Interim report January-March 2019

Significant step-up in result year on year

First quarter, January-March 2019:

  • Consolidated net revenues increased to SEK 3,752 M (3,115)

  • Adjusted EBIT increased to SEK 1,350 M (973)

  • Net Debt / Cash EBITDA decreased to 4.0x (4.3x)

  • Portfolio investments amounted to SEK 1,277 M (1,373). The return on portfolio investments increased to 16 per cent (15)

  • Net profit increased to SEK 739 M (364), and earnings per share were SEK 5.63 (2.77)

  • The cash flow from operating activities amounted to SEK 1,352 M (1,448)

Comment by President & CEO Mikael Ericson

“We have begun 2019 in a positive way and the large step up in the results is clearly in line with our 2020 target trajectory. Adjusted operating profit increased by 39 per cent, largely due to our partnership with Italian Intesa Sanpaolo contributing in the way we had hoped and anticipated, but also as a result of a stable contribution from our other operations. For the first time the rolling 12-month cash EBITDA exceeded SEK 10 billion, which means that leverage has dropped to 4.0x. ”

“Our portfolio business delivers another strong quarter, with a return of 16 per cent. Revenues from our credit management operations (CMS) are 8 percent higher than last year, but with a moderate margin due to the ramp up phase in Italy and on-going challenges in Spain. Throughout 2019 we will address the specific causes of the current weakness in these markets, as a step-up in CMS margins is one of the key elements of delivering our 2020 targets. Excluding Italy and Spain, the Group margin would have been up 1ppt year on year. ”

“We are experiencing a continued active European market, not least in the southern parts. Regulatory developments continues to put pressure on banks to address the challenges of the non-performing exposures on their balance sheets, which creates a momentum in our industry. We look forward to further positive developments for Intrum throughout 2019 as we steadily close in on our 2020 targets.”

For further information, please contact:

Thomas Moss, Group Business Control & Investor Relations Director,
tel: +46 8 546 102 02
Louise Bergström, Head of Investor Relations tel: +46 8 546 103 42

This information is such that Intrum AB (publ) is required to disclose pursuant to the EU’s markets abuse directive and the Securities Markets Act. The information was released for publication on April 26 2019 at 07.00 a.m. CET.