Intrum’s year-end announcement 2020
Intrum announced its year-end announcement for 2020 on 28 January 2021 at 7:00 a.m. CET. The report was presented in an audio cast with telephone conference at 9:00 a.m. CET the same day.
Highlights of the report
- Highly resilient performance in Q4, despite challenging operating conditions
- Credit Management Services positioned for growth with strong sales and record pipeline
- Strong cash returns in recovering Strategic Markets
- Impressive performance in Portfolio Investments, investment levels at replenishment rate with attractive returns
- Accelerating towards ONE Intrum
Fourth quarter, October-December 2020
- Cash Revenues amounted to SEK 5,601 M (5,751).
- Cash EBITDA amounted to SEK 3,124 M (3,063).
- Cash EBIT amounted to SEK 1,523 M (1,419).
- Cash RoIC was 8.7 per cent (7.7) for the quarter.
- The leverage ratio fell to 4.0x (4.3x) for the quarter.
- Available liquidity at the end of the quarter was SEK 17 billion.
- Adjusted EBIT amounted to SEK 1,611 M (1,821). Items affecting comparability totalled SEK -411 M (-3,958).
Full year 2020
- Cash Revenues amounted to SEK 21,377 M (20,160).
- Cash EBITDA amounted to SEK 11,607 M (11,444).
- Cash EBIT amounted to SEK 5,580 M (4,618).
- The Cash ROIC for the full year increased to 7.7 per cent (6.4).
- Adjusted EBIT amounted to SEK 5,738 M (6,208). Items affecting comparability totalled SEK -1,043 M (-4,148).
- The year's adjusted portfolio investments amounted to SEK 5,129 M (7,556). The annual investment pace was at replenishment level and made at returns above pre-Covid levels. The return on portfolio investments was 12 per cent (15).
- Cash EPS amounted to SEK 26.96 (14.81) for the full year.
The Board of Directors of Intrum AB proposes that the Annual General Meeting distribute a dividend to the shareholders of SEK 12.0 per share (11.0), corresponding to a total of SEK 1,450M (1,332).
Comment by President and CEO Anders Engdahl
“The fourth quarter continued to highlight the resilience of our business in the context of the second wave of the pandemic, in aggregate leading to a somewhat stronger than expected finish to a challenging year. Under these circumstances, I am very pleased that we have managed to deliver a cash EBIT up 7 per cent for the quarter and 21 per cent year on year.
We remain optimistic as regards the medium-term outlook for Intrum. In the short term we see continued heightened uncertainty but as pandemic effects recede, we expect both normalisation and increased demand for our services and supply of portfolios at attractive returns to support the outlook.
At Intrum’s Capital Markets Day in November 2020 we presented our transformation program - ONE Intrum. The creation of ONE Intrum entails implementing one global digital end-to-end collection process based on a common global infrastructure. During Q4 2020, the central production platform became available for all our SME clients, which is a great initial step demonstrating the global capabilities and impact ONE Intrum will have for our clients.
I look forward to the next steps on this very exciting transformation journey to ONE Intrum which will set a new industry standard. Tomorrow’s Intrum will be a simple, scalable, digital, relevant and growing company.”
President and CEO Anders Engdahl comments Intrum's year-end announcement for 2020.