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Payday lender Cash Store Financial sees loss almost double to $6.9M in Q3

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(Globalpost/GlobalPost)

EDMONTON - The Cash Store Financial Services Inc. (TSX:CSF) reported Wednesday that its third-quarter loss almost doubled as overall revenue fell five per cent.

The payday loan company says its net loss in the three-month period ended June 30 was $6.9 million or 39 cents per share, compared with $3.6 million or 20 cents in the same year-earlier period.

Loan and other revenue totalled $46.3 million, down from $48.7 million, while same branch revenue rose to $243,000 from $240,000.

"The third quarter was notable as we continue to see strong results in our core consumer lending and brokering business," CEO Gordon Reykdal said.

"We are pleased with the rollout of our suite of lines of credit products in Manitoba and Ontario, which has contributed to increases in loan fees on a year-over-year basis despite having consolidated more than 60 branches from our Canadian operations last year."

Cash Store Financial operates 510 branches across Canada under the banners Cash Store Financial and Instaloans and also operates 27 branches in the United Kingdom.

They act primarily as lenders and brokers of short-term advances and other financial services to income earning consumers who may not be able to obtain them from traditional banks.

http://www.globalpost.com/dispatch/news/the-canadian-press/130814/payday-lender-cash-store-financial-sees-loss-almost-double-6