Wonga's losses increase

4 May 2016
Wonga losses

Wonga don't have the best reputation at the moment, being hit with new regulations by the City regulator (along with the rest of the payday loan world), and are the notable sponsor of relegation-threatened Newcastle United.

Last year, Wonga saw their losses double, thanks to a huge drop in revenues and now, according to reports, the Wonga Group have recorded a pre-tax loss of around £70 million in 2015, compared to £37 million the year before.

Can Wonga revive themselves in a world with the new regulations in place? Many are doubting it right now.

You'll remember that the company themselves, got a £25 million loan, in a bid to keep themselves in the game. Wonga are trying to diversify their business, and move away from the controversial loaning system that saw them taking the brunt of the public's anger toward the payday loan sector.

One of the reasons they faced hostility, is that they had sent out fake legal letters which threatened customers, which saw Wonga being hit with a fine and giving compensation to customers.

Restructuring costs, job losses, and more have also blighted the finance firm.

These are clearly tough times for Wonga, but there's not going to be a lot of sympathy floating around for them, that's for sure.

TOPICS:   Economy

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