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2016-10-19

Intrum Justitia AB: INTERIM REPORT JANUARY-SEPTEMBER 2016

· Consolidated revenues for the third quarter of 2016 amounted to
SEK 1,486 M (1,386).

· Operating earnings (EBIT) amounted to SEK 517 M (452). Operating
earnings include revaluations of purchased debt portfolios amounting
to SEK 29 M (29). The operating margin excluding revaluations was 33
percent (31). Earnings also include a positive effect of SEK 15 M
from a divestment of purchased debt portfolios.

· Net earnings for the quarter amounted to SEK 375 M (330) and
earnings per share were SEK 5.14 (4.51).

· Cash flow from operating activities amounted to SEK 837 M (805).
· The carrying amount of purchased debt has increased by 26 percent
compared with the year-earlier period. Investments in purchased debt
for the quarter amounted to SEK 646 M (320).

COMMENT BY PRESIDENT AND CEO MIKAEL ERICSON

Intrum Justitia continued to perform well during the third quarter. As
in the second quarter, we achieved all of our financial targets with
regard to growth in earnings per share, return on purchased debt and
capital structure. Our operating earnings of SEK 517 M are the
highest in the Group's history to-date. Earnings per share increased
over the twelve past months by 12 percent.

In our regions, the third quarter entails a strong development, mainly
for Central Europe, where good growth in purchased debt and high
operating efficiency contributes to profitable growth. Adjusted for
items affecting comparability, operating earnings in Northern Europe
and Western Europe for the third quarter were somewhat lower than the
previous year.

For our service areas, we have strong growth in Financial Services.
For the third quarter, investments in purchased debt amounted to SEK
646 M, compared with SEK 320 M for the year-earlier period. So far
this year, we have increased investments in purchased debt by around
50 percent compared with the previous year. The return on purchased
debt adjusted for items affecting comparability and revaluations
decreased compared with the year-earlier period, but remains at a
very strong level of around 18 percent. In the Credit Management
Services, we have a stable development with unchanged income and
operating margins compared to the same period last year.

I continue to view Intrum Justitia's conditions for growth as very
positive, in a market characterized by significant opportunities. We
have a good momentum in our core business with an investment level in
purchased debt that amounted to SEK 3.1 billion in the past 12
months, compared with SEK 1.8 billion for the same period last year.
The market for purchased debt is currently undergoing a period of
price pressure, but we also see a very strong supply for the next
several years, entailing good chances to continue increasing our
earnings. In Credit Management, we have good conditions for
profitable growth through add-on acquisitions. In October, we
concluded two such transactions in Denmark and Spain and we have
thereby made four add-on acquisitions so far this year.

We also continue the work to increase our addressable market through a
disciplined increase in our presence in new asset classes for
purchased debt and through growth in new customer segments. In some
of our markets, we see good opportunities to grow through
acquisitions of secured debt. In both purchased debt and in credit
management, we see good potential to grow in the customer segment for
small and medium-sized enterprises. We also do not rule out expansion
to new countries in Europe if we can identify acquisitions that
enable us to reach a marketleading position. Altogether, we therefore
see very good growth opportunities for Intrum Justitia in coming
years.

PRESENTATION OF THE INTERIM REPORT

The 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 on October 19, 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 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

The information in this interim report is such information that Intrum
Justitia AB (publ) is obliged to publish according to the Securities
Market Act. The information was released for publication at 7:00 a.m.
CET on October 19, 2016.

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 and operations in 19 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

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http://news.cision.com/intrum-justitia-ab/r/interim-report-january-septe...
http://mb.cision.com/Main/8612/2103798/576743.pdf

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