· Slow but accelerating start to a transitory year. Revenue increase supported by high commercial activity and growing Assets under Management · CMS and Portfolio Investments contributed to cash revenues growth, while Strategic Markets is stabilising after 24 months of substantial growth · Disposal and Capital partnership dialogues ongoing · Cash revenues increased 2 per cent vs. Q1 ‘22, while cash EBITDA decreased 10 per cent · Leverage ratio is up to 4.2x, driven by adverse currency movements and lower RTM cash EBITDA · Results decline and recent increase in non-production costs to be addressed through SEK 0.6 bn cost reduction program · We look forward to detail our strategic priorities in a Capital Markets Day on 13[th] September
Financial results in brief, January-March 2023 (January-March 2022)
- Cash revenues increased to SEK 5,901 M (5,792)
- Cash EBITDA decreased to SEK 2,728 M (3,035)
- Adjusted revenues increased to SEK 4,524 M (4,471)
- Adjusted EBIT decreased to SEK 1,068 M (1,471)
- Q1 EPS was SEK 0.19 (4.57)
- Q1 Adjusted return on Portfolio Investments 13 per cent (13)
- Available liquidity at the end of the quarter was SEK 17 bn (20)
Presentation of the interim report
Andrés Rubio, President & CEO and Michael Ladurner, CFO, will present the results and answer questions in an audiocast with telephone conference at 9:00 a.m. CET. The conference will be held in English.
To participate via audiocast, please use this link
To participate via teleconference, please register here
Comment by President & CEO Andrés Rubio
“Q1 2023 was a seasonally slow quarter, with the results highlighting the economic and operational challenges we are facing across our footprint. Cost of living has increased materially and mortgage interest rates have more than doubled in the last twelve months. Despite consumers’ drop in disposable income and our operational challenges, our servicing revenues rose 2 per cent compared to last year and we collected in line with our expectations on our investment portfolios. However, I am not satisfied with the current performance nor the recent meaningful increase in non-production costs, both centrally and locally, and therefore we are initiating today a cost reduction program of SEK 0.6 billion.
To address the fundamental challenges to our business, we are accelerating the journey we started at the beginning of 2023 to Simplify & Focus plus Grow & Transform our company. We have determined that, while having extracted meaningful benefits from centralisation, ONE Intrum has gone too far in concentrating both the management and operations of our business. I believe in a more balanced global vs. local business model, driving benefits of centralisation while empowering our local teams who directly interact with our clients and customers.
Our social impact is just as important as ever. We are continuously helping customers to become debt free with Intrum and in the last twelve months we resolved 4.4 million customers’ debt and settled 8.9 million cases. During the last twelve months, we collected SEK ~76 billion for our clients and SEK ~13 billion on our own portfolios for a record SEK 89 billion. The importance (economically and socially) of efficient credit management services rises meaningfully in a weaker economic environment, supporting economic activity and fair allocation of resources in society at large and supporting re-entrance of our clients’ customers into the financial ecosystem.
To Simplify & Focus plus Grow & Transform, we are recasting and broadening the transformation of our business, which will allow us to more appropriately address local markets’ needs and drive shareholder returns. To date, we have improved across several areas with global hubs unlocking scale effects and enabling data and tech-driven processes to drive top-line growth and improve cost efficiency.
We will provide a detailed overview of our medium-term full potential and associated financial trajectory at the upcoming capital markets day on 13th September. In the meantime, given the current environment and our recent performance, we must strive to do more with less.“
For further information, please contact:
Emil Folkesson, Head of CFO Office & Investor Relations Director
+46 707 44 69 82
ir@intrum.com
This information is information that Intrum AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 07.00 CET on 27 April 2023.