Dealnet Capital Corp., a parent company of subsidiaries operating in consumer finance and call centre, has reported its financial results for the quarter ended June 30, 2020. The results were above than average compared to the economic climate amid the COVID-19 Pandemic.
The company reported net income of Canadian 279 thousand Dollars during the first half of 2020, an increase of CND $1.5 million over the results from the same period in 2019 despite the operational challenges associated with COVID-19.
The company’s One Contact and EcoHome Financial segment showed well managed results despite the COVID-19 as the One Contact showed a profit of CSD 432 thousand during the second quarter of 2020 which is a growth of about 35% compared to the prior year same period despite the difficult economic climate amid the pandemic which resulted in significant decline at company’s two of the customers and operational challenges. The company’s Delinquent accounts decreased 8% from previous quarter.
While the company claimed that its many call center competitors have posted as much achievement in managing the finances throughout the pandemic.
As COVID-19 hit in mid-March of 2020, we anticipated that there would be a sharp decline in loan originations for EcoHome Financial, due to the temporary closure of our dealers. Despite the COVID-19 hit, the loan originations of the company did not decline compared to what was being anticipated for the second quarter of 2020 while company saw a significant rebound as the dealers started to re-open. The company reported the cash balance of $8.8 million as of June 30 which was $4.7 million on March 31, 2020.
Dealnet CEO said that the company continued to give priority to the the safety of its employees through the novel COVID-19 and that Dealnet’s team continued to be highly productive and motivated despite the pandemic. He added, “We have demonstrated that we can deliver solid and profitable results in the face of a wide range of challenges. Our financial position continues to be strong and we have the requisite funding and liquidity in place necessary to continue executing on our plans. For the balance of the year we will continue to position Dealnet to create sustainable value for shareholders by driving compounding profitable growth.”