· Favourable economic sentiment throughout the quarter, supported by gradual normalisation, improving consumption and a strong economic growth outlook. · Seasonally softer third quarter 2021, especially when compared to the exceptionally strong, rebound-driven third quarter 2020. · High commercial activity with increasing demand for our services driven by economic recovery and growth expectations, but also financial services clients’ need to proactively address their balance sheets. · Transformation program on track with global front office deployment ahead of plan and accelerating case migrations.
Financial results in brief, July-September 2021 (July-September 2020):
- Adjusted EBIT decreased to SEK 1,533 M (1,687)
- Cash EBIT decreased to SEK 1,394 M (1,659)
- RTM cash EPS increased to SEK 24.04 (22.31)
- RTM cash RoIC increased to 8.0 per cent (7.4)
- Net debt/RTM cash EBITDA was 4.2x (4.2x)
- Available liquidity at the end of the quarter was SEK 19.1 bn (16.8)
Presentation of the interim report
Anders Engdahl, President & CEO and Michael Ladurner, CFO, will present the results and answer questions in an audio cast with telephone conference at 9:00 a.m. CEST. The conference will be held in English. To listen in, please dial:
+46 8 505 583 73 (SE)
+44 333 300 90 30 (UK)
+1 646 722 4902 (US)
Link to the audiocast
Comment by President & CEO Anders Engdahl
“The third quarter has shown a continued, gradual normalisation across markets – both in terms of consumer and business behaviour. For Intrum this is reflected in a seasonally slower quarter, more in line with pre-pandemic patterns. We maintain a high level of cash revenues, only 4 per cent down from last year’s exceptionally strong third quarter.
During the quarter cash EBIT declined 16 per cent versus the same quarter last year. However, looking at the first nine months of the year compared to the same period in 2020 we saw a 3 per cent growth. Group leverage ratio was 4.2x net debt to RTM cash EBITDA and the RTM cash EPS amounted to SEK 24.04.
Our strong performance trajectory in the Portfolio Investments segment continues across markets. Gross cash collections amounted to approximately SEK 3 bn, equivalent to 112 per cent of the active forecast. New case inflow in our CMS segment continues to improve and the commercial activity remains high.
In Strategic Markets we saw a softer quarter from a revenue and profitability perspective, while the level of commercial activity remained high. For example, we were awarded a ground-breaking contract to service a more than EUR 1 bn Unlikely to Pay (“UTP”) portfolio highlighting Intrum’s position as the leading Spanish servicer for residential mortgages. In Italy we are also able to add further volumes to several of our servicing contracts.
Our transformation program, ONE Intrum, is well on track and the scale up of four global front offices is well ahead of plan covering 14 countries with 302 agents. During the quarter case migrations accelerated and over 2.2 million Spanish cases were smoothly moved in one single migration, which tripled the total number on the new platform.
Last but not least, we have further raised our ambition on climate disclosure and declared our support to the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. This reporting framework will support our efforts to reducing emissions, mitigate operational risks and opportunities while increasing transparency versus our stakeholders. In addition, we have started to report the Carbon Disclosure Project (CDP), which evaluates companies’ climate efforts and mitigating actions.
After my first year as CEO, these last four quarters have been focused on two things – our transformation program and building the foundation for sustainable organic growth. I strongly believe that the societal megatrends provide a positive setting for continued success, as highlighted by the activity level amongst our clients both with regard to servicing as well as investment opportunities.”
For further information, please contact:
Emil Folkesson, Director Treasury & Investor Relations
+46 70 744 69 82
emil.folkesson@intrum.com
ir@intrum.com
This information is such that Intrum AB (publ) is required to disclose pursuant to the EU’s markets abuse directive. The information was released for publication, through the agency of the contact persons set out above, on 21 October, 2021 at 07.00 CEST.