Wonga — the UK’s biggest “payday” money lender — has reported a pre-tax loss of £80.2 million ($116.4 million), more than double the £38.1 million loss from last year.
Revenues also fell a massive 64%, down from £217.2 million in 2014 to £77.3 in 2015.
However 2015 operating costs for the company also fell 17% to £125.5.
The report noted that Wonga had “overhauled [its] approach to credit risk and further strengthened the risk decision engine and lending criteria, ensuring all lending is responsible and affordable.”
Wonga has had a tough time since the Financial Conduct Authority (FCA) ruled that customers had to go through more rigorous affordability checks. A payday loan usually requires a one-off repayment within a month.
In January 2015 a cap of 0.8% on the cost of the loans per day came into effect, according to the Guardian. On top of this, any charges for late payment were not allowed to exceed £15. Wonga responded by trying to change its reputation and stop marketing to young and vulnerable demographics in TV adverts.
As Business Insider previously reported, Wonga cut 325 jobs almost as soon as the cap came into effect in a bid to cut costs.
Paul Miles, Wonga Group CFO, said he expected 2016 to be better:
“2015 was a year of transition for Wonga. In 2016 we expect revenues to increase significantly, driven by continued growth in Poland and Germany and a return to growth in the UK and South Africa. While this year as a whole will again be loss-making, it will be considerably less so than in 2015.
“Following the end of the financial year we secured a €30 million debt facility, a major vote of confidence in the business and an endorsement of our future plans. This will give us the resources to complete the transformation and we expect to raise further debt in 2016 to support the growth of our loan book.”
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