Losses at Brain’s biggest payday lender doubled last year as a price cap enforced by the City regulator sparked a sharp decline in revenues. Wonga Group recorded a pre-tax loss of about £70 million last year, compared with £37 million the previous year, according to Sky News.
The figures raise fresh questions about how the management of one of the UK’s most controversial companies will respond to tighter regulations and restore its financial performance.
The results, scheduled to be announced today, are believed to show a slide in the company’s revenues from £215 million in 2014. This would mean that Wonga’s losses for the past two years exceed £100 million.
The company is attempting to repair its image and return to profitability after a series of crises that induced senior executives to depart and led to compensation payouts. Last year the FCA ordered Wonga to pay more than £2.5 million to 45,000 customers after they had been sent letters purporting to be from law firms that did not, in fact, exist.
Source: The Times