· Consolidated net revenues for the first quarter of 2014 amounted to SEK
1,204 M (1,048).
· Operating earnings (EBIT) amounted to SEK 283 M (236). Operating earnings
were burdened by revaluations of purchased debt portfolios amounting to a
negative SEK 10 M (4).
· The operating margin was 24 percent (23), including revaluations of
purchased debt portfolios.
· Net earnings for the quarter amounted to SEK 184 M (155) and earnings per
share were SEK 2.35 (1.94).
· Disbursements for investments in purchased debt amounted to SEK 688 M (920).
· Cash flow from operating activities amounted to SEK 530 M (464).
Comment by President and CEO Lars Wollung
Intrum Justitia’s development was favorable in the first quarter of 2014. Income
rose by 15 percent and operating earnings rose by 18 percent compared with the
year-earlier period, adjusted for revaluations of purchased debt portfolios and
currency effects. Cash flow from operations increased by 14 percent and earnings
per share rose by 21 percent.
During the quarter, development was strong in Western and Central Europe. In
Western Europe, the increase is mainly being driven by improved growth and
profitability in Credit Management, while Central Europe has enjoyed good
development as a consequence of increased investment in Purchased Debt. In
Northern Europe, our growth has been lower with relatively large differences
between individual countries.
The Financial Services service line continues to develop stably with a 25
-percent increase in income and a return on purchased debt of 19 percent – well
above the Group’s return requirement of 15 percent. The level of investment in
Purchased Debt amounted to SEK 688 M for the quarter, approximately 25 percent
lower than in the very strong first quarter last year.
The Credit Management service line had good growth in income in the first
quarter due to increased volumes from Purchased Debt portfolios and a certain
amount of acquired growth. Service line earnings were of a similar level as last
year although margins were somewhat lower. Work to increase efficiency in the
collection process, thereby improving margins in the service line, is
progressing according to plan.
We are continuing our efforts to extend our offering in services involving
financing solutions before receivables mature or in connection with their
maturing. The Swedish and Finnish operations are developing as planned, while
our Dutch unit has not lived up to our expectations, which is why we are working
on adjusting our costs and restructuring that unit.
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 +44 (0) 20 766 020
77(UK) or +46 (0) 8 519 990 30 (SE).
For further information, please contact
Lars Wollung, President & CEO, Tel.: +46 (0)8-546 102 02
Erik Forsberg, CFO, Tel.: +46 (0)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 3,600 employees in 20 markets. Consolidated
revenues amounted to about SEK 4.6 billion in 2013. Intrum Justitia AB is listed
on NASDAQ OMX Stockholm since 2002. For further information, please visit
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