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INTERIM REPORT JANUARY-SEPTEMBER 2013

Third quarter

  • Consolidated net revenues for the third quarter of 2013 amounted to SEK 1,135 M (1,001).
  • Operating earnings (EBIT) amounted to SEK 330 M (271). Operating earnings include revaluations of purchased debt portfolios amounting to SEK –2 M (7).
  • The operating margin was 29 percent (27), both including and excluding revaluations of purchased debt portfolios.
  • Net earnings for the quarter amounted to SEK 222 M (177) and earnings per share were SEK 2.79 (2.21).
  • Disbursements for investments in purchased debt amounted to SEK 692 M (299).
  • Cash flow from operating activities amounted to SEK 647 M (482).

Comment by President and CEO Lars Wollung

Intrum Justitia enjoyed continued favorable development in the third quarter of 2013. Revenues increased by 13 percent and the operating margin strengthened to 29 percent. Operating earnings rose by 22 percent compared with the year-earlier period, adjusted for revaluations of purchased debt portfolios and currency effects. Cash flow from operations increased by 34 percent to SEK 647 M and, on a rolling 12-month basis, earnings per share rose by 32 percent.

The Financial Services business line developed well during the quarter. Investments in purchased debt amounted to SEK 692 M, an increase of 131 percent compared with the preceding year. The increase in investment is primarily explained by an increase in acquisitions of portfolios from the financial sector. The return on receivables was 19 percent – well above the target of 15 percent. After slightly more than ten years of investments in receivables, we now have a stable and well-diversified portfolio, both in terms of geography and sectors.  

Our Credit Management service line showed a continued stable trend in the third quarter. Adjusted for currency effects, revenues rose by 4 percent – an increase driven primarily by increased volumes from the Group’s own portfolios of receivables. In the long term, the service line’s growth will be generated through continued investments in receivables, a continued focus on generating higher volumes from external clients and continuously improved internal processes and efficiency in collection.

Our venture to broaden our service offering with new services in factoring, as well as payment and financing solutions for e-trade, is developing as planned and represents, in the long term, a good addition to the established service offering in Credit Management and Financial Services.

Over the quarter, our three regions showed a continued positive trend. The favorable trend with regard to investments in receivables generates profitable growth for our regions which contributes to strong operating margins. 

Presentation of the Interim Report

The interim report and presentation material are available at www.intrum.com > Investor relations. President & CEO Lars Wollung and Chief Financial Officer Erik Forsberg will comment on the report at a teleconference today, 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)8 519 993 62 (SE) or +44 (0)207 660 20 78 (UK).