· Consolidated net revenues for the first quarter of 2016 amounted to
SEK 1,408 M (1,370).
· Operating earnings (EBIT) amounted to SEK 428 M (339). Operating earnings
include revaluations of purchased debt portfolios amounting to SEK 5 M (–7). The
operating margin excluding revaluations of purchased debt was 30 percent (25).
· Net earnings for the quarter amounted to SEK 310 M (244) and earnings per
share were SEK 4.26 (3.27).
· Cash flow from operating activities amounted to SEK 730 M (483).
· The carrying amount of purchased debt has increased by 17 percent compared
with the year-earlier period. Investments in purchased debt for the quarter
amounted to SEK 738 M (469).
Comment by President and CEO Mikael Ericson
Intrum Justitia is working to create a sound economy by offering services that
make business flexible, secure and fair. We are a market-leading company that
strengthens our customers’ competitiveness and financial position, while
endeavoring to be a responsible provider of services for both them and their
clients. We encounter people daily who have received demand letters from us, and
our aim at all times is to identify solutions that suit all parties.
Intrum Justitia’s operations performed well during the first quarter. Our
operating earnings excluding revaluations and currency effects increased by 23
percent. Profitable growth within the area of Financial Services helped boost
our operating margin to 30 percent during the quarter, compared with 25 percent
for the same period last year. Earnings per share have risen 17 percent over the
past 12-month period, which is well in excess of our financial target of a
minimum increase of 10 percent.
All regions are seeing an improvement in earnings compared with the year-earlier
period. It is primarily within the Purchased Debt service line that we are
seeing a solid improvement in earnings. In the Western Europe region, an
acquisition within the Credit Management service line is also making a positive
contribution, along with certain costs from Q1 2015 affecting comparability.
As regards our service lines, we are seeing a stable development for Credit
Management, with some growth and margins consistent with the previous year. The
Financial Services service line is displaying healthy growth and increased
earnings, resulting from higher levels of investment for Purchased Debt and
persistently strong collection levels. Excluding revaluations, the return on
purchased debt remains at a high 19 percent, compared with 20 percent for the
year-earlier period. Investments in Purchased Debt for the quarter also moved in
a positive direction, totaling SEK 738 M compared with SEK 469 M for the same
period last year. The positive trend is largely due to a few significant
acquisitions of debt portfolios in the financial sector.
Market conditions are favorable – we believe there will be a significant range
of purchased debt and value-adding opportunities to acquire small- and medium
-sized credit management companies over the coming years, although there will be
continued price pressure within the area of purchased debt.
As the new President and CEO of Intrum Justitia, I am extremely confident in our
ability to consistently create value for our shareholders over the next few
years. We are continuing to implement the strategy that made us successful, with
a robust platform within credit management operations. This platform paves the
way for growth within Financial Services such as Purchased Debt. We will remain
a market-leading credit management company in Europe, working to improve the
financial positions of both companies and consumers.
Presentation of the interim report
This interim report and presentation material are available at
www.intrum.com/Investor relations. President & CEO Mikael Ericson 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 98 (SE) or +44 20 300 898 01 (UK).
For further information, please contact
Mikael Ericson, President and 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 3,850 employees in 20 markets. Consolidated
revenues amounted to about SEK 5.6 billion in 2015. Intrum Justitia AB is listed
on Nasdaq Stockholm since 2002. For further information, please visit
www.intrum.com
