· Consolidated net revenues for the third quarter of 2015 amounted to SEK
1,386 M (1,309).
· Operating earnings (EBIT) amounted to SEK 452 M (415). Operating earnings
include revaluations of purchased debt portfolios amounting to SEK 29 M (15) as
well as a negative effect of SEK 31 M mainly for a reassessment of capitalized
expenditure attributable to prior years. The operating margin excluding
revaluations of purchased debt was 31 percent (31).
· Net earnings for the quarter amounted to SEK 330 M (311) and earnings per
share were SEK 4.51 (4.09).
· Cash flow from operating activities amounted to SEK 805 M (788).
· The carrying amount of purchased debt has increased by 8 percent compared
with the year-earlier period. Investments in purchased debt for the quarter
amounted to SEK 320 M (267).
Comment by President and CEO Lars Wollung
Intrum Justitia’s third quarter saw continued good development, with operating
earnings of SEK 452 M, the highest in the company’s history to date. Operating
earnings rose by 9 percent compared with the year-earlier period, and by 3
percent when adjusted for currency effects and revaluations. Earnings per share
have risen 26 percent over the past twelve-month period, which is well in excess
of our financial target.
For our regions, we saw a positive trend in Western Europe, with increased
growth and improved margins for the third quarter. In Western Europe in the
third quarter we also entered into an agreement regarding the acquisition of a
company, which will contribute to improving our market position and
profitability in the region. The regions Central Europe and Northern Europe
continue to display strong profitability, with operating margins excluding
revaluations of 32 percent and 35 percent respectively, which is consistent with
the same period last year.
In our services lines, we are seeing a healthy trend within Credit Management
Services, which is reaping the benefits of both previous acquisitions as well as
improved operational efficiency. We are achieving both growth and improved
margins compared with the yearearlier period, with increases in service line
revenue and profit of 2 percent and 7 percent respectively, excluding currency
effects. Financial Services has seen a continued rise in the carrying amount of
purchased debt of 8 percent for the third quarter, compared with the yearearlier
period. Our purchased debt portfolios are performing well, which has resulted in
significant positive revaluations totaling SEK 67 M in 2015 to date, SEK 29 M of
which was in the third quarter.
Through a strong combination of credit management and financing services, Intrum
Justitia is creating value for our customers, shareholders and society, where we
are confident that demand for services for efficient and responsible credit
management will remain significant for many years to come. Intrum Justitia is
therefore well positioned for continuing to deliver profitable growth, while
achieving or exceeding our financial targets. We have a stable base of recurring
investment opportunities within small and medium-sized purchased debt
portfolios, with good returns. For larger portfolios within the banking and
financial sector we will continue to act in a disciplined manner, but will
utilize our competitive advantage through our low financing cost to generate
profitable growth. There are also good opportunities for growth in our credit
management operations over the coming years. Our program for continuous
improvement within operational efficiency continues to show good potential.
Furthermore, we are seeing opportunities to add value through acquisitions of
small and medium-sized companies and have stepped up the pace over the past 12
-month period, through acquisitions totaling in excess of SEK 400 M.
Presentation of the Interim Report
The interim report and presentation material are available at
www.intrum.com/Investor relations. President & CEO Lars Wollung and Chief
Financial Officer Erik Forsberg will comment on the report at a teleconference
today, starting at 9:00 a.m. CET. The presentation can be followed at
www.intrum.com and/or www.financialhearings.com. To participate by phone, call
+46 8 566 426 63 (SE) or +44 20 342 814 08 (UK).
For further information, please contact
Lars Wollung, President & CEO, tel: +46 8 546 102 02
Erik Forsberg, Chief Financial Officer, tel: +46 8 546 102 02
Intrum Justitia is Europe’s leading Credit Management Services (CMS) group,
offering comprehensive services, including purchase of receivables, designed to
measurably improve clients’ cash flows and long-term profitability. Founded in
1923, Intrum Justitia has some 3,800 employees in 20 markets. Consolidated
revenues amounted to about SEK 5.2 billion in 2014. Intrum Justitia AB is listed
on Nasdaq Stockholm since 2002. For further information, please visit
www.intrum.com
