Year-end release 2010
Fourth quarter 2010
· Consolidated revenues for the fourth quarter of 2010 amounted to
SEK 965.4 M (1,046.3), a decline of 7.7 percent. Currency effects
amounted to -7.5 percent. Organic growth was -0.2 percent (1.6).
· Operating earnings (EBIT) amounted to SEK 181.8 M (206.1) including
costs for acquisitions and regional restructuring of SEK -24.8 M.
Revenues and operating earnings include net Purchased Debt revaluations
of SEK 5.4 M (-3.7). Excluding these items, the operating margin was
21.0 percent (20.0).
· Adjusted for costs for acquisitions and regional restructuring in
the quarter EBIT amounted to SEK 206.6 M (206.1). Taking currency
effects into account this corresponds to an increase by 7.1 percent.
· Aktiv Kapital's Nordic credit management operations and Nice Invest
Nordic, a company that acquires written off debt from Swedish mail-order
companies, were acquired during the quarter.
· Net earnings for the fourth quarter amounted to SEK 121.4 M (138.7)
and earnings per share were SEK 1.52 (1.74).
· Disbursements for investments in Purchased Debt amounted to
SEK 417.4 M (211.3), an increase of 97.5 percent.
· Consolidated revenues for the 2010 full-year amounted to
SEK 3,766.0 M (4,127.8), a decline of 8.8 percent. Currency effects
amounted to -7.1 percent. Organic growth was -0.8 percent (3.9).
· Operating earnings (EBIT) amounted to SEK 730.6 M (668.2) including
costs for acquisitions and regional restructuring of SEK -24.8 M
(-70.1). Revenues and operating earnings include net Purchased Debt
revaluations of SEK 3.2 M (-35.7). Excluding these items, the operating
margin was 20.0 percent (18.6).
· Net earnings for the year amounted to SEK 452.0 M (440.6) and
earnings per share were SEK 5.67 (5.53).
· Disbursements for investments in Purchased Debt amounted to
SEK 1,049.6 M (870.6), an increase of 20.6 percent.
· Cash-flow from operations amounted to SEK 1,629.8 M (1,433.4)
· The Board of Directors proposes a dividend of SEK 4.10 per share,
totaling SEK 328 M.
Full-year 2010
· Consolidated revenues for the 2010 full-year amounted to
SEK 3,766.0 M (4,127.8), a decline of 8.8 percent. Currency effects
amounted to -7.1 percent. Organic growth was -0.8 percent (3.9).
· Operating earnings (EBIT) amounted to SEK 730.6 M (668.2) including
costs for acquisitions and regional restructuring of SEK -24.8 M
(-70.1). Revenues and operating earnings include net Purchased Debt
revaluations of SEK 3.2 M (-35.7). Excluding these items, the operating
margin was 20.0 percent (18.6).
· Net earnings for the year amounted to SEK 452.0 M (440.6) and
earnings per share were SEK 5.67 (5.53).
· Disbursements for investments in Purchased Debt amounted to
SEK 1,049.6 M (870.6), an increase of 20.6 percent.
· Cash-flow from operations amounted to SEK 1,629.8 M (1,433.4)
· The Board of Directors proposes a dividend of SEK 4.10 per share,
totaling SEK 328 M.
Comment by CEO & President Lars Wollung
In the fourth quarter, operating earnings rose by 7 percent adjusted for
currency effects and costs related to acquisitions and regional
restructuring. Cash flow from operations in the full year increased by
14 percent to SEK 1,630 M. The Board of Directors proposes a dividend of
SEK 4.10 per share to our owners. I am pleased with the development of
our operations and take a confident view of the challenges that await us
in 2011.
In the fourth quarter, we implemented the final planned change in our
organization and we now have a strong structure with three geographical
regions. We worked hard throughout the year to adapt our cost structure
to the prevailing market climate and we intensified our sales and
marketing activities throughout the Group. We have also carried out two
strategic acquisitions of which one within Purchased Debt. In total we
have doubled our level of investment in Purchased Debt. Intrum Justitia
stands well prepared to meet demand for value-adding credit management
services throughout Europe.
In our Credit Management service line, currency-adjusted operating
earnings rose by 19.8 percent in the fourth quarter and the margin
strengthened to 14.6 percent from 12.2 percent in the year-earlier
period. The effects of our internal efficiency enhancement efforts, such
as cost reductions in Sweden and Switzerland, have allowed our
Credit Management operations to develop in a positive direction.
In Purchased Debt, we are seeing a favorable trend in existing
portfolios with a return of 18.6 percent for the quarter. In addition,
we have been seeing a higher level of activity in the market and our
investments in the fourth quarter were 98 percent up on the year-earlier
period, totaling SEK 417 M. For the full-year, our investments increased
by 21 percent. Today, we have a favorable level of forward-flow
contracts, meaning that the prospects are good for continued investment
growth in 2011.
In the Northern Europe region (consisting of Denmark, Estonia, Finland,
Latvia, Lithuania, Norway, Poland, Russia and Sweden), development has
been very good. In the final quarter of the year, we began the
integration of the operations acquired from Aktiv Kapital. In the Nordic
countries, operations are developing strongly in both Credit Management
and Purchased Debt. The acquisitions of Aktiv Kapital's operations and
of Nice Invest Nordic in the fourth quarter contribute to favorable
prospects for 2011.
The Central Europe region (consisting of Switzerland, Slovakia, the
Czech Republic, Germany, Hungary and Austria) ended the year strongly.
Even when adjusted for non-recurring costs in the fourth quarter of
2009, earnings growth was in double digits. Pleasingly, the trend for
our operations in Hungary, the Czech Republic and Slovakia has now
turned and instead of being well in the red, they are now reporting
positive figures.
With the exception of the Netherlands, our third region, Western Europe
(Belgium, France, Ireland, Italy, the Netherlands, Portugal, Spain and
the UK), developed well in the fourth quarter given the weak
macroeconomic trend there. Development was, however, weak in the
Netherlands with the quarter being impacted by both restructuring costs
and poorer underlying results than in the fourth quarter of 2009. During
2011, we will be adjusting our cost structure and intensifying our sales
efforts.
All indicators suggest that demand for services combining traditional
Credit Management with Purchased Debt will continue to increase in 2011.
As a market leader, with an integrated range of services in these areas,
Intrum Justitia benefits by this trend.
The interim report and presentation material are available at
www.intrum.com. > Investors. President & CEO Lars Wollung and Chief
Financial Officer Bengt Lejdström 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 5051 3794 (SE) or +44 (0)20 7806
1967 (UK). Code: 8621845.
For more information, please contact:
Lars Wollung, President and CEO, Tel.: +46 (0)8 546 10 202
Bengt Lejdström, Chief Financial Officer, Tel.: +46 (0)8-546 10 237,
mobile: +46 (0)70-274 2200
Annika Billberg, IR & Communications Director, Tel: +46 (0)8 545 10 203,
mobile: +46 (0)70 267 9791
