· Consolidated net revenues for the first quarter of 2015 amounted to SEK
1,370 M (1,204).
· Operating earnings (EBIT) amounted to SEK 339 M (283). The operating
earnings include revaluations of Purchased Debt portfolios amounting to a
negative SEK 7 M (–10). Excluding revaluations, the operating margin was 25
percent (24).
· Net earnings for the quarter amounted to SEK 244 M (184) and earnings per
share were SEK 3.27 (2.35).
· Cash flow from operating activities amounted to SEK 483 M (530).
· The carrying value of purchased debt has increased by 12 percent compared
with the first quarter of 2014. Disbursements for investments in purchased debt
during the quarter amounted to SEK 469 M (619).
Comment by President and CEO Lars Wollung
Intrum Justitia’s development was favorable in the first quarter of 2015.
Compared with the equivalent period in 2014, and adjusted for currency effects
and the revaluation of portfolios, consolidated revenues rose by 7 percent and
operating earnings by 12 percent. Earnings per share rose by 39 percent compared
with the first quarter of 2014.
In our regions, mainly Northern Europe and Central Europe experienced favorable
development as a result of increased investment levels in Purchased Debt in
previous years and improved margins in Credit Management. The corporate
acquisitions made in 2014 in the Czech Republic, France and Denmark have also
developed well.
In our service lines, both Financial Services and Credit Management reported
improved earnings. In Credit Management, growth and margins are increasing well
through acquisitions and improved operational efficiency. In Financial Services,
the return on Purchased Debt remains excellent at 19 percent. The carrying value
of Purchased Debt rose by 12 percent compared with the corresponding period in
2014 and the investments level for the quarter amounted to SEK 469 M. The supply
of past-due consumer receivables is generally good, although there is
considerable price competition in most markets.
In the first quarter, we also continued to develop our operations in financial
services before invoices mature. In the first quarter, we established Avarda, a
joint venture with the Swedish company TF Bank, to offer payment and financing
solutions to e-traders in the Nordic region. We also launched a similar service
for the Swiss market during the quarter.
During 2015, we will continue to focus strongly on generating value for our
customers. By continuously developing Intrum Justitia’s offering of Credit
Management and Financial Services, we are contributing to positive development
for our customers through lower credit losses, improved cash flow and increased
focus on their core operations. Our internal focus on continuous improvement is
continuing and we are constantly monitoring a very large number of change
projects in most of the countries in which we operate. I therefore take a
positive view of Intrum Justitia’s opportunities for continued good development
with profitable growth over the next few years.
Presentation of the year-end 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)8 566 426 63 (SE) or +44 (0) 20 342 814 06 (UK).
For further information, please contact
Lars Wollung, President & CEO Intrum Justitia AB (publ) Tel: +46 (0)8-546 10 202
Erik Forsberg, Chief Financial Officer, Tel.: +46 (0)8-546 10 202
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
