10:12 AM EDT, 05/13/2021 (MT Newswires) -- Mogo Inc. (MOGO.TO) on Thursday posted a first-quarter net loss of $2.8 million, narrowing from a loss of $10.1 million in the same period last year.
The digital payments and financial technology company, which at last look gained 5.8% on Nasdaq and rose 5.6% on the TSX early Thursday, said the improvement was due to $5.8 million gain related to the sale of Vena Solutions.
Revenue fell to $11.4 million from $13.9 million and adjusted EBITDA loss stood at $1.1 million from an adjusted EBITDA of $500,000.
For 2021, Mogo expects its member additions to continue increasing and sees accelerated growth in subscription and services revenue. The company also projected a year-on-year growth of 80% to 100% in subscription and services revenue in the fourth quarter.
Meanwhile, Mogo said separately that it intends to increase its stake in digital asset trading platform Coinsquare Ltd. to 37% from 19.9% .
The purchase is expected to be completed through Mogo's exercise of a call option on 3.2 million Coinsquare shares and the purchase of 2.2 million Coinsquare shares from Riot Blockchain Inc. pursuant to a binding term sheet signed yesterday
Total consideration for the Coinsquare shares is expected in the range of $46.9 million to $48.6 million, which Mogo can pay in cash or shares. The acquisition from Riot is expected to complete in late May and the option exercise is expected to be completed in early June.
In addition, Mogo holds a purchase warrant in Coinsquare that, if exercised, would increase Mogo's ownership interest to 48%.
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