFG)’s move into the Buy Now Pay Later space has attracted massive attention, the tech venture fund has just announced great news for another of its subsidiaries.
Abelco Investment Group AB (NGM:ABIG), a Swedish company that Fatfish holds a 50.1 per cent stake in, has swung to a record full-year profit following a loss in 2019.
Abelco’s profit after tax for the year ended December 31 increased 526 per cent to $15.1 million, Fatfish said.
The turnaround came after Abelco followed strategic advice from Fatfish to dispose of several non-profitable subsidiaries.
That meant Abelco’s revenue dipped 29 per cent to $1.7 million, but the strategy paid off by improving the investment’s group’s cost management significantly.
Abelco is also invested in Malaysia-based Fatberry.com, a direct-to-consumer online insurance marketplace that has performed strongly since its launch in July 2020.
Through partnerships with 11 different Malaysian insurance providers, Fatberry.com offers a platform for customers to easily compare and customise products online.
It’s been a busy time for Fatfish, whose subsidiary Smartfunding last week launched a BNPL financing programme for corporates in Southeast Asia.
Fatfish holds a 78.7 per cent in Smartfunding – 19.9 per cent directly, and 58.8 per cent via Abelco.
FFG saw its shares surge last week following excitement over the BNPL rollout.
At 11.22am on Wednesday, FFG shares were up 7.4 per cent to 14.5c.
This article was developed in collaboration with Fatfish Group, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.