Stockholm, 2012-10-24 07:00 CEST (GLOBE NEWSWIRE) --
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Third quarter 2012 · Consolidated net revenues for the third quarter of 2012 amounted to SEK 1,003 M (998). Adjusted for currency effects, revenues rose by 8 percent with organic growth of 6 percent (3). · Operating earnings (EBIT) amounted to SEK 271 M (264). The operating earnings include revaluations of portfolios of purchased receivables amounting to SEK 4 M (4). The operating margin was 27 percent (26) both before and after the revaluations. · Net earnings for the quarter amounted to SEK 177 M (171) and earnings per share were SEK 2.21 (2.14). · Disbursements for investments in receivables amounted to SEK 299 M (660). · Cash flow from operating activities amounted to SEK 496 M (544). |
Comment by President and CEO Lars Wollung
Intrum Justitia has had stable development in 2012, the third quarter being no exception. Organic growth was 6 percent and operating earnings rose by 10 percent adjusted for currency effects and portfolio revaluations. The cash flow from operations was strong, amounting to SEK 496 M for the quarter. Our financial flexibility is very good, with available, unutilized credits of some SEK 3 billion at the close of the third quarter following the successful adjustment of our bank financing in the first half of the year and the establishment of Intrum Justitia on the bond market.
The Financial Services business line developed positively over the quarter. The business line is dominated by purchased receivables, where the return on the debt portfolios amounted to 19 percent. Income rose by 27 percent in the third quarter adjusted for currency effects and the operating margin remained at a high level.
Our Credit Management business line continues its stable development. Adjusted for currency effects, revenues rose by 5 percent in the third quarter. Because we are continuing to increase the number of cases handled through the legal systems, earnings are affected negatively in the short term. In the longer term, these measures will contribute to increased earning capacity and increased stability in the operations.
Among our regions, Northern Europe has had a positive trend with increased earnings and operating earnings. The trend is being driven by increased investment in debt portfolios, but also by a favorable trend in Credit Management and good cost control. In Central Europe, the trend was, on the whole stable, over the third quarter. In Germany, the level of investment in portfolios of purchased receivables remains too low, with the result that the efficiency of the operations is not satisfactory. In light of the unsatisfactory development,a review of our German business is ongoing. In Western Europe, we continue to see effects of the uncertain macroeconomic situation, and this has caused us to selectively reduce our level of investment in portfolios of purchased receivables, while we also have increased collection costs.
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 (0)8 505 597 72 (SE) or +44 (0)20 710 862 05 (UK).
For further information, please contact
Lars Wollung, President & CEO Intrum Justitia AB (publ) Tel: +46 (0)8-546 10 200
Erik Forsberg, Chief Financial Officer, tel.: +46 (0)8-546 10 200
Annika Billberg, IR & Communications Director, tel.: +46 (0)8-545 10 203, mobile: +46 (0)70-267 9791
Intrum Justitia is Europe’s leading Credit Management Services (CMS) group, offering comprehensive credit management services, including Purchased Receivables, designed to measurably improve clients’ cash flows and long-term profitability. Founded in 1923, Intrum Justitia has some 3,300 employees in 20 markets. Consolidated revenues amounted to SEK 4 billion in 2011. Intrum Justitia AB has been listed on the NASDAQ OMX Stockholm exchange since 2002. For further information, please visit www.intrum.com.
